The Best Canadian Stocks to Buy in May 2025

These dividend stocks were just bumped up by analysts, making them great buys on the TSX today.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 13, 2025 4:00 pm EDT

| More on: BEI.UNCHROBE

As May 2025 unfolds, Canadian investors seeking reliable Canadian stocks have several compelling options. Among them, Chorus Aviation (TSX:CHR), Boardwalk Real Estate Investment Trust (TSX:BEI:UN), and Obsidian Energy (TSX:OBE) stand out for recent performance and growth prospects. So, let’s get into why investors may want to consider these top Canadian stocks.

Canada national flag waving in wind on clear day — Source: Getty Images

CHR

Chorus Aviation demonstrated strong financial results in the first quarter of 2025. The Canadian stock reported a net income of $18.9 million, up from $12.3 million in the same period last year. Adjusted earnings available to common shareholders increased to $15.4 million, or $0.57 per share. This was a solid increase compared to $3.7 million, or $0.13 per share, in the first quarter (Q1) of 2024.

This growth was driven by improved financial results, primarily related to increased parts sales, contract flying, maintenance, repair, and overhaul (MRO) services. The Canadian stock’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $56.9 million from $54.0 million in the previous year. Free cash flow also improved, reaching $40.6 million compared to $30.7 million in Q1 2024. Chorus’s focus on returning capital to shareholders is evident through its substantial issuer bid of $25 million and share buybacks totalling $53 million since 2022. These initiatives reflect the company’s commitment to enhancing shareholder value.

BEI

Boardwalk REIT continues to benefit from resilient demand for quality affordable housing. In Q1 2025, the Canadian stock achieved an 11.6% year-over-year growth in funds from operations (FFO), reaching $1.06 per unit. Occupancy rates remained high, with a slight dip to 97.8% from 98.8% in Q1 2024, but preliminary May occupancy rebounded to 98.0%. Same-property net operating income (NOI) rose by 10.3%, driven by higher average rents and cost containment.

The trust’s regional diversification has contributed to its performance, with notable NOI growth in Edmonton and Saskatchewan. Boardwalk’s strategic capital allocation includes the sale of three Edmonton communities for $80 million and the acquisition of the Elbow 5 Eight community in Calgary for $93 million. These moves position the Canadian stock to capitalize on undervalued assets and reinforce its growth strategy.

OBE

Obsidian Energy reported solid financial results for the first quarter of 2025. The Canadian stock generated funds flow from operations of $100.1 million, or $1.36 per share, up from $84.4 million, or $1.09 per share, in Q1 2024. Net income increased to $15.4 million, or $0.21 per share, compared to $11.9 million, or $0.15 per share, in the same period last year. Production averaged 38,416 barrels of oil equivalent per day, marking a 12% increase year over year.

Obsidian’s focus on heavy oil development in the Peace River area contributed to this growth. The Canadian stock also completed a $320 million divestiture of its Pembina assets, significantly reducing net debt to approximately $250 million. Obsidian’s active share-buyback program, with approximately 3.5 million shares repurchased and cancelled in 2025, underscores its commitment to enhancing shareholder value.

Bottom line

These three companies offer investors a blend of income and growth potential. Chorus’s strong financial performance and shareholder-friendly initiatives make it an attractive option in the aviation sector. Boardwalk’s focus on affordable housing and strategic capital allocation position it well in the real estate market. Obsidian’s operational efficiency and debt reduction efforts enhance its appeal in the energy sector. Investors seeking reliable Canadian stocks in May 2025 may find these companies worthy of consideration for their portfolios.