Now that the TSX continues to hit new record highs, investors are wondering which top Canadian dividend shares are still attractive to buy for a self -driven tax -free savings account (TFSA) aimed at generating reliable and growing passive income.
Fortis
Fortis (TSX: FTS) acts almost $ 70 per share at the time of writing. The stock has risen approximately 18% in 2025 and is close to its 12 months high.
The Bank of Canada reduced its target interest rates on September 17, and more reductions can be on the road in 2026, because the central bank increases its focus from combating inflation to supporting the economy. This is the main reason why the shares have gone higher in recent weeks.
Nuts stocks such as Fortis use debts to finance part of their major development programs. Lower loan expenditures can increase the profit and increase cash that is available for benefits. Fortis is working on a $ 26 billion capital program that will increase the rate base from $ 39 billion in 2024 to $ 53 billion in 2029. An updated five -year projection is expected when Fortis delivers its results of the third quarter (Q3) 2025.
According to the current investment schedule, Fortis expects the cash flow of the new assets to support planned annual dividend increases from 4% to 6% for five years. Extra projects are being considered that can increase the growth output. Fortis could possibly be an active player in the new Canada plan to build a cross -country root. Fortis owns and operates electricity transmission assets and facilities for electricity generation, together with utilities of natural gas distribution.
Fortis increased the dividend in each of the past 51 years. Investors who buy FTS shares at the current level can get a dividend yield of 3.5%.
Enbridge
Enbridge (TSX: ENB) has increased its dividend annually over the past three decades. The share enjoyed a nice rally in the past year, but still offers a solid dividend yield of 5.4% at the current price.
Enbridge is similar to Fortis in the sense that it uses debts to finance growth initiatives. As such, the reduction of interest rates must be positive for the company. Enbridge continues to expand its portfolio through acquisitions and organic projects. The company spent US $ 14 billion in 2024 to buy three utilities in the United States. The deal made Enbridge the largest operator of natural gas use in North America.
In addition, Enbridge is working on a capital program of $ 32 billion. As new assets are completed and put into use, the company expects to produce stable growth of adapted income and a distributable cash flow that would enable the board to continue to increase the dividend.
Alberta insists on a new oil pipeline approved and built to connect producers with the north coast of British Columbia as part of the goal of Canada to reduce its dependence on the sale to the United States. Enbridge is a giant in the energy infrastructure industry and may be a partner of the project.
The Bottom Line
Fortis and Enbridge pay good dividends that must continue to grow. If you have some money to put to work in a portfolio focused on dividend income, these shares deserve to be on your radar.
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