You don’t should be wealthy to begin constructing passive revenue in Canada. You solely want the correct shares inside the correct account. Right here is my take: a $10,000 TFSA (Tax-Free Financial savings Account) break up between TELUS (TSX:T) and Enghouse Methods (TSX:ENGH) is without doubt one of the easiest, most low-maintenance methods to construct a rising tax-free revenue stream in 2026.
Let’s dive deeper.
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TELUS belongs in your TFSA proper now
TELUS is one in every of Canada’s largest telecom corporations, and its most up-to-date earnings name made a compelling case for revenue buyers.
- In 2025, TELUS reported document free money move of $2.2 billion, an 11% year-over-year improve.
- It goals to develop FCF by no less than 10% via 2028, enabling the Canadian telecom behemoth to cut back balance-sheet debt and reinvest in development tasks.
- TELUS added greater than 1.1 million mixed cell and stuck clients final 12 months. It was the fourth consecutive 12 months that the telecom large topped a million additions.
- Furthermore, its postpaid churn stood at 0.97%, the 12th consecutive 12 months of beneath 1%. TELUS enjoys market-leading buyer retention charges, which generate a steady stream of recurring income.
Down over 50% from all-time highs, the TSX dividend inventory gives you a tasty yield of 10.2%. Whereas TELUS has paused dividend hikes, it generates sufficient money to maintain present payouts.
TELUS additionally said that it’s going to increase the dividend as soon as deleveraging targets are hit and the DRIP (dividend reinvestment plan) low cost is eliminated, which is anticipated by 2027.
TELUS can be pushing aggressively into synthetic intelligence, with AI-enabling income rising 44% within the fourth quarter of 2025 to $229 million. The corporate is concentrating on roughly $2 billion in AI-enabling income by 2028, making it an AI play as properly.
Is that this TSX tech inventory a great purchase?
Enghouse Methods is one other Canadian firm with an distinctive dividend observe document. The TSX tech inventory has raised the annual dividend payout from $0.28 per share in 2016 to $1.24 per share in 2026. At present, it gives shareholders a ahead yield of over 5%.
Final month, the corporate’s board accepted a 3.3% dividend improve, marking the 18th consecutive 12 months of dividend development. It ended its most up-to-date quarter with $260.2 million in money and no long-term debt.
In fiscal Q1 2026, Enghouse reported income of $120.1 million. Recurring income, which incorporates software-as-a-service and upkeep contracts, accounted for over 70% of complete gross sales. Nearly all of the corporate’s gross sales are recurring, permitting it to generate steady money flows throughout market cycles.
Enghouse CEO Stephen Sadler was candid on the earnings name about his capital allocation thesis. Sadler defined that Enghouse will look to deploy capital and repurchase its personal shares, that are down virtually 80% from all-time highs.
Find out how to break up the $10,000 within the TFSA
Canadian buyers can break up the $10,000 equally between the 2 TSX dividend shares. TELUS supplies you with publicity, sturdy money move visibility, and a sexy yield. Enghouse is a worthwhile software program firm with 18 straight years of dividend development and no debt.
Within the TFSA, each greenback of dividend revenue you gather grows utterly tax-free. Reinvest these dividends, and the compounding impact accelerates over time.
