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

Pensioners: 2 High-Yield Dividend Stocks With Growing Distributions

These top TSX dividend stocks now offer high yields for investors seeking passive income.

| More on:
Two seniors walk in the forest

Source: Getty Images

Retirees seeking passive income have an opportunity to buy top TSX dividend-growth stocks at discounted prices for their self-directed portfolios. Buying undervalued stocks requires the patience to ride out potential further downside, but the strategy can boost returns on savings.

TC Energy

TC Energy (TSX:TRP) raised its dividend in each of the past 24 years, and more annual gains should be on the way.

The company reached mechanical completion on its 670km Coastal GasLink pipeline project last year. The asset will move natural gas from Canadian producers to a new liquified natural gas (LNG) facility being built on the coast of British Columbia. Full operation is expected in 2025.

TC Energy has other capital projects on the go to drive growth. The company expects investments to be about $8 billion in 2024 and will be in the $6 billion to $7 billion range annually over the medium term. As new assets go into service, the rise in cash flow should support steady dividend growth.

Created with Highcharts 11.4.3Tc Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Bargain hunters started moving into the stock last fall on the expectation that cuts to interest rates in 2024 and 2025 will reduce borrowing costs for the capital projects and boost cash that is available to reduce debt or pay out as distributions. TC Energy trades near $51 per share at the time of writing. This is up from the 12-month low near $44 but still way off the $74 the stock reached in 2022.

Investors who buy at the current level can get a 7.5% dividend yield.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) trades below $62 per share at the time of writing compared to $93 in early 2022.

The Bank of Canada recently cut its interest rate by 0.25%. South of the border, the U.S. Federal Reserve is expected to start reducing its target rate before the end of the year or in early 2025. Lower borrowing costs will help households and businesses that are struggling with too much debt. Bank of Nova Scotia and its peers have increased provisions for loan losses (PCL) in recent quarters. That trend should flatten out over the coming year, and investors could even see PCL reversals near the end of 2025 as long as the economy remains resilient through the rate-cut process.

Bank of Nova Scotia remains a very profitable bank and has a solid capital position to ride out economic turbulence. The new strategy is to focus growth investments on Canada, the United States, and Mexico and shift away from South America. It will take some time to deliver results, but investors get paid well enough to wait for the turnaround. At the current level, BNS stock provides a dividend yield of 6.9%.

Bank of Nova Scotia paid its first dividend in 1833. The current quarterly payout is $1.06 per share.

The bottom line on top stocks for passive income

TC Energy and Bank of Nova Scotia pay attractive dividends that should continue to grow. If you have some cash to put to work in a portfolio focused on high-yield dividends, these stocks deserve to be on your radar.

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.

The Motley Fool recommends Bank Of Nova Scotia. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

More on Retirement

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Retirement

Top Canadian Value Stocks I’d Hold in My TFSA for the Next Decade

These Canadian value stocks have significant growth potential and will enhance your TFSA portfolio’s return in the long run.

Read more »

money goes up and down in balance
Retirement

Where I’d Invest $10,000 in Canadian Value Stocks for Long-term Growth

Suncor Energy Inc (TSX:SU) is a quality Canadian value stock.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Retirement

Here’s the Average Canadian TFSA and RRSP at Age 60

Many Canadian retirees have tens of thousands invested in ETFs like the iShares S&P/TSX 60 Index Fund (TSX:XIU).

Read more »

Redwood trees stretch up to the sunlight.
Retirement

3 Canadian Growth Stocks I’d Buy and Hold in a TFSA Forever

These stocks have the potential to outperform the broader market with their returns. Using the TFSA can further amplify your…

Read more »

woman retiree on computer
Retirement

Want to Retire Early? These 2 TSX Stocks Could Make it Happen

These safe, large-cap dividend stocks could help fast-track your path to retirement.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Retirement

How to Protect Your Retirement Savings From the CRA

Building a sizeable retirement pool is important, but it is equally important to protect it from the CRA’s tax claws.

Read more »

grow money, wealth build
Retirement

Maximizing TFSA Growth: Top Investment Choices for 2025

Two resource companies are the top investment choices for 2025 to maximize TFSA growth.

Read more »

cloud computing
Retirement

The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA

The TFSA is the perfect place to hold Canadian stocks that will compound and multiply over decades. These stocks are…

Read more »