Canadian seniors are looking for good TSX dividend shares to purchase for a self-directed Tax-Free Financial savings Account (TFSA) portfolio centered on producing dependable and rising passive earnings.
Within the present market circumstances, the place share costs have soared and financial weak spot may very well be on the horizon, it is sensible to think about shares with lengthy monitor information of delivering dividend development all through the financial cycle.
Enbridge
Enbridge (TSX:ENB) is among the largest firms on the TSX with a present market valuation of practically $149 billion. The inventory trades for $68 on the time of writing in comparison with $44 two years in the past.
Decrease rates of interest fuelled a lot of the acquire over the previous yr. That pattern might proceed into 2026 after the Financial institution of Canada’s newest charge lower and market expectations for additional reductions because the central financial institution switches its focus from preventing inflation to supporting the financial system.
Enbridge makes use of loads of debt to fund its development initiatives, together with acquisitions and natural initiatives. Decrease curiosity bills can enhance income and liberate more money for debt discount and distributions to shareholders.
Enbridge purchased three American pure gasoline distribution utilities in 2024. The corporate can also be engaged on a $32 billion capital program. The brand new belongings will ship regular development in distributable money movement that ought to allow the board to proceed elevating the dividend over the following few years. Enbridge has elevated its distribution yearly for the previous three many years. Buyers who purchase ENB inventory on the present degree can get a dividend yield of 5.5%.
Enbridge pivoted its capital investments away from main pipelines in recent times with acquisitions focusing on export and renewable vitality alternatives, together with the growth of the pure gasoline distribution division. Wanting forward, the Canadian authorities now needs oil and pure gasoline producers to search out new worldwide consumers as a way to cut back reliance on america. This might doubtlessly result in a brand new main pipeline mission for Enbridge if current authorities roadblocks are eliminated.
Fortis
Fortis (TSX:FTS) is one other pure gasoline utility operator. The corporate additionally owns energy technology and electrical energy transmission networks. Fortis hasn’t accomplished a big acquisition for a number of years, however consolidation within the utility sector might ramp up as borrowing prices decline.
Progress is at present coming from the $26 billion capital program. Fortis expects the speed base to rise from $39 billion in 2024 to $53 billion in 2029. As the brand new belongings are accomplished and go into service, the bounce in income and earnings ought to assist deliberate annual dividend will increase of 4% to six% over 5 years.
Fortis raised the dividend in every of the previous 51 years, so buyers ought to really feel snug with the steering. The inventory’s dividend yield is 3.6% proper now. That’s decrease than buyers can get from different firms, however the dividend development will steadily enhance the yield on the preliminary funding.
Canada’s rising plan to construct a cross-country energy grid might current new development alternatives for Fortis on account of its experience within the development and operation of electrical transmission programs.
The underside line
Enbridge and Fortis pay enticing dividends that ought to proceed to develop. In case you have some money to place to work in a TFSA focusing on passive earnings, these shares should be in your radar.
