Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Retirees: 2 Top Dividend Stocks to Average a 5% Yield in Your TFSA

Canadian retirees are trying to find decent yield in a world where GICs and savings accounts no longer offer acceptable returns.

Let’s take a look BCE Inc. (TSX:BCE)(NYSE:BCE) and Inter Pipeline Ltd. (TSX:IPL) to see why they might be attractive picks.


BCE has long been a favourite with pensioners, and there is little reason for that to change.

The company holds a dominant position in an industry with few serious competitors, and there is little risk of a major new entrant coming in to spoil the party.

Consumers complain about it, and once in a while the government pretends to do something about it, but the situation is unlikely to change, and that’s a good thing for BCE’s investors.

The company has expanded its reach in recent years and now owns sports teams, radio stations, a television network, specialty channels, and retail outlets. When you combine these assets with the world-class wireline and wireless networks, you get a powerful business that pretty much has its fingers in the Canadian communications pie at every point of interaction with the public.

Critics say the stock is expensive by historical standards, and they are right, but investors have very few places to turn for quality yield that is safe, and the era of ultra-low interest rates isn’t going to go away anytime soon.

I wouldn’t own it for share-price growth, but BCE still remains one of the best picks in the Canadian market for above-average dividends. Investors who buy today can pick up a yield of 4.5%.

Inter Pipeline

Inter Pipeline lies in the shadows of its larger infrastructure peers, but the company’s balanced revenue stream makes it an interesting pick in the broader energy space.

Inter Pipeline owns oil sands infrastructure, conventional oil pipelines, natural gas liquids (NGL) extraction facilities, and a European liquids storage business.

All four business segments delivered improved year-over-year funds from operations (FFO) in the second quarter, and management is taking advantage of the weak market conditions to invest for the future.

What’s the scoop?

The company recently agreed to purchase two NGL extraction facilities and related infrastructure for $1.35 billion from The Williams Companies. Inter Pipeline is getting the assets at a 45% discount to the construction cost, so there is an opportunity to generate strong returns on the investment once energy prices recover.

Inter Pipeline raised its dividend last November to $0.13 per share. That’s good for a yield of 5.6% today, and investors could see another hike once the new assets are integrated into the portfolio.

The bottom line

An equal investment in both BCE and Inter Pipeline will generate an average 5% yield in your TFSA at the current dividend rates. Both payouts look sustainable and should increase at a regular clip going forward.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.

Fool contributor Andrew Walker has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.