Rework Your TFSA Right into a Money-Creating Machine With $15,000

Launched in 2009, the Tax-Free Financial savings Account (TFSA) has gained recognition amongst Canadians over the previous decade. Any returns generated in a TFSA from certified investments are exempt from Canada Income Company taxes. This makes the registered account an excellent one for getting and holding high quality dividend shares.

Usually, the greatest dividend shares supply traders a possibility to profit from regular passive earnings and long-term capital positive factors, each of that are tax-free in a TFSA.

Right here’s how these two TSX dividend shares can remodel your TFSA right into a cash-generating machine in 2026 and past.

Is that this TSX dividend inventory purchase?

Valued at a market cap of $1.1 billion, Enghouse Programs (TSX:ENGH) develops software program options.

• Its Interactive Administration Group supplies contact centre and buyer interplay administration instruments throughout a number of channels.
• The Asset Administration Group gives operations help methods, video streaming, fleet administration, and emergency dispatch options for the telecommunications, transit, utilities, and public security sectors.

The TSX inventory is down 75% from all-time highs and has underperformed the broader markets in recent times. Nonetheless, the continued drawdown means that you can purchase the dip and profit from a pretty ahead yield of just about 6%.

Analysts monitoring the tech inventory forecast income to extend from $500 million in fiscal 2025 (led to October) to $551 million in fiscal 2027. On this interval, free money move is forecast to broaden from $104.5 million to $141 million.

Given Enghouse pays shareholders an annual dividend of $1.08 per share in fiscal 2025, its dividend expense will whole roughly $59 million, indicating a payout ratio of lower than 60%.

The annual dividend payout is estimated to extend to $1.40 per share, elevating the dividend expense to $77 million and indicating a payout ratio of 54.6%.

If ENGH inventory is priced at 10 occasions ahead FCF, it may achieve 30% throughout the subsequent 12 months. If we alter for dividends, cumulative returns might be nearer to 36%.

Is that this blue-chip inventory undervalued?

Valued at a market cap of $28 billion, Telus (TSX:T) inventory is down virtually 50% from its all-time excessive. Nonetheless, it now gives a ahead yield of over 9%.

Whereas Telus operates in a mature sector, it added 288,000 whole cellular and glued prospects in Q3 2025. The Canadian telecom big now serves 21 million buyer connections, up 5% yr over yr. It additionally maintained an industry-best postpaid cell phone churn charge of 0.91%, the twelfth consecutive yr under the 1% threshold.

Within the wireline enterprise, Telus posted 40,000 web web additions, persevering with its exceptional 15-year streak of constructive wireline development yearly for the reason that third quarter of 2010.

Telus Well being grew income by 18% and adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) by 24% in Q3. The Canadian telecom heavyweight additionally accomplished the acquisition of Telus Digital in October, which ought to generate annualized synergies of over $150 million.

Telus launched Canada’s first sovereign AI manufacturing unit in September and have become the primary North American service supplier to turn out to be an official NVIDIA cloud companion. Telus expects its AI-enabling capabilities to develop from roughly $800 million in income in 2025 to round $2 billion by 2028, representing annualized development of greater than 30%.

Telus elevated its quarterly dividend by 4% to $0.4184 per share whereas sustaining its deleveraging targets. The corporate stays on monitor to attain its leverage goal of 3 times by 2027, which ought to enhance steadiness sheet flexibility and help future dividend hikes.

Analysts monitoring Telus inventory forecast its annual dividend to extend from $1.66 per share in 2025 to $2.18 per share in 2029.

The Silly takeaway

Investing a complete of $15,000 equally distributed between the 2 tech shares ought to enable you to earn $1,100 in annual dividends. This payout may enhance to $$1,470 in 2029, which boosts the yield at value to 9.8% from 7.3%.