When it comes to finding high-quality dividend stocks to buy for passive income, reliable telecom stocks like Telus (TSX:T) and BCE (TSX:BCE) have been some of the most popular investments for years.

That’s not surprising. Telecom stocks have long been some of the best investments you can buy for income because they offer high yields, operate essential businesses, and have historically been seen as reliable long-term holdings.

However, over the last few years, the telecom sector has faced some significant headwinds.

Between higher interest rates, elevated debt levels, and increased competition, both BCE and Telus stocks have seen their share prices struggle and haven’t delivered the same level of consistency investors were used to.

Naturally, more investors are starting to look for alternatives.

With that said, though, it’s not easy to replace businesses that are this reliable and defensive. That’s what makes telecom so attractive in the first place.

However, if there’s one stock that offers a similar kind of essential, infrastructure-style cash flow, but with better long-term upside, there’s no question that Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the best and most reliable dividend growth stocks to buy now.

Why I’d pick Brookfield over BCE or Telus stock today

Although all three stocks are infrastructure businesses that generate a ton of cash flow and return much of it to shareholders, there are some key differences.

For example, the biggest differences between Brookfield Infrastructure and the telecom stocks are the scope of the business. While Telus and BCE operate large, capital-intensive networks, they’re primarily focused on one industry and one market.

Brookfield takes that same idea of essential infrastructure and applies it globally. It owns a diversified portfolio of assets across multiple sectors, including utilities, energy infrastructure, transportation networks, and data infrastructure.

That diversification makes a significant difference for investors because instead of relying on one industry or one region to drive performance, Brookfield generates cash flow from multiple sources across the global economy.

On top of that, the assets it owns are just as essential as telecom infrastructure. Whether it’s moving energy, transporting goods, transmitting electricity, or supporting data networks, these are services that businesses and consumers rely on every single day.

So, while all three stocks generate highly predictable cash flow, the majority of Brookfield’s business is backed by long-term contracts, regulated assets, and infrastructure that isn’t optional.

So, it offers many of the same defensive characteristics that investors are looking for in BCE or Telus stocks, but with significantly more diversification.

A better mix of income, growth, and long-term opportunity

In addition to its diversification, another reason why I’d buy Brookfield over Telus or BCE stock right now is its long-term growth potential from here.

Right now, one of the biggest challenges for stocks like BCE and Telus is that their free cash flow generation is under pressure. After years of heavy investments in 5G and fibre-to-the-home infrastructure, and now with continuously strong competition in the space, the outlook is getting more uncertain.

BCE has already cut its payout, and Telus has slowed its dividend growth and could potentially cut its dividend as it focuses on managing its balance sheet.

Brookfield, on the other hand, continues to grow. It offers a yield of more than 5%, and more importantly, it not only continues to increase its distribution each year, but it targets a 5% to 9% increase each year.

And much of the long-term growth potential Brookfield offers comes down to its strategy. Instead of just holding these reliable infrastructure businesses indefinitely, Brookfield actively recycles capital by selling mature assets and reinvesting in new opportunities with higher growth potential.

That’s why it continues growing both its cash flow and its distribution over the long haul.

So, while Telus and BCE can still play a role for income investors, Brookfield offers a better mix of reliable cash flow, long-term growth, and diversification, which is why it’s easily one of the best dividend growth stocks in Canada to buy today.

The post The Stock I’d Pick Over Telus or BCE — and Why I Keep Coming Back to It appeared first on The Motley Fool Canada.

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

Often in investing, the biggest challenge isn’t finding the highest-quality TSX stocks to buy; it’s actually finding opportunities to buy them at a reasonable price.

Because the reality is that the best stocks on the market rarely trade at a discount.

They’re well-known, widely owned, and consistently deliver strong results, which means investors are almost always willing to pay a premium to own them. And that’s exactly why waiting for pullbacks becomes so important. Because when markets do get volatile, and they always eventually do, even the highest-quality stocks can temporarily sell off.

And those moments are often some of the best opportunities you’ll get to build a long-term position.

That’s why, instead of chasing stocks after they’ve already run up, it makes more sense to know exactly which businesses you want to own ahead of time so that when the opportunity comes, you can act quickly.

With that in mind, here are two of the very best stocks on the TSX that I’d be ready to buy the next time markets pull back.

One of the best defensive growth stocks to buy on the TSX

One of the best examples of a stock that almost never stays cheap for long is Dollarama (TSX:DOL).

Dollarama has been one of the most consistent performers on the TSX for years, and it’s easy to see why.

It operates a simple, highly scalable retail model that continues to grow regardless of what’s happening in the broader economy.

When times are good, the discount retailer benefits from steady traffic and expansion. And when the economy slows down, it often sees increased demand as consumers look for lower-cost alternatives.

That’s one of the biggest reasons why Dollarama continues to thrive, and why it has been one of the best TSX stocks to buy for years. It can grow in any economic environment.

On top of that, Dollarama continues to expand its store network and improve its margins, which has helped the stock deliver massive long-term returns for investors.

However, recently, Dollarama stock has pulled back meaningfully following a weaker-than-expected earnings report.

Comparable sales growth came in below expectations, and the company also issued more cautious guidance, which weighed on investor sentiment. On top of that, ongoing investments in international expansion are putting some short-term pressure on margins.

As a result, the stock has sold off significantly from its highs. However, it’s worth noting that none of these factors change the long-term thesis. Dollarama’s business model remains intact, and its ability to grow in both strong and weak economic environments hasn’t changed.

So, while the stock now trades at a much more reasonable valuation, with a forward price-to-earnings (P/E) ratio of 33.2 times compared to 42.4 times just a few months ago, this is exactly the type of pullback that savvy long-term investors wait for.

A global growth stock with long-term tailwinds

In addition to Dollarama, another high-quality TSX stock you’ll want to buy on any dip is Brookfield Asset Management (TSX:BAM).

Brookfield Asset Management is one of the highest-quality businesses on the TSX, but for very different reasons than Dollarama.

Instead of operating a retail business, Brookfield focuses on managing capital for institutional investors across infrastructure, renewable energy, real estate, and private markets.

So, rather than relying on a single operation or industry, it earns fee-based revenue from managing a massive and growing pool of global capital.

That helps create a highly scalable business model with strong visibility into future earnings.

Additionally, Brookfield benefits from long-term trends as pension funds, sovereign wealth funds, and other institutions continue increasing their allocations to alternative assets.

That ongoing shift is why Brookfield is one of the best businesses to buy on the TSX, and it’s also why the stock rarely trades cheaply. Investors understand the quality of the business and its recurring fee-based earnings.

So, when broader sentiment weakens, and even high-quality stocks like Brookfield sell off in the short term, those are the opportunities you want to be ready to take advantage of.

Because over the long haul, as its assets under management continue to grow, so too will Brookfield’s earnings, its dividend, and ultimately its stock price.

The post 2 TSX Stocks I’d Move Quickly to Buy the Next Time Markets Pullback appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management and Dollarama. The Motley Fool has a disclosure policy.

When you’re investing for the long haul and building a portfolio in your TFSA, you don’t want to just find Canadian stocks to buy that have compelling growth potential. You want to find businesses that you can have the confidence to stick with through different market environments.

That might sound simple, but it’s often not as easy as it seems because eventually most stocks will give you a reason to second-guess them.

Whether it’s volatility, slowing growth, or shifts in the broader economy, there’s usually something that forces investors to constantly re-evaluate their position, which is exactly what you want to avoid in a long-term TFSA portfolio.

It’s important to remember that the whole point of the TFSA isn’t just the tax-free gains; it’s using those tax-free gains to let high-quality businesses compound for years without interruption.

That’s why these three Canadian stocks are some of the best to consider for a long-term buy-and-hold TFSA.

Two of the best core portfolio stocks Canadians can buy in their TFSAs

There’s no question that one of the best places to start when building a long-term portfolio is with businesses that generate predictable cash flow from essential services, like Enbridge (TSX:ENB).

Enbridge operates one of the largest energy infrastructure networks in North America, moving oil and natural gas across the continent.

Furthermore, it generates the majority of its cash flow through long-term contracts and regulated assets, which makes its earnings far more predictable.

That’s why it has been able to consistently generate reliable cash flow and support one of the most attractive dividends on the TSX. In fact, not only does the dividend offer a current yield of 5.3%, but it has also been increased every year for more than three straight decades.

Most importantly, though, it’s a business that continues to perform regardless of short-term market conditions since its operations are essential.

So, if you’re building a long-term portfolio in your TFSA, there’s no question Enbridge is a top pick.

In addition to Enbridge, another massive blue-chip stock that dominates its industry and continues to perform regardless of short-term conditions is Nutrien (TSX:NTR).

As one of the largest agricultural input companies in the world, Nutrien plays a critical role in global food production.

Farmers rely on fertilizers to maintain crop yields, and as the global population continues to grow, that demand continues to increase.

And while Nutrien can be more cyclical than a stock like Enbridge, especially since fertilizer prices can fluctuate, the long-term demand for its products remains strong. On top of that, Nutrien has vertically integrated its business in recent years, which helps it better manage some of that cyclicality.

And because of that solid business model and consistent cash flow generation, Nutrien returns a significant amount of capital to shareholders through dividends and share buybacks.

That combination of essential demand, strong cash flow, and the ability to return capital to shareholders is exactly what makes Nutrien one of the best Canadian stocks to buy and hold in your TFSA.

A defensive growth stock that continues to execute

Finally, one of the most underrated types of long-term investments is businesses that offer steady, defensive growth, like Jamieson Wellness (TSX:JWEL).

Jamieson operates in the health and wellness space, producing vitamins, supplements, and other consumer health products where demand is both recurring and relatively resilient.

Consumers don’t suddenly stop buying health products because of short-term economic changes, which helps provide a stable base of revenue.

At the same time, Jamieson continues to grow by expanding its product offerings and increasing its presence in international markets.

That combination of steady demand and consistent execution is what allows it to deliver reliable growth over time.

And while it may not be the fastest-growing stock on the TSX, it’s compelling because it’s reliable and consistent. That’s what makes it one of the best Canadian stocks to buy and let quietly compound in a TFSA for years.

The post 3 Canadian Stocks Well Suited for a Long-Term Buy-and-Hold TFSA appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Enbridge and Nutrien. The Motley Fool recommends Enbridge and Nutrien. The Motley Fool has a disclosure policy.

One of the biggest mistakes investors make when building a long-term portfolio, especially when it comes to finding Canadian dividend stocks to buy, is spending too much time trying to predict where interest rates are going next.

There’s no question that interest rates are incredibly important. They’re the primary tool policymakers use to either stimulate or slow down the economy. On top of that, they directly impact the valuation of nearly every company on the market, particularly Canadian dividend stocks.

However, as important as they are, the reality is that consistently predicting interest rates is nearly impossible.

Even when things seem obvious, something always changes. Inflation stays sticky, growth slows, or new risks emerge that completely shift expectations. And that’s exactly where we are today.

Coming into 2026, investors were expecting more rate cuts as inflation continued to ease. But as we’ve seen time and time again, something unexpected can quickly change the outlook. In this case, geopolitical tensions and the war in Iran have added a new layer of uncertainty, forcing policymakers into a wait-and-see approach.

So, with rates essentially on hold for now, and uncertainty remaining elevated, it creates a challenging environment for investors.

That’s why, instead of trying to predict what rates will do next, the better approach is to focus on businesses that can continue to execute regardless of the environment.

And that’s exactly why Northland Power (TSX:NPI) is one of the top dividend stocks to buy right now.

Why Northland Power is built to handle this environment

One of the biggest reasons Northland is one of the best dividend stocks to buy today is because of how the business has already adapted to higher rates.

For years, it was primarily viewed as an income stock. It paid a steady dividend and attracted investors looking for a reliable yield. However, more recently, management made the decision to reset the dividend.

At first glance, that might look like a negative. And in the short term, it was. But in reality, it was one of the most important moves the company could make because instead of continuing to pay out a large portion of its cash flow, Northland is now retaining more capital internally.

And that matters a lot in a higher-rate environment because now the company doesn’t have to rely as heavily on expensive debt, it reduces the need to issue new shares, and it gives management more flexibility to fund its own growth.

So, while some investors saw the dividend reset as a weakness, and for existing investors, it was a setback, looking at Northland today, it’s in a much stronger position going forward. That’s why it’s one of the best dividend stocks to buy now, regardless of where interest rates go.

Why Northland is a top dividend stock to buy now

As a green energy company with significant growth potential both in the short term and over the long term, Northland is one of the most compelling dividend stocks to buy right now, especially because it’s more than just an income play.

The company has a global portfolio of renewable energy assets, including offshore wind, solar, and energy storage, and more importantly, it has several large-scale projects that are either nearing completion or already starting to come online.

And that’s where the opportunity really starts to show up because for the last few years, most of the focus has been on construction risk, rising costs, and higher interest rates. But as those projects get completed, that narrative begins to shift.

Cash flow becomes more visible, execution risk declines, and the market can focus more on the long-term earnings power of the business. At the same time, Northland’s operations are supported by long-term contracts that provide predictable revenue, helping support its dividend and overall stability. And as of Monday’s close, that dividend offered a yield of roughly 3%.

And if interest rates stabilize or eventually start to fall, that’s where the upside becomes even more compelling.

So, while the environment today may feel uncertain, that’s exactly why Northland is one of the best Canadian dividend stocks to buy now. It’s already adjusted to higher rates, continues to execute, and has a ton of long-term potential, regardless of what happens next.

The post With Rates Going Nowhere, Here’s 1 Canadian Dividend Stock I’d Buy Right Now appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Northland Power. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

When markets start to get shaky, one of the most common reactions from investors is to play defence. They start to panic and immediately consider selling TSX stocks and moving to cash, to reduce exposure, or just wait on the sidelines until things feel more stable again.

And while that might sound like the safe approach, it’s often not the most effective one because, at the end of the day, you’re still trying to speculate and time the market. Furthermore, sitting in cash doesn’t generate returns; it just avoids volatility.

That’s why, instead of trying to completely avoid market turbulence, a better approach is to focus on owning businesses that can continue to perform through it. That means investing in companies which generate reliable cash flow, provide essential services, and don’t rely on strong economic conditions just to stay profitable.

Those are the stocks that tend to hold up best when uncertainty starts to increase, and that’s exactly why certain TSX stocks can offer a lot more stability than most investors expect.

Why certain TSX stocks hold up when everything else slows down

When the economy starts to weaken or uncertainty begins to rise, one of the first things that changes is how people spend their money.

Discretionary spending tends to drop almost immediately, which means people cut back on non-essential purchases, delay big decisions, and become more cautious overall.

That’s why many stocks across the economy can feel pressure when the economy weakens. However, not all companies are impacted equally; there are certain expenses that people simply can’t avoid, like housing and utilities.

And that’s why TSX stocks like Canadian Apartment Properties REIT (TSX:CAR.UN) and Emera (TSX:EMA) are some of the best investments to buy to help protect your portfolio. They tend to be much more resilient when markets get turbulent.

CAPREIT is one of the largest residential landlords in Canada, owning thousands of apartment units across major markets. And regardless of what’s happening in the economy, people still need a place to live.

So, while the stock itself can still be volatile in the short term, the underlying business remains highly reliable.

Meanwhile, Emera offers a similar type of stability. As a regulated utility, it generates predictable revenue from providing electricity and gas to customers because, just like housing, those are services people continue to pay for regardless of economic conditions.

Building a portfolio that can handle uncertainty

Although buying high-quality companies is always paramount, it’s important to understand that investing through volatility isn’t just about finding the most defensive stocks possible.

Because while stability is important, you still want to own businesses that can continue to grow and create value over time. And that’s exactly what both CAPREIT and Emera offer.

They’re not high-growth stocks that rely on perfect conditions to perform, but they’re also not stagnant businesses either.

They generate consistent cash flow, pay reliable income, and still have long-term growth drivers that can support share price growth over time. And right now, both stocks offer dividend yields above 4%.

That’s what makes them so effective in a portfolio because, instead of forcing you to constantly react to market conditions, they give you the confidence to stay invested and let them grow and compound over the long haul.

And that’s exactly the goal of long-term investing. You want reliable businesses that you can hold through different environments without feeling the need to constantly adjust your strategy.

Remember, the best way to deal with market turbulence isn’t to avoid it; it’s to be prepared for it. That’s how you invest for the long haul, not by reacting to volatility, but by owning the right businesses from the start.

The post If Market Turbulence Is Coming, These 2 TSX Stocks Could Offer Some Shelter 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 Emera. The Motley Fool has a disclosure policy.

When it comes to building long-term wealth in your TFSA, one of the simplest and most effective strategies is to focus on owning high-quality Canadian ETFs that you never feel the need to sell.

Because while a lot of investors spend time trying to pick the perfect stocks, time the market, or constantly adjust their portfolio, often the more you try to do, the harder you make it on yourself.

Investing can quickly become much more complicated, and more importantly, it makes it harder to stay consistent.

That’s why building the core of your portfolio with a few reliable, broad-based ETFs is one of the best ways to invest, since it simplifies everything.

Canadian ETFs give you instant diversification and allow you to stay focused on the long term without constantly second-guessing your decisions.

So, if you’re a long-term investor looking to build a reliable TFSA portfolio, these three Canadian ETFs are easily some of the best to buy, and three I’d be more than comfortable owning for decades.

Building a core TFSA portfolio with broad-market Canadian ETFs

The foundation of any long-term portfolio should be broad exposure to high-quality businesses, which is why two of the top Canadian ETFs I’d start with are the iShares Core S&P 500 Index ETF (CAD-Hedged) (TSX:XSP) and the iShares S&P/TSX 60 Index ETF (TSX:XIU).

For example, the XSP is one of the best and easiest investments you can make. You’re getting exposure to 500 of the largest companies in the U.S., many of which generate revenue globally.

And over the long haul, there’s no question the S&P 500 has been one of the most consistent indices to own. That’s why it’s such a strong core holding. You don’t need to pick winners or try to time anything. You just need to stay invested.

At the same time, though, it still makes sense to have exposure to Canada, which is why I’d pair the XSP with the XIU ETF. Unlike the XSP, though, instead of offering exposure to the entire TSX, the XIU focuses on the 60 largest companies in the country.

And historically, those large-cap, blue-chip stocks have been more reliable and, over the long haul, have outperformed the broader index.

That’s not surprising, though. The largest companies in Canada are some of the most stable. They generate more consistent cash flow. And they’re the types of businesses you can actually hold through different market environments.

That’s why the XSP and XIU are two of the best ETFs to buy and never consider selling. When combined, they offer exposure to both the global economy and Canada’s strongest companies.

Adding targeted exposure without overcomplicating your portfolio

Once you’ve built that core, you can start to be intentional about where you add exposure.

And that’s why another Canadian ETF I’d buy for my TFSA and never consider selling is the BMO Equal Weight Banks ETF (TSX:ZEB).

Instead of trying to pick which Canadian bank will outperform, the ZEB gives you exposure to the entire sector.

That matters because Canadian banks operate in a highly concentrated industry, which makes them all high-quality businesses that benefit from similar long-term trends.

Over time, though, the leaders can change, which is what makes it difficult for retail investors to consistently pick the best performer. So rather than trying to guess which one will come out ahead, owning the entire group can be the simpler and more effective approach.

Now, this doesn’t have to be banks. It can be any sector you understand well and want exposure to. But the idea is the same.

Instead of picking individual names in areas where performance rotates, it can make more sense to just own the whole space and adjust your exposure at the sector level.

And over time, layering these funds on top of a core like XSP and XIU gives you a portfolio that’s diversified, simple, and easy to stick with for the long haul, which is exactly why these three Canadian ETFs are some of the best to buy in a TFSA and never consider selling.

The post 3 Canadian ETFs I’d Tuck Into a TFSA and Never Consider Selling 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 markets start to get volatile, one of the first things investors think about is how to protect their portfolio. They start looking for safer assets, more reliable income, and ways to reduce the impact of short-term swings, whether it’s low-volatility Canadian stocks, reliable dividend payers, or ETFs that offer instant diversification.

But while there are a tonne of ways to protect your portfolio, not all of them are simple. Trying to pick the perfect defensive stocks, timing your entries, and constantly adjusting your portfolio can quickly become complicated.

And that’s often what leads to the biggest mistakes. Investors overthink headlines or volatility, react too quickly, and sometimes even end up taking on more risk than they realize.

That’s why one of the simplest and most effective ways to defend your portfolio isn’t by constantly making changes; it’s by owning the right types of investments in the first place.

And when it comes to reliable investments that can protect your capital, there’s no question that Canadian dividend ETFs are one of the simplest ways to do that.

Instead of relying on a handful of individual stocks, these ETFs give you instant diversification, exposure to high-quality businesses, and in many cases, consistent income all in a single investment.

And while the simplicity is important, what really makes these Canadian dividend ETFs compelling is that, as uncertainty rises, the combination of diversification, reliability, and income that they provide is exactly what helps protect your hard-earned capital.

How Canadian dividend ETFs actually defend your portfolio

One of the biggest advantages of dividend ETFs is that they spread your investment across dozens, or even hundreds, of stocks, immediately reducing risk.

This way, even if one company struggles, it doesn’t have a major impact on your overall portfolio. At the same time, many of these ETFs focus specifically on high-quality, Canadian dividend stocks, which are often companies that are already built to be more defensive.

That’s why something like the iShares S&P/TSX 60 Index ETF (TSX:XIU) is one of the simplest ways to get reliable exposure to Canada’s largest and most established companies.

While it doesn’t hold dividend stocks exclusively, it owns 60 of the largest stocks in Canada, including major banks, energy infrastructure, and other essential businesses that generate consistent cash flow and pay steady dividends. Currently, the XIU offers a forward yield of 2.3%.

On top of that, ETFs like the BMO Low Volatility Canadian Equity ETF (TSX:ZLB) take it a step further.

Instead of just holding large companies, the ZLB is designed to reduce volatility by focusing on stocks that historically don’t swing as much.

Plus, in addition to the stability and protection it offers, the ETF also offers Canadians a sustainable dividend. Currently, the ZLB offers a forward yield of 1.9%.

And if you’re looking for an investment that offers even more stability but with a higher yield, the BMO Monthly Income ETF (TSX:ZMI) offers a mix of both stocks and bonds.

The mix of stocks and bonds, plus the geographic diversification, can significantly help protect your portfolio. Plus, the Canadian ETF’s dividend yield is currently sitting above 4.1%.

On top of that, it generates a steady monthly distribution, which can be especially valuable during uncertain markets.

And at the end of the day, it’s a lot easier to stay invested when your portfolio is consistently generating income.

Building a portfolio that’s both simple and effective

The real advantage of Canadian dividend ETFs isn’t just that they reduce risk; it’s that they simplify the entire investing process.

Instead of trying to build a perfectly balanced portfolio stock by stock, you can use a few well-chosen ETFs to get broad exposure across different sectors and asset classes, which is exactly what you want when markets become unpredictable.

Remember, the goal isn’t to avoid volatility completely. That’s impossible. The goal is to build a portfolio that can handle that volatility and protect not just your capital but your peace of mind.

And once that foundation is in place, it gives you the flexibility to layer in individual stocks over time, while still having a portfolio you can confidently hold through any market environment without needing to adjust it constantly.

The post Why Canadian Dividend ETFs Could Be the Simplest Way to Defend Your Portfolio 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 finding dividend stocks you can buy and hold for the long haul, there are very few that actually make it easy to stick to that strategy.

Because while long-term investing sounds simple, in reality, most stocks eventually give you a reason to second-guess them. Whether it’s volatility, slowing growth, or changes in the broader market, there’s usually something that forces you to constantly re-evaluate your position.

And that’s exactly why finding dividend stocks that you genuinely don’t feel the need to sell is so rare.

With that said, the one stock I own that I don’t think I’ll ever need to sell is Brookfield Infrastructure Partners (TSX:BIP.UN).

Brookfield is one of the best long-term investments on the TSX because of the type of assets it owns, but more importantly, because of how consistently it generates cash flow and turns that into a reliable and growing stream of income for investors.

Why Brookfield Infrastructure is such an easy long-term hold

One of the biggest reasons Brookfield is such a top-notch dividend stock is the reliable businesses that make up its portfolio. Instead of relying on a single industry or region, it owns a globally diversified portfolio of infrastructure assets that are essential to how the economy functions.

These are assets such as energy infrastructure, transportation networks, data infrastructure, and utilities, all spread across different countries and markets.

And that diversification is key because rather than relying on one specific driver of growth, Brookfield generates cash flow from multiple sources. And that doesn’t just reduce risk, it also helps smooth out performance over time, supporting its ability to pay a consistent distribution.

Even more importantly, though, is that the assets Brookfield owns are essential. They’re the types of infrastructure that businesses and consumers rely on every single day, regardless of what’s happening in the economy.

And that’s what makes the cash flow so predictable, and what makes Brookfield such a high-quality dividend stock. The business is built on long-term contracts, regulated assets, and services that people simply can’t avoid using.

And that combination of diversification, reliability, and income is what makes it such an easy stock to hold for the long haul.

Why it’s a dividend stock you’ll likely never feel the need to sell

In addition to the reliability of its operations and the consistent cash flow that Brookfield Infrastructure generates, what makes it even more compelling is that it continues to grow.

Instead of simply holding these assets indefinitely, Brookfield actively recycles capital by selling mature assets and reinvesting in new opportunities with higher growth potential, which is a key driver of its long-term performance.

This way, Brookfield is not only one of the most defensive dividend stocks you can own, but one you can have confidence buying and holding for years.

Plus, on top of that capital recycling strategy that it employs, management has consistently proven its ability to identify long-term trends early. For example, its growing exposure to digital infrastructure and data-related assets has positioned it to benefit from increasing global demand.

So it’s no surprise that Brookfield targets long-term annual returns of 12% to 15% for investors, along with annual distribution increases of 5% to 9%.

That’s why it’s one of the best stocks to buy and never sell. And while it also offers an attractive yield today, currently above 5%, it’s a stock you buy for much more than just the income.

It’s not just about how much you’re getting paid today. It’s about how sustainable that income is and how consistently it can grow over time.

Because at the end of the day, the goal isn’t just to find a stock you can hold through volatility, it’s to find a dividend stock backed by a business that makes you feel comfortable holding it in the first place.

And for me, Brookfield Infrastructure is exactly that kind of stock.

The post The Dividend Stock I Own and Have Zero Intention of Ever Selling 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 markets start to get volatile, headlines turn negative, and it feels like every Canadian stock is selling off, it’s natural for investors to feel uneasy.

Whether it’s concerns about interest rates, a slowing economy, or geopolitical tensions, there’s always something that can create uncertainty in the short term.

However, the problem isn’t that volatility shows up from time to time; it’s how investors react when it does.

That’s when people start thinking about reducing risk, holding more cash, or even selling positions altogether. And more often than not, it’s those reactionary decisions that lead to mistakes.

That’s why, instead of trying to predict what the market will do next or constantly adjusting your portfolio, you’re far better off making sure the portfolio you build in the first place is reliable.

Because when you own high-quality businesses that can continue to perform, generate cash flow, and reward shareholders regardless of what’s happening in the broader market, volatility becomes a lot easier to deal with.

And that’s exactly why certain Canadian stocks stand out as some of the best to own when market anxiety starts to rise.

The types of Canadian stocks that actually hold up

Although it may not always seem like it, when uncertainty increases, not every stock reacts the same way.

Some businesses are heavily dependent on economic growth, strong consumer spending, or favourable market conditions, such as tech or e-commerce stocks. So, when the economy starts to weaken, those stocks can quickly come under pressure.

However, other businesses are built very differently. They provide essential services, operate with predictable cash flow, and in many cases, have long-term contracts or regulated assets supporting their operations.

That’s why Canadian stocks like Fortis (TSX:FTS) and Enbridge (TSX:ENB) are two of the best examples of companies that can hold up well in almost any environment.

Fortis is a regulated utility, which means the vast majority of its revenue is essentially set in advance. People still need electricity and gas regardless of what the economy is doing, and that’s what makes its cash flow so reliable.

That consistency is also why Fortis has been able to increase its dividend for more than 50 consecutive years.

Similarly, Enbridge operates one of the largest energy infrastructure networks in North America, earning steady fees for transporting energy, often through long-term contracts.

That’s exactly the type of reliability investors want when markets become unpredictable, and it’s also why both of these stocks continue to be some of the most popular core holdings for long-term income investors in Canada.

Balancing stability with long-term growth

At the same time, as important as reliability is, building a sustainable income stream you can count on is not just about owning the most defensive stocks possible.

Because while stability matters, you still want to own businesses that can continue to grow and create value over time, such as Canadian National Railway (TSX:CNR) and Alimentation Couche-Tard (TSX:ATD).

Canadian National Railway is one of the best long-term investments you can make because it connects key regions across the continent, and there are massive barriers to entry that make it almost impossible to replicate.

That gives it significant pricing power and the ability to generate consistent earnings over the long haul. So even when economic conditions weaken, it remains a critical part of the supply chain.

Couche-Tard, on the other hand, operates a global network of convenience stores and fuel stations. And while that might not sound exciting, it’s exactly what makes the business so resilient.

People still buy fuel, coffee, and everyday items regardless of the economic environment. Plus, on top of that, the company has a long track record of using its strong cash flow to acquire other businesses and continue expanding globally.

So, while both of these stocks offer stability, they also provide long-term growth potential, which is just as important for investors who are building wealth over time.

The Foolish takeaway

Managing your portfolio through periods of volatility isn’t about trying to turn to cash and avoid it. It’s about owning businesses that you can continue to hold with confidence when that volatility does inevitably materialize.

That’s why these four Canadian stocks are some of the best to buy today.

Plus, once you’ve built a reliable foundation, it becomes much easier to stay invested and look for new stocks that can outperform over time.

That’s ultimately how long-term investors win, not by reacting to every headline, but by owning businesses they never feel the need to sell in the first place.

The post 4 Canadian Stocks Worth Holding When Market Anxiety Starts to Rise appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Enbridge. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Canadian National Railway, Enbridge, and Fortis. The Motley Fool has a disclosure policy.

When it comes to finding high-quality dividend stocks that offer both value and passive income, it’s becoming increasingly difficult in today’s market.

While markets have continued to push higher and many stocks are trading near their highs, there aren’t a tonne of opportunities to find high-quality businesses at a meaningful discount.

And more often than not, when a stock does look cheap on the surface, there’s usually a reason for it. Either the business is slowing down, the industry is facing long-term headwinds, or the company’s fundamentals are starting to deteriorate. That’s why value investing can be so challenging right now.

However, one area of the market that still offers some opportunities is real estate, specifically residential REITs that have been under pressure in recent years, like Canadian Apartment Properties REIT (TSX:CAR.UN).

In fact, CAPREIT isn’t just a high-quality dividend stock that offers value in today’s market; it’s one of the best investments you can make today.

Not only is it a high-quality, defensive business, but it’s also now trading at a valuation that’s well below its historical average, all while offering more income than it has in years.

And that’s exactly the kind of opportunities that long-term investors can wait years for.

Why this dividend stock looks like one of the best value plays on the TSX

Over the last few years, CAPREIT stock has significantly underperformed, not because the business itself has broken, but because the environment around it has changed.

First off, rising interest rates put pressure on the entire REIT sector, increasing borrowing costs and reducing the appeal of income-focused investments. However, at the same time, expectations for rental growth have started to normalize.

After a period where strong immigration and limited housing supply drove rents higher at a rapid pace, investors are now factoring in more moderate growth going forward as supply begins to increase and demand stabilizes.

And as a result, CAPREIT has lost a lot of the premium valuation it once traded at. In fact, in the five years from 2019 through 2024, CAPREIT averaged a forward price-to-adjusted funds from operations (P/AFFO) ratio of 25.9 times, considerably higher than its 10-year average forward P/AFFO ratio of 23.5 times.

However, it’s important to understand that while the growth outlook may not be as strong as it was a few years ago, the core business remains highly intact. Occupancy is still strong, demand for housing is still resilient, and the properties continue to generate reliable cash flow.

In other words, the stock has gotten cheaper, but the business hasn’t meaningfully deteriorated. And that’s exactly why CAPREIT is one of the best dividend stocks to buy now if you’re looking for a value play.

Instead of paying a premium for growth, investors today can gain exposure to a high-quality residential REIT at a discount, simply because expectations have cooled. In fact, while its 10-year average forward P/AFFO ratio is 23.5 times, today CAPREIT trades at just 16.9 times.

Why it’s even more compelling for passive income investors

On top of the ultra-cheap valuation CAPREIT is currently trading at, it also still offers everything long-term passive income investors are actually looking for, which is why it’s one of the best dividend stocks you can buy today.

Residential real estate is one of the most defensive asset classes you can own. That’s what helps keep occupancy high and cash flow relatively stable, even during periods of economic uncertainty.

And with the stock now trading at a much lower valuation, its dividend yield has increased to roughly 4.2%, which is meaningfully higher than it has offered in recent years.

Not only is its 10-year average forward yield considerably lower, at just 3.2%, but in the five years from 2019 to 2024, when its valuation was through the roof, CAPREIT offered an average forward yield of just 2.8%.

And that much higher yield is crucial because not only are you buying the same underlying business at a lower price, but you’re also locking in a higher level of income at the same time.

That’s why CAPREIT is one of the few dividend stocks right now that offers both real value and reliable income.

The post This Dividend Stock Has Quietly Turned Into a Value Play for Passive Income Seekers 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