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Investing in dividend stocks, particularly when they're trading at discounted prices, can be an excellent strategy for generating passive income, especially within a Tax-Free Savings Account (TFSA). Let's delve into two top Canadian dividend stocks that are currently offering high yields for income-focused investors. Image credit: Pexels TC Energy ( TSX:TRP ) TC Energy, despite its recent recovery, still presents an attractive opportunity for dividend investors. With a dividend yield of around 7%, TC Energy trades at approximately $54, up from its 12-month low but still below its peak of $74 in June 2022. The decline in TC Energy's stock price in the latter half of 2022 and throughout 2023 was largely driven by rising interest rates in Canada and the United States. However, market sentiment shifted late last year, anticipating a decline in interest rates in 2024, which provided a new tailwind for the stock. Lower interest rates typically benefit pipeline companies like TC...

TC Energy Corporation ( TSX:TRP ) has recently announced a dividend increase, set to take effect on April 30th, raising the payment to CA$0.96. This adjustment brings the annual dividend to 7.0% of the stock price, surpassing the industry average. Image Credit: Pexels Evaluating TC Energy's Dividend Before delving into the implications of this announcement, it's crucial to evaluate the sustainability of TC Energy's dividend, especially in the context of TSX dividend stocks . Preceding this update, the company was paying out 135% of its earnings, with no surplus free cash flows. Such a significant dividend payout ratio, coupled with the absence of free cash flows, raises concerns about the long-term viability of the dividend. However, there's optimism regarding earnings per share (EPS) growth, projected to rise by 80.8% in the coming year. If recent trends in dividend payments persist, the payout ratio could reach 82% in 12 months, indicating a slightly elevated yet pot...

Investing in the stock market can be a powerful strategy to grow wealth, offering returns that surpass traditional savings accounts. For investors seeking a passive-income stream, dividend stock investing is a compelling approach. In this article, we will explore three TSX-listed stocks that stand out as reliable options for creating a consistent passive-income stream in your self-directed portfolio. Image Credit: Pexels 1. TSX:ENB Fueling Growth and Sustainability Enbridge, with a market cap of $100.20 billion, is a multinational pipeline and energy company based in Calgary. Operating an extensive pipeline network, Enbridge plays a crucial role in transporting hydrocarbons across North America. The company's diverse energy services, including a focus on renewable energy, position it as a defensive and forward-thinking investment. As of the latest data, Enbridge stock trades at $47.14 per share, offering investors an enticing 7.76% dividend yield. The combination of its essentia...

Amidst the resurgence of Canada's energy sector, TC Energy Corporation (TSX:TRP) stands out as a standout large-cap TSX Energy stock , offering compelling reasons for investors to consider. With a current market capitalization of $55.7 billion, TC Energy is more than a conventional energy infrastructure company; it's a beacon of promise in a revitalized industry. Let's delve into the four compelling factors that make TC Energy a strong buy today. Image Credit: Pexels 1. Strategic Spinoff for Maximizing Value In a strategic move, TC Energy's Board of Directors, including its TSX-traded stock ( TSX:TRP ) , approved the spinoff of its liquids pipelines business on July 27, 2023. This decision, stemming from a meticulous two-year review, aims to create two independent, investment-grade entities to maximize asset value. The newly formed oil infrastructure company, South Bow, will operate independently, while TC Energy will refocus on low-risk natural gas and energy solution...