Canadian buyers are looking for good TSX shares so as to add to their self-directed Tax-Free Financial savings Account (TFSA) portfolios centered on dividends and whole returns.
Within the present market situations, with costs close to file highs and doable financial turbulence on the horizon, it is sensible to seek for corporations with a monitor file of delivering regular dividend funds whatever the state of the economic system.
Fortis
Fortis (TSX:FTS) is an effective instance of a high TSX dividend-growth inventory. The board has elevated the dividend yearly for greater than 5 many years and intends to increase the streak. This reliability is a key cause the share worth has trended greater over time.
Fortis is a utility firm with greater than $70 billion in whole belongings positioned in Canada, the USA, and the Caribbean. Companies embrace pure fuel distribution utilities, energy technology amenities, and electrical energy transmission networks.
Practically all the income comes from rate-regulated companies. This makes money move predictable and dependable, which is right for revenue buyers. Fortis grows via a mixture of acquisitions and natural initiatives. The corporate hasn’t made a big buy for a number of years, however Fortis is engaged on a $26 billion capital program that’s anticipated to help ongoing annual dividend will increase of 4% to six%.
Traders can at present get a 3.5% dividend yield from Fortis. That’s higher than most GIC charges accessible proper now, and each dividend enhance raises the yield on the preliminary funding.
Financial institution of Nova Scotia
Financial institution of Nova Scotia (TSX:BNS) is up greater than 35% previously six months, however nonetheless gives a 5% dividend yield and will have extra room to run. The inventory trades close to $89 on the time of writing. That is nonetheless under the $93 it reached in early 2022, and regardless of the latest bounce, it has trailed the returns of its giant Canadian friends in recent times.
Financial institution of Nova Scotia is working via a method transition that may see the corporate focus extra on development in the USA and Canada and fewer on Latin America, the place the financial institution beforehand spent billions of {dollars} on acquisitions, hoping to profit from the enlargement of the center class within the area.
Final yr, Financial institution of Nova Scotia invested US$2.8 billion to purchase a 14.9% stake in KeyCorp, an American regional financial institution. The deal supplies Financial institution of Nova Scotia with a platform to broaden its U.S. presence. The financial institution has additionally indicated plans to develop in Quebec and British Columbia within the home market.
Financial institution of Nova Scotia delivered stable outcomes for the fiscal third quarter (Q3) 2025. Adjusted diluted earnings per share got here in at $1.88 in comparison with $1.63 in the identical quarter final yr. The financial institution completed fiscal Q3 with a typical fairness tier-one ratio of 13.3%. This implies Financial institution of Nova Scotia is sitting on ample capital to allow it to trip out any financial turbulence that is likely to be on the way in which or to make extra strategic acquisitions.
The underside line
Fortis and Financial institution of Nova Scotia pay engaging dividends that ought to proceed to develop. In case you have some money to place to work, these shares need to be in your radar.
