Canadian pensioners are looking for good dividend shares to add to their self -driven tax -free savings account (TFSA) aimed at generating reliable and growing passive income.
The TSX affects record highs, while economic uncertainty looms in the middle of tariff threats. In this market environment it is logical to look for market leaders who have solid track records about delivering dividend growth through the entire economic cycle.
TC Energy
TC Energy (TSX: TRP) raised his dividend in each of the past 25 years. Investors who buy TRP shares at the current price can get a dividend yield of 5.25%.
TC Energy is aimed at growing its natural gas transmission and electricity production activities after playing the Oil Pipelines division last year. The management has delivered good ordinary work to earn non-core assets to reduce additional debts to complete the Coastal Gaslink project after delays and rising delivery costs more than doubled to around $ 14.5 billion. The 670 km pipeline is now operational and wears natural gas from Canadian producers to the new export facility of LNG Canada in British Columbia.
In Mexico, TC Energy recently completed his 715 km Southern Gateway pipeline. This project came under a budget with 13%. The pipeline will move natural gas from production locations in Mexico to deliver new gas -fired power generation facilities.
TC Energy has an ongoing capital program that is expected to be around $ 6 billion per year in the medium term. The revenue growth of the newly completed assets and they are being built must support the growth of a steady dividend in the coming years.
Fortis
Fortis (TSX: FTS) is a usefulness of natural gas with $ 75 billion in assets spread over Canada, the United States and the Caribbean. The companies include power generation facilities, utilities of natural gas distribution and electrical transmission networks. Fortis achieves most of its income from rate -regulated assets. This means that the cash flow must be predictable and reliable.
The company has traditionally grown through a combination of acquisitions and internal projects. Lower interest rates are expected later this year or in 2026 in the US and Canada. That could cause a new consolidation round in the sector of the usefulness. Fortis is working on the development side of a $ 26 billion capital program that will increase the rate base from $ 39 billion to $ 53 billion in 2029 in 2029. The resulting jump in the cash flow must enable the board to achieve the goal in the coming five years by 4% to 6%. Fortis has other projects that can get the green light to stimulate extra growth.
The board increased the dividend in each of the past 51 years. Investors can currently receive a dividend yield of 3.7%.
The Bottom Line
TC Energy and Fortis could both benefit from the emerging plan of Canada to build coastal coasts energy infrastructure, including pipelines and electricity networks. Even if those projects do not come out, the companies still have solid backlogs of capital developments to stimulate growth.
If you have some money to put to work in a TFSA focused on passive income, these shares deserve to be on your radar.
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