The Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP) are popular investment vehicles or retirement accounts. However, some Canadians see the TFSA as more advantageous, if not more helpful, than the RRSP. All interest, dividends, capital gains earned inside the account, and withdrawals are tax-free.

More importantly, unlike the RRSP, you can own a TFSA past age 71 and not convert to a Registered Retirement Income Fund (RRIF) or payout annuity. Thus, you can use your TFSA contribution limits to buy and hold four Canadian dividend stocks forever.

Solid investment choice

Royal Bank of Canada (TSX:RY) is undoubtedly number one on TSX's A-List of dividend payers. It is the TSX's largest company and Canada's largest bank by market capitalization. This $215.15 billion bank boasts a 154-year dividend track record. At $152.04 per share, the dividend yield is 3.74%. The quarterly payouts should be safe, given the 50% payout ratio.

The Business Research Company lists RBC as one of the 25th biggest financial institutions in the world. As of August 11, 2024, the diverse global provider of financial services ranks number eight, ahead of ninth-place American bank Morgan Stanley.

RBC is a solid investment choice mainly because of the unparalleled financial fortitude of Canada's banking sector.

Essential communications services

BCE (TSX:BCE) is an ideal long-term holding or a retirement income stock. Besides the lengthy dividend track record (since 1881), the $42.99 billion telecommunications company is a generous passive-income provider. At $47.12 per share, you can partake in the 8.47% dividend.

In the second quarter (Q2) 2024, operating revenues declined 1% to $6 billion versus Q2 2023, while net income and free cash flow (FCF) rose 52.1% and 8% year over year to $604 million and $1.01 billion. BCE operates in a highly competitive market and is preparing to transform from a dominant telco to a tech services and digital media leader.

Rich, enterprising legacy

North West Company (TSX:NWC) is a 200-year-old retail enterprise whose captured markets are the underserved rural communities and urban neighbourhood markets in Northern and Western Canada, rural Alaska, the South Pacific islands, and the Caribbean.

In Q1 2024, sales and net earnings of this $2.16 billion retailer rose 4% and 22.3% year over year to $617.5 million and $27.2 million. NWC continues to maintain business resiliency. Its essential everyday product and service offerings help mitigate uncertainties. At $45.38 per share, the consumer-defensive stock is up 17.81% year to date and pays a decent 3.44% dividend.

Long growth runway

Brookfield Renewable Partners (TSX:BEP.UN) has a long growth runway as renewables buildout globally accelerates. The $9.67 billion utility company owns and operates renewable power-generating facilities such as hydroelectric, solar, and wind. It also provides distributed energy and sustainable solutions on five continents.

Because management believes that the diverse portfolio of renewable assets will generate high-quality cash flows, Brookfield Renewable aims to deliver 12-15% total returns and 5-9% annual distribution growth. At $33.93 per share, BEP.UN's yield is 5.78%.

Pension-like income

TFSA account holders can be investors for life. The annual contributions and tax-free earnings will top up retirement savings and result in pension-like income during the sunset years.