Canadian retirees and other dividend investors are searching for reliable high-yield stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating reliable passive income.
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Enbridge
Enbridge (TSX: ENB) is a long-running favourite among income investors for its high yield and steady dividend growth. The company raised the distribution in each of the past 31 years. More hikes should be on the way.
Enbridge continues to grow through a combination of acquisitions and development projects as it positions itself to benefit from rising demand for oil and natural gas. The most recent asset purchases have focused on U.S. oil infrastructure that will complement the existing transmission, storage, and export capabilities that are in place in the country. Enbridge moves roughly 30% of the oil that is produced in Canada and the United States, and owns an oil export terminal in Texas. International demand for American and Canadian oil is on the rise as countries around the globe seek out reliable long-term supplies to offset the disruptions that have occurred as a result of the closure of the Strait of Hormuz in the Middle East and sanctions placed on Russian oil in the past few years.
On the natural gas side, both the domestic and international markets are enjoying strong demand. At home, new gas-fired power generation facilities are being built to supply power to AI data centres that consume massive amounts of electricity. International buyers are also scrambling to secure stable natural gas supplies. Exports of liquefied natural gas (LNG) have soared in recent years in the United States as new export facilities reached completion. In Canada, the process is in its early stages with one major terminal now in operation and a number of others under construction or in the planning stages. In fact, Enbridge is a partner in the Woodfibre LNG export facility nearing completion on the coast of British Columbia.
Enbridge has natural gas distribution utilities in Canada and the United States, as well as strategic transmission and storage infrastructure in the two countries.
Enbridge recently reported solid Q3 2026 financial results. Adjusted earnings came in at $1.1 billion, or $0.49 per share in the quarter, compared to $1.0 billion, or $0.46 per share in the same timeframe last year. Management reaffirmed the 2026 guidance, as well as the medium-term financial outlook.
Enbridge’s current $38 billion secured capital program is expected to deliver steady growth in earnings and distributable cash flow over the next few years as the company targets roughly $10 billion in annual capital investments. Revenue and profits from the new assets, as well as contributions from acquisitions, should support ongoing dividend increases.
Enbridge’s share price pulled back in recent months amid concerns about rising interest rates. Sticky inflation could force the central banks to raise rates again in the coming year. This would potentially be a headwind for the stock.
Enbridge trades near $66 per share at the time of writing compared to $80 earlier in the year. Investors who buy ENB at the current price can get a dividend yield of 5.9%.
That’s well above the current rate of inflation in Canada, while future dividend increases will boost the yield on the initial investment.
The bottom line
Near-term turbulence is possible, but Enbridge pays an attractive dividend that should continue to grow. If you have some cash to put to work in a portfolio focused on passive income, this stock deserves to be on your radar.
