Investing in high quality dividend shares permits you to profit from a gradual stream of dividend revenue in addition to long-term capital beneficial properties. Furthermore, the finest dividend shares develop their money flows throughout market cycles, enabling them to extend these payouts yearly.
On this article, I’ve recognized two high TSX dividend shares that TFSA (Tax-Free Financial savings Account) buyers can purchase proper now. Because the identify suggests, any returns earned from certified investments on this in style registered account are exempt from taxes.
Is that this TSX dividend inventory purchase?
In Q2 2025, Fowl Building (TSX:BDT) reported adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) margins of 6.5%, up from 5.3% final yr, whereas gross revenue margins improved to 10.6% from 8.6%.
Fowl’s strategic focus proved efficient because it secured practically $1.2 billion in new awards in the course of the quarter, bringing complete backlog to a document $4.6 billion. This backlog presents robust visibility with beneficial embedded margins in comparison with the prior yr’s ranges. Fowl’s pending backlog consists of over $800 million in grasp service agreements spanning 5 years.
Nonetheless, income declined 2.6% year-over-year to $850.8 million because of client-driven mission delays amid macroeconomic uncertainty. Notably, industrial and personal sector shoppers accounted for 70% of those delays, as prospects search readability on commerce insurance policies and face price pressures earlier than continuing with capital investments.
Fowl’s newest strategic acquisition of Fraser River Pile & Dredge for $82.3 million strengthens its infrastructure capabilities by including experience in marine building, land basis, and dredging. The transaction is predicted to be 7% accretive to adjusted earnings per share whereas contributing roughly $160 million in annual income and $20 million in EBITDA.
Administration stays assured in reaching its 2027 goal of 8% EBITDA margins, with solely 120 foundation factors remaining to succeed in this purpose.
Analysts monitoring the TSX dividend inventory forecast free money move to greater than double from $84 million in 2024 to $178 million in 2027. This money move enlargement will allow Fowl to lift its annual dividend from $0.59 per share in 2024 to $1.12 per share in 2027.
Is that this TSX inventory undervalued?
One other TSX dividend inventory to think about is MTY Meals (TSX:MTY), an organization that operates and franchises quick-service, fast-casual, and informal eating eating places in Canada, the US, and internationally.
Whereas Canadian operations showcased resilience in Q2, MTY was impacted by sluggish U.S. gross sales. Canadian same-store gross sales elevated by 1.4%, whereas U.S. operations declined by 3.8% because of broad-based client weak point throughout all restaurant segments and banners.
MTY’s normalized adjusted EBITDA fell 5% because of company retailer efficiency, which was partially by design. The corporate acquired practically 50 underperforming Papa Murphy’s areas with turnaround potential, quickly pressuring margins. Company retailer EBITDA margins of 9% stay at acceptable ranges given the portfolio composition, whereas the franchising phase delivered 3% progress.
Digital initiatives proceed to realize traction, as digital gross sales grew by 3% to account for 21% of complete system gross sales. MTY has enhanced product innovation capabilities, with most manufacturers now planning launches 12–15 months upfront in comparison with just some months beforehand.
Analysts monitoring the TSX inventory forecast adjusted earnings to extend from $4.20 per share in 2024 to $4.50 per share in 2027. On this interval, its dividend per share is predicted to extend from $1.12 to $1.84.
