Retirees and different revenue traders are making the most of their rising Tax-Free Financial savings Account (TFSA) contribution room to construct portfolios of high TSX dividend shares that may ship a dependable and rising stream of passive revenue. Fortis (TSX:FTS) and Enbridge (TSX:ENB) have good histories of distribution development and at the moment commerce at discounted costs.

Fortis

Fortis is a Canadian utility firm with $64 billion in property positioned in Canada, the USA, and the Caribbean. The companies embrace power-generation amenities, electrical energy transmission networks, and pure fuel distribution utilities.

The inventory reached a excessive of $65 final April earlier than sliding by means of the summer time and into the autumn. At one level, the share worth dipped beneath $50. Since then, discount hunters have emerged, and the share worth is now again as much as $59.50.

Fortis must be an excellent inventory to personal by means of a recession. The corporate will get 99% of its income from regulated property that present important companies. Firms and households want electrical energy and pure fuel, whatever the state of the financial system.

Fortis grows by means of acquisitions and natural tasks. The present $22.3 billion capital program is anticipated to spice up the speed base sufficient within the coming years to help annual dividend will increase of 4-6% by means of not less than 2027.

Fortis has raised the payout in every of the previous 49 years. Traders who purchase on the present share worth can get a 3.8% dividend yield.

Enbridge

Enbridge trades for lower than $53 on the time of writing and offers a 6.75% dividend yield. The inventory topped $59.50 final June however pulled again, together with the broader power sector by means of the again half of final 12 months.

Enbridge isn’t an oil and pure fuel producer. The corporate merely strikes the fuels from the manufacturing websites to storage places, utilities, refineries, or export amenities and costs a price for offering the service. Adjustments within the costs of oil and pure fuel have a restricted direct impression on Enbridge’s income stream, so it doesn’t make a lot sense for the inventory to drop when oil costs tank. So long as gas demand stays sturdy, Enbridge ought to generate good income and money movement.

The corporate’s pipelines get probably the most consideration, however Enbridge additionally has pure fuel utilities and a rising renewable power enterprise to assist stability out the income stream and supply first rate development alternatives. Enbridge can also be increasing into the export section with the acquisition of an oil export terminal in 2021 and has a stake in a brand new liquified pure fuel (LNG) terminal being inbuilt British Columbia.

Home and worldwide demand for Canadian and American oil and pure fuel are anticipated to develop within the coming years. Enbridge is positioned nicely to profit.

The board raised the dividend by greater than 3% for 2023. Traders have acquired a dividend improve for 28 consecutive years.

Is one a greater TFSA dividend choose immediately?

Fortis and Enbridge are high dividend shares that ought to proceed to extend their payouts. Each should be in your radar. For those who solely purchase one, I’d most likely make Enbridge the primary alternative proper now. The inventory nonetheless seems oversold and offers a greater dividend yield for traders primarily centered on producing TFSA passive revenue.