Canadian buyers are trying to find good TSX shares to purchase for a self-directed Tax-Free Financial savings Account (TFSA) portfolio centered on producing dividends and capital features.
The TSX is sitting close to a document excessive, so it is smart to contemplate corporations which have delivered regular dividend progress via quite a lot of financial situations.
Canadian Nationwide Railway
Canadian Nationwide Railway (TSX:CNR) is arguably a contrarian choose proper now. The inventory trades close to $136 on the time of writing in comparison with $179 on the excessive level in early 2024, however is off the 12-month low round $126 and has trended greater in uneven buying and selling over the previous six months.
CN operates almost 20,000 route miles of tracks that join ports on the Atlantic and Pacific coasts of Canada to the Gulf Coast in the USA. The corporate strikes cargo starting from crude oil, coal, and automobiles to lumber, grain, fertilizer, and completed items.
Tariff uncertainties compelled administration to scale back steerage final yr. The difficult setting is predicted to proceed via the primary half of 2026 as Canada and the USA, together with Mexico, negotiate the extension or revamp of the Canada-U.S.-Mexico Settlement (CUSMA) forward of a key July 1 deadline for the settlement.
Regardless of the turbulent situations, CN stays a really worthwhile enterprise. CN continues to take a position capital in progress tasks and is utilizing extra money to purchase again inventory whereas sustaining dividend progress. The board has elevated the dividend in every of the previous 29 years.
As quickly as a commerce settlement is finalized between Canada and the U.S., CN ought to choose up some momentum.
Enbridge
Enbridge (TSX:ENB) is a serious participant within the North American power infrastructure and power utility sectors. The corporate’s oil pipelines transfer about 30% of the oil produced in Canada and the USA. The pure fuel transmission system carries 20% of the pure fuel utilized by American companies and houses. As well as, Enbridge is the most important pure fuel utility operator in North America. Export amenities and renewable power belongings spherical out the portfolio.
Enbridge can reap the benefits of its measurement to make massive strategic acquisitions to drive progress, because it did in 2024 with the US$14 billion buy of three pure fuel utilities in the USA. The corporate additionally has the monetary capability to broaden via natural tasks. The present $35 billion secured capital program, together with contributions from latest acquisitions ought to ship regular progress in distributable money stream to help ongoing dividend will increase. Enbridge has elevated the dividend yearly for greater than 30 years. Buyers who purchase ENB inventory on the present value can get a dividend yield of 6%.
Financial institution of Nova Scotia
Financial institution of Nova Scotia (TSX:BNS) simply hit a brand new document excessive.
Administration is working via a method transition that may see Financial institution of Nova Scotia shift its progress investments from Latin America to the USA and Canada. The method is effectively underway with the 14.9% stake in KeyCorp, an American regional financial institution, that Financial institution of Nova Scotia bought in 2024. Final yr, Financial institution of Nova Scotia offered its companies in Colombia, Costa Rica, and Panama.
Income and return on fairness (ROE) elevated in fiscal 2025, however there’s extra room for enchancment because the turnaround program picks up steam. Within the meantime, buyers can nonetheless get a stable 4.3% dividend yield from the inventory.
The underside line
Canadian Nationwide Railway, Enbridge, and Financial institution of Nova Scotia pay good dividends that ought to proceed to develop. When you’ve got some money to place to work in a TFSA these shares need to be in your radar.
