In my view, each Canadian ought to open Tax-Free Financial savings Account (TFSA). As its title suggests, any features generated in a TFSA will be withdrawn tax free. Over time, that would assist traders snowball their accounts a lot quicker, serving to them obtain monetary independence.

One constraint that comes with TFSAs is that Canadians are restricted when it comes to how a lot cash they’ll contribute into one among these accounts. Fortunately, that restrict continues to extend yearly. In 2023, Canadians got a further $6,500 of contribution room to work with. If that contribution room is allotted in direction of sturdy dividend shares, traders may see a pleasant chunk of dividends come their approach. On this article, I talk about two high TSX dividend shares on your $6,500 contribution room.

Begin with one of the best

In relation to dividend shares, Fortis (TSX:FTS) stays one of the vital engaging firms round. For these which might be unfamiliar, this firm supplies regulated fuel and electrical utilities to greater than three million prospects throughout Canada, the US, and Caribbean. As a result of nature of its enterprise, Fortis’s income may be very secure and predictable. That enables the corporate to plan its dividend distributions far upfront of the particular distribution date.

Talking of its dividend, Fortis has made a reputation for itself amongst dividend traders because of its lengthy historical past of elevating its distribution. In truth, the corporate holds the second-longest energetic dividend-growth streak in Canada at 49 years. Fortis has already introduced its plans to proceed elevating its dividend at a charge of 4-6% by means of to at the least 2027. When you’re on the lookout for a robust dividend inventory, think about shopping for Fortis in your TFSA.

This long-paying dividend inventory is price a purchase

Though Financial institution of Nova Scotia (TSX:BNS) doesn’t boast the identical form of dividend-growth streak as Fortis, it does shine in one other facet. This firm has paid shareholders a portion of its earnings for almost 190 consecutive years. That’s very spectacular contemplating what number of recessions and financial downturns the corporate has needed to endure over that interval. The truth that Financial institution of Nova Scotia has by no means needed to droop its dividend for almost two centuries exhibits that the corporate prioritizes its distribution.

One of many Large 5 Canadian banks, Financial institution of Nova Scotia stands out from its friends because of its deal with worldwide development. Incomes the title of Canada’s most worldwide financial institution, Financial institution of Nova Scotia may set itself as much as turn out to be Canada’s largest banking entity by the top of the last decade. With that mentioned, traders may purchase shares of Financial institution of Nova Scotia for its development potential along with its enchantment as a robust dividend inventory.

Silly takeaway

A TFSA will be a wonderful device that would assist traders obtain monetary independence. By investing in sturdy dividend firms in a TFSA, traders may create a secure supply of revenue with out having to pay any taxes on high of that. Fortis and Financial institution of Nova Scotia could be my two high picks on your $6,500 contribution room in 2023.