Five High Yield Canadian Stocks for a Long-Term TFSA Portfolio

Headlines

• Canadian companies with strong dividend histories offer stable income even at record-high index levels.

• Stocks across rail, energy, financials, and utilities show long-term growth through capital investments and stable operations.

• Industry leaders like Canadian National Railway, Canadian Natural Resources, Enbridge, Bank of Nova Scotia, and Fortis continue delivering incremental dividend increases annually.

The S&P/TSX Composite Index, which includes Canadian leaders across energy, finance, utilities, and transport, is trading near all-time highs. Stocks like Canadian National Railway (TSX:CNR), Canadian Natural Resources (TSX:CNQ), Enbridge (TSX:ENB), Bank of Nova Scotia (TSX:BNS), and Fortis (TSX:FTS) contribute to this broad index. Amid elevated valuations, these companies present stable, long-term prospects driven by strong balance sheets, regulated cash flows, and consistent dividends.

Canadian National Railway

Canadian National Railway operates a vital logistics network spanning Canada and the U.S. CN Rail hauls a diverse set of commodities and manufactured goods. Its shares trade around $140 per share after a pullback from their 52-week high of $170. Broader economic concerns, including interest rate headwinds and trade policy uncertainty, have weighed on short-term sentiment. However, the company continues its disciplined capital allocation. The board recently increased the dividend for the 29th consecutive year by 5%, demonstrating the firm’s commitment to income growth. CN Rail remains positioned to generate stable cash flows across economic cycles.

Canadian Natural Resources

Canadian Natural Resources is an integrated oil and gas producer that has increased its dividend for 25 consecutive years. Its stock currently changes hands near $46 per share, up from April’s lows around $36 but still well below its 52-week peak of $52. Energy prices have firmed as geopolitical tensions add volatility to global supply, supporting earnings and cash flow. Canadian Natural Resources benefits from long-lived assets and a robust balance sheet, which enable it to return capital to shareholders. Its 5.1% dividend yield enhances the income appeal of the stock. Exposure to the energy sector can also be complemented by other high yield canadian stocks, which feature strong payouts backed by diversified operations.

Enbridge

Enbridge is a major pipeline operator in North America and an important component of the S&P/TSX Energy Index. The firm moves approximately 30% of Canada’s crude oil and 20% of the natural gas consumed in the U.S. Enbridge shares trade near $50 after climbing 29% over the past year. Recent price softness provides an opening for those seeking stable income streams, with the current yield sitting at 6.1%. A $28 billion capital program is underway to drive future cash flow growth across regulated infrastructure assets. This supports the company’s record of dividend hikes for 30 straight years, underlining the stability of its business model.

Bank of Nova Scotia

Bank of Nova Scotia is one of Canada’s Big Five banks and a constituent of the S&P/TSX Financials Index. Trading near $74.50, its shares remain well below the $93 highs of early 2022. A sharp downturn to $55 in 2023 reflected broad sector pressures and a complex operating backdrop in Latin America. Going forward, Bank of Nova Scotia plans to refocus its international operations on the most stable jurisdictions, directing more capital toward Canada and the U.S. This pivot aims to bolster long-term growth and enhance core profitability. The current 5.9% yield underscores its income characteristics and strong capital position.

Fortis

Fortis is a top utility operator spanning multiple provinces and states, delivering electricity and gas to millions of customers. Its utility status places it on the S&P/TSX Utilities Index, making it one of the most stable companies for long-duration portfolios. Fortis shares are priced around $55 and the firm has increased its dividend annually for 51 years — a rare feat across Canadian equities. Revenue stems from rate-regulated assets and Fortis is executing a $26 billion capital program through 2029, which is expected to support further incremental 4% to 6% annual dividend increases. Its durable business profile provides resilience against economic cycles and enhances predictability of future distributions.