Should you invest $1,000 in Hamilton Enhanced U.s. Covered Call Etf right now?

Before you buy stock in Hamilton Enhanced U.s. Covered Call 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 Hamilton Enhanced U.s. Covered Call 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

2 Stocks I’d Avoid in 2025 (and 1 I’d Buy)

Two low-priced stocks are best avoided for now but a surging oil bellwether is a must-buy.

| More on:
space ship model takes off

Source: Getty Images

Several Canadian stocks trade at a bargain despite a rising market due to falling inflation and interest rates. Ballard Power Systems (TSX:BLDP) and TELUS Digital (TSX:TIXT) are tempting options for their depressed prices, but there are valid reasons to avoid them.

However, if I’m investing before or starting in 2025, I’d buy Suncor Energy (TSX:SU) without reluctance. Warren Buffet’s top Canadian holding for years until Q1 2021 is a rock-solid investment choice.

Lost Glory

The TSX30 List, the flagship program for Canada’s 30 top-performing stocks, first emerged in 2019. Ballard Power Systems has been in the prestigious list for three consecutive years since the launch. The industrial stock ranked 12th, 2nd, and 4th in 2019, 2020, and 2021, respectively.

Created with Highcharts 11.4.3Ballard Power Systems PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

BLDP’s three-year performance (dividend-adjusted share price) in its last appearance on the list was plus 495%. Today, Ballard is hardly a shadow of its high-growth status. At $1.79 per share, the year-to-date loss is minus 63.5%. Is recovery coming soon to regain lost glory?

The $385 million fuel cell company develops and manufactures proton exchange membrane (PEM) fuel cell products. Unfortunately, the near-term outlook looks bleak because of the slow development of the hydrogen fuel cell market. The challenging macroeconomic and geopolitical risks add to the business uncertainty.

In Q3 2024 (three months ending September 30, 2024), revenue declined 45% year-over-year to US$14.8 million, while net loss widened 489% to US$204.5 million compared to Q3 2023. Ballard’s vital role in decarbonization will come but not soon.

Intense competition

Technology is the TSX’s top-performing sector (+30.9%) thus far in 2024, but TIXT (-52.5%) lags its peers. TELUS International changed its name to TELUS Digital in June 2024, although the rebranding did not help. The tech stock trades at $5.41 per share or 65.2% lower than its 52-week high of $15.56.

Created with Highcharts 11.4.3Telus International PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

In Q3 2024, revenue declined 0.8% year-over-year to $658 million and net loss reached $32 million compared to the $9 million net income in Q3 2023. The $1.5 billion company delivers innovative solutions, including generative AI, to enhance the global and disruptive brands’ customer experience (CX).

Management said the focus on fundamentals should support the return to growth but admits the intense competition from companies that offer services similar to TELUS Digital.

Oil bellwether

Suncor Energy and its stock have recovered remarkably since incurring substantial losses in 2020 due to the oil price war and low demand during the global pandemic. Market analysts recommend a buy rating for the oil bellwether. At $53.16 per share, current investors are up 29.3% year-to-date and partake in the 4.3% dividend yield. The quarterly payout should be safe, given the low 37% payout ratio.

Created with Highcharts 11.4.3Suncor Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The $48.5 billion integrated energy company commits to returning almost 100% of excess funds to shareholders via share buybacks. Suncor also targets a 3% to 5% annual dividend growth guidance. In Q3 2024, net earnings climbed 30.8% year-over-year to $2 billion. Because of the solid financial results, the Board approved a 5% dividend hike.

Discern before investing

Investors should be discerning with their investment choices. Suncor Energy is doing well because the circumstances or market conditions are generally favourable. Ballard Power Systems and TELUS Digital face serious challenges, while the oil bellwether is a must-buy.  

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 recommends Telus International. The Motley Fool has a disclosure policy.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »

Asset Management
Dividend Stocks

12% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

Stocks with high-dividend yields carry risks. But they could be a good long-term investment. Here is a 12% dividend stock…

Read more »

Canadian flag
Dividend Stocks

How I’d Build a Foundation of Canadian Value Stocks in My Investment Strategy

Canadian investors can explore iShares Canadian Value Index ETF for value stock ideas to build a foundation for their diversified…

Read more »

Canadian dollars are printed
Dividend Stocks

How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

Here's why TFSA investors should consider owning dividend stocks such as Mullen Group in 2025.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Dip Buyers Could Win Big in Today’s Market Dip

If you want to buy the dip, think long-term. Which is why this TSX stock is a top option.

Read more »