Canadian pensioners are looking for good dividend shares to add to their self -driven tax -free savings account (TFSA) portfolios aimed at generating reliable and growing passive income. This helps to replenish the Canada Pension Plan, the age security and the company’s pensions.
Despite the increase in the TSX in recent months, investors can still get high revenues from some top Canadian dividend shares.
Telus
Telus (TSX: T) is a contrary choice today. The share acts under $ 22 at the time of writing compared to $ 34 in 2022.
Increase in interest rates in the second half of 2022 and to most of 2023 led the first pullback. Telus uses many debts to finance his capital programs, including the upgrade and expansion of his wireless and wire line network infrastructure. Higher debt costs can be reduced in the profit and reduce cash that is available for benefits or debt reduction.
In 2024, many tariff -sensitive shares recovered when the Bank of Canada reduced the interest rates. However, Telus and her telecommates missed the party because of prize wars and constant raised rates in bond markets. Telus has also had some problems with income decrease in the subsidiary of Telus International (Telus Digital). In fact, at the end of last year, Telus saw his share price fall below $ 20.
Wedwind remains for the sector. The loan costs are still high and cuts at the immigration levels will influence the pool of potential new subscribers to mobile and internet services. That said, the price war in the mobile segment seems to be over and Telus expects to deliver a solid free cash flow this year. The company is also working on strengthening the balance. Telus recently announced a deal to sell a 49.9% interest in his mobile towers for $ 1.26 billion. The funds will be used to reduce the debts.
Investors who buy Telus at the current price can get a dividend yield of 7.6%. Earlier this year, the company said that it is planning to increase the distribution annually by 3% to 8%, so the existing distribution should be safe.
Canadian natural resources
Canadian natural resources (TSX: CNQ) Increased its dividend in each of the past 25 years. The company was able to do this despite the volatility of oil and gas prices. CNRL’s efficient use of capital and a diversified product portfolio with oil manders, conventional light and heavy oil, offshore oil, natural gas fluids and natural gas production are important reasons for success.
Being Big helps too. CNRL is a giant in the Canadian energy sector with a current market capitalization of $ 90 billion. This gives it the financial firepower to make large strategic acquisitions and at the same time have the means to stimulate growth through an extensive drilling program.
Low oil prices have reduced the share price from $ 55 last year to $ 43. Turbulence must be expected in the short term, but investors can now get a dividend yield of 5.5% from CNQ. Extra disadvantage would be a chance to add to the position.
The Bottom Line
Telus and CNRL pay attractive dividends that must continue to grow. 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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