The drop in the share prices of stocks in certain TSX sectors is giving dividend investors a chance to pick up some attractive yields for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio on generating dividend income.
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Enbridge
Enbridge (TSX: ENB) is down more than 17% from the 2026 high. The pullback has driven up the dividend yield from the energy infrastructure and utilities giant to 5.9%.
Enbridge has a $41 billion secured capital program that will see the company put roughly $10 billion per year in new assets into service over the medium term. The revenue and cash flow boost from the investments should raise distributable cash flow enough to maintain steady dividend increases. Enbridge raised the dividend in each of the past 31 years. Management is also pursuing growth through acquisitions with more than US$3 billion announced in recent weeks, as consolidation continues in the American oil infrastructure sector.
TC Energy
TC Energy (TSX: TRP) is another Canadian energy infrastructure powerhouse. The company spun off its oil pipelines business two years ago to focus mainly on natural gas transmission and power generation. TC Energy operates 94,000 km of natural gas pipelines and 650 billion cubic feet of natural gas storage capacity in Canada, the United States, and Mexico. Natural gas demand is rising as new gas-fired power generation facilities are being built to supply electricity to AI data centres.
TC Energy is investing about $6 billion per year across its capital program and could see the backlog grow considerably in the near term. The company is close to a decision to double the capacity of its coastal GasLink pipeline that currently delivers natural gas to the LNG Canada export facility in British Columbia. TC Energy is also in discussion with government stakeholders to potentially build a new natural gas pipeline that would move natural gas from Canadian producers in Alberta to Churchill, Manitoba where a new liquefied natural gas (LNG) export terminal could be built to ship LNG to Europe via Hudson Bay.
TC Energy trades near $83 per share at the time of writing compared to $100 at the 2026 high. Investors who buy the dip can get a dividend yield of 4.2% right now. TC Energy has increased the dividend for 26 consecutive years.
BCE
BCE (TSX: BCE) is a contrarian pick, as the stock has been under pressure for most of the past four years. High interest rates, lower immigration, and price wars have impacted the mobile business, while falling ad sales have hit the media group. Management cut the dividend by more than half in 2025 to preserve cash. That move initially stabilized the decline in the stock, although recent weakness has brought the share price to a new 12-month low of $29 per share.
At this price, investors can get a 6% dividend yield. The reduced dividend should be safe, and there is reason for some upside optimism over the long run. BCE’s purchase of fibre internet company in the United States last year opens up potential for subscriber growth that isn’t available in the domestic market. At home, the company is building large AI data centres to meet demand from government and corporate clients who want to ensure data sovereignty.
A rebound might not be on the way in the near term, but investors get paid well to wait.
The bottom line
Additional downside is certainly possible, but Enbridge, TC Energy, and BCE now offer attractive dividend yields and a shot at a decent long-term upside on a recovery. If you have some cash to put to work, these stocks deserve to be on your dividend radar.
