Investing in growth stocks could be exciting, but I think one of the most satisfying ways to build long-term wealth is to own businesses that regularly share their profits with investors. Inside a Tax-Free Savings Account (TFSA), that approach becomes even more appealing because eligible Canadian dividends could generally accumulate without Canadian income tax.
In this article, I’ll explain why dividend investing inside a TFSA can be rewarding and highlight two top Canadian dividend stocks long-term investors could consider right now.
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Why Canadians like dividend income in a TFSA
One of the biggest reasons Canadians find dividend investing inside a TFSA so attractive is that it allows their investment income to compound without Canadian income tax eating into the returns.
Instead of spending the dividends immediately, investors can reinvest them to buy additional shares that could generate even more income in the future. And if we add regular dividend increases to that equation, the compounding effect could become surprisingly powerful over a couple of decades.
As TFSA withdrawals are generally tax-free, this strategy becomes even more appealing for Canadians planning their retirement income.
Now, let me quickly talk about two fundamentally solid stocks that I believe could help investors make the most of this tax-free compounding opportunity.
Enbridge stock
Enbridge (TSX: ENB) could arguably be one of the most attractive Canadian dividend stocks for investors looking to build a growing stream of tax-free income. Its vast energy infrastructure network generates recurring cash flow from assets that play an essential role in meeting North America’s energy needs.
At the time of writing, ENB stock traded at $67.37 per share with a $150.2 billion market cap and an attractive 5.8% annualized dividend yield.
In the second quarter, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose nearly 3% year-over-year (YoY) to $4.8 billion, helped by higher regulated gas transmission and utility revenues. Its cash from operations jumped 27% YoY to $4.1 billion, while distributable cash flow (DCF) grew about 2% to $2.9 billion.
Meanwhile, Enbridge is also investing in future growth. Its secured project backlog reached $41 billion by June. In August, it announced a US$600 million deal to acquire Salt Creek Midstream assets and a $2.7 billion partnership with KKR and Apollo to fund pipeline expansions.
With a quarterly dividend of $0.97 per share and a sizeable project pipeline, Enbridge could be a rewarding TFSA holding for income-focused investors.
TC Energy stock
Another appealing Canadian dividend stock that could help TFSA investors build lasting wealth is TC Energy (TSX: TRP). Also headquartered in Calgary, it operates natural gas pipelines across Canada, the United States, and Mexico, along with power generation assets.
TRP stock has rallied 22% over the last year and currently trades at $87.32 per share with a $91 billion market cap. At this market price, it offers a 4% annualized dividend yield.
Its improving financial performance could be one of the main reasons TRP stock has been climbing lately. In the second quarter, TC Energy’s comparable EBITDA rose about 12% YoY to $2.9 billion, backed mainly by stronger U.S. and Mexico pipeline operations and power assets.
In the first half of 2026, the company approved roughly $3 billion of growth projects, including U.S. pipeline expansions serving gas-fired power plants and data centre demand. Those U.S. expansions have 20-year take-or-pay contracts, supporting revenue visibility.
Given its dependable quarterly dividend and promising expansion plans, TC Energy could be another attractive long-term TFSA income stock.
