Canadian retirees are trying to find good Canadian dividend shares to purchase for his or her self-directed Tax-Free Financial savings Account (TFSA) portfolios targeted on producing dependable and rising passive revenue to enhance OASCPP, and firm pension funds.
Enbridge
Enbridge (Tsx: Enb) is a big within the power infrastructure trade. The corporate’s oil pipeline community carries about 30% of the oil produced in Canada and america. Enbridge additionally has an oil export terminal in Texas. On the pure fuel facet, the in depth transmission, storage, and distribution property in Canada and america place Enbridge to learn from the anticipated rise in pure fuel demand as new gas-fired energy amenities are constructed to provide electrical energy. Enbridge acquired three American pure fuel utilities final 12 months in a US$14 billion deal that made Enbridge the biggest operator of pure fuel utilities in North America.
Enbridge can also be a giant participant in wind and photo voltaic with installations in each america and Europe. The corporate simply introduced a plan to speculate US$900 million to construct a brand new photo voltaic facility in Texas to provide electrical energy to information centres.
Enbridge’s $28 billion capital program is anticipated to spice up income and earnings over the subsequent few years, along with the good points from the current acquisitions. This could help ongoing dividend development. Enbridge has raised the dividend in every of the previous 30 years.
Enbridge trades close to $62 per share on the time of writing. The inventory is up 23% prior to now 12 months, however is down from the 2025 excessive round $65. Buyers can get a dividend yield of 6.1% on the present worth.
Telus
Telus (Tsx:t) is up 16% in 2025, at the moment buying and selling close to $22.60 per share. The rebound is a reduction for long-term homeowners of the inventory who watched it slide from $34 in 2022 to as little as $19 late final 12 months.
Hovering rates of interest in 2022 and 2023 prompted many of the preliminary ache as rising debt bills put strain on earnings and lower into money stream obtainable for debt discount or distribution to shareholders. The Financial institution of Canada began to cut back rates of interest within the second half of 2024. This led to a restoration in lots of rate-sensitive shares, however Telus remained below strain via the tip of final 12 months on account of worth wars within the telecom sector and income declines at its Telus Digital subsidiary.
Telus is arguably a contrarian choose. Rates of interest stay elevated and diminished immigration to Canada will influence demand for brand new telecom providers. That being stated, the inventory may be undervalued, even after the good bounce in current months. Costs on cellular plans have elevated in 2025, so margins ought to enhance. Telus additionally plans to take Telus Digital non-public. The opposite subsidiaries, together with Telus Well being and Telus Agriculture and Client Items, are rising at a quick tempo and will grow to be significant contributors to income and earnings within the coming years.
Telus is investing in AI information centres in Quebec and British Columbia to supply Canadian companies with options that hold delicate information within the nation. That is along with the continuing growth of its wi-fi and wireline community infrastructure.
Telus intends to lift its dividend by 3% to eight% per 12 months over the medium time period, supported by stable free money stream. Buyers can at the moment get a dividend yield of seven.4% from the inventory.
The underside line
Enbridge and Telus pay good dividends that ought to proceed to develop. You probably have some money to place to work in a TFSA targeted on passive revenue, these shares need to be in your radar.