Canadian retirees are trying to find good dividend shares so as to add to their self-directed Tax-Free Financial savings Account (TFSA) portfolios centered on producing dependable and rising passive earnings.
With the TSX steadily hitting new file highs as economists warn of a possible recession, it is smart to search for shares which have lengthy histories of paying regular dividends via a wide range of financial situations.
Enbridge
Enbridge (TSX:ENB) trades close to $67 per share on the time of writing. The inventory gained 23% over the previous 12 months and has been on an upward development for almost two years after an prolonged pullback that noticed the share value slide from $58 in June 2022 to as little as $44 in October 2023.
Rising rates of interest prompted the decline in 2022 and 2023. The Financial institution of Canada and the U.S. Federal Reserve aggressively elevated borrowing prices with a view to decelerate the new post-pandemic financial system and get inflation again to the two% goal. Enbridge makes use of debt to fund capital initiatives that always price billions of {dollars} and may take years to construct. Elevated curiosity bills can lower into earnings and cut back money circulation that can be utilized for dividend funds or debt discount. Buyers didn’t know the way excessive charges would go or for the way lengthy they might stay elevated. Pundits even apprehensive that Enbridge is perhaps pressured to trim its beneficiant dividend.
That didn’t occur, and the inventory began to rebound across the time the central banks stated they have been performed elevating charges. Enbridge picked up extra upside momentum when the Financial institution of Canada and the U.S. Federal Reserve diminished rates of interest late final 12 months.
Trying forward, economists broadly count on the central banks to trim charges once more within the coming months to assist offset financial weak spot. This might present an added enhance for Enbridge and different rate-sensitive shares.
Enbridge continues to pursue its progress program. The corporate spent US$14 billion in 2024 to amass three pure fuel utilities in the USA. Enbridge can be engaged on a $32 venture backlog that may drive ongoing earnings and money circulation enlargement. This could help regular dividend will increase.
Buyers who purchase ENB inventory on the present degree can get a dividend yield of 5.6%.
Financial institution of Nova Scotia
Financial institution of Nova Scotia (TSX:BNS) is up 30% up to now six months. The inventory trades above $88 on the time of writing and is closing in on the $93 it reached in early 2022 earlier than going right into a downturn that noticed the share value dip as little as $55 within the fall of 2023.
Financial institution of Nova Scotia is working via a technique transition that may see the financial institution make investments extra progress capital in the USA and Canada as a substitute of in Latin America, the place it beforehand made huge bets. Scotiabank offered its operations in Colombia, Costa Rica, and Panama earlier this 12 months, however nonetheless has a big presence in Mexico, Peru, and Chile. Buyers will wish to look ahead to any information of potential extra monetization within the Latin American group.
Final 12 months, Financial institution of Nova Scotia spent US$2.8 billion to purchase a 14.9% stake in KeyCorp, an American regional financial institution. The deal provides Financial institution of Nova Scotia a platform to increase its presence within the U.S. market.
In Canada, the corporate has stated it’s seeking to increase its footprint in Quebec.
Financial institution of Nova Scotia delivered strong fiscal third-quarter 2025 outcomes. World wealth administration and worldwide banking led the earnings acquire. Canadian banking was the weak group with a 2% dip in adjusted earnings 12 months over 12 months for the quarter.
Financial institution of Nova Scotia completed the quarter with a typical fairness tier-one ratio of 13.3%. This implies the financial institution has ample capital to trip out turbulence, cowl dividends, and make strategic acquisitions.
Buyers who purchase BNS inventory on the present degree can get a dividend yield of 5%.
The underside line
Enbridge and Financial institution of Nova Scotia pay strong dividends with excessive yields. If in case you have some money to place to work in a portfolio centered on passive earnings, these shares should be in your radar.
