Canadian pensioners are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) focused on generating passive income.
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Fortis
Fortis (TSX: FTS) is a dividend-growth champion. The Canadian utility company has increased its dividend in each of the past 52 years. Even better, the board intends to boost the payout by 4% to 6% annually through at least 2030.
The stock has pulled back a bit from the 2026 high, giving investors who missed the big rally over the past two years a chance to buy a decent dip. Fortis trades near $76 per share at the time of writing, compared to $83 earlier this year.
The company has a $28.8 billion capital program on the go that is expected to increase the rate base from roughly $42 billion to nearly $58 billion over five years. Fortis has operations in Canada, the United States, and the Caribbean with businesses that include power generation facilities, electricity transmission networks, and natural gas distribution utilities. Revenue from these operations tends to be predictable and reliable due to the essential nature of the products and services. This makes Fortis a good stock to consider if you think the economy is headed for a rough patch.
As the new assets on the development plan are completed and go into service, the increase in revenue and earnings should support the dividend growth. Fortis has a yield of just 3.3% right now, but the dividend hikes will steadily boost the return on the initial investment, and the stock should deliver solid long-term total returns.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is getting a nice boost from the jump in energy prices this year. West Texas Intermediate (WTI) oil trades for US$100 per barrel at the time of writing. CNRL’s breakeven point is in the US$40 to $45 per barrel range, so it is gushing profits right now.
Energy prices can be volatile, but CNRL has been able to maintain steady dividend growth through the cycles. In fact, the board has increased the distribution for 26 consecutive years, including during the financial crisis and the pandemic.
CNRL has the balance sheet strength to make strategic acquisitions while still driving production growth through drilling and capital investments. The company has a diversified portfolio of assets, including oil sands, conventional heavy oil, conventional light oil, offshore oil, natural gas, and natural gas liquids. This gives management capital flexibility.
Increased pipeline capacity in recent years has enabled CNRL to sell more product to global buyers. Additional capacity could be on the way as Canada pivots to become an energy superpower.
Enbridge
Enbridge (TSX: ENB) raised its dividend in each of the past 31 years. The stock is down in recent weeks, currently trading near $67 compared to the 2026 high of around $80. Investors who buy the dip can pick up a dividend yield of 5.8%.
Enbridge continues to expand through acquisitions. It just announced a US$2.55 billion deal to buy Tallgrass Energy assets in the American Rockies region. This follows a US$600 million deal in recent weeks to buy oil infrastructure assets in Texas and New Mexico.
Enbridge issued $2.6 billion in stock at $66.85 per share through a bought deal to help pay for the latest deal. This is why the share price extended its recent slide.
Enbridge is working on a $41 billion secured capital program that will boost distributable cash flow by about 5% per year over the medium term. The new assets, along with contributions from acquisitions, should enable the company to maintain dividend growth.
The bottom line
Fortis, CNRL, and Enbridge pay good dividends that should continue to grow. If you have some cash to put to work in an income portfolio, these stocks deserve to be on your radar.
