Canadian dividend investors are searching for attractive stocks to add to their self-directed Tax-Free Savings Account (TFSA) focused on generating steady passive income.
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TC Energy
TC Energy (TSX: TRP) is down 13% from the 2026 high. The pullback that occurred in recent weeks is giving investors who missed the previous rally a chance to buy TRP at a discount and pick up a solid 4% dividend yield.
TC Energy is benefitting from a surge in natural gas demand, both in North America and around the globe.
The company’s natural gas transmission and storage infrastructure in Canada, the United States, and Mexico will play a key role in supplying natural gas to new gas-fired power generation plants being built to supply electricity to AI data centres.
Global demand for Canadian energy is also presenting opportunities. TC Energy plans to double the capacity of its Coastal GasLink pipeline that was completed just two years ago. It carries natural gas from Canadian producers to the LNG Canada export facility located on the coast of British Columbia.
TC Energy could also be involved in other new natural gas pipeline projects needed to move the fuel to additional new LNG export sites as part of Canada’s goal of becoming an energy superpower. Manitoba, for example, is evaluating the potential for shipping LNG from Churchill on Hudson Bay.
TC Energy already has an extensive capital program on the go that should drive steady revenue and cash flow growth to support ongoing dividend increases in the near term. TC Energy raised the dividend in each of the past 26 years.
BCE
BCE (TSX: BCE) cut its dividend by 56% last year in order to preserve cash flow to help reduce debt and fund investments in new projects that are key to the company’s turnaround plan. The stock slid from $74 in 2022 to below $30 last year as high borrowing expenses, price wars on mobile plans, and declining ad revenue in the media business impacted profits. At the time of writing, BCE trades near $32.50 per share.
BCE is betting on growth potential for fibre internet services in the Pacific Northwest of the United States. The company spent $5 billion to buy Ziply Fiber last year, using cash it received from the sale of its stake in Maple Leaf Sports and Entertainment. At home, BCE is investing billions of dollars in new sovereign AI data centres to meet demand from corporate and government clients who want to ensure their data remains on Canadian soil.
Investors will need to be patient. The core business still faces headwinds and it will take time for the new investments to deliver meaningful results, but most of the bad news is likely already reflected in the share price and the reduced dividend payment should be sustainable. Investors who buy BCE at the current share price can get a 5.4% dividend yield.
The bottom line
TC Energy and BCE trade at discounted prices and currently provide attractive dividend yields. If you have some cash to put to work in an income portfolio, these stocks deserve to be on your radar.
