When high-quality Canadian stocks trade at a steep discount, it creates significant long-term opportunities for investors.

And right now, that’s exactly what’s happening with Canadian Apartment Properties REIT (TSX:CAR.UN).

Based on its current valuation, the stock is trading at roughly 16.1 times its forward adjusted funds from operations (AFFO), which is about a 31% discount to its 10-year average multiple of 23.5 times.

That’s a massive discount for a business that hasn’t fundamentally changed all that much and continues to be a reliable business you can buy and hold long-term.

So, the question isn’t really why the stock is down; it’s whether this is an opportunity to take advantage of.

Let’s look at what makes the Canadian stock such a reliable investment for long-term investors.

Why is CAPREIT one of the best long-term stocks that Canadians can own?

One of the biggest reasons why CAPREIT is a top pick for investors across Canada is how simple the investment is. If you want exposure to Canadian residential real estate, this is easily one of the most straightforward ways to get it.

Instead of owning one or two rental properties and taking on all the risk that comes with that, you’re getting exposure to tens of thousands of units across multiple regions and provinces.

That level of diversification is something most individual investors just can’t replicate on their own. And it matters because it significantly reduces risk for investors. With CAPREIT, you’re never relying on a single tenant, a single property, or even a single city.

You own a massive portfolio, and on top of that, you’re also getting professional management. That may not sound like a huge deal at first, but it’s another massive advantage over owning real estate yourself.

Being a $5.5 billion company means that CAPREIT has the scale to operate efficiently, optimize its portfolio over time, and access financing at much better rates than individual investors, which is especially important.

Because while higher interest rates have been a headwind for the stock recently, they also highlight one of CAPREIT’s biggest advantages. It can access capital in ways that individual investors simply can’t, which, over the long term, helps drive more consistent and predictable growth for the Canadian stock.

The income the stock generates is another reason why you can buy and hold CAPREIT for the long haul, especially while it trades this cheaply. In fact, its yield now sits at more than 4.2%, well above its 10-year average yield of 3.1%.

And that distribution is not only paid monthly, but it’s also sustainable since the real estate investment trust owns residential properties that generate consistent and reliable cash flow. Plus, you can hold it in a TFSA, which makes that income even more valuable over time.

Why the recent drop looks like the perfect opportunity

The main reason CAPREIT is trading at a discount right now comes down to interest rates.

As rates moved higher, REIT valuations across the board came down since higher rates increase borrowing costs and make income-focused investments less attractive relative to safer alternatives.

However, that pressure has been much more about valuation than any temporary impact on the underlying business.

Even in this environment, though, the Canadian stock is still generating stable cash flow, still operating in a sector with strong long-term demand and still in a position to grow over time, even if that growth is a bit slower going forward as immigration numbers slow and rates stay semi-elevated.  

In fact, you could argue that this has already been the riskiest period for the business.

Management has had to adjust to higher borrowing costs, be more disciplined with capital allocation, and focus more on balance sheet strength. And going forward, that likely leads to a more conservative and more sustainable growth strategy.

At the same time, the current macro environment is still pretty uncertain. Even before the war began, every year, it seems like there are new recession concerns or economic slowdowns being priced in.

And in these environments, businesses that generate reliable, recurring cash flow become even more valuable. That’s why CAPREIT looks like the perfect Canadian stock to buy for long-term investors, especially while you’re getting it at a valuation that’s well below where it’s traded historically, which is exactly the kind of opportunity to take advantage of.

The post This Canadian Stock Is Down 31% and Nearly Perfect for Long-Term Investors appeared first on The Motley Fool Canada.

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• 2 Canadian Stocks That Get Better Every Time the Bank of Canada Cuts Rates
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• The Bank of Canada Just Held Rates at 2.25%. These 3 Dividend Stocks Are Built for the Wait.
• 1 Canadian Dividend Stock Down 12% to Buy Now and Hold for Years

Fool contributor Daniel Da Costa 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.

When it comes to investing in your TFSA, a lot of people treat it like a place to take big swings, looking for the next hot stock that can hopefully double or triple quickly.

And while that can work on rare occasions, it’s not how you build real long-term wealth.

The real power of a TFSA isn’t hitting one big trade or a few high-potential stocks; it’s the long-term compounding potential created by its tax-free nature.

It’s the perfect place to own high-quality businesses that can grow for years, reinvesting the income they generate and letting that tax-free growth build over time.

That’s why I don’t bother trying to find the next hot stock. Instead, I focus on finding companies that I can hold essentially forever.

And when it comes to my portfolio, the best “forever” stock I own has to be Brookfield Infrastructure Partners (TSX:BIP.UN).

Why Brookfield Infrastructure is the perfect long-term TFSA stock

At its core, Brookfield Infrastructure owns assets that the global economy depends on every single day. These are businesses such as utilities, pipelines, data infrastructure, transportation assets, and more.

That already makes Brookfield a stock you can have confidence buying and holding in your TFSA. Its entire business model is built on owning assets that provide essential services.

Every time energy is transported, goods are moved, or data is processed, infrastructure like what Brookfield owns is being used.

So, Brookfield doesn’t need explosive growth or perfect economic conditions to succeed. As long as the world keeps functioning, these assets continue to generate cash flow.

On top of that, much of its revenue is backed by long-term contracts or regulated frameworks, which makes that cash flow highly predictable.

But in addition to its reliability, what really makes Brookfield one of the best Canadian stocks to own in your TFSA is how it grows.

The company isn’t just sitting back, operating its assets and collecting income. It’s continuously looking for opportunities to buy infrastructure that’s undervalued, improve it, and then either hold it or sell it at a higher value.

That cycle of buying, improving, and reinvesting is a huge reason why it’s been able to consistently grow over time. And it’s also why management targets long-term total returns between 12% to 15%.

Why it’s a company you’ll want to own forever

When you combine that type of consistently growing long-term business with the tax-free nature of the TFSA, that’s where the significant opportunity lies.

Brookfield Infrastructure already offers a solid yield of 5% at current market prices, and more importantly, it consistently increases its distribution over time.

So, not only are you generating passive income, but that income is constantly growing.

And because it’s inside a TFSA, every dollar of that income and every bit of capital appreciation is completely tax-free.

That’s where compounding really starts to take over. Not only are you not losing anything to taxes, but if you reinvest those distributions, your position just continues to grow over time.

Now, of course, it’s not completely risk-free; no stock is. Like most infrastructure companies, Brookfield uses debt to fund its assets, which means higher interest rates can create some pressure.

But the difference is that a large portion of its contracts are linked to inflation. So, as prices rise, its revenue often increases as well, which helps offset some of that pressure.

So, when you factor in the essential nature of its assets, the global diversification of its portfolio and its track record of recycling capital and expanding operations, there’s no question it’s a stock you’ll want to own in your TFSA for years.

It’s not a stock you buy expecting quick gains. It’s a business you own because you want an investment that can generate income and grow steadily for decades.

And for me, that’s exactly what I want in my TFSA. I’m not trading it. I’m holding it, reinvesting the income, and letting compounding do the work.

The post My 1 Forever TFSA Stock — and Why I’ll Never Let it Go appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

When it comes to investing and picking dividend or growth stocks for your portfolio, one of the most important yet often overlooked lessons from Warren Buffett is to keep things simple.

He’s never been focused on chasing the highest yields or trying to time the market.

Instead, Buffett looks for high-quality businesses that generate consistent earnings, have durable competitive advantages, can grow over time, and, most importantly, he understands.

And when it comes to dividend investing for Canadians, that same philosophy should apply.

It’s not necessarily about finding the highest yield today. It’s about owning companies that can consistently increase their dividends year after year. Because over time, that dividend growth is what really drives long-term income and total returns.

In fact, some companies are so consistent with their operations and cash flow that you can all but expect them to continue raising their dividends annually each year going forward.

So, with that in mind, if you’re looking for reliable dividend growth stocks to buy now, here are two Canadian companies that fit Warren Buffett’s approach.

A top-tier dividend-growth stock with a dominant moat

One of the best examples of a Buffett-style business on the TSX is Canadian National Railway (TSX:CNR).

The stock operates one of the largest rail networks in North America, moving essential goods across the continent every single day. So, what makes it one of the best Warren Buffett stocks to buy is how difficult it would be to replicate.

Rail infrastructure requires massive upfront investment, regulatory approval, and decades to build out. That creates a huge competitive advantage and allows Canadian National to operate with limited competition.

On top of that, the company has strong pricing power. So, as costs increase or demand rises, Canadian National can adjust its pricing accordingly, which helps protect its margins and maintain steady earnings growth over time.

And that consistency is what supports its dividend. While the yield isn’t the highest, the company has a long track record of increasing its dividend, and those increases are backed by real earnings growth, not forced payouts.

Furthermore, the dividend is intentionally kept lower because Canadian National has enough growth potential to continue reinvesting a significant portion of its earnings back into the business to drive long-term expansion.

That’s what makes it one of the best Warren Buffett stocks to buy now. In addition to the current yield of 2.6% it offers, the stock has increased that dividend every year for three straight decades, and with its strong earnings growth and dominant competitive position, there’s no reason to expect that trend to slow down anytime soon.

A high-yield Warren Buffett stock to buy and hold for the long haul

In addition to CNR, if you’re looking for a higher-yielding, Warren Buffett-style dividend stock to add to your portfolio, Bank of Nova Scotia (TSX:BNS) is another name to consider.

The bank currently offers a yield of 4.6%, significantly higher than its peers, which is one of the main reasons it attracts income-focused investors.

It’s not just about the yield, though. In fact, Scotiabank is one of the largest banks in Canada, with a diversified business that spans retail banking, wealth management, and international operations.

That scale and diversification help support its earnings and allow it to generate consistent cash flow.

And like the other major Canadian banks, it has a long history of paying and increasing its dividend over time. In fact, the bank has increased its dividend annually for 16 straight years now.

So, while the yield is higher than CNR’s dividend, it’s still backed by a business that can continue growing and supporting those payouts.

Of course, it’s not without some concerns. The bank’s international exposure can lead to more volatility, and its growth profile hasn’t always been as strong as some of its peers.

However, much of that is already reflected in the stock’s valuation, which is why the yield is more attractive today. And in the current environment, stable banking demand and strong margins continue to support its earnings and dividend.

So, if you’re looking for dividend stocks you can buy and hold for years, both are excellent options that fit the kind of simple, durable, and predictable businesses that Warren Buffett has always preferred.

The post 2 Great Warren Buffett Stocks to Buy Before They Raise Their Dividends Again appeared first on The Motley Fool Canada.

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• The Very Best Canadian Stocks to Hold Forever in a TFSA

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Canadian National Railway. The Motley Fool has a disclosure policy.

With the conflict in the Middle East continuing to create uncertainty across global energy markets, oil prices have surged, and volatility has picked up significantly for many Canadian stocks.

Many Canadian energy stocks have already seen sharp gains as a result, making it feel as if you’re still on the sidelines, and you’ve missed the opportunity.

But in reality, you don’t just buy stocks because of temporary events, even if they’re having a significant impact right now. Instead, you look for the right exposure to the sector and businesses that you can be confident owning for the long haul.

This is because, while geopolitical instability can disrupt supply chains and create uncertainty in the near term, it can also create massive opportunities for producers operating in safe and stable jurisdictions over the longer term.

That’s why, instead of looking overseas, many investors are turning their attention to Canadian energy stocks.

Canada offers a much more stable regulatory and political environment, with reliable production that isn’t at risk of sudden disruptions, the way it can be in other parts of the world.

And without a doubt, one of the best energy stocks on the TSX to buy and hold for the long haul is Canadian Natural Resources (TSX:CNQ).

Why Canadian Natural is a top-notch energy stock to buy and hold

Canadian Natural Resources has always been one of the highest-quality energy companies on the TSX.

But what really makes it stand out today is its financial position and how it’s returning cash to shareholders. After another strong year in 2025, which reduced its net debt by roughly $2.7 billion, the company recently hit its net debt target, a major milestone.

And what that means is that it’s now in a position to return significantly more of its free cash flow back to investors.

Previously, the Canadian energy stock had been returning 60% of free cash flow through buybacks and dividends. That’s now increased to 75%. And once its net debt declines by another $3 billion, it will be in a position to return all of its free cash flow to investors.

That’s significant for long-term investors because in an environment where oil prices are elevated, free cash flow is surging.

And when a company is returning 75% of that excess cash, while using the rest to rapidly reduce debt, it means that every increase in oil prices is flowing almost directly back to shareholders through dividends and share buybacks.

On top of that, the company recently increased its dividend again, marking the 26th consecutive year it has raised its payout, a rare and undoubtedly impressive streak for an energy producer. With that increase, even after the rally it has seen over the last month, it still offers investors a compelling yield of 3.7%.

So, while many energy stocks will benefit from higher oil prices, Canadian Natural stands out because of how efficiently it converts those prices into shareholder returns.

A high-quality business built for the long haul

Another reason Canadian Natural is so compelling is the type of assets it owns.

Unlike many U.S. shale producers that need to constantly drill new wells just to maintain production, Canadian Natural’s oil sands assets are long-life and low-decline.

That means once production is up and running, it can continue generating steady output for years without requiring the same level of reinvestment.

That’s a huge advantage, because shale producers are constantly spending capital just to replace declining production, whereas Canadian Natural can maintain production levels with far less ongoing investment. That difference leads to much more consistent and predictable cash flow over time.

On top of that, its breakeven costs are relatively low compared to many peers. So even if oil prices were to decline from current levels, the company would still remain profitable and continue generating cash flow.

But in today’s environment, with oil prices elevated, it’s not just profitable, it’s generating significant excess cash flow.

And that’s what makes it one of the best Canadian energy stocks to buy and hold for years. It has scale, strong assets, and a balance sheet that gives it flexibility even in weaker environments.

So, instead of looking at CNQ as just a short-term trade on oil prices, it’s a high-quality business built to generate cash flow across different environments, with a proven track record of returning that cash to shareholders.

The post A Canadian Energy Stock Ready to Bring the Heat in 2026 appeared first on The Motley Fool Canada.

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• 4 Top Dividend Stocks Yielding More Than 3.5% to Buy for Passive Income Right Now
• Interest Rates Aren’t Falling: Here’s What I’d Do With My TFSA
• How Much Passive Income Can You Generate From $50,000 in Canadian Natural Resources?
• 5 Canadian Stocks Built for Buy-and-Hold Investors
• 3 Canadian Stocks Tied to the Real Economy (Not Hype)

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

Coming into 2026, many investors were expecting interest rates to continue falling steadily and were positioning their TFSAs for the long haul.

Inflation was cooling, central banks appeared to be done hiking, and the expectation was that lower rates would help push markets higher.

However, just a few months into the year, that outlook has changed quickly.

With oil prices spiking due to the conflict in the Middle East and inflation once again becoming uncertain, the path to lower rates is no longer as clear.

That matters because when interest rates stay higher for longer, it changes how you should be thinking about your TFSA.

It’s no longer just about chasing growth or assuming markets will keep pushing higher. At the same time, sitting in cash or GICs isn’t a great long-term strategy either if you actually want your wealth to grow and meaningfully outpace inflation.

So, if interest rates aren’t falling anytime soon, here’s how I’d be thinking about positioning my TFSA today.

Why higher interest rates change everything for TFSA investors

It’s no surprise that interest rate decisions by central banks around the world consistently make headlines. When interest rates stay elevated, it impacts nearly every part of the market.

First off, higher rates put pressure on valuations, especially for growth stocks that rely on future earnings. That’s why many high-growth names struggle when rates rise or stay elevated longer than expected.

At the same time, income becomes more attractive. Investors start to prioritize reliable cash flow and dividends because they offer immediate returns in an uncertain environment.

However, you still can’t ignore growth entirely. Inflation hasn’t gone away, and if anything, it’s becoming more unpredictable again. So, if your portfolio is only focused on income with no growth, you risk falling behind over the long haul.

That’s why the strategy needs to shift. It’s not about going all-in on growth or all-in on income. It’s about finding the balance.

You want to find businesses for your TFSA that generate reliable cash flow, can hold up in a higher-interest-rate environment, and still have the ability to grow over time.

How I’d balance my portfolio today

First, especially if you’re underweight in the sector, I’d be looking to add a high-quality energy stock to my portfolio.

If oil prices remain elevated, which could be the case for months, energy companies are undoubtedly some of the biggest beneficiaries. And even if prices pull back slightly, many of these businesses are still generating significant cash flow.

That’s why one of the top stocks to add to your TFSA as rates stay elevated in the current environment is Canadian Natural Resources (TSX:CNQ).

CNQ is one of the most efficient producers in the country, with a massive asset base and the ability to generate strong free cash flow even in weaker environments. And right now, with higher oil prices, that cash flow is only increasing.

That means the stock has more flexibility for dividends, buybacks, and continued long-term growth.

To balance that out and reduce exposure to energy prices, I’d also want something more stable, such as an energy infrastructure stock like Enbridge (TSX:ENB).

Unlike producers, Enbridge’s profitability isn’t directly tied to commodity prices. Instead, it generates most of its revenue through long-term contracts and regulated assets.

So, while it still benefits from strong energy demand, it offers much more predictable cash flow and a high, reliable dividend with a current yield of 5.2%. That makes it one of the best defensive income stocks you can own in a higher-rate environment.

And finally, I’d still want some exposure to growth, but not the kind that depends on lower interest rates. Instead, I’d look to add a defensive growth stock like Dollarama (TSX:DOL).

Dollarama is consistently expanding its operations and growing its earnings. Furthermore, its business model actually performs well in weaker economic environments as consumers look for more affordable options.

That means it offers investors that growth component without taking on the same level of risk as more rate-sensitive stocks.

So, if interest rates stay higher for longer, the key isn’t to overreact; it’s to position your TFSA with a mix of high-quality businesses that can generate income today and continue growing over the long haul.

The post Interest Rates Aren’t Falling: Here’s What I’d Do With My TFSA appeared first on The Motley Fool Canada.

More reading

• 4 Top Dividend Stocks Yielding More Than 3.5% to Buy for Passive Income Right Now
• Have $21,000 in TFSA Room? Here’s a Dividend Stock Worth Considering
• Have $2,000? These 2 Stocks Could Be Bargain Buys for 2026 and Beyond
• A Canadian Energy Stock Ready to Bring the Heat in 2026
• How Much Passive Income Can You Generate From $50,000 in Canadian Natural Resources?

Fool contributor Daniel Da Costa has positions in Enbridge. The Motley Fool recommends Canadian Natural Resources, Dollarama, and Enbridge. The Motley Fool has a disclosure policy.

When it comes to investing and finding high-quality stocks and exchange-traded funds (ETFs) to buy in 2026, there’s no question that one of the biggest goals for most investors is building passive income.

However, already just a quarter of the way into the year, that goal has become a lot more complicated.

Interest rates aren’t falling as quickly as many expected, inflation is still uncertain, and volatility remains elevated due to the war in the Middle East. That means simply parking your money in cash or Guaranteed Investment Certificates may not be enough if you actually want your income to grow over time.

And that’s exactly why more investors are looking for reliable Canadian ETFs to buy for passive income in 2026.

However, when looking to boost income, one of the biggest mistakes that investors often make is focusing only on the yield. When you’re building a passive-income portfolio, though, you need to balance both reliability and yield.

That’s why finding reliable ETFs to buy for high-yield passive income isn’t only about generating income today; you also want your portfolio to continue growing over time.

So, with that in mind, here are two of my favourite ETFs to buy right now, one that acts as a foundation for long-term growth and one that helps boost your income today.

A core ETF to buy and hold for long-term income and growth beyond 2026

If you’re building a passive-income portfolio for the long haul, the most important piece is having a strong foundation. That’s why iShares S&P/TSX Composite High Dividend Index ETF (TSX:XEI) is one of the best funds to buy for high-yield passive income in 2026.

The XEI is one of the best ETFs to buy and hold for long-term dividend growth because it offers instant diversification and owns many of the largest and most reliable companies in Canada, including banks, pipelines, utilities, and telecom stocks.

These are businesses that generate steady cash flow, operate in essential industries, and have long track records of paying and increasing their dividends.

That’s what makes XEI such a strong core holding; it focuses on owning high-quality companies that can grow both their earnings and their dividends over time.

That’s important for long-term investors because, in addition to offering a yield just shy of 4% today, which may not be as high as some other income-focused ETFs, you still get the full benefit of the market’s upside.

That’s why it’s such a strong long-term holding for passive income-focused investors. Over the long haul, as the TSX and Canadian economy continue to grow, your investment and the passive income it generates both grow with it.

So, over time, you’re not just collecting income, you’re also building wealth as those dividends increase and your capital appreciates.

A high-yield ETF to help boost your income

Once you have a solid foundation in place, that’s when it can make sense to buy a higher-yield ETF to complement your core holdings and boost your income in 2026.

So, if you’re looking for both a reliable long-term investment and a higher-yielding fund for more immediate income, BMO Canadian High Dividend Covered Call ETF (TSX:ZWC) is a top choice.

The reason the ZWC can significantly boost your income is that, instead of just holding dividend stocks, it also uses a covered call strategy to generate additional income.

In simple terms, the fund sells call options on a portion of its holdings, which allows it to collect premiums and increase the overall yield it pays to investors. That’s why the ZWC can offer a significantly higher yield, currently sitting at roughly 5.75%, than a traditional dividend ETF.

And in an environment like 2026, where markets may be more volatile or trade sideways, that strategy can be especially effective, because instead of relying on strong price appreciation, it turns that volatility into income.

However, since the fund is selling potential upside through those options, it won’t benefit as much in environments when markets rally strongly.

That means the share price tends to be more stable, but you’re giving up some long-term capital gains potential in exchange for higher income today, which is why it’s one of my favourite ETFs to buy to help boost passive income in 2026.

The post Here Are My 2 Favourite ETFs to Buy for High-Yield Passive Income in 2026 appeared first on The Motley Fool Canada.

More reading

• TFSA Balances at 30: Where Do Most Canadians Stand?
• Want Decades of Passive Income? Buy This Index Fund and Hold it Forever
• The Top 3 Canadian ETFs I’m Considering for 2026
• 3 Canadian ETFs to Buy and Hold Forever in Your TFSA
• 3 Canadian ETFs I’d Snap Up Right Now for My TFSA

Fool contributor Daniel Da Costa 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.

When it comes to building passive income in your Tax-Free Savings Account (TFSA), it’s easy to get caught up chasing the highest yields you can find.

The higher the yield, the more of a return you can begin to earn right away. So, when you see a stock offering an 8% yield, or even higher, and often trading cheaply as well, it can seem like the perfect undervalued stock to buy for your TFSA.

But in reality, that’s where a lot of investors get themselves into trouble, because more often than not, when a stock offers a really high yield, it’s not because it’s a hidden opportunity. It’s because the market expects something to go wrong and has already sold the stock off significantly, which sent the dividend yield soaring.

Either the business is under pressure, cash flow isn’t as strong as it appears, or there’s a real risk that the dividend will be cut in the coming months.

And in a TFSA, that sustainability matters even more because if you buy a risky, high-yield stock that ends up dropping significantly and you sell at a loss, that contribution room is gone for good.

Instead of chasing yield, the better approach is to focus on total return over the long haul and the quality of the income you’re generating in your TFSA.

Why yield alone doesn’t tell the full story

A high yield might look attractive on the surface, but it doesn’t mean much if the stock price is falling or the dividend isn’t sustainable.

In fact, a stock yielding 4% that can grow earnings and increase its dividend over time will almost always outperform a stock yielding 10% that’s shrinking or struggling.

That’s why it’s so important to look beyond the yield and understand how the business actually generates cash.

For many companies, the most important figure is cash flow, and sometimes, with specific companies, such as pipeline operators, one of the most important metrics is distributable cash flow or funds from operations (FFO).

Those numbers give you a much better picture of how sustainable the dividend really is because they focus on the actual cash coming in rather than accounting earnings.

And that matters, because earnings can be distorted by non-cash expenses like depreciation, which can make a perfectly safe dividend look riskier than it actually is.

So, if you’re building a TFSA for long-term income, the goal shouldn’t be fully focused on trying to maximize yield today; it should be more about finding reliable businesses that can continue paying and growing that income over time.

Focus on the quality of the income in your TFSA

There’s no question that the main focus for dividend investors should be to build their TFSA with a mix of high-quality income investments rather than just chasing the highest yield they can find.

For example, South Bow (TSX:SOBO) is one of the more attractive higher-yield options right now.

It owns critical pipeline infrastructure, and much of its revenue is backed by long-term contracts. That means it acts more like a toll booth than a traditional energy company, generating steady and predictable cash flow.

Even though the yield is relatively high, the underlying business is stable, and when you look at its cash flow rather than just earnings, the payout is much more sustainable than it might initially appear.

In fact, for 2026, South Bow expects its payout ratio to be just 64%. And when you consider it offers an attractive yield of 5.9% today, it’s certainly a company you can have confidence owning for years.

On the other hand, a stock like Granite REIT (TSX:GRT.UN), owns industrial real estate like warehouses and logistics centres, which are essential for e-commerce and global supply chains.

The yield is slightly lower, at roughly 4.2%, but the business is extremely stable, with high occupancy and strong demand for its properties.

Furthermore, it’s consistently increasing its distribution each year as its FFO grows with rising rents and new properties being acquired.

That’s the type of balance you want, stocks that offer reasonable yields but still have the potential and flexibility to continue growing their operations and distributions over time.

Because at the end of the day, the goal of your TFSA isn’t just to generate income today, it’s to build a portfolio that continues growing and increasing your income over time.

The post TFSA Investors: Don’t Chase Yield — Do This Instead appeared first on The Motley Fool Canada.

More reading

• The Very Best Canadian Stocks to Hold Forever in a TFSA
• My 3 Favourite Stocks for Monthly Passive Income
• $50K TFSA: How to Structure for Constant Income
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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

When it comes to building passive income in the stock market, there’s no question that high-yield dividend stocks are some of the best and most compelling investments you can buy.

However, with that in mind, one of the biggest mistakes investors often make is chasing attractive dividend yields without fully understanding the business behind them.

Just because a stock offers a high yield doesn’t mean it’s a good long-term investment. In fact, some of the highest-yielding stocks can often be the riskiest if that income isn’t sustainable.

That’s why, when you’re looking for a stock you can buy and hold for a decade, the most important thing isn’t just the yield; it’s the reliability of the cash flow that funds the dividend.

What that means is that you need to look for a business that can consistently generate income through different economic environments, not just when conditions are perfect. Ideally, you want a company that can actually grow that income over time as well.

And when it comes to high-yield dividend stocks that have the potential to continue growing their dividend payments over time, there’s no question that one of the best to buy now is Alaris Equity Partners (TSX:AD.UN).

Alaris offers a yield of more than 7.1% today, but more importantly, it generates that income in a very different way than most traditional dividend stocks.

Why Alaris is different from traditional income stocks

What makes Alaris unique, and one of the main reasons why it’s a top high-yield dividend stock to buy for long-term income, is its business model.

Instead of operating a traditional business like a bank, utility, or store, Alaris provides capital to private companies in exchange for ongoing distributions. So, it’s essentially acting as a partner to a portfolio of private businesses. Furthermore, one of the main advantages of this business model is how those distributions are structured.

In many cases, the payments Alaris receives are tied more to revenue than net income, which makes them much more stable.

Because even if a business is dealing with rising costs or short-term pressure on margins, revenue is usually far less volatile than profits.

That helps protect the cash flow Alaris generates, which in turn supports its dividend.

On top of that, many of these agreements include built-in increases over time based on performance. So not only are you getting a high starting yield, but there’s also the potential for that income to grow over time as its partners expand their operations.

And because Alaris is diversified across multiple industries and businesses, you’re not relying on a single company or sector to support your income.

Why it’s a high-yield dividend stock you can buy for the long haul

When you’re looking at any dividend stock, but especially one with a yield this high, the biggest question is always whether the dividend is actually sustainable.

In Alaris’ case, the company consistently aims to keep its payout ratio at roughly 65% to 70% of cash flow, and in 2025, it actually reported a payout ratio of just 57%, showing how well the stock has performed recently.

Furthermore, the high-yield dividend stock also once again increased its distribution by roughly 9% in late 2025, which is a strong signal that it expects income to remain stable and continue to grow going forward.

How reliable is Alaris in the near term?

Given the uncertainty about the global economy, it makes sense to wonder how Alaris could hold up if the economic environment were to worsen.

First off, because Alaris partners with private businesses, a significant economic slowdown could impact some of those companies. Furthermore, the stock itself can be more volatile than traditional income stocks.

However, if you’re focused on building long-term passive income, that volatility matters a lot less than the consistency of the cash flow, which is diversified and proven to be considerably resilient over time.

And with a yield of more than 7.1% today, plus the potential for growth over time, Alaris is exactly the type of stock that can generate meaningful income over the next decade.

And when you consider that it’s not just about the yield today, it’s about owning a business that can continue paying you for years to come, it’s clear that Alaris is one of the best high-yield dividend stocks that you can buy today.

The post 1 High-Yield Dividend Stock You Can Buy and Hold for a Decade of Income appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Alaris Equity Partners Income Trust. The Motley Fool has a disclosure policy.

When it comes to finding TSX stocks to buy for the long haul, it goes without saying that the best opportunities come not just from finding the highest-quality companies but from buying those stocks after they’ve sold off for more than they should have.

When you find a stock with a solid core business and years of growth potential and then buy it below value, you significantly increase the long-term returns that investment can generate.

However, as advantageous as it is to find high-quality stocks that are trading cheaply, that doesn’t mean you can just buy anything that’s down.

In fact, that’s where a lot of investors go wrong. Just because a stock looks cheap doesn’t mean that it’s undervalued. You still need to make sure the underlying business is strong, the balance sheet is solid, and the long-term outlook is intact.

When you can find a high-quality company that’s temporarily out of favour, though, those are often where the best opportunities come from. Because the reality is, by the time everything about a stock looks perfect again, the share price has usually already recovered.

So, if you can identify catalysts ahead of time and be willing to act before sentiment improves, that’s where you can generate the best returns. On top of that, if the stock also offers a compelling dividend, you’re essentially getting paid to wait for that recovery to play out.

And in today’s market, while there aren’t a tonne of stocks that look extremely cheap, one of the best oversold opportunities right now has to be Canadian Apartment Properties REIT (TSX:CAR.UN).

Why CAPREIT is one of the most oversold stocks on the TSX

In the current environment, it’s no secret that there aren’t a tonne of truly oversold stocks on the TSX to buy and hold for the long haul. However, with that said, one sector that has clearly lagged is real estate, especially residential REITs like CAPREIT.

CAPREIT, the largest publicly traded residential REIT in Canada, has seen its stock drift lower over the last couple of years. However, the decline in valuation is not necessarily because the business has deteriorated significantly, but rather largely due to macro headwinds.

Higher interest rates have been the biggest factor, increasing borrowing costs and putting pressure on valuations across the entire REIT sector.

On top of that, though, concerns around slowing immigration, more housing supply coming online, and expectations for lower rent growth have also weighed on sentiment.

But when you actually look at the business, the fundamentals haven’t changed nearly as much as the stock price would suggest.

For example, occupancy continues to remain strong, cash flow is stable, and demand for rental housing is still resilient.

Yet despite that, the TSX stock now trades at a much more attractive valuation, roughly around 13 times its forward funds from operations (FFO) and about 16 times its forward adjusted funds from operations (AFFO), all while offering a yield in the range of 4.5%, showing why it’s one of the best to buy now.

To put that into perspective, over the last decade, CAPREIT averaged a forward price-to-FFO ratio of 19.8 times and a forward price-to-AFFO of 23.5 times. Furthermore, it averaged a forward yield of just 3.2% over that stretch.

So, as expectations and sentiment have shifted, CAPREIT’s stock has become incredibly cheap. And that’s exactly what creates such a significant opportunity for investors.

Why the REIT is poised for a comeback

Looking ahead, CAPREIT doesn’t necessarily need to go back to being a high-growth story to generate strong returns. In fact, most of the upside from here will likely come from a shift in sentiment and capital flows.

Not only have interest rates already peaked, but as inflation continues to cool off, they should continue to decline. And when that happens, REITs are typically one of the first sectors to benefit.

Even if rates don’t come down immediately, though, the current environment is already becoming more supportive for defensive, income-generating assets.

With macro uncertainty rising, investors tend to rotate toward more stable businesses that can generate consistent cash flow. And residential REITs like CAPREIT are some of the best TSX stocks to buy for that reliability.

So, while one of the best residential real estate stocks on the TSX continues to trade at valuations we haven’t seen in over a decade, there’s no question it’s one of the best oversold stocks to buy before it rebounds.

The post It’s Time to Buy: 1 Oversold TSX Stock Poised for a Comeback appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa 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.

When it comes to renewable energy stocks, there’s no question that the last few years have been frustrating for Canadian investors.

Just a few years ago, these stocks were some of the most hyped investments in the market. Back in 2020 and 2021, it seemed like they could only go higher as capital kept pouring into anything related to clean energy.

But then inflation caused interest rates to spike, impacting stocks across the renewable energy sector.

It’s important to note that these Canadian renewable energy stocks are capital-intensive businesses which rely heavily on borrowing to fund growth. As rates rose, valuations came down quickly. So, what was once one of the most popular sectors in the market quickly became one of the most out of favour.

However, that’s where things start to get interesting for long-term investors, especially since now, the thesis around renewable energy is less about hype and increasingly about necessity.

Demand for power is rising rapidly, and not just from traditional sources. The growth of AI, data centres, and electrification across the economy is creating a huge need for a reliable, long-term energy supply.

That’s why many Canadian renewable energy stocks are starting to look much more attractive again.

Why the environment for green energy is improving

One of the biggest reasons Canadian renewable energy stocks struggled over the last few years was interest rates. Higher rates made future cash flows less valuable and, more importantly, increased the cost of funding new projects.

But now, interest rates are already down from their peak and have the potential to fall further. Not to mention, the majority of governments around the world are continuing to push for cleaner energy through investment tax credits, long-term infrastructure plans, and regulations that make renewables more competitive over time.

Furthermore, and maybe most importantly, renewable energy is no longer just an expensive alternative to fossil fuels. In many regions, it’s now one of the lowest-cost sources of power.

So, when you combine improving financing conditions, strong policy support, and rising demand, it becomes clear that this isn’t just a short-term rebound, but a structural shift that can benefit Canadian renewable energy stocks for years.

Three renewable energy stocks that Canadians can consider today

If you’re looking to buy high-quality renewable energy stocks while they’re still trading at compelling valuations, there are a few different names to consider.

First, you have a massive global player like Brookfield Renewable Partners (TSX:BEP.UN) with assets across hydro, wind, solar, and storage.

That diversification is a huge advantage because it allows the business to generate stable cash flow while still expanding in higher-growth markets.

On top of that, Brookfield has the scale and access to capital to continue acquiring and developing projects worldwide. Plus, it offers a consistently growing dividend with a current yield of roughly 4.9%, making it one of the best renewable energy stocks Canadians can buy today.

In addition to Brookfield, another option to consider is a more specialized stock like Northland Power (TSX:NPI).

Northland focuses heavily on offshore wind, which is one of the more complex and capital-intensive areas of renewable energy, but also one of the biggest long-term opportunities.

Its projects, like Hai Long in Taiwan, are massive in scale and show how far the industry has come in terms of execution.

However, these projects can come with more risk, but they also offer significant long-term upside, especially as more countries invest in offshore wind capacity.

So, if you’re looking for a higher-risk, higher-reward renewable energy stock that still offers a yield of 3.1%, Northland is one to consider.

Lastly, you could consider more of a transition story like Capital Power (TSX:CPX).

These stocks weren’t originally pure renewable energy companies, but have begun to steadily shift their portfolios.

For example, Capital Power still generates cash flow from traditional assets such as natural gas facilities, which gives it a stable base, but it’s also reinvesting that cash into more renewable projects over time.

That balance makes it less volatile than pure-play renewables, allowing it to offer a current dividend yield of roughly 4.2%, while still offering exposure to long-term growth potential.

And with demand for clean, reliable energy continuing to rise every year, there’s no question that high-quality Canadian renewable energy stocks like these look increasingly attractive for long-term investors today.

The post Canadian Renewable Energy Stocks: Hype or Historic Opportunity? appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Northland Power. The Motley Fool recommends Brookfield Renewable Partners and Capital Power. The Motley Fool has a disclosure policy.