When the market is rallying, I sometimes find myself wondering whether I’m missing something by not buying the stocks everyone seems too excited about. Many investors know that feeling, especially when growth stocks keep moving higher, and market headlines focus on stocks delivering massive returns.
But when it comes to Tax-Free Savings Account (TFSA) investing, I’d rather think about what I’d be comfortable owning for years instead of what might jump next week or next month. Personally, I like businesses that could keep generating cash whether their share prices are moving up, down, or just going sideways. And if they pay decent dividends along the way, that’s even better.
In this article, I’ll talk about a Canadian dividend stock and tell you why it’s one I’d recommend considering for long-term TFSA passive income.
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A top Canadian dividend stock for TFSA passive income
If your goal is to turn this year’s TFSA contribution into a steady stream of long-term passive income, Brookfield Infrastructure Partners (TSX: BIP.UN) would be one of my top picks.
This Bermuda-headquartered company owns and operates essential infrastructure assets across major global markets, including the United States, Europe, and Asia Pacific. Its diversified operations mainly focus on utilities, transportation, midstream energy infrastructure, and data infrastructure.
After gaining about 7% over the last year, Brookfield Infrastructure stock currently trades at $51.46 per share with a market cap of $23.6 billion. At this market price, it offers an attractive annualized dividend yield of 4.9%, with distributions made every quarter.
What’s even more interesting is that this TFSA-friendly dividend stock has also delivered impressive long-term capital appreciation as it has surged 74% over the last three years.
Why Brookfield’s business makes it a great TFSA income stock
While Brookfield Infrastructure’s recent share-price gains and attractive yield may catch investors’ attention, its real appeal for a TFSA lies in the businesses that could sustain passive income for years to come.
That strength comes partly from its mix of regulated and contracted infrastructure operations. Electricity and gas networks, ports, railroads, and pipelines support everyday economic activity, while data centres and fibre networks connect businesses. Having revenue streams across these areas gives Brookfield more than one way to generate cash, even when demand or economic conditions change in any single market.
Recent financial growth supports its payouts
In the second quarter, Brookfield Infrastructure’s revenue rose about 19% year-over-year (YoY) to US$6.5 billion. More importantly for income investors, its funds from operations (FFO), a measure of operating performance, climbed 10% YoY.
In the latest quarter, the company benefited from inflation-linked utility rates, stronger transport and midstream volumes, and over US$1.5 billion in newly commissioned projects. Its data segment’s FFO also jumped 36% YoY to US$154 million, helped by an acquired U.S. fibre network and data centre development activity.
More growth could strengthen TFSA income
Brookfield Infrastructure recently expanded its Bloom Energy power framework from US$5 billion to US$25 billion in potential capital spending, while advancing artificial intelligence (AI) infrastructure opportunities in Kentucky and South Korea. It also generated nearly US$1.2 billion from asset sales so far in 2026 to help fund new investments.
That combination of rising FFO, a higher distribution, and new infrastructure opportunities is why I’d consider this stock for TFSA passive income. While putting an entire contribution into one stock does carry risk, Brookfield Infrastructure offers an appealing balance of current income and potential long-term growth, making it worth considering.
