Canadian seniors are looking for good TSX dividend shares to purchase for a self-directed Tax-Free Financial savings Account (TFSA) portfolio centered on producing dependable and rising passive earnings.
Within the present market circumstances, the place share costs have soared and financial weak spot could possibly be on the horizon, it is sensible to contemplate shares with lengthy monitor data of delivering dividend progress all through the financial cycle.
Enbridge
Enbridge (TSX:ENB) is without doubt one of the largest firms on the TSX with a present market valuation of practically $149 billion. The inventory trades for $68 on the time of writing in comparison with $44 two years in the past.
Decrease rates of interest fuelled many of the acquire over the previous yr. That development might proceed into 2026 after the Financial institution of Canada’s newest price minimize and market expectations for additional reductions because the central financial institution switches its focus from combating inflation to supporting the financial system.
Enbridge makes use of loads of debt to fund its progress initiatives, together with acquisitions and natural tasks. Decrease curiosity bills can increase income and liberate extra cash for debt discount and distributions to shareholders.
Enbridge purchased three American pure gasoline distribution utilities in 2024. The corporate can also be engaged on a $32 billion capital program. The brand new property will ship regular progress in distributable money circulation that ought to allow the board to proceed elevating the dividend over the subsequent few years. Enbridge has elevated its distribution yearly for the previous three many years. Traders who purchase ENB inventory on the present stage can get a dividend yield of 5.5%.
Enbridge pivoted its capital investments away from main pipelines in recent times with acquisitions focusing on export and renewable power alternatives, together with the enlargement of the pure gasoline distribution division. Wanting forward, the Canadian authorities now desires oil and pure gasoline producers to search out new worldwide patrons in an effort to cut back reliance on the USA. This might doubtlessly result in a brand new main pipeline undertaking for Enbridge if present authorities roadblocks are eliminated.
Fortis
Fortis (TSX:FTS) is one other pure gasoline utility operator. The corporate additionally owns energy era and electrical energy transmission networks. Fortis hasn’t accomplished a big acquisition for a number of years, however consolidation within the utility sector might ramp up as borrowing prices decline.
Progress is presently coming from the $26 billion capital program. Fortis expects the speed base to rise from $39 billion in 2024 to $53 billion in 2029. As the brand new property are accomplished and go into service, the bounce in income and earnings ought to help deliberate annual dividend will increase of 4% to six% over 5 years.
Fortis raised the dividend in every of the previous 51 years, so buyers ought to really feel snug with the steering. The inventory’s dividend yield is 3.6% proper now. That’s decrease than buyers can get from different firms, however the dividend progress will steadily increase the yield on the preliminary funding.
Canada’s rising plan to construct a cross-country energy grid might current new progress alternatives for Fortis because of its experience within the development and operation of electrical transmission techniques.
The underside line
Enbridge and Fortis pay engaging dividends that ought to proceed to develop. If in case you have some money to place to work in a TFSA focusing on passive earnings, these shares should be in your radar.
