Canadian seniors are looking for methods to generate first rate passive earnings from their Tax-Free Financial savings Account (TFSA) holdings to enhance different retirement earnings, together with authorities and firm pensions.
Within the present market circumstances, it is smart to search for high TSX dividend shares with good monitor data of delivering dividend progress all through the financial cycle.
Enbridge
Enbridge (TSX:ENB) is a good instance of a high-yield dividend inventory with a protracted historical past of elevating its distribution at a gradual tempo. The board elevated the dividend in every of the previous 30 years. Buyers who purchase ENB inventory on the present degree can get a dividend yield of 6.1%.
Enbridge trades close to $61.50 per share on the time of writing. The inventory has been as excessive as $65 in 2025, so traders have an opportunity to purchase Enbridge on a small pullback.
The corporate continues to develop by means of a mixture of strategic acquisitions and inside growth initiatives. Enbridge is a giant firm with a present market capitalization of near $134 billion. This implies it must make massive investments to maneuver the needle in a significant approach on earnings and money movement. Final yr, Enbridge spent US$14 billion to purchase three pure fuel utilities in the USA. The offers made Enbridge the most important pure fuel utility operator in North America. These belongings, mixed with Enbridge’s in depth pure fuel transmission and storage networks, place the corporate to profit from the anticipated surge in demand for pure fuel. Fuel-fired energy era amenities are being constructed to provide electrical energy to AI information centres.
Enbridge’s oil pipelines and export amenities stay essential for Canada and the USA. The corporate strikes about 30% of the oil produced within the two international locations. Enbridge has additionally expanded its renewable vitality portfolio lately.
The corporate is engaged on a $28 billion capital program to drive earnings per share (EPS) and distributable money movement (DCF) progress of three% to five% per yr over the medium time period. This could assist regular dividend will increase.
Fortis
Fortis (TSX:FTS) is one other high Canadian utility firm with an excellent monitor report of dividend hikes. In reality, Fortis has given traders a elevate in every of the previous 51 years.
The corporate operates $75 billion in utility belongings throughout Canada, the USA, and the Caribbean. Companies embody energy era amenities, electrical energy transmission networks, and pure fuel distribution utilities. Almost all the income comes from rate-regulated belongings, so money movement tends to be dependable and predictable.
Fortis is engaged on a $26 billion capital plan that may elevate the speed base from $39 billion in 2024 to $53 billion in 2029. As the brand new belongings are accomplished and go into service, Fortis expects earnings to rise sufficient to assist annual dividend will increase of 4% to six% over 5 years. Buyers who purchase FTS inventory on the present worth can get a dividend yield of three.8%. That’s nonetheless higher than charges provided at present on GICs, and every dividend enhance raises the yield on the preliminary funding.
The underside line
Enbridge and Fortis pay engaging dividends that ought to proceed to develop. When you have some money to place to work in a TFSA targeted on passive earnings, these shares need to be in your radar.
