Canadian pensioners are looking for methods to generate dependable retirement earnings inside a self-directed Tax-Free Financial savings Account (TFSA) to enrich the Canada Pension Plan (CPP), Outdated Age Safety (OAS), and different pension earnings.
One common TFSA investing technique includes proudly owning prime TSX dividend shares which have strong observe data of delivering regular and rising distributions.
Enbridge
Enbridge (TSX:ENB) trades close to $65.50 on the time of writing, down about $5 from the 2025 excessive. This provides traders who missed the large rally over the previous two years an opportunity to purchase ENB inventory on a pleasant dip.
The vitality infrastructure big ought to profit from ongoing cuts to rates of interest in Canada and america because the central banks proceed their pivot from combating inflation to supporting the economic system. Enbridge and different firms within the pipeline and utility sectors use debt to fund capital tasks that may value billions of {dollars} and typically take years to finish. Falling rates of interest can result in decrease debt bills. This frees up additional cash that can be utilized to pay down debt or cowl dividends.
Enbridge is presently engaged on a $32 billion capital backlog that’s anticipated to drive regular growth of income and money move within the subsequent few years. This could assist ongoing dividend progress. Enbridge has elevated the dividend yearly for the previous three many years. Buyers who purchase ENB on the present stage can get a dividend yield of 5.7%.
TC Vitality
TC Vitality (TSX:TRP) trades close to $70 per share. It was as excessive as $77 earlier this month. Buyers can now get a 4.8% yield from the Canadian pure gasoline transmission and storage agency. TC Vitality additionally has energy technology amenities.
Administration has accomplished an excellent job of monetizing non-core belongings over the previous couple of years to shore up the stability sheet. TC Vitality needed to tackle additional debt to finish its Coastal GasLink pipeline, which noticed its finances greater than double to roughly $14.5 billion. The 670 km pipeline is now in service, transferring pure gasoline from Canadian producers to the brand new LNG Canada export facility on the coast of British Columbia.
TC Vitality not too long ago accomplished one other main pipeline mission in Mexico. The 715 km pure gasoline pipeline value about US$3.8 billion and got here in about 13% beneath finances.
Income from the 2 new pipelines, together with a portfolio of different tasks, will assist drive money move progress. TC Vitality is focusing on investments of roughly $6 billion per yr over the medium time period. This could assist regular dividend hikes. TC Vitality has elevated the dividend yearly for the previous 25 years. The present dividend yield is 4.8%.
Financial institution of Nova Scotia
Financial institution of Nova Scotia (TSX:BNS) is up 34% previously six months and now trades close to its 12-month excessive. Buyers, nonetheless, can nonetheless choose up a strong 4.8% dividend yield. Extra upside could possibly be on the best way. The inventory has trailed the efficiency of its giant Canadian friends in recent times.
Financial institution of Nova Scotia is working via a turnaround plan that features lowering working prices whereas shifting progress funding away from Latin America to america and Canada. The brand new CEO is lowering workers and has already acquired a 14.9% stake in Key Corp, a U.S. regional financial institution. This funding offers Financial institution of Nova Scotia a platform to develop its American presence. Earlier this yr, the financial institution offered its operations in Colombia, Costa Rica, and Panama.
Decrease rates of interest ought to assist ease strain on companies and owners who’re carrying an excessive amount of debt. So long as the economic system holds up, provisions for credit score losses ought to decline within the coming quarters.
The underside line
Enbridge, TC Vitality, and Financial institution of Nova Scotia pay enticing dividends that ought to proceed to develop. If in case you have some money to place to work, these shares should be in your radar.
