Canadians are using their self-directed Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) to build portfolios of investments that will provide retirement income to complement The Canada Pension Plan, Old Age Security, and company pensions.

One popular strategy involves buying top TSX dividend stocks and using the distributions to acquire new shares until it is time to start spending the proceeds of the investments.

Enbridge

Enbridge (TSX:ENB) raised its dividend in each of the past 29 years and more gains should be on the way. The energy infrastructure giant continues to drive growth through a combination of strategic acquisitions and development projects. Enbridge is in the process of completing its US$14 billion takeover of three natural gas distribution utilities in the United States. The purchases will make Enbridge the largest natural gas utility operator in North America. The bet is driven by anticipated demand growth for natural gas as new gas-fired power generation facilities are built to provide electricity for AI data centres and other needs, including electric vehicles.

Looking ahead, Enbridge's extensive natural gas transmission network of pipelines and storage facilities combined with the distribution assets position the company to benefit from the anticipated use of hydrogen as a fuel that could be delivered through natural gas infrastructure.

Enbridge's oil pipelines and export facilities are still strategically important, and the company is expanding its renewable energy group.

Distributable cash flow is expected to grow at a steady pace, supported by the addition of new assets. Investors who buy ENB stock at the current price can get a dividend yield of 6.6%.

Enbridge trades near $55 per share at the time of writing. It was as high as $59 in 2022 before pulling back when the central banks started to aggressively raise interest rates.

Telus

Telus (TSX:T) trades near $22.50 at the time of writing compared to $34 at the high point in 2022. The stock is finally picking up some momentum after a rough couple of years caused by rising debt expenses and weaker revenue in the Telus International subsidiary.

The stock is probably still oversold. Telus delivered adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth in 2023 and is targeting another gain in 2024 despite the headwinds. Falling interest rates will reduce borrowing costs, and the extensive staff reductions that occurred over the past year have trimmed expenses.

Investors who buy Telus at the current level can get a dividend yield of 6.8%.

Bank of Montreal

Bank of Montreal (TSX:BMO) is arguably a contrarian pick right now. The stock is out of favour due to high provisions for credit losses largely caused by a few bad client loans in its American operations. Investors are also upset that Bank of Montreal made a large U.S. acquisition at an elevated price right before regional American banks took a beating in early 2023.

The US$16.3 billion purchase of Bank of the West was negotiated near the end of 2021 at the peak of the post-pandemic rally in bank stocks, but the deal didn't close until the start of February 2023, just before chaos hit the regional banks in the United States.

Near-term headwinds are expected, but the Bank of the West deal should prove to be beneficial over the long run. In the meantime, investors can get a 5.5% yield from BMO stock while they wait for the recovery. Bank of Montreal has paid a dividend annually for nearly two centuries.

The bottom line on stocks for retirement

Enbridge, Telus, and Bank of Montreal pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA or RRSP, these stocks deserve to be on your radar.