If you want to turn your Tax-Free Savings Account (TFSA) into a long-term dividend engine, the right mix of dependable payers can do a lot of heavy lifting. A strong trio combines stability, steady income, and some growth to keep your portfolio moving forward. BCE (TSX:BCE), Pembina Pipeline (TSX:PPL), and Stella-Jones (TSX:SJ) each bring something different to the table. Together, these could help build a future of reliable, tax-free cash flow.
BCE
BCE had a rough run over the past year, with shares down nearly 30% from last summerâs highs. The dividend stock’s drop has been driven by slowing wireline growth, regulatory headwinds, and heavy capital investment. But its Q2 2025 results suggest itâs still a force in Canadian telecom. Revenue rose 1.3% year over year to just over $6 billion, net earnings jumped 6.6%, and the dividend stock added almost 95,000 mobile subscribers.
Bell Media posted its fifth consecutive quarter of revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) growth, fuelled by digital expansion and new partnerships. The forward yield now sits around 5.2%, and while the payout ratio looks high, BCEâs cash flow generation remains solid. The risk is that regulation and competition keep pressuring margins. But if earnings stabilize, the stockâs current yield could be an opportunity for long-term income investors.
PPL
Pembina Pipeline has also been dealing with a softer share price, down about 6% over the past year. The energy infrastructure player continues to be a cash flow machine, generating $698 million in adjusted operating cash flow in Q2 2025 on $1 billion of adjusted EBITDA. The dividend stock boosted its 2025 EBITDA guidance to as much as $4.4 billion and announced new long-term agreements, acquisitions, and export projects.
This includes a major expansion at its Prince Rupert Terminal and a tolling deal for additional LPG export capacity. Its growth is underpinned by take-or-pay contracts, which help smooth earnings in volatile commodity environments. The dividend stock yields roughly 5.8%, supported by a payout ratio under 95%. Risks come from project execution, commodity-linked volumes, and regulatory delays, but Pembinaâs integrated model and expansion plans give it a strong base for sustained dividends.
SJ
Stella-Jones offers a different angle on dividend investing, with a focus on essential infrastructure products like utility poles and railway ties. Shares have fallen about 14% in the past year, reflecting lower-than-expected sales growth in its utility pole and railway tie segments. Q2 2025 revenue dipped 1% to $1 billion, but EBITDA margins stayed strong at 18.3%, and the dividend stock maintained healthy free cash flow.
The acquisition of Locweld expands its footprint into steel transmission structures, giving it another growth lever in North Americaâs infrastructure buildout. Management trimmed its full-year sales target but reaffirmed its margin and capital return goals. The dividend yield is more modest at 1.6%, but the payout ratio is under 20%, leaving plenty of room for growth. Risks include reliance on key customers and exposure to macro-driven demand cycles, but the companyâs niche market dominance is a long-term advantage.
Bottom line
Combined, these three dividend stocks give a TFSA portfolio diversification across telecom, energy infrastructure, and industrial products. BCE brings high yield and defensive cash flows, Pembina offers yield plus growth from capital projects, and Stella-Jones provides dividend growth potential with an infrastructure tilt. The blend could help smooth out sector-specific risks while giving investors both upfront income and the chance for dividend increases over time. Even now, investing $3,000 in each stock would bring in $365.18 annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BCE | $34.62 | 86 | $1.75 | $150.50 | Quarterly | $2,975.32 |
| PPL | $50.10 | 59 | $2.84 | $167.56 | Monthly | $2,955.90 |
| SJ | $78.31 | 38 | $1.24 | $47.12 | Quarterly | $2,975.78 |
The trade-off is that none of these stocks is without short-term challenges. BCE faces regulatory pressures, Pembina commodity exposure, and Stella-Jones near-term sales softness. But all three have the balance sheets, market positions, and strategies to keep paying and growing dividends well into the future. For TFSA investors looking to build a tax-free income stream they can count on, this trio might be a solid place to start.
The post Building a Dividend Future: How to Use 3 Stocks in Your TFSA appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline and Stella-Jones. The Motley Fool has a disclosure policy.
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