3 Dividend Stocks For TFSA Investors

Looking to grow your retirement savings without constantly monitoring your portfolio? Dividend stocks might be your best bet. With their steady income and growth potential, they’re perfect for a "buy and forget" strategy. In this article, I'll share three top dividend stocks that are tailor-made for TFSA investors. These companies not only offer consistent dividend growth but also bring stability and resilience to the table, making them ideal for a hands-off approach to long-term investing.

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Let's dive into these picks and see why they deserve a spot in your TFSA

Fortis Inc. $FTS.TO

Fortis is a leading utility company with operations in Canada, the U.S., and the Caribbean. It provides essential electric and gas services, ensuring stable and predictable revenue through long-term regulated contracts. This stability makes Fortis a defensive and reliable choice for investors.

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Currently, Fortis offers a strong quarterly dividend yield of 4.5%. The company has increased its dividend for 50 consecutive years, demonstrating a long-standing commitment to rewarding its shareholders. Fortis plans to continue this trend, with expected annual dividend growth of 4-6% through 2028.

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For TFSA investors seeking a reliable and steady income stream, Fortis is an excellent option. Its consistent cash flow and dedication to dividend growth make it a stock you can confidently add to your portfolio and hold for years to come.

Enbridge Inc. $ENB.TO

Enbridge is a key player in North America's energy infrastructure, handling a significant portion of the continent's crude oil and natural gas transport. Known for its stability, Enbridge has paid consistent dividends for over 70 years and increased them for the last 29 years.

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Currently, Enbridge offers a very high dividend yield of 7.5%. Despite a slower growth rate of around 3% due to higher interest rates, its dividends remain attractive. The company's cash flow is stable and largely protected against inflation, with most revenue coming from long-term contracts with investment-grade customers.

Canadian Imperial Bank of Commerce $CM.TO

Canadian Imperial Bank of Commerce, or CIBC, is a great option for a dependable dividend stock in your TFSA. With a solid dividend yield of 5.4%, CIBC has a strong track record of rewarding its shareholders. Over the past decade, the bank has increased its dividends by about 81%, showing its commitment to delivering value.

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As of Q2 2024, CIBC's total assets reached $1,001.8 billion, up from $975.7 billion in 2023. Deposits grew to $732.0 billion, and loans and acceptances climbed to $543.9 billion, reflecting steady growth.

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One of CIBC's strengths is its ability to maintain strong financial health. The bank's healthy balance sheet and solid capital reserves mean it can continue to pay dividends even during tough economic times.

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Sources:

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Information was sourced from Fortis’ official website, corporate presentations, and press releases.

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Information was sourced from Enbridge’s official website, corporate presentations, and press releases.

‍Information was sourced from CIBC’s official website, corporate presentations, and press releases.