You probably have been utilizing your Tax-Free Financial savings Account (TFSA) to develop your wealth steadily and safely, dividend investing should sit excessive in your precedence listing. Dividend earnings provides a way of progress even when markets really feel unsure, and over lengthy durations, that earnings can compound into one thing important. The secret is selecting basically robust shares with enterprise fashions that assist reliable payouts and constant development.
Utilities and energy producers typically match that function effectively, particularly as their long-term contracts and controlled property increase their money flows. On this article, I’ll speak about two high Canadian dividend shares that may very well be gold for TFSA buyers seeking to lock in dependable earnings for the long run.
Fortis inventory
Talking of reliable payouts, Fortis (TSX:FTS) may very well be a logical place to start out, particularly given its regulated utility mannequin and long-term development visibility. The corporate primarily operates electrical and gasoline utilities throughout Canada, the US, and the Caribbean, offering important providers that stay in demand no matter financial circumstances.
Fortis inventory not too long ago traded round $74 per share, giving it a market capitalization of roughly $37.4 billion. During the last yr, the inventory has jumped practically 19% with the assistance of its give attention to regular execution. It additionally gives an annualized dividend yield of three.6%, which inserts effectively with a long-term TFSA earnings technique.
Notably, the corporate’s current monetary efficiency has been supported by constant price base enlargement and disciplined capital investments. Within the third quarter final yr, Fortis delivered adjusted earnings of $0.87 per share, larger on a YoY (year-over-year) foundation. This development was primarily pushed by price base will increase throughout a number of utilities and contributions from its main capital tasks, with a stronger U.S. greenback additionally offering a tailwind. Whereas prices tied to asset tendencies created some short-term strain, the underlying enterprise continued to look robust.
What strengthens Fortis’s long-term development outlook is its not too long ago introduced $28.8 billion capital plan for 2026 by means of 2030, which helps an anticipated 7% annual price base development. The corporate additionally expects dividend development of 4% to six% yearly by means of 2030. For TFSA buyers targeted on locking in earnings that steadily rises over many years, this mix of regulated development and predictable dividends retains Fortis firmly within the TFSA gold class.
Capital Energy inventory
Whereas Fortis highlights regulated stability, Capital Energy (TSX:CPX) may increase your TFSA earnings by means of contracted energy technology and rising money flows. This Edmonton-based agency owns and runs energy technology and vitality storage property throughout North America, with an growing give attention to versatile technology backed by long-term agreements.
Following a 12% run during the last yr, CPX inventory not too long ago traded close to $58 per share, giving it a market cap of about $9.2 billion. The corporate additionally gives a horny annualized dividend yield of 4.7%, making it interesting for income-focused TFSA buyers.
Within the newest quarter led to September 2025, Capital Energy generated adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) of $477 million and adjusted funds from operations of $369 million, backed by larger contracted money flows and strong working efficiency.
Lengthy-term development initiatives add additional power to its outlook. Just lately, Capital Energy secured a brand new long-term contract on the Midland Cogeneration Enterprise extending to 2040, including years of incremental contracted income with improved pricing. The corporate additionally commissioned 170 megawatts of battery storage in Ontario, with contracts working by means of 2047, bettering long-term money circulation visibility. Given these strong fundamentals, Capital Energy may proceed to behave as TFSA gold for buyers in search of sturdy earnings supported by long-duration contracts.
