Retirees and different dividend buyers are looking for high Canadian shares so as to add to their self-directed Tax-Free Financial savings Account (TFSA) and Registered Retirement Financial savings Plan (RRSP) portfolios targeted on producing passive revenue and long-term capital good points.
TFSA restrict 2026
The TFSA restrict is $7,000 in 2026. This brings the cumulative most contribution room to $109,000 for anybody who has certified yearly.
All curiosity, dividends, and capital good points earned contained in the TFSA might be eliminated as tax-free revenue or totally reinvested. That is notably useful for retirees who accumulate Previous Age Safety (OAS), because the earnings taken from the TFSA don’t rely in direction of the annual web world revenue calculation the CRA makes use of to find out the OAS pension restoration tax. Each greenback of revenue earned above a minimal threshold triggers a $0.15 OAS clawback on the OAS paid within the following fee interval. The quantity to observe within the 2026 revenue yr is $95,323.
Within the present market circumstances, with shares buying and selling close to document ranges, it is smart to think about firms which have lengthy monitor information of delivering annual dividend progress.
Enbridge
Enbridge (TSX: ENB) lately reported robust 2025 outcomes. The vitality infrastructure and utilities big delivered a 9% improve in full-year adjusted earnings. Distributable money circulation (DCF) elevated 4% to $12.5 billion.
Enbridge continues so as to add new tasks to its growth program. The present secured undertaking backlog is $39 billion, together with pure fuel pipeline and storage growth, renewable vitality installations, and vitality export belongings.
Enbridge expects adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA), adjusted earnings per share (EPS), and DCF to develop by about 5% yearly beginning subsequent yr. As new belongings are accomplished and go into service, the elevated money circulation ought to help ongoing dividend hikes. Enbridge raised the dividend in every of the previous 31 years. Buyers who purchase ENB inventory on the present degree can get a dividend yield of 5.5%.
Fortis
Fortis (TSX:FTS) is one other dividend star that simply reported sturdy 2025 monetary outcomes. Adjusted web earnings rose to $1.714 billion from $1.606 billion. Fortis is engaged on a $28.8 billion capital program that’s anticipated to lift the speed base from $42.4 billion in 2025 to $57.9 billion in 2030. The ensuing enhance to money circulation ought to help deliberate annual dividend will increase of 4% to six%. Fortis raised the payout in every of the previous 52 years.
Fortis has different tasks into account that would prolong the expansion steering, together with the growth of the electrical transmission grid in the USA, the place rising energy demand is anticipated to drive vital infrastructure funding.
In Canada, the federal government’s plan to construct a nationwide grid may additionally result in extra tasks. Fortis has experience within the energy sector.
Fortis offers a 3.3% dividend yield on the time of writing. That is decrease than what is on the market from different shares, however the long-term complete returns ought to offset the smaller preliminary yield.
The underside line
Enbridge and Fortis pay engaging dividends that ought to proceed to develop. When you’ve got some money to place to work in a TFSA targeted on passive revenue, these shares should be in your radar.