Tax-Free Savings Account (TFSA) investors looking for passive income can still find TSX dividend stocks trading at reasonable prices.
In current market conditions, it is a good idea to look for companies that are leaders in their respective industries and have solid track records of delivering steady dividend growth.
Fortis
Fortis (TSX:FTS) is a Canadian utility company with approximately $75 billion in assets spread across Canada, the United States and the Caribbean.
Its operations include natural gas distribution companies, power generation facilities and electrical transmission networks. These are primarily interest-regulated assets that provide essential services needed regardless of the state of the economy. Sales and cash flow are generally predictable, which helps Fortis plan its growth program.
Under the current five-year plan, Fortis will invest almost $29 billion in organic growth projects. This will increase the interest base from approximately $42 billion in 2025 to nearly $58 billion in 2030. As the new assets are completed and begin generating income, the boost to cash flow should support planned dividend increases of 4% to 6% per year over the next three years and the next five years. That’s the kind of guidance investors want to see when evaluating stocks to buy for a dividend portfolio.
Fortis has increased its dividend for 52 years in a row. The current dividend yield is 3.5%. Investors can find other stocks with higher yields, but the reliability of dividend growth is just as important to consider as the return at the time of the initial investment.
Enbridge
Enbridge (TSX:ENB) just announced a $1.4 billion expansion of its core oil transmission network. The additional capacity will increase access for Canadian oil producers to refineries in the United States.
In its third quarter (Q3) 2025 earnings report, Enbridge indicated it has $35 billion in secured capital projects underway that will help drive steady revenue and cash flow growth for several years. This is in addition to the contributions resulting from any new acquisitions. Enbridge has actively sought new assets in recent years to take advantage of emerging opportunities in the energy market. The company purchased an oil export terminal in Texas and is a partner in the Woodfibre liquefied natural gas (LNG) export facility under construction in British Columbia. Enbridge also expanded its renewable energy division with the purchase of a U.S. wind and solar developer. On the utility side, Enbridge has spent $14 billion to buy three natural gas companies in the United States through 2024. The deals made Enbridge the largest natural gas utility operator in North America.
Enbridge targets distributable cash flow growth of approximately 5% per year after 2026. This should support continued dividend increases. The board has increased the dividend for 30 years in a row. Investors who buy ENB at the current price can get a dividend yield of 5.6%.
The bottom line
Fortis and Enbridge have made a good recovery in the past two years after a prolonged decline due to rising interest rates. While the easy money has probably already been made, there should be more upside potential as assets and cash flow increase.
If you’ve got some money to put to work, these stocks deserve to be on your radar now for a buy-and-hold portfolio focused on passive income.
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