Canadian pensioners and other dividend investors are searching for good TSX stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating high-yield passive income.
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Enbridge
Enbridge (TSX:ENB) trades close to $70 per share at the time of writing. The stock’s recent retreat from its 2026 high of around $80 is giving investors who missed the big rally over the past two years a chance to pick up a nice 5.5% yield.
The board has raised the dividend in each of the past 31 years, and more dividend growth should be on the way. Enbridge expects its $41 billion capital program to generate 5% annual increases in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) as well as a 5% growth in distributable cash flow (DCF) over the medium term.
Enbridge diversified its assets in recent years to include export facilities through the US$3 billion purchase of an oil export terminal in Texas and its stake in the nearly completed Woodfibre liquefied natural gas (LNG) export facility in British Columbia. In addition, Enbridge spent US$14 billion to acquire three natural gas utilities and bulked up its renewable energy group.
Domestic and international demand for North American oil and natural gas is on the rise. This should help keep Enbridge’s pipelines full and its export sites busy.
TC Energy
TC Energy (TSX:TRP) trades for close to $87 per share at the time of writing, down from $100 last month. The drop has pushed the dividend yield back up to 4%, which is an attractive return right now for income investors.
TC Energy, like Enbridge, is set to benefit from rising natural gas demand in Canada and the United States as new gas-fired power generation facilities are being built to deliver electricity to power-hungry data centres. TC Energy’s extensive transmission network moves about 30% of the natural gas that is used in North America.
On the export side, international buyers are looking to secure reliable LNG deliveries from Canada and the United States after wars in Ukraine and Iran disrupted established supply networks. TC Energy has already put the new Coastal GasLink pipeline into service and is now planning phase two, which would double the capacity. Coastal GasLink connects Canadian natural gas producers to the new LNG Canada site on the coast of British Columbia.
TC Energy has a number of other growth projects on the go in both Canada and the United States, with annual capital investments trending around $6 billion for the next few years. As the new assets are completed and go into service, the boost to revenue and cash flow should enable ongoing dividend increases. TC Energy has raised the dividend in each of the past 26 years.
The bottom line
Enbridge and TC Energy look attractively priced after the recent pullbacks and pay good high-yield dividends that should continue to grow. Near-term volatility should be expected, but additional downside would be an opportunity to add to the positions.
If you have some cash to put to work in a TFSA focused on generating steady and growing tax-free passive income, these stocks deserve to be on your radar.
