Retirees and different earnings traders are looking for good Canadian dividend shares so as to add to their self-directed Tax-Free Financial savings Account portfolios.
Within the present market situations, the place the TSX is close to a report excessive and tariffs threaten to trigger a recession, it is sensible to search for firms which have demonstrated a capability to ship dividend development by way of difficult financial conditions.
Enbridge
Enbridge (TSX:ENB) trades close to $62.50 per share on the time of writing. The inventory is down from the 2025 excessive of round $65, so traders have an opportunity to purchase ENB on a little bit of a dip.
Enbridge is a huge within the power infrastructure and utility sectors. The corporate is now the biggest operator of pure fuel utilities in North America after finishing a US$14 billion buy of three American pure fuel utilities in 2024. These property complement Enbridge’s in depth pure fuel transmission community of pipelines and storage services. Pure fuel demand is predicted to rise steadily within the subsequent few years as gas-fired energy services are constructed to supply electrical energy to synthetic intelligence knowledge centres.
Enbridge has additionally expanded its renewable power division. It acquired the third-largest photo voltaic and wind developer in america to spice up its renewable capabilities. The group just lately introduced plans to construct a brand new US$900 million, 600 megawatt photo voltaic website in Texas.
On the export facet, Enbridge bought an export terminal in Texas and is a companion on the Woodfibre liquified pure fuel (LNG) export facility being constructed on the coast of British Columbia. Worldwide demand for North American power is rising as nations hunt down dependable sources from secure suppliers.
Enbridge’s oil pipeline community stays strategically essential to the graceful operation of the Canadian and U.S. economies. The corporate strikes about 30% of the oil produced within the two nations. Canada’s new push to cut back its reliance on the U.S. for its oil gross sales may result in new oil pipelines being constructed to produce worldwide markets. Enbridge could be a high candidate to construct and function new oil pipeline infrastructure within the nation.
Enbridge is engaged on a $28 billion capital program that may assist drive earnings and distributable money move greater to assist dividend development. The board elevated the dividend in every of the previous 30 years. Traders who purchase ENB inventory on the present worth can get a dividend yield of 6%.
Telus
Telus (TSX:T) trades close to $22 per share on the time of writing, in comparison with $34 at one level in 2022. The inventory is arguably a contrarian choose proper now because the telecom sector faces quite a lot of challenges, together with diminished immigration and excessive rates of interest. Telus makes use of plenty of debt to fund its capital program. Increased debt bills can put stress on money that’s out there for distributions. The discount in newcomers to Canada will result in decrease gross sales of latest units and slower subscription development within the business. This is perhaps why Telus and its friends fought a worth warfare final 12 months that squeezed business margins.
Regardless of the challenges, Telus stays optimistic and continues to ship first rate monetary outcomes. Administration expects free money move to stay strong sufficient within the subsequent few years to assist deliberate annual dividend will increase of three% to eight%. Traders who purchase Telus inventory on the present worth can get a dividend yield of seven.5%.
The underside line
Enbridge and Telus pay engaging dividends that ought to proceed to develop. If in case you have some money to place to work in a TFSA concentrating on passive earnings, these shares should be in your radar.
