Canadian retirees and other dividend investors are wondering which top TSX dividend stocks are still good to buy for a Self-Directed Tax-Free Savings Account (TFSA) aimed at generating reliable passive income.
This year’s market rally has sent stock prices soaring across several sectors, but investors can still find decent dividend yields from stocks with good prospects for distribution growth.
Enbridge
Enbridge (TSX:ENB) is trading near $66.50 per share at the time of writing. That’s down slightly from a 12-month high around $70, giving investors who missed last year’s rise a chance to buy ENB stock on a dip.
Enbridge generated adjusted earnings of $1.4 billion, or $0.65 per share, in the second quarter (Q2) 2025, compared to $1.2 billion, or $0.58 per share, in the same quarter last year. Contributions from acquisitions and new projects help drive the company’s growth.
Enbridge has spent $14 billion to buy three natural gas companies in the United States by 2024. The deals made Enbridge the largest natural gas utility operator in North America. These new assets complement the extensive natural gas transmission infrastructure. Demand for natural gas is expected to rise in the coming years as gas-fired power generation expands to provide electricity for artificial intelligence (AI) data centers.
Enbridge is working through a $32 billion capital program backlog and has a total of $50 billion in projects under consideration. As new assets are completed and put into service, the boost to cash flow should support continued dividend increases.
Enbridge has increased its dividend every year for the past thirty years. Investors who buy ENB stock at current levels could get a dividend yield of 5.7%.
Canadian natural resources
Canadian natural resources (TSX:CNQ) is trading near $44 at the time of writing. The stock has recovered somewhat after April’s plunge to $36, but is still down about 10% over the past twelve months and well below the $55 it fetched at some point in 2024.
Falling oil prices are largely responsible for the decline. West Texas Intermediate (WTI) oil is selling for about $58.50 per barrel at the time of writing. This is down from $80 last year. Natural gas prices have also been under pressure in recent months, especially in Canada, where there is currently an oversupply.
Analysts broadly expect oil market headwinds to persist into 2026. An economic downturn in the United States is possible if rates start to drive up inflation. Continued trade uncertainty between the US and China could lead to additional economic weakness in China. The two countries are the largest oil consumers.
On the supply side, OPEC plans to increase supply to regain some of the lost market share. This is expected to happen as non-OPEC producers, including Canada and the United States, continue to increase production.
Despite the near-term headwinds, CNRL should be a solid long-term pick for dividend investors. The company’s breakeven WTI price is between $40 and $45 per barrel, so it is still very profitable at the current WTI price. CNRL continues to expand production through acquisitions and a successful drilling program.
The company’s strong balance sheet allows it to continue its track record of dividend growth. CNRL has increased its dividend each time over the past 25 years. Investors can get a 5.3% dividend yield from CNQ at the current share price. CNRL may be a contrarian choice right now, but you’ll be paid well to wait for oil and gas prices to recover.
The bottom line
Enbridge and CNRL pay attractive dividends that should continue to grow. If you have some money to put to work in a TFSA that focuses on passive income, these stocks deserve to be on your radar.
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