Canadian retirees and income-focused investors are seeking top TSX dividend stocks to build self-directed Tax-Free Savings Accounts (TFSAs) centered on dividend growth. Canadian Natural Resources (TSX:CNQ) and Fortis (TSX:FTS) stand out as strong choices, offering attractive yield opportunities and consistent dividend growth for passive income seekers.
With 25 consecutive years of dividend growth and a compound annual growth rate (CAGR) exceeding 20%, this energy giant continues to shine. Despite a recent 26% drop in stock price due to weak oil prices, its solid fundamentals—such as a WTI breakeven price of $40-$45 per barrel and proven reserves lasting over 30 years—make it a resilient long-term play.
The current dividend yield stands at nearly 6%, providing stable returns while waiting for a potential oil market rebound.
This utility giant, known for 51 straight years of dividend hikes, benefits from declining interest rates in the U.S. and Canada. Its $26 billion capital expansion program is set to grow its asset base from $39 billion to $53 billion by 2029, supporting annual dividend increases of 4%-6%. With a 3.7% yield at current prices, it offers reliable passive income and stability amid volatile markets.
Both stocks present timely buying opportunities for long-term investors, combining consistent dividend growth with favorable yields.
