The recent drop in the share prices of some top TSX dividend-growth stocks is giving investors who missed the rally over the past three years a chance to pick up better yields for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and long-term capital growth.
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TC Energy
TC Energy (TSX: TRP) trades near $86 per share at the time of writing, down about $14 from the 2026 highs. The dip has pushed the dividend yield up to 4.1%.
TC Energy surged over the past two years, supported by the completion of two major pipeline projects as well as lower interest rates. In Canada, the company finally completed its 670km Coastal GasLink natural gas pipeline that took much longer than anticipated due to delays caused by the pandemic, protests, and contractor disputes. The total cost came in at around $14.5 billion, which was more than double the original budget. TC Energy had better luck with its 715 km Southeast Gateway natural gas pipeline in Mexico. It was finished on time and 13% below budget, costing just US$3.9 billion.
These large projects are now able to deliver cash flow to support dividends and debt reduction, while opening up capital room for TC Energy to move ahead with the broader growth program that is expected to be about $6 billion per year over the medium term.
A surge in global demand for Canadian liquefied natural gas (LNG) is helping justify the cost and effort that went into getting Coastal GasLink built. The pipeline carries natural gas from Canadian producers to the new LNG Canada export facility on the coast of British Columbia. Phase two expansions of both LNG Canada and Coastal GasLink are being planned, driven by a strong outlook for international LNG sales.
In the domestic markets, TC Energy’s extensive pipeline networks move about 30% of the natural gas used in North America. The company anticipates demand will rise considerably in the coming years as new gas-fired power generation sites are built to supply electricity to AI data centres.
TC Energy raised the dividend in each of the past 26 years. Cash flow generated from the capital program should enable the board to continue increasing the distribution.
Canadian National Railway
Canadian National Railway (TSX: CNR) has increased its dividend annually for three decades. The rail giant’s stock price is still up 23% in 2026, but has pulled back from a high around $185 to the current price near $166 per share.
Investors should brace for ongoing volatility, as a trade deal between the United States and Canada remains elusive and high oil prices threaten to drive up inflation and potentially push the economy into a recession.
On the upside, Canada’s efforts to expand exports to other countries should bode well for CNR in the coming years. The company’s coast-to-coast rail network enables it to move everything from coal, crude oil, and cars to fertilizer, forestry products, and finished goods from producers to ports.
CN also has extensive rail lines that run south into the United States. Trade with the U.S. remains very important for Canada, even in this difficult environment. CN’s network plays an important role in the smooth operation of the economy in both countries.
The rail firm remains very profitable, despite the trade and economic headwinds. CN continues to generate solid free cash flow and is returning profits to shareholders through buybacks and dividend increases.
The bottom line
TC Energy and Canadian National Railway pay good dividends that should continue to grow. If you have some cash to put to work, these stocks deserve to be on your radar.
