Should you invest $1,000 in iShares S&P/TSX 60 Index ETF right now?

Before you buy stock in iShares S&P/TSX 60 Index ETF, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and iShares S&P/TSX 60 Index ETF wasn’t one of them. The Top 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 $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

1 Market-Beating, Dividend-Paying TSX Stock That’s a Steal Right Now

An outperforming stock with strong upside potential and long growth runway is the best buy on the TSX today.

| More on:
man touches brain to show a good idea

Source: Getty Images

Are you looking to buy the best TSX today? If yes, now is the time to take a position in Bird Construction (TSX:BDT). This industrial stock has had an incredible bull run (+222.4%) in the last 12 months and is up 85.4% year to date. The current share price of $26.34 is a steal, considering its growth potential from several projects and new contract wins.

The $1.43 billion construction company operates in Canada’s major markets. It offers construction services to nearly all real estate markets such as new construction, industrial maintenance, repair and operations services. Allied services include heavy civil construction, mine support services, and vertical infrastructure. 

TSX 30 candidate

Bird Construction was established 104 years ago and has wings to fly higher in the next century. The top and bottom lines have been increasing every year since 2020. It also rewarded investors with an overall return of 241.83% in 3.01 years. BDT has a strong chance of making it to the 2024 TSX30 List, a flagship program for Canada’s top-performing growth stocks.

Created with Highcharts 11.4.3Bird Construction PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Had you invested $6,500 on year-end 2023, your money would be $12,048.56 today. Because Bird also pays a modest 2.2% dividend, the total return bumps slightly with the additional $143 in dividend payments. Market analysts covering the stock projects a $30 high price target in 12 months (+13.9%).

Financial performance

Bird’s financial performance to the start of 2024 is short of remarkable. In the first quarter (Q1) of 2024, construction revenue increased 28.3% to $688.2 million compared to Q1 2023, while net income jumped 94% year over year to $10 million. Its president and chief executive officer (CEO), Teri McKibbon, said the quarterly results point to significant earnings and cash flow improvements this year.

McKibbon added the combined backlog (contracted and awarded work) is growing along with favourable embedded margins. He noted that the acquisition of NorCan Electric was a major factor. Alberta’s leading electrical service provider boosted Bird’s capabilities, capacity, and recurring revenue.

As of March 31, 2024, the backlog level was at a record $3.5 billion, while the pending backlog of work awarded but not yet contracted was $3.4 billion. Cash flow from operations rose nearly 77% to $31.2 million versus the same quarter last year. Bird’s gross profit percentage improved from 7.4% to 8% during the quarter.

Contract awards and projects

On June 18, 2024, Bird Construction announced securing contracts worth over $625 million. These five new projects include mine infrastructure work in Eastern Canada and several long-term care and institutional projects in Western Canada.

The infrastructure project in the east will enhance mining operations, while the west can expect increased long-term care capacity and sustainable, energy-efficient buildings.

According to McKibbon, the latest contract awards underscore Bird’s expertise and indicate strong demand across its target sectors. More importantly, the projects will keep the top-tier construction firm busy for years.

Strategic focus and objective

McKibbon is confident that a strong balance sheet will enable Bird to invest in profitable organic growth and chase attractive acquisitions in today’s active market. “The company’s strategic focus on being a leading collaborative construction company continues to drive growth and better outcomes for all parties,” he said.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »