The Smartest Dividend Stocks to Buy with $1,000 Right Now

The stock market seems to be kicking off with the Holiday Season in 2025. As of this writing, the S&P/TSX Composite Index is up by a massive 42.4% from its 52-week low. The surge in the market over the last few days can be attributed largely to the spending spree that the holidays trigger. The upward tick in the Canadian benchmark indicates bull market conditions.

Many investors are busy buying up shares of stocks benefiting from this surge. However, it is important to remember that you cannot ignore your long-term investment strategy during such times. While you should leverage any opportunities you can find among growth stocks, reserving some space in your Tax-Free Savings Account (TFSA) for dividend stocks might be a worthwhile decision.

Today, I will discuss two of the smartest dividend stocks to buy if you have $1,000 of available contribution room in your TFSA.

Enbridge

Enbridge Inc. (TSX:ENB) has long been a darling stock for dividend-focused investors seeking sizeable returns. The $142.3 billion market-cap integrated energy company owns extensive midstream assets, transporting hydrocarbons across North America. In recent times, it has become one of the giants in the utility sector in the region, as it continues to expand its portfolio through massive capital programs and acquisitions.

Enbridge became the largest natural gas utility operator in North America after a US$14 billion spree in 2024 to acquire three American natural gas utility companies. Besides the stability its utilities segment brings, its traditional energy operations and growing renewable energy portfolio position it for a solid future in the coming years.

As of this writing, ENB stock trades for $65.24 per share and pays investors $0.97 per share, translating to a juicy 6% dividend yield that you can lock into your self-directed portfolio.

Fortis

Where long-term investors might have had their reservations about Enbridge stock on occasion, Fortis Inc. (TSX:FTS) has never disappointed dividend seekers. Fortis is a mainstay in many investor portfolios. The pureplay utility sector giant has a $35 billion market capitalization, and owns several natural gas and electricity utility businesses across Canada, the US, and the Caribbean.

The dividend stock has increased payouts to investors for over 50 years, and its defensive business model enables it to continue doing so. Most of its revenue comes from long-term contracted assets within highly rate-regulated markets. This means predictable income and cash flows that the management can use to grow dividends and fund capital programs.

As of this writing, Fortis stock trades for $69.25 per share and pays its investors $0.64 per share each quarter, translating to a 3.7% dividend yield that you can lock into your self-directed TFSA portfolio today.

Foolish takeaway

Dividend investing in the right stocks can become a gift that keeps on giving. Allocating some of the contribution room in your TFSA to dividend stocks can ensure that the gifts are tax-free. To this end, Enbridge stock and Fortis stock can be excellent long-term holdings for your self-directed TFSA portfolio.

The post The Smartest Dividend Stocks to Buy with $1,000 Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Enbridge Inc. right now?

Before you buy stock in Enbridge Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Enbridge Inc. wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• The Best Canadian Stocks to Buy and Hold Forever in a TFSA
• The Top 3 Canadian Dividend Stocks I Think Belong in Every Portfolio
• Safe Canadian Stocks to Buy Now and Hold Through Market Volatility
• A Dividend Giant I’d Buy Over BCE Stock Right Now
• 5 Dividend Stocks to Double Up on Right Now

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.