Investing in blue-chip shares that provide enticing dividends permits shareholders to construct a low-cost passive earnings stream. Along with regular earnings, the greatest dividend shares additionally increase returns via long-term capital positive factors.
One such high TSX inventory is TC Vitality (TSX:TRP), which presents you a ahead yield of 4.6% in November 2025. Valued at a market cap of virtually $80 billion, TC Vitality inventory has returned 111% to shareholders over the previous decade. Nonetheless, if we account for dividend reinvestments, cumulative returns are nearer to 210%.
Let’s see why this TSX dividend inventory needs to be in your watchlist proper now.
The bull case for the TSX dividend inventory
TC Vitality operates one in every of North America’s largest power infrastructure portfolios, positioning it as a vital participant in powering day by day life throughout the continent. The Calgary-based power large manages an enormous 93,600-kilometre pure gasoline pipeline community that provides over 30% of the clean-burning pure gasoline consumed day by day in North America for heating houses, fueling industries, and producing energy.
The corporate’s diversified enterprise mannequin extends past pipelines into energy technology, the place it maintains roughly 4,650 megawatts of capability. Over 75% of this energy is generated from low-carbon sources, together with nuclear and renewable power. This positions TC Vitality favourably, as pure gasoline performs an important function within the power transition geared toward displacing coal-fired energy.
TC Vitality delivered sturdy third-quarter outcomes whereas increasing its progress pipeline. It introduced $700 million in new initiatives, rising its complete sanctioned capital to $5.1 billion within the final 12 months.
TC Vitality grew its comparable EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) by 8% within the first 9 months of 2025, whereas inserting $8 billion of belongings into service.
CEO Francois Poirier emphasised TC Vitality’s bettering challenge returns, with the sanctioned portfolio now delivering a weighted common unlevered after-tax return of roughly 12.5%, up meaningfully from 8.5% only a few years in the past.
All new initiatives keep construct multiples within the enticing 5 to seven occasions vary with out taking over extra threat, staying centered on brownfield expansions alongside current corridors with long-term utility and investment-grade clients.
The corporate set 14 new data for pure gasoline pipeline movement throughout its programs in 2025, reflecting accelerating demand pushed by electrification, liquefied pure gasoline (LNG) exports, and information centre growth. Administration raised its pure gasoline demand forecast by 5 billion cubic toes (Bcf) per day, now projecting a forty five Bcf per day enhance by 2035. TC Vitality’s strategic place permits it to ship pure gasoline to each main LNG export shoreline in North America whereas transferring roughly 30% of all feed gasoline certain for LNG amenities.
Administration reaffirmed 2025 comparable EBITDA steerage displaying 7% to 9% progress and supplied 2026 steerage of 6% to eight% progress. Wanting additional forward, TC Vitality initiatives 5% to 7% EBITDA progress via 2028, concentrating on a comparable EBITDA of $12.6 billion to $13.1 billion.
The corporate expects to attain its long-term leverage goal of 4.75 occasions debt-to-EBITDA whereas funding roughly 80% of capital necessities with working money flows.
Is the TSX inventory nonetheless an excellent purchase proper now?
Since 2000, the TSX dividend inventory has delivered a mean annual return of 12% to shareholders. The power large has grown its asset base from $25 billion to over $100 billion throughout this era, whereas elevating its annual dividend from $0.85 per share to $3.40 per share in 2025, which signifies a ahead yield of 4.6%.
Administration initiatives continued dividend progress of three% to five% yearly, supported by its portfolio of complementary infrastructure belongings and secured progress initiatives. Analysts monitoring the power heavyweight forecast the annual dividend to extend to $3.77 per share in 2029.
Bay Avenue forecasts TC Vitality to develop adjusted earnings per share from $3.52 in 2025 to $4.43 in 2029. If the inventory trades at 20 occasions ahead earnings, it ought to achieve over 20% within the subsequent three years. If we modify for dividends, cumulative returns needs to be nearer to 35%.
