There’s no shortage of great long-term investments to add to a Tax-Free Savings Account (TFSA), where investment returns and distributions can compound tax-free. This makes the account a great place to park dividend stocks for the longer term.
The question for investors is, what dividend stocks should be part of a TFSA to allow that long-term growth to occur?
Here’s a look at two top dividend stocks that I would gladly hold in my TFSA for the next 20 years.
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Pick #1: Fortis
Utility stocks like Fortis (TSX:FTS) are the obvious long-term pick for investors looking at the best dividend stocks to hold for decades.
Fortis is one of the largest utilities in North America with operations across the U.S., Canada, and the Caribbean. Those operations are predominantly regulated, providing Fortis with a recurring and stable source of revenue.
That regulated model is a key reason why Fortis has become a top pick among income investors. The sheer necessity of electric and gas service persists across both strong and weak economic periods.
And it’s that stability that continues to provide investors with the most attractive element of Fortis, the dividend.
Fortis offers investors a quarterly dividend, which it has paid without fail while providing annual increases for over half a century.
For a TFSA investor with decades to let compounding work, this can provide a huge boost to any portfolio.
As of the time of writing, the yield on that dividend currently works out to a respectable 3.39%. That’s not the highest yield on the market, but the trade-off is the defensive business with annual increases that go back for decades.
Beyond its dividend, Fortis continues to invest in and expand its utility portfolio. Through a series of capital investments, Fortis is constantly growing its rate base, which supports future earnings and dividend growth.
For a TFSA investor with a long-term horizon, growth potential only furthers the appeal of this dividend stock.
Pick #2: Enbridge
Another great dividend stock for TFSA investors to consider right now is Enbridge (TSX:ENB). Enbridge is best known for its massive pipeline network, but the company also operates a natural gas utility and a growing renewable energy portfolio.
Enbridge’s operations generate current cash flow from long-term contracts and regulated utility assets.
In other words, Enbridge generates that recurring stable revenue stream regardless of which way oil prices move. And when factoring in the sheer volume of crude and natural gas that traverse Enbridge’s pipeline business, the company’s defensive appeal is highlighted.
In case you’re wondering, Enbridge transports one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Beyond its existing operations, Enbridge also has a massive project backlog of over $40 billion. That backlog includes a variety of new projects across those segments that will provide a revenue boost to the company.
Turning to income, Enbridge offers a quarterly dividend with a yield of 5.58% as of the time of writing. This makes Enbridge one of the better-paying options on the market.
And like Fortis, Enbridge has a long record of annual dividend increases. In late 2025, the company announced its annual dividend increase for 2026, marking its 31st consecutive annual bump.
Two dividend stocks built for long-term TFSA income
Fortis and Enbridge can play complementary roles in a TFSA. Fortis provides defensive utility exposure and a long history of dividend growth. Enbridge offers exposure to a diversified energy infrastructure portfolio that carries a higher yield.
As part of a TFSA portfolio, both stocks are great options that will provide income and growth that can last for decades.
Buy them, hold them ,and watch your income grow.
