Traders who’re searching for yield-generating alternatives to place into their Tax-Free Financial savings Accounts (TFSAs) in 2026 have quite a few nice Canadian dividend shares to select from. That mentioned, some bond proxies on this group could also be finest served in different brokerage accounts or Registered Retirement Financial savings Plan, because of tax causes.
Traders will need to maintain long-term dividend shares that may present capital appreciation over time. That leads me to 1 prime dividend inventory with a 5.5% yield I feel is value holding in a growth-friendly account like a TFSA.
Let’s dive into one in every of my prime picks for TFSA traders trying to put contemporary capital to work on this account in Q1 2026.
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Enbridge
When you’re attempting to find a rock-solid inventory to supercharge your TFSA in 2026, look no additional than Enbridge (TSX: ENB). With its regular 5.5% yield and bulletproof fundamentals, this vitality infrastructure large delivers tax-free revenue you possibly can rely on for many years.
In actual fact, Enbridge simply hiked its quarterly dividend by 3% to $0.97 per share. What that works out to is a $3.88 annualized dividend, or a yield of round 5.5% on the time of writing.
Impressively, this enhance additionally marks the thirty first straight 12 months of will increase. At present costs round $70 per share, Enbridge inventory now yields about 5.5%, and in a TFSA, each cent grows tax-free. That may flip this holding right into a compounding machine for retirement savers.
Monetary energy, stable progress, and manageable debt
This previous 12 months was a banner 2025 for traders in Enbridge inventory. The corporate’s full-year adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) hit $19.95 billion (up from $18.62 billion in 2024), and distributable money stream (DCF) per share rose to $5.71. Certainly, This fall alone noticed DCF per share at $1.47, up from $1.41 12 months over 12 months. This hit the highest of administration’s steering for the twentieth consecutive 12 months. This money stream engine (98% coming from long-term, inflation-indexed contracts) shields earnings from oil worth swings and financial hiccups.
Moreover, Enbridge’s debt-to-EBITDA ratio sits round a wholesome 5 instances, supporting $50 billion in initiatives via 2028 (together with $14 billion sanctioned in 2025 alone). I’m anticipating 2026 EBITDA of $20.2-20.8 billion and DCF per share of $5.70-6.10, with 5% annual progress post-2026. Pipelines, renewables, and utilities gas this, mixing fossil fuels with inexperienced vitality for future-proof returns.
Enbridge has delivered 12.1% common annual complete returns over 20 years, outpacing markets. Buying and selling at 2.5 instances ahead gross sales and round 23 instances earnings, it is a fairly valued inventory given the strong vitality progress I’m anticipating to see over the approaching a long time. In brief, I feel Enbridge is a defensive gem with progress and dividend upside that ought to present stable complete returns over the long-haul. That’s the type of inventory I feel traders need to personal of their TFSAs proper now.