Traders who missed the massive rally within the TSX this yr are questioning which Canadian dividend shares would possibly nonetheless be price including to a self-directed Tax-Free Financial savings Account (TFSA) targeted on producing dependable and rising passive revenue.
Enbridge
Enbridge (TSX:ENB) trades close to $66.50 on the time of writing. The inventory is up 20% prior to now yr and is simply shy of its 12-month excessive.
The most recent leg to the upside extends a two-year run off the 2023 lows round $44 per share. Enbridge has benefitted from falling rates of interest after fee hikes in 2022 and 2023 despatched the inventory falling.
Pipeline and utility shares use lots of debt to fund progress tasks that may value billions of {dollars} and sometimes take years to construct earlier than they begin to generate income. The steep rise in rates of interest that occurred in Canada and the USA because the central banks battled to get inflation below management put strain on Enbridge and its friends. Traders apprehensive that added debt bills might scale back money circulate to the purpose that Enbridge must trim its beneficiant dividend. That didn’t occur, and the inventory began to get better as quickly because the Financial institution of Canada and the U.S. Federal Reserve signalled that they had largely achieved their purpose and have been completed elevating charges.
Within the second half of 2024, Enbridge picked up an additional tailwind when the central banks started to cut back rates of interest. Wanting forward, weak employment numbers lately launched in each nations might result in one other fee lower as early as this month. That would drive Enbridge even greater.
Enbridge accomplished a US$14 billion acquisition of three pure gasoline utilities in the USA final yr. These belongings are serving to enhance income and income. Adjusted earnings in Q2 2025 got here in at $1.42 billion in comparison with $1.25 billion in the identical interval final yr.
Enbridge is engaged on a $32 billion capital program. As the brand new belongings are accomplished and go into service, the corporate expects adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) to rise by 5% yearly past 2026.
The board raised the dividend in every of the previous 30 years. Traders who purchase ENB inventory on the present degree can get a dividend yield of 5.6%.
Telus
Telus (TSX:T) trades close to $23 on the time of writing in comparison with $34 at one level in 2022. As with Enbridge, the inventory took a beating when the Financial institution of Canada steadily raised rates of interest within the second half of 2022 and thru a lot of 2023. Telus has taken on a big debt load to fund its capital program, which incorporates the enlargement and improve of its community infrastructure.
Final yr, Telus missed out on the rate-cut rally resulting from value wars within the telecom sector and income points at its Telus Worldwide (Telus Digital) subsidiary. Headwinds persist for the communications supplier. Lowered immigration cuts right into a supply of latest subscribers and an financial slowdown would doubtlessly influence gadget gross sales as companies and households maintain onto previous telephones longer.
On the upside, the worth struggle seems to be over with charges provided on cellular plans rising this yr. Telus is taking Telus Digital non-public and is monetizing non-core belongings to cut back debt. That is why cut price hunters have pushed up the share value by 17% this yr.
Traders can present get a 7.3% dividend yield from Telus.
The underside line
Enbridge and Telus pay strong dividends that ought to be secure. In case you have some money to place to work in a portfolio targeted on passive revenue, these shares should be in your radar.
