Canadian dividend stocks such as Restaurant Brands (TSX:QSR) and North American Construction (TSX:NOA) could be part of your Registered Retirement Savings Plan portfolio in 2026.

The two companies are well-poised to grow dividends and benefit from a widening earnings base, which should translate into inflation-beating returns over time.

Restaurant Brands owns some of the most recognized fast-food brands on the planet, while North American Construction Group is a picks-and-shovels play on the global mining and infrastructure boom.

Together, they give your RRSP a powerful combination of consumer resilience and industrial growth.

Is this TSX dividend stock a good buy?

Restaurant Brands owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs. Its brand portfolio operates across dozens of countries, generating royalty revenue from franchisees across market cycles.

In 2025, the fast-food giant grew comparable sales by 2.4%, expanded restaurant count by 2.9%, and grew system-wide sales by 5.3%.

Most importantly, organic adjusted operating income grew by 8.3%. It is the third consecutive year of roughly 8% organic adjusted operating income growth.

• Tim Hortons Canada is a standout vertical. It outperformed the broader Canadian quick-service restaurant industry by nearly two full percentage points in the fourth quarter.
• Cold beverage sales grew 8.6% in Q4, reaching a record mix of nearly 27% of total beverage sales.
• International was even stronger, growing comparable sales 6.1% in Q4 and delivering double-digit system-wide sales growth for the full year.

Restaurant Brands announced a roughly 5% increase to its dividend for 2026, targeting $2.60 per share annually. It has raised the dividend payout for 14 consecutive years, significantly enhancing the yield at cost.

With Burger King China now back in the fold under a new joint venture with CPE, royalty revenue from that market is returning to the company’s income statement.

Management projects that Burger King China could roughly double its restaurant footprint to at least 2,500 units by 2030, thereby generating incremental royalty income.

Is this TSX stock undervalued?

North American Construction Group operates across mining sites in Canada and Australia, and is increasingly winning civil infrastructure work across North America.

In 2025, it generated $1.5 billion in combined revenue. For 2026, management is guiding for $1.6 billion in combined revenue, $400 million in adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), and $120 million in free cash flow.

NOA ended 2025 with a contractual backlog of $3.9 billion, with $1.2 billion secured for 2025. Moreover, it is tracking a total bid pipeline of approximately $12.6 billion, including $4.6 billion in active tender processes.

The pipeline spans mining, defence-related work, water infrastructure, and critical minerals projects in both Australia and Canada.

The pending acquisition of Iron Mine Contracting in Australia is a major catalyst. Once closed, it adds approximately 120 heavy assets and roughly $1 billion of contractual backlog.

It also creates what management described as a national tier-one contractor platform in Australia, a continent increasingly viewed as a strategic hub for Western critical mineral supply chains.

Down almost 40% from all-time highs, the TSX dividend stock is projected to increase its free cash flow (FCF) to $192 million in 2030, compared to an outflow of $9.60 million in 2025.

If NOA stock is priced at 10 times forward FCF, it could return roughly 300% within the next three years.

The post 2 Dividend Stocks I’d Hold in an RRSP and Never Consider Selling appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.

Telecom giants such as BCE (TSX:BCE) and Telus (TSX:T) have underperformed the broader markets in recent years.  BCE cut its dividend in 2025, and Telus shelved any plans to raise its payout as both companies prioritize paying down towering debt loads.

That leaves income investors hunting for a better home. OpenText (TSX:OTEX) is the one dividend stock I’d buy instead, and here’s why.

OpenText is a software company that manages enterprise content, meaning the contracts, emails, documents, and regulated data that large organizations run on.

Why Canadian telecom dividends are struggling right now

BCE and Telus built enormous networks over the last decade, and borrowed heavily to do so. When interest rates rose, the debt load increased significantly, making the dividend payout unsustainable.

BCE responded by cutting its dividend outright in 2025, while Telus paused any future dividend hikes to redirect cash flow towards debt reduction.

OpenText, by contrast, is moving in the opposite direction. The company recently expanded its share buyback program by US$500 million.

At recent prices, that represents roughly 8% of shares outstanding. Management is also keeping its dividend intact while targeting a debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio in line with its historical average of around 2.5 times.

OpenText’s cloud transition key for Canadian investors

OpenText Executive Chair Tom Jenkins made his vision clear at the Scotiabank Telecom, Media and Technology Conference in March 2026. He pointed to what SAP and Oracle did over the past decade as the template.

Both companies migrated their installed bases from on-premises software to cloud subscriptions, thereby multiplying their recurring revenue several times over.

OpenText is running the same playbook now.

• The company has roughly US$2 billion in annual maintenance revenue tied to legacy on-premises contracts.
• Jenkins estimates that migrating even 10% of that each year and converting it to cloud contracts at a two- to four-times premium would add hundreds of millions in incremental annual recurring revenue.
• At a three-times conversion multiple, that math produces roughly US$400 million in new cloud revenue for every US$200 million of maintenance that rolls off. On a $4 billion revenue base, that is a built-in growth engine.

The driver pushing customers to act is artificial intelligence.

Enterprises cannot train agentic AI systems on data that lives on old file servers or archival tapes. They need that content to be live, accessible, and properly permissioned in the cloud.

OpenText, with over 1,500 content connectors and 25 years of experience managing regulated enterprise data, is the company they call to make that happen.

As Jenkins put it at the conference, “Everything that I just mentioned, you have to have all your content ready to go before you start training those bots.”

A focus on margin improvement

There is one more reason to feel good about owning OpenText today. Management has committed to divesting all non-core businesses by the end of calendar 2026, and proceeds are directed toward debt reduction.

What remains after that cleanup will be a leaner, more focused business built around the content cloud.

Margins are expected to improve in dollar terms even as the revenue mix shifts. Jenkins noted internally that they are already seeing roles in which five positions have been consolidated into one through AI-powered automation.

Analysts forecast OpenText to expand its adjusted earnings per share from US$3.82 in fiscal 2025 (ended in June) to US$5.52 in fiscal 2028. If the TSX tech stock is priced at 10 times forward earnings, it could more than double over the next 18 months.

The post The Dividend Stock I’d Choose Over Telus or BCE Right Now appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

If you are approaching 50 and wondering how your TFSA (Tax-Free Savings Account) stacks up, here is the honest answer. Most Canadians aged 50 have less than $30,000 in their TFSAs.

My take is straightforward. The average Canadian TFSA at age 50 is far smaller than it should be. And for those willing to invest in quality growth stocks, the gap can be closed quickly.

What the CRA data shows about Canadian TFSAs

The numbers from the Canada Revenue Agency paint a clear picture.

• Out of roughly 17.8 million TFSA holders, more than 16.8 million had a fair market value below $100,000. That works out to about 94.6% of all account holders.
• Another 5.2% sat in the $100,000 to $199,999 range.
• That means only about one in every 500 Canadians has a TFSA worth more than $200,000.

The fact that so few have breached the $100,000 TFSA threshold suggests Canadians may be relying too heavily on conservative products or taking advice that prioritizes caution over growth.

The age-by-age trajectory tells a similar story.

• The TFSA balance for Canadians under 20 averages around $3,304, while those in the 20-24 bracket average roughly $6,558. By the late 20s, balances reach about $10,961.
• Through the 30s, they climb from around $13,822 for the 30 to 34 group to about $15,594 for those aged 35 to 39.
• The 40s see more acceleration. The 40 to 44 bracket averages around $17,604, and the 45 to 49 group reaches approximately $21,177.
• By the early 50s, the average TFSA balance is between $26,500 and $30,200. Age 50 falls at the younger end of that bracket, which means the average 50-year-old Canadian likely has somewhere just below $30,000.
• Beyond that, the 55 to 59 group averages around $33,242, rising further to about $39,756 for those aged 60 to 64.

What Canadians hold in their TFSAs

The typical TFSA holds a mix of stocks, bonds, Guaranteed Investment Certificates (GICs), and funds built on those three categories. Direct real estate is not allowed, though real estate investment trusts (REITs) are fine.

Among specific holdings, Canadian and U.S. exchange-traded funds (ETFs) are widely popular. But arguably the most recognizable category among Canadians building wealth through their TFSAs is blue-chip growth stocks listed on the TSX.

Dollarama (TSX:DOL) is one of the best examples of why that approach works. Over the past decade, the discount retailer has returned close to 500% to shareholders, easily outpacing broader market gains.

In its most recent fiscal 2026 earnings call, the company reported same-store sales growth of 4.2% for the year and earnings per share growth of nearly 14% year over year.

Its Latin American business, Dollarcity, saw its contribution to Dollarama’s net earnings jump over 47%.

The company also raised its quarterly dividend by 13.4% and bought back more than 4.4 million shares during the year.

The Foolish takeaway

The Canadians who will look back on this decade with satisfaction are the ones who stopped treating their TFSA like a savings account and started treating it like a portfolio.

Stocks like Dollarama, with consistent earnings growth, international expansion, and shareholder-friendly capital returns, are the kind of holdings that can meaningfully shift those numbers over a 10- to 15-year horizon.

The post What the Typical Canadian TFSA Looks Like by Age 50 appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.

If I could put every dollar I have into a single stock and leave it alone for the next decade, it would be Thomson Reuters (TSX:TRI).

This Toronto-based content and technology company is not flashy and does not trade on hype. But it sits at the intersection of artificial intelligence, professional services, and irreplaceable data.

Valued at a market cap of $57 billion, this large-cap Canadian stock is down 56% from all-time highs.

Is this TSX tech stock a good buy?

Most Canadians still think of Thomson Reuters as a news wire and legal database business.

However, over the past six years, CEO Steve Hasker and outgoing CFO Mike Eastwood have transformed the company into something much more valuable.

• In 2019, total organic revenue growth was 4%, and EBITDA (earnings before interest, taxes, depreciation, and amortization) margins sat at 31.5%.
• For 2026, the company is guiding to 7.5% to 8% total organic growth, nearly 9.5% for its three core segments, and EBITDA margins exceeding 40%.
• Free cash flow could almost double from US$1.1 billion in 2019 to US$2.1 billion in 2026.

The Canadian stock has an AI moat

Thomson Reuters has a widening AI moat.

• TRI’s legal AI product, CoCounsel, has crossed one million users.
• Its Westlaw Advantage product, launched in August 2025, is performing well above expectations.
• And a brand new version of CoCounsel, currently in alpha with a couple of hundred customers, moves into beta on April 20 and is set for general release in the summer of 2026.
• Thomson Reuters aims to target fiduciary-grade professionals, including lawyers, taxmen, and auditors, thereby narrowing the competitive field significantly.

Hasker outlined four specific advantages the company brings to that market.

• The first is its massive proprietary data repositories that competitors are unable to replicate.
• The second is 4,500 trained domain experts who validate AI outputs before they reach customers.
• The third is an ironclad data privacy guarantee, meaning client inputs never become part of AI training data.
• The fourth is round-the-clock expert support that no startup can match at scale.

“AI cannot be trusted to check AI,” Hasker noted at the conference. This statement explains why Thomson Reuters occupies a durable competitive position that general-purpose AI models cannot easily threaten.

A growing dividend payout

Thomson Reuters has raised its dividend 10% annually for five straight years. In fact, the TSX dividend stock has raised its annual payout from US$1.01 per share in 2006 to US$2.62 per share in 2026, indicating a yield of 2.7%.

It recently executed a US$1.2 billion share buyback and still has ample firepower for strategic acquisitions in segments such as indirect tax, electronic invoicing, and fraud and compliance, all of which Hasker identified as double-digit growth opportunities.

The Tax, Audit, and Accounting Professionals segment is guiding to 11%–13% organic growth for 2026. A labour shortage in the profession is creating tailwinds, as firms lean harder on Thomson Reuters products to do more work with fewer people.

The Foolish takeaway

Thomson Reuters is a compounding machine with a defensible AI strategy, a growing dividend, and a balance sheet that gives management real options.

Analysts tracking the Canadian dividend stock forecast free cash flow to expand from US$1.95 billion in 2025 to US$2.87 billion in 2029.

If TRI stock is priced at 25 times forward FCF, which is below its 10-year average of 37 times, it could surge over 70% within the next three years. If we account for dividends, cumulative returns could be closer to 80%.

The post If I Could Only Buy and Hold a Single Stock, This Would Be It appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Thomson Reuters. The Motley Fool has a disclosure policy.

If you want exposure to precious metals right now, two names worth adding to your watchlist are Agnico Eagle Mines (TSX:AEM) and Endeavour Silver (TSX:EDR).

Both are well-positioned in a market where gold and silver prices have pulled back from record highs.

But they are very different businesses, and the right choice depends on what kind of investor you are. For most Canadians, Agnico Eagle is the one to own.

Why the precious metals market is heating up

Gold and silver generally gain momentum due to macro tailwinds.

In recent months, inflationary pressures, global economic uncertainty, and ongoing geopolitical tension have pushed investors back into precious metals. Silver is benefiting from an extra tailwind: rising industrial demand, especially in green energy and technology applications.

Endeavour Silver CEO Dan Dickson summed it up during the company’s fourth-quarter 2025 earnings call in February 2026. “Gold trades well above $5,000 and silver is elevated above $90,” he said, adding that the company believes there is “substantial runway remaining in this cycle.”

Is this TSX gold stock a good buy?

Agnico Eagle is the second-largest gold producer in the world. It operates 10 mines across four countries, with 85% of production originating from Canada.

CEO Dominique Girard explained that before entering any region, Agnico asks two questions. Can it build multiple mines there over many years? And is the region politically and socially stable enough for the long term?

That filter has kept the company out of riskier jurisdictions and kept costs US$200 to $300 per ounce below its peers.

In 2025, Agnico generated US$8.8 billion in EBITDA (earnings before interest, taxes, depreciation, and amortization) and US$4.4 billion in free cash flow. The Canadian mining stock returned US$1.4 billion to shareholders via dividends and buybacks. And it ended 2025 with a net cash balance of US$2.7 billion.  

The company is targeting 20% to 30% more output by the early 2030s compared to its current rate of roughly 3.4 to 3.5 million ounces per year.

Key projects driving that include a push toward one million ounces per year at both Detour Lake and Canadian Malartic, as well as the Hope Bay project in Nunavut, which management plans to announce as a formal construction project in May 2026.

Hope Bay is expected to produce 400,000 to 450,000 ounces per year in its first decade, with significant exploration upside along an 80-kilometre greenstone belt.

Agnico has grown production per share by a factor of three over the past two decades, which is quite exceptional. It has also delivered a compounded annual return of 13% over 20 years, delivering game-changing returns for shareholders.

A high-risk silver mining stock

In 2025, Endeavour Silver reported record sales of $468 million, an increase of 115% year over year.

It brought its Terronera mine in Mexico to commercial production in October 2025, a significant milestone. It also acquired the Kolpa mine in Peru, and it has Pitarrilla in its pipeline, one of the largest undeveloped silver deposits in the world, with a feasibility study targeted for the third quarter of 2026 and a potential construction decision in early 2027.

For aggressive growth investors who believe in silver’s long-term trajectory, Endeavour Silver deserves a closer look. But it carries meaningful execution risk.

The Foolish takeaway

Both stocks make sense in a bullish environment for precious metals. But if you can only pick one, Agnico Eagle is the cleaner, more durable bet.

It has the balance sheet, mine life, production growth, and track record to reward long-term holders without keeping you up at night.

The post 1 Gold and Silver Mining Stock to Buy in April appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath 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.

Enbridge (TSX:ENB) looks like one of the most compelling income and growth stories on the Toronto Stock Exchange right now. This blue-chip energy stock is not flashy and does not make headlines the way a tech giant does.

But if you are a Canadian investor looking for steady, dependable returns, Enbridge deserves serious attention heading into the second half of 2026.

My view is straightforward: ENB stock is well-positioned to deliver mid-single-digit total returns by year-end, anchored by a rock-solid dividend and a capital backlog that continues to grow.

Let’s see why.

Enbridge delivered a solid 2025

In the Q4 2025 earnings call, Enbridge President and CEO Greg Ebel made it clear the company is firing on all cylinders.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) hit a new record. So did DCF per share. Ebel noted it was the 20th consecutive year the company met or beat its annual financial guidance.

For 2026, management reaffirmed full-year adjusted EBITDA guidance of $20.2 billion to $20.8 billion, and DCF (distributable cash flow) per share of $5.70 to $6.10. These numbers are supported by $8 billion worth of new assets expected to enter service throughout the year.

Chief Financial Officer Pat Murray added that Q1 and Q4 tend to be the strongest quarters, driven by winter demand across Enbridge’s gas distribution network.

Given that January and February 2026 brought colder-than-normal weather across eastern North America, the company is already off to a strong start.

A $39 billion backlog is the real story for long-term investors

What truly makes the TSX dividend stock stand out is its visibility. The energy behemoth currently carries $39 billion in secured growth capital extending through 2033. That backlog grew 35% since its Investor Day in March 2025, according to management commentary on the Q4 call.

Last year, Enbridge sanctioned $14 billion of capital projects across all four of its business segments: Liquids Pipelines, Gas Transmission, Gas Distribution and Storage, and Renewable Power.

Each segment has a clear demand tailwind.

• Gas Transmission is advancing over 50 potential data centre opportunities that could require up to 10 billion cubic feet per day of natural gas.
• The mainline liquids business was apportioned for all but three months of the past year, a sign that demand for Canadian crude consistently exceeds available capacity.
• Gas utilities are growing their U.S. rate base at roughly 10% annually, up from the 8% management had originally modelled.
• And in renewables, Enbridge secured over one gigawatt of contracted power projects with blue-chip technology companies, including Meta.

Looking ahead, management expects to reach final investment decisions on another $10 billion to $20 billion of projects over the next 24 months.

The dividend remains reliable

Enbridge increased its dividend for the 31st consecutive year in December 2025. The current annual dividend stands at $3.88 per share, growing at a four-year compound annual growth rate of 4% since 2019.

Management aims to increase its dividend by 5% annually beyond 2026. Over the next five years, it expects to distribute over $40 billion to shareholders via dividends.

Enbridge’s debt-to-adjusted EBITDA ratio sits at 4.8 times, comfortably within the company’s 4.5 to 5 times target range. More than 98% of EBITDA comes from regulated or take-or-pay contracted sources, and less than 1% is tied to commodity prices.

A strong base of recurring cash flow has allowed ENB stock to maintain and grow its dividend across business cycles.

The bottom line on ENB stock

Enbridge is not a stock that will double overnight. What it offers is something rarer: predictability.

A growing dividend, a massive secured backlog, and a management team with a 20-year track record of delivering on its promises. For investors focused on building long-term wealth in Canada, ENB stock looks like a foundation worth holding well beyond 2026.

The post Here’s What Enbridge Stock Could Look Like by the End of 2026 appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

Nexus Industrial REIT (TSX:NXR.UN) is among the more compelling small-cap opportunities on the TSX right now.

Most retail investors have never heard of this real estate investment trust (REIT). However, as we head into the second quarter (Q2) of 2026, I believe Nexus is undervalued and offers upside potential, providing investors with a steady stream of passive income.

Nexus completed a major transformation

For years, Nexus held retail properties alongside its industrial assets, which made it harder to value and easier to ignore.

The REIT sold its retail portfolio at the start of 2025, raising $47 million. Today, 99% of its net operating income (NOI) comes from industrial properties across Canada.

Chief Executive Officer Kelly Hanczyk described the company’s new purpose as being “Canada’s industrial building partner,” and that focus shows up in the numbers.

• Full-year 2025 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) hit a record $120 million.
• NOI rose 2.8% to a record $129 million.
• Its funds from operations rose to $0.61 per share while the net asset value grew to $13.22 per share.
• By comparison, the REIT offers shareholders an annual dividend of $0.64 per share, which translates to an annual yield of nearly 8%.

The investment-grade push is a key catalyst

Nexus currently has an elevated debt-to-EBITDA ratio of nearly 11 times. But management also laid out a clear plan to reach the nine-times range by year-end 2026.

Notably, DBRS, a credit rating agency, has indicated that a debt-to-EBITDA ratio of around nine times is the threshold for an investment-grade rating. And an investment grade rating would meaningfully lower Nexus’s borrowing costs while opening the door to a much larger pool of institutional investors.

Chief Financial Officer Mike Rawle was direct about the lender environment on the call: “Everyone wants to lend to you just before that because they want part of the debt deal.”

The path to getting there involves a combination of asset sales, development completions, and organic NOI growth.

Several transactions are already in motion:

• A firm sale contract exists for a 190,000-square-foot building in Red Deer, Alberta, with closing in April.
• The Glover Road property in Hamilton is being marketed.
• And the 50% stake in a retail mall is also being soft-marketed.

Each completed sale reduces leverage and frees up capital.

A strong growth pipeline

Beyond the balance sheet repair story, Nexus has a robust development pipeline taking shape.

Two new projects were recently announced.

• An up to 180,000 square foot micro industrial development at Adams Road in Kelowna, British Columbia, with an expected yield between 7% and 10%.
• An 80,000-square-foot expansion at Savage Road in Richmond, BC, is expected to deliver a stabilized 6% yield in one of Canada’s tightest industrial markets.

The Montreal acquisitions completed in late 2025 also deserve attention. Nexus paid roughly $145 per square foot for two buildings that comparable properties trade at $215 to $235 per square foot. A year-end appraisal confirmed a mark-to-market gain of approximately $23 million.

Own the TSX dividend stock in the TFSA

Nexus units trade at a meaningful discount to NAV. The business is growing, and the balance sheet is improving. Additionally, an investment-grade rating could act as a re-rating catalyst before year-end.

Income-seeking shareholders can consider holding the TSX dividend stock in the Tax-Free Savings Account to benefit from tax-free dividend income and capital gains.

Nexus REIT trades at a 5% discount to consensus price targets. Further, to earn $1,000 in monthly dividend income, you need to buy 18,875 shares of the REIT, which are worth roughly $152,500 today.

Investing such a huge sum in a single stock is very risky. Canadian investors should consider diversifying their portfolios with other high-yield dividend stocks.

The post How to Use a TFSA to Bring in $1,000 a Month — Completely Tax-Free appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

Let me get straight to it. VitalHub (TSX:VHI) is one of the most compelling small-cap Canadian tech stocks you can buy right now.

The company just crossed $100 million in annual revenue, carries no debt, sits on nearly $120 million in cash, and is rolling out artificial intelligence products that its own customers are already paying to build.

Here is the full picture.

Is the Canadian stock a good buy?

Valued at $500 million by market cap, VitalHub builds software for hospitals, mental health providers, social services agencies, and other healthcare organizations. Its tools help manage patient flow, electronic health records, referral management, and workforce scheduling.

• The company serves more than 1,000 clients across Canada, the United Kingdom, Australia, and other markets.
• Crossing the $100 million revenue milestone in 2025 was a big deal for the company. But what matters even more than the top line is the quality of that revenue.
• According to VitalHub’s fourth-quarter (Q4) earnings call, it ended 2025 with annual recurring revenue of $96.1 million. That represents 10% net organic growth over the prior year.
• Recurring revenue accounted for 75% of total revenue in Q4. A widening recurring revenue base should help the company generate stable cash flow across business cycles.
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margins came in at 24% for the quarter, up from 22% in the prior quarter. Management is targeting a return to 27%-28% margins as cost synergies from recent acquisitions continue to flow through the business.
• VitalHub closed 2025 with $119.2 million in cash and zero debt. For a company of its size, that balance sheet is exceptional. It gives management the flexibility to target acquisitions without taking on high-cost debt, and according to CEO Dan Matlow, the merger and acquisition pipeline is active.

Matlow noted on the earnings call that private equity buyers are pulling back from some deals, leaving targets available at more reasonable valuations.

VitalHub has a disciplined acquisition approach and is primarily looking at opportunities in the United Kingdom and Europe, where it already has a strong foothold.

The Novari and Induction acquisitions completed in recent quarters are already integrating well. Cross-selling between Novari and MedCurrent is picking up, particularly in the United Kingdom market.

A widening AI moat

VitalHub has established dedicated AI development teams and is building AI features directly into its existing products. More importantly, some of those features are already generating early revenue. Matlow confirmed that customers have already paid the company to help build AI-powered transcription tools.

Novari shipped its first AI module for imaging protocoling, a feature customers bought before it was even built. A voice-enabled analytics feature for the SHREWD product line is also in development with partner customers.

Matlow expects AI-driven revenue contributions to begin appearing in the financial statements from mid-2026 onward.

The company is also using AI internally to improve sales processes, customer support, and software development productivity.

The Foolish takeaway

VitalHub does not generate the same headlines as some of the bigger Canadian tech players. But the fundamentals here are quietly exceptional: a clean balance sheet, sticky recurring revenue, improving margins, a growing pipeline of acquisitions, and AI products that customers are already paying for.

Analysts tracking the small-cap TSX stock forecast free cash flow (FCF) to expand to $56.66 million in 2030. If VHI stock is priced at 20 times forward FCF, it could more than double over the next four years.

The company is also targeting a return to Rule of 40 status, meaning combined revenue growth and EBITDA margin above 40%. For investors seeking a smaller Canadian tech stock with real upside and limited downside risk, VitalHub deserves a closer look.

The post 1 Canadian Stock Supercharged to Surge in 2026 appeared first on The Motley Fool Canada.

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• What the Average Canadian TFSA Looks Like at Age 30 — and How to Build Yours Up

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vitalhub. The Motley Fool has a disclosure policy.

The Tax-Free Savings Account (TFSA) is one of the most powerful investing tools Canadians have, and it can be used to build a diversified portfolio of quality stocks.

Capital gains on U.S. stocks are completely tax-free in Canada when held in a TFSA. But there is a catch that often catches investors off guard, and it involves dividends.

The U.S. government charges a 15% withholding tax on dividends paid to Canadian investors, and your TFSA offers zero protection against it.

The smart way around it is to fill your TFSA with high-quality U.S. growth stocks that pay little or no dividends. UiPath (NYSE:PATH) is one name worth putting on that list today.

The 15% withholding tax explained

The U.S. Internal Revenue Service offers a tax break to Canadians only if U.S. dividend stocks are held in a retirement account, such as a Registered Retirement Savings Plan (RRSP).

• Under the Canada-U.S. tax treaty, dividends paid by American companies to Canadian investors are subject to a 15% withholding tax.
• In a regular taxable account, you can often recover that amount as a foreign tax credit on your Canadian return. Inside a TFSA, this recovery option disappears completely.
• So, if a U.S. stock pays you $100 in dividends inside the TFSA, you receive just $85. Taxes are already the biggest drag on long-term portfolio growth, and the withholding tax compounds that drag in a way many investors simply never account for.

This applies to U.S. stocks, U.S.-listed exchange-traded funds (ETFs), and Canadian-listed ETFs that hold U.S. stocks. In that last case, the withholding tax is deducted before the dividend even lands inside the fund. You never see it taken, which makes it even easier to ignore.

Own undervalued growth stocks in the TFSA

The solution is to be selective about which stocks to hold in the TFSA. High-growth technology companies that reinvest profits rather than paying dividends sidestep the withholding tax problem entirely.

Automation platform UiPath fits that profile. The company pays no dividend and is in the middle of a major strategic transformation. UiPath CEO Daniel Dines recently described what he sees as a generational shift in enterprise automation.

His core argument is straightforward: artificial intelligence will not replace the workflows and infrastructure enterprises depend on. AI will build and accelerate them. “Coding agents will help our customers and our partners to build automation,” Dines said during a recent investor event. “And to build automation at a larger scale than we’ve seen before.”

UiPath Chief Product and Technology Officer Raghu Malpani echoed that view, noting the company has pivoted its entire platform to support coding agents natively throughout the automation lifecycle, from writing process specifications to deploying and monitoring workflows in production.

Every phase of the automation lifecycle, from idea to deployment to error recovery, is being rebuilt around this capability. Malpani described coding agents as something that “compress the time to value dramatically,” making developers more productive and unlocking faster onboarding for new customers.

UiPath is forecast to increase adjusted earnings per share from $0.53 in 2025 to $1.30 in 2030. If the AI stock is priced at 20 times forward earnings, it could more than double within the next four years.

The Foolish takeaway

The TFSA is still an exceptional vehicle for owning U.S. stocks. Capital gains remain fully tax-free, and that alone is a significant advantage over holding the same positions in a taxable account.

The key is being deliberate about what you hold. U.S. dividend stocks quietly give back part of their return to the IRS every year inside a TFSA. Growth stocks with no meaningful payout do not have that problem.

UiPath is a company at an inflection point. Its platform sits at the intersection of enterprise automation, process orchestration, and now agentic artificial intelligence, three themes that are drawing serious investment from large enterprises globally.

The post What the TFSA Fine Print Says About Holding U.S. Stocks appeared first on The Motley Fool Canada.

More reading

• The Canadian Companies at the Heart of the AI Infrastructure Buildout
• 1 Canadian Stock That Comes Close to Perfect as a Long-Term Hold
• The Canadian Dividend Stocks I’d Be Most Comfortable Holding in a TFSA Forever
• A Dependable Monthly Dividend Stock With a 6.6% Yield
• 4 TSX Stocks Worth Considering as the Market Shifts Back Toward Value

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends UiPath. The Motley Fool has a disclosure policy.

If you invest the full $7,000 TFSA (Tax-Free Savings Account) contribution into a savings account earning 4% annually, you will wait 18 years to see it double. But there is a better way to invest in the TFSA.

My pick for Canadians looking to compound their TFSA balance is EQB (TSX:EQB), Canada’s challenger bank. The combination of its track record, its pending transformative acquisition, and the tax-free nature of TFSA gains creates one of the most compelling setups available to Canadian investors right now.

The Tax-Free Savings Account is a tax shelter that the Canada Revenue Agency lets you use to invest in stocks, exchange-traded funds, and other securities. This tax-sheltered status matters enormously when you own shares of a fast-growing company. Owning the right stock inside your TFSA is therefore one of the highest-leverage financial decisions you can make.

Is this TSX bank stock a good buy?

EQB delivered a 10-year total shareholder return of nearly 400% as of the end of fiscal Q1 2026, placing it second among all Canadian banks. For perspective, a $7,000 investment compounding at that 10-year pace would have grown to well over $30,000.

EQB is a company in the early stages of a step-change transformation. It recently reached an agreement to acquire PC Financial and partner with Loblaw, a deal that, upon closing, will instantly quadruple its customer base to roughly 3.3 million.

EQB will also become the exclusive financial partner for the 17-million-member PC Optimum loyalty program, one of the most recognized consumer programs in the country.

Loblaw and its parent company, George Weston, are set to take a 17% ownership stake in EQB at closing, with the right to purchase up to 25% within four years.

EQB also launched its first-ever restructuring program, cutting costs and refocusing on core priorities. In Q1 2026, adjusted earnings per share improved, the efficiency ratio came down meaningfully, and return on equity climbed 360 basis points, moving EQB closer to its medium-term target range of 15% to 17%. Loans under management grew, and new customers continued to arrive daily.

The EQ Bank digital platform now serves more than 633,000 customers. It recently ranked as the top bank in Canada and North America by The Banker magazine.

The TFSA math makes EQB stock a top buy

A Canadian investor who put $7,000 into EQB today inside their TFSA and held for a decade, assuming a return profile similar to the last 10 years, would not pay a single dollar in tax on that growth.

No capital gains tax when the stock appreciates, and no withholding on dividends if reinvested. Every dollar of that compounding stays in your pocket.

That is the power of pairing the right growth stock with the right account. EQB is a Canadian bank in the midst of a major scale-up, with a proven management team, a transformative acquisition in progress, and a decade-long track record of outperforming peers.

Your TFSA gives you the tax-free wrapper to let all of that compound without friction.

The post A Smart Strategy to Use Your TFSA to Effectively Double Your $7,000 Contribution appeared first on The Motley Fool Canada.

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• 2 Canadian Stocks to Buy if Mortgage Rates Stay High
• TFSA vs. RRSP: The Simple Rule Canadians Forget

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends EQB. The Motley Fool has a disclosure policy.