The ongoing rally in Canadian equities might seem like a broad recovery, but after taking a closer look, we can clearly see it’s still very much a stock picker’s market. Not everything is rising for the right reasons. While many stocks are simply benefiting from short-term hype, some are still delivering real value through consistent financial performance and forward-looking strategies that could help them win over the long term.
So, if you have $1,000 to invest right now, your goal shouldn’t be to follow the crowd but to find well-established companies that are already delivering and still have room to run. That simply means looking past the short-term noise and focusing on strong fundamentals. In this article, I’ll talk about two such dividend-paying Canadian stocks that are doing exactly that and tell you why they look like smart buys right now.
Brookfield Renewable Partners stock
The first stock on my list is Brookfield Renewable Partners (TSX:BEP.UN), a top renewable energy firm with a diversified portfolio of hydroelectric, wind, solar, and energy storage assets. Geographically, it operates across North and South America, Europe, and Asia, giving it broad exposure to global clean energy trends.
After climbing by 10% year to date, its stock currently trades at $36.12 per share with a market cap of $10.3 billion. At this market price, it also offers a 5.7% annualized dividend yield, making it attractive for income-seeking investors, too.
In recent months, Brookfield Renewable’s solid second-quarter performance has helped boost investor confidence, as its funds from operations rose 10% YoY (year over year) to US$371 million. That was mainly supported by the company’s strong operating performance across its hydro and nuclear assets, as well as a rebound in the U.S. market.
But it’s not just about the recent numbers. Brookfield has been actively investing in the technologies that could define the next generation of clean power. It recently signed a landmark deal with Alphabet’s Google to deliver up to 3,000 megawatts of hydroelectric capacity in the U.S., and expanded its ownership in Colombia’s Isagen, a highly cash-generative hydro business.
Meanwhile, Brookfield Renewable is also recycling capital effectively by selling mature assets at strong valuations and reinvesting in growth. With more than $4.7 billion in liquidity, its excellent track record of delivering attractive returns makes it a great stock to buy, even for investors with just $1,000 to put to work.
TFI International stock
Another top Canadian stock you can consider buying right now is TFI International (TSX:TFII). Based in Saint-Laurent, this company mainly focuses on transportation and logistics, operating a broad network of trucking, courier, and freight services across North America. After gaining 12% over the last five months, TFII stock currently trades at $123.74 per share with a market cap of $10.2 billion. And it rewards investors with quarterly dividends with a 2% annualized yield.
Despite a challenging industry environment, TFI is staying profitable and efficient. In the second quarter, the company’s adjusted net profit came in at US$112 million, while its free cash flow grew 20% YoY to US$182.3 million. These results came even as its revenue declined due to weaker volumes in freight markets.
Notably, TFI’s success lies in how well it controls costs and maintains strong margins. In the latest quarter, all of its business segments posted healthy operating margins, showing that the company isn’t just reacting to market conditions but managing through them.
Backed by a clean balance sheet and strong execution, TFI International could benefit once freight demand improves. That’s why this is a stock worth considering for investors with a long-term mindset.
