2 High-Yield Stocks Safe Enough That I’d Put Them in My TFSA

These 2 TSX dividend stocks pay yields near 4% to 5% and just posted double digit growth. Here’s why I’d trust them with my precious TFSA room for years.

Key Points
  • Brookfield Infrastructure grew its cash flow per unit by 10% last quarter and still pays out only about half of what it brings in.
  • TC Energy's earnings jumped 12%, and management now expects to finish 2026 at the top of its guidance range.
  • Both companies earn most of their money from long contracts and regulated assets.

The tax-sheltered status of the TFSA (Tax-Free Savings Account) makes it an attractive option to own blue-chip dividend stocks. Typically, owning quality dividend stocks helps you build a low-cost passive income stream and boost returns through long-term capital gains.

Two such Canadian dividend stocks I would like to own in my TFSA include Brookfield Infrastructure (TSX: BIP.UN) and TC Energy (TSX: TRP).

Start line on the highway

Source: Getty Images

Brookfield Infrastructure is a TSX dividend stock that owns the economy’s toll roads

Think of Brookfield Infrastructure as a landlord for key infrastructure projects such as railways, ports, pipelines, utilities, and data centres.  

In the second quarter, it generated funds from operations (FFO) of US$702 million, or US$0.89 per unit, an increase of 10% year over year.

FFO tied to the data centre segment rose 36%, followed by midstream at 17%. Meanwhile, the board declared a quarterly distribution of US$0.46 per unit, a 6% increase from the prior year, which indicates a payout ratio of roughly 50%.

Notably, the TSX dividend stock offers a yield of 5.2% in September 2026.

Brookfield sells mature assets and recycles the capital into higher growth projects. In 2026, it raised $1.2 billion from asset sales.

When an analyst asked how Brookfield avoids overpaying in the artificial intelligence (AI) gold rush, CEO Sam Pollock gave a refreshingly blunt answer.

“The main guardrail, to be honest, is the fact that all these projects require a significant amount of debt capital. In order to source that debt capital, you need to have high quality counterparties,” he said.

In other words, lenders force Brookfield to work only with the biggest, safest customers.

One TFSA note: BIP is a Bermuda partnership that pays in U.S. dollars. Unitholders vote on October 14 on a plan to combine BIP and BIPC into a single corporation. Check the tax treatment with an adviser before you buy.

TC Energy is a top dividend stock riding North America’s gas boom

TC Energy’s story is about natural gas, and much more.

The company now expects North American gas demand to grow by about 51 billion cubic feet per day by 2035, 40% above last year. More than half of the increase comes from power generation, tied to AI data centres.

Comparable EBITDA (earnings before interest, tax, depreciation, and amortization) rose 12% in Q2. Management now targets the upper end of its $11.6 billion to $11.8 billion EBITDA range for the year.

“Our confidence is driven not only by the scale of the opportunities we see ahead, but by our ability to consistently execute,” CEO Francois Poirier told analysts.

The next quarterly dividend is $0.88, payable October 30, and the forward yield was about 4.1% at a share price near $86.

What could go wrong with these TSX dividend stocks

Neither stock is bulletproof.

Brookfield is leaning into AI, and Pollock admitted capital markets have recently pulled back. Local pushback against data centres is growing too. On paper, BIP also reported a net loss of US$24 million for the quarter, largely driven by accounting charges like depreciation.

TC Energy faces a funding squeeze between 2029 and 2031, before Bruce Power’s cash flow fully kicks in. Management has promised to keep debt at or below 4.8 times EBITDA.

In a TFSA, the goal is to find a portfolio of companies that are poised to grow dividends at a steady pace over time, which enhances the effective yield-at-cost.

Own these stocks, reinvest the payouts, and let the tax-free compounding do the heavy lifting. This strategy works best when you keep a diversified list of high-quality ideas ready for every new dollar of contribution room.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

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