Canadian investors are searching for ways to get better returns on their investments to offset the rising cost of living. One popular strategy to boost investment income involves owing high-yield TSX dividend stocks inside a self-directed Tax-Free Savings Account (TFSA).
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Enbridge
Enbridge (TSX: ENB) is a giant in the North American energy infrastructure industry with a current market capitalization of close to $150 billion.
The company has the financial firepower to drive growth through a combination of strategic acquisitions and internal development projects. Enbridge recently announced deals worth more than US$3 billion in the United States that will add strategic oil pipeline assets to the existing American portfolio. The return to oil pipeline deals follows a string of other U.S. purchases, including the US$14 billion acquisition of three natural gas utilities in 2024 and a US$3 billion deal five years ago that saw Enbridge buy an oil export terminal in Texas. The investments helped diversify Enbridge’s revenue stream while providing new expansion opportunities.
On the development front, Enbridge is working through a $41 billion capital program with investments occurring across the various business lines. As the new assets are completed and go into service, Enbridge expects to deliver distributable cash flow growth of 5% per year over the medium term. This should enable the company to maintain dividend hikes. Enbridge raised the dividend in each of the past 31 years.
The share price is down to $67 at the time of writing, compared to $80 a few months ago. Investors who buy the dip can pick up a dividend yield of close to 5.8% right now.
BCE
BCE (TSX: BCE) investors haven’t had much to cheer about over the past four years. The stock dropped from $74 in 2022 to the current price around $28. BCE slashed its dividend in 2025 by more than 50% in an effort to shore up the balance sheet as rising interest rates and revenue headwinds put pressure on cash flow.
Low immigration, price wars, and high borrowing costs remain headwinds for the company in the near term. That being said, the stock price likely already reflects these issues and BCE is making investments that should support a long-term recovery. The company acquired Ziply Fiber last year, an internet services provider in the United States, that has good scope for growth. At home, BCE is building data centres in response to high domestic demand for sovereign data security. Government and corporate clients are searching for long-term solutions to keep their data on Canadian soil. This is a new revenue stream for BCE that should help offset some of the declines in the legacy business units.
Dividend growth might not return for some time, but the current distribution should be safe. Investors who buy BCE at the current share price can pick up a dividend yield of more than 6%.
The bottom line
Enbridge and BCE are industry leaders paying high-yield dividends. If you have some cash to put to work in a portfolio focused on dividend income, these stocks deserve to be on your radar today.
