When it comes to long-term investing, some of the most reliable opportunities come from industries related to real-world demand, and lumber is one such sector. Whether it’s housing, infrastructure, or industrial development, wood products remain essential across multiple parts of the economy. As construction activity continues across North America, companies operating in this space could continue to benefit.

For investors looking to diversify beyond traditional market sectors, lumber stocks can offer a mix of stability and cyclical upside. In this article, let’s take a closer look at two Canadian companies that seem well-positioned to benefit from ongoing demand in this space.

Stella-Jones stock: A stable business built on essential demand

Stella-Jones (TSX:SJ) has carved out a strong niche by focusing on products that support critical infrastructure. Its portfolio includes utility poles, railway ties, and industrial wood products, along with residential lumber distribution across North America.

SJ stock is currently trading at $82.86 per share with a market cap of $4.5 billion. Over the last year, it has climbed 26%, reflecting strong investor confidence. It also offers a small quarterly dividend with a yield of 1.6%.

From a financial perspective, the company delivered solid results in 2025. Its revenue reached $3.5 billion last year, while EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $661 million, representing an 18.9% margin. Strong operating cash flow of $557 million allowed Stella-Jones to reinvest in the business, pursue acquisitions, and return $158 million to shareholders.

This financial growth has been driven largely by its utility products segment, where sales rose 9% excluding acquisitions. Even with slightly higher manufacturing costs impacting margins, the company improved its operating income to $516 million and posted a net profit of $337 million.

Meanwhile, Stella-Jones is continuing to invest in growth. Its planned US$50 million facility in the southeastern United States is expected to strengthen its presence in infrastructure-related products – a segment that tends to generate consistent long-term demand.

West Fraser stock: A cyclical player positioning for recovery

West Fraser Timber (TSX:WFG) could be another amazing stock to consider right now for investors seeking to benefit from lumber demand. As one of the largest wood product manufacturers, it operates across lumber, engineered wood products, pulp, and paper.

After climbing nearly 7% over the last four months, WFG stock currently trades at $89.05 per share with a market cap of $6.9 billion, and provides a dividend yield of about 2%.

Its recent results reflect the challenges of a cyclical industry. In the fourth quarter of 2025, the company reported revenue of about US$1.2 billion but posted a net loss of US$751 million, mainly due to restructuring and impairment charges.

However, the company is actively working to improve its cost structure. It has been shutting down underperforming mills while ramping up production at more efficient, modernized facilities. These steps could position its business for stronger margins when market conditions improve.

For 2026, West Fraser expects modest demand in lumber and is targeting shipments between 2.4 and 2.7 billion board feet. While some segments may remain soft, its focus on operational efficiency and cost control could support a gradual recovery.

Why these lumber stocks look attractive to buy

Both of these companies offer exposure to a sector that remains essential to economic activity. Stella-Jones stands out for its stability and infrastructure-driven revenue streams, while West Fraser provides leverage to a potential cyclical rebound. For long-term investors, combining stable performers with turnaround opportunities can be a smart way to build a balanced portfolio.

The post 2 Canadian Lumber Stocks to Watch Right Now appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Stella-Jones and West Fraser Timber. The Motley Fool has a disclosure policy.

When billionaire investors start reshuffling their portfolios, it can sometimes hint at where smart money sees risk and opportunity next. This is because decisions made by billionaires are usually backed by deep research, macroeconomic insights, and valuation concerns.

And recent regulatory filings are starting to reveal a clear pattern. For example, hedge fund billionaire Daniel Loeb of Third Point has slashed his Amazon position significantly — reducing it by more than half since mid-2024, including a notable trim in the latest quarter as the stock hovered near record highs. Moves like this suggest that even strong long-term tech winners may be facing valuation pressure after a prolonged rally.

However, capital isn’t leaving the market — it’s being repositioned. Some high-profile investors are shifting toward businesses tied to real-world demand and durable cash flows, rather than purely growth-driven narratives. In this article, I’ll highlight one TSX stock that appears to be benefiting from this rotation and why it’s catching the attention of big-money investors.

A different kind of powerhouse

Brookfield Asset Management (TSX:BAM) may not be very popular among growth investors, but it operates in a space that quietly powers the global economy. As a leading alternative asset manager, it invests across infrastructure, renewable energy, real estate, private equity, and credit.

This diversified approach gives it exposure to market sectors that tend to generate steady, long-term cash flows. This approach also reduces the company’s reliance on any single industry, which can be especially valuable during periods of market volatility.

BAM stock currently trades at $66.51 per share with a market cap of about $109 billion. Although the stock hasn’t seen any notable change over the last year, it offers a 4.1% annualized dividend yield, paid quarterly.

Strategic deals driving momentum

One of the key reasons Brookfield continues to look attractive is its ability to execute large, complex deals. A recent example is its involvement in the acquisition of Air Lease Corporation along with major partners, such as Sumitomo Corporation and Apollo-managed funds.

The deal was valued at around US$7.4 billion, or US$28.2 billion including assumed or refinanced debt. This move strengthens Brookfield’s presence in the aviation leasing market, a sector that is expected to benefit as global travel demand continues to recover.

More importantly, it highlights the company’s ability to deploy capital at scale while targeting industries with long-term growth potential.

Looking beyond headline numbers

For 2025, BAM posted a net profit of about US$2.4 billion, up from roughly US$2.1 billion a year earlier. Its fee-related earnings rose 22% year over year (YoY) to nearly US$3 billion, while distributable earnings climbed 14% YoY to about US$2.7 billion.

These gains were mainly driven by strong capital inflows, higher fee-bearing capital, and solid investment activity throughout the year. In fact, the firm raised a record US$112 billion in 2025 alone, highlighting continued investor demand for its platform.

In simple terms, BAM’s core business isn’t just stable — it’s growing at a healthy pace, supported by predictable fee streams and expanding assets under management.

Built for long-term growth

What really sets Brookfield Asset Management stock apart is its long-term strategy. The company focuses on assets that are essential to the functioning of the global economy — things like energy, infrastructure, and real estate.

This approach allows it to benefit from major global trends, including the transition to renewable energy, rising infrastructure spending, and increasing demand for private capital solutions. Meanwhile, it’s also expanding into newer areas like artificial intelligence infrastructure, where it has already launched a large-scale investment program.

With more than US$1 trillion in assets under management and over US$600 billion in fee-bearing capital, Brookfield has the scale to pursue opportunities across markets and geographies, which should help its stock soar in the long run.

The post Billionaires Are Unloading Amazon and Piling Into This TSX Stock appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Amazon. The Motley Fool recommends Amazon and Brookfield Asset Management. The Motley Fool has a disclosure policy.

The Canadian stock market turned negative on Thursday as investors continued to assess persistent geopolitical uncertainty and mixed signals around global energy markets. A day after reaching its highest level in over six weeks, the S&P/TSX Composite Index slipped by 104 points, or 0.3%, to 34,052 — ending its four-day winning streak.

Despite continued gains in real estate and tech stocks, steep declines in other key sectors like industrials, financials, and consumer staples dragged the TSX benchmark down.

Top TSX Composite movers and active stocks

Air Canada, CAE, IAMGOLD, and Bombardier were the worst-performing TSX stocks for the day, as they plunged by at least 3.2% each.

Despite the broader market weakness, BlackBerry (TSX:BB) stock rallied by nearly 14% to $6.42 per share, making it the day’s top-performing TSX stock. This rally in BB stock came after the Waterloo-based software firm announced a strategic partnership with The IP Company to deliver highly secure communications solutions for naval and military use.

The collaboration will integrate BlackBerry’s SecuSUITE platform into The IP Company’s long-standing naval communication systems. The move is aimed at enabling secure communication across critical defence operations, including classified environments. BlackBerry stock jumped as investors reacted positively to the defence-focused partnership, which highlights its growing role in secure communications and its potential to tap into high-value government and military markets.

Shares of First Capital Real Estate Investment Trust (TSX:FCR.UN) also popped by 8% to $23.59 per unit after the company announced a $9.4 billion acquisition deal with KingSett Capital and Choice Properties REIT.

Under the agreement, First Capital REIT’s unitholders will receive total consideration of $24.40 per unit, representing a 17% premium to its recent trading average and an 8% premium to its net asset value. The transaction has received unanimous support from First Capital’s board and is expected to close in the second half of 2026.

BRP and Lithium Americas were also among the session’s top gainers on the Toronto Stock Exchange, with each climbing by more than 6%.

Based on their daily trade volume, Canadian Natural Resources, Cenovus Energy, First Capital REIT, Baytex Energy, and Telus were the five most active stocks on the exchange.

TSX today

Crude oil prices fell to their lowest level in over a month in early Friday trading amid cautious optimism after a temporary 10-day ceasefire between Israel and Lebanon aimed at enabling fresh negotiations. While the truce has raised hopes of broader de-escalation, reports of minor violations and Iran’s push for a more comprehensive deal highlight ongoing uncertainty.

For TSX investors, the key focus remains on oil market stability, as the Strait of Hormuz — which handles a significant share of global crude shipments — continues to face disruptions. As a result, Canadian energy stocks may stay volatile despite the recent pullback in crude prices, while any sustained diplomatic progress could help improve overall market sentiment.

Overall, the TSX benchmark seems on track to end the fourth consecutive week in the green as it currently trades with a 1.1% weekly gain.

Market movers on the TSX today

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The post TSX Today: What to Watch for in Stocks on Friday, April 17 appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Air Canada, BlackBerry, and Canadian Natural Resources. The Motley Fool recommends Air Canada, Brp, Canadian Natural Resources, First Capital Real Estate Investment Trust, and TELUS. The Motley Fool has a disclosure policy.

Market volatility, which is filled with sharp swings, unexpected headlines, and shifting sentiment, can test even the most patient investors. But Foolish investors know that these periods are exactly when strong, dependable businesses prove their worth.

That’s why having some reliable Canadian stocks in your portfolio matters, as they don’t just survive turbulence but continue to deliver steady growth and income. Let’s take a closer look at one Canadian bank that has shown it could do exactly that.

A reliable banking giant with strong momentum

The top TSX-listed bank stock I’m talking about is Canadian Imperial Bank of Commerce (TSX:CM), which has long been a cornerstone of the Canadian banking sector. With its diversified operations and consistent performance, it has built a reputation as a dependable choice for long-term investors.

CM stock currently trades at $147.40 per share with a market cap of $136.3 billion. Over the past year, it has surged 80%, reflecting strong investor confidence despite the broader market volatility. It also offers a dividend yield of around 3%, paid quarterly, making it appealing for income-focused investors.

Strong results across the board

CIBC’s latest financial performance highlights why it stands out during uncertain times. In the first quarter of its fiscal year 2026 (ended in January), the bank reported a 15% year-over-year (YoY) increase in revenue to $8.4 billion. Net income jumped 43% YoY to $3.1 billion, while adjusted net income came in at $2.7 billion. This growth was supported by higher loan volumes, improved net interest margins, and stronger fee-based income from wealth management. Its net interest margin reached 1.61%, or 2.06% when excluding trading activities.

On the profitability side, its diluted earnings per share (EPS) rose 47% YoY to $3.21, while adjusted EPS climbed 25% to $2.76. Meanwhile, return on equity (ROE) surged to an impressive 20.2%, up from 15.2% a year earlier.

Strength across business segments

One of CIBC’s key strengths is its ability to generate growth across multiple divisions. Its Canadian personal and business banking segment reported net income of $960 million, up 25% YoY. Its commercial banking and wealth management segment posted a 9% increase to $647 million, supported by higher assets under management and administration.

In the U.S., its commercial banking and wealth management operations saw net income rise 19% YoY to $294 million, benefiting from lower credit loss provisions.

Strong financial base

Beyond earnings growth, CIBC’s solid balance sheet adds another layer of confidence. In the latest quarter, the bank reported a Common Equity Tier 1 (CET1) ratio of 13.4%, along with a leverage ratio of 4.4% and a liquidity coverage ratio of 133%.

These strong metrics highlight its ability to withstand economic uncertainty while continuing to support growth and shareholder returns.

Why it stands out during volatility

What makes CIBC even more attractive in volatile markets is its balance, as it offers steady income through dividends, consistent earnings growth, and exposure to multiple business lines. While no stock is immune to short-term market swings, companies with strong fundamentals and disciplined strategies tend to recover faster and deliver better long-term returns.

The post The Canadian Stock I’d Want in My Corner When Volatility Strikes appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar 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.

As geopolitical uncertainties continue to keep market volatility intact, Foolish investors are increasingly looking for buying opportunities in quality stocks. When a fundamentally strong company sees its stock decline due to broader market pressures, it should be seen as an attractive entry point for those willing to look beyond short-term noise.

That seems to be the case with one well-established Canadian company, Thomson Reuters (TSX:TRI), right now, as it continues to perform operationally despite a sharp drop in its share price. Let’s take a closer look at why TRI stock could be a strong long-term pick even after its recent decline.

A market leader facing short-term pressure

To put it simply, Thomson Reuters is a global content and technology firm that serves professionals across legal, tax, accounting, compliance, and media industries. Its products are deeply integrated into the workflows of its clients, making its business model both sticky and resilient.

Over the past year, however, TRI stock has fallen by nearly 50%, and it’s currently trading at around $126.91 per share with a market cap of about $56.3 billion. While such a decline may raise concerns at first glance, it’s important to understand what’s happening beneath the surface.

Strong fundamentals remain intact

Despite the stock’s decline, Thomson Reuters continues to deliver steady financial growth. For the full year 2025, the company’s total revenue rose 3% year-over-year (YoY) to US$7.5 billion. More importantly, its organic revenue grew by 7% YoY with the help of strong demand across its core segments.

Meanwhile, its “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) accounted for 82% of its total revenue and delivered 9% YoY organic growth both in the fourth quarter and for the full year.

At the same time, its profitability also improved as its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% from a year ago to US$3 billion, with margins expanding to 39.2% from 38.2% a year earlier. This highlights the company’s ability to scale efficiently while managing costs.

Betting big on AI-driven growth

One of the most important drivers of Thomson Reuters’s long-term story is its push into artificial intelligence (AI). The company’s CoCounsel AI platform has already been adopted by one million professionals across 107 countries.

This tool is designed for high-stakes industries, offering reliable, citation-backed insights tailored to specific jurisdictions. Its next-generation version is expected to bring more advanced capabilities, including conversational task execution that mirrors how professionals collaborate in real life.

These innovations position the company to benefit from the growing demand for AI-powered solutions in professional services — a market that is still in the early stages of adoption.

Why long-term investors may want to pay attention

Thomson Reuters is also taking steps to enhance shareholder value. It has announced a US$600 million share buyback program along with a US$605 million return of capital initiative, signalling confidence in its future.

The company now expects organic revenue growth of around 7.5% to 8% in 2026. It also anticipates further margin expansion of about 100 basis points and free cash flow of approximately US$2.1 billion. These projections suggest that the company’s growth trajectory remains intact despite recent market volatility.

While the recent decline in Thomson Reuters stock may seem concerning, its underlying business tells a different story. Overall, its strong cash flows, leadership in professional services, and commitment to shareholder returns make it a solid option for patient investors.

The post This Canadian Stock Down 50% Is Nearly Perfect for Long-Term Investors appeared first on The Motley Fool Canada.

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

Finding a true long-term growth stock isn’t simple. While many companies ride short-term trends, only a handful are built to sustain momentum over time. The real winners are usually those operating in industries with rising global demand while quietly strengthening their position behind the scenes.

That’s the reason why resource-focused companies like Almonty Industries (TSX:AII) are starting to look attractive amid the ongoing market uncertainty. With geopolitical shifts and supply chain concerns becoming more important, businesses tied to critical minerals are worth considering. In this article, let me explain why this TSX growth stock could be uniquely positioned to benefit from this trend over the next three years.

This critical minerals stock is gaining solid momentum

Almonty Industries mainly operates in the tungsten mining space – a niche but increasingly important segment of the global economy. Tungsten is widely used in defence, industrial manufacturing, and advanced technologies, making it a strategic resource for many countries.

The company’s stock currently trades at $28.84 per share with a market cap of $8.2 billion. Over the past year, it has delivered an extraordinary 681% return, reflecting growing investor interest in its long-term potential.

A major milestone recently came from its flagship Sangdong Tungsten Mine in South Korea after the company delivered its first ore to the Run-of-Mine pad, marking its transition from development to active mining. This step brings it closer to full-scale commercial production and positions it as a key supplier outside China.

Growth supported by rising demand

Almonty’s recent financial performance highlights the impact of improving market conditions. In the fourth quarter, Almonty’s revenue rose 39% year-over-year (YoY) to $8.7 million, while its full-year revenue increased 13% YoY to $32.5 million. This growth has been supported by a sharp rise in ammonium paratungstate (APT) prices, which climbed significantly to around US$2,250 per metric tonne unit.

At the same time, the company reported a net loss of $102.3 million for the quarter and $161.9 million for the full year. However, this was largely due to non-cash revaluation losses tied to derivative liabilities, meaning it had a limited impact on actual cash flow.

Building a global footprint

Beyond current operations, Almonty is actively expanding its global presence. It recently acquired the Gentung Tungsten Project in Montana, adding a potential near-term U.S. production asset to its portfolio. This move aligns with its broader strategy of building a supply chain independent of China, which currently dominates global tungsten production. With increasing geopolitical focus on resource security, this positioning could prove highly valuable.

The company has also strengthened its leadership team with key executive appointments to support operations and development. At the same time, relocating its corporate headquarters to Montana brings it closer to U.S. government agencies and industrial partners.

Why this TSX growth stock stands out

Moreover, Almonty Industries is advancing a large-scale drilling program at Panasqueira to extend the mine’s life and support higher production levels. Its Gentung project is also expected to move toward production readiness in the near term.

With tungsten prices hovering near record levels of around US$2,500 per metric tonne unit, the timing of these developments could further strengthen its revenue potential. While the stock’s recent surge may raise questions, its long-term story is tied to structural demand rather than short-term trends. Its combination of expanding production, rising commodity prices, and geopolitical relevance gives it a unique edge.

The post Opinion: This Is the Only TSX Growth Stock to Own for the Next 3 Years appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar 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.

You can’t build long-term wealth just by chasing high-growth stocks, as creating a steady stream of income could also play an important role through market ups and downs. That’s why I always prefer holding some quality dividend-paying stocks in my portfolio. The right pick can quietly compound your Tax-Free Savings Account (TFSA) savings while delivering predictable cash flow along the way.

In this article, let’s take a closer look at one such TFSA-friendly Canadian stock that looks really attractive for its stability, income potential, and long-term growth prospects.

A stable performer backed by real assets

When it comes to consistent income, businesses backed by physical assets often offer an added layer of reliability. That’s exactly what makes Choice Properties Real Estate Investment Trust (TSX:CHP.UN) worth considering.

This real estate investment trust (REIT) owns and manages a large and diversified portfolio of commercial, industrial, retail, and residential properties across Canada. With more than 700 income-producing properties and around 60 million square feet of gross leasable area, it has built a strong presence in the Canadian real estate market.

The company’s main strength lies in its focus on necessity-based, grocery-anchored retail properties. These types of assets tend to remain resilient even during economic slowdowns, helping the company generate stable rental income. On top of that, its growing industrial portfolio adds flexibility and exposure to high-demand logistics markets.

After gaining 11% over the last year, Choice’s stock currently trades at $16.19 per share with a market cap of $5.3 billion. At this market price, it has a 4.8% annualized dividend yield, with monthly payouts.

What the latest numbers tell us

For 2025, the company reported a net loss of $61.2 million compared to net income of $784.4 million in the previous year. This drop was mainly due to fair value adjustments related to Exchangeable Units and its investment in Allied Properties REIT.

However, Choice’s underlying operations remained strong as its funds from operations (FFO) per unit rose 3.6% year-over-year (YoY) to $1.069. This metric is important because it reflects the cash-generating ability of its business.

At the same time, the REIT’s total net operating income (NOI), on a cash basis, increased by 4.7%, while same-asset NOI grew 2.2% YoY. These gains were supported by strong tenant demand and improved occupancy, which reached an impressive 98.2% by year-end.

Financial strength supports stability

Beyond operational growth, liquidity is another strong point for Choice Properties REIT. With approximately $1.5 billion in available credit and a large pool of unencumbered properties valued at $13.8 billion, the company has enough financial flexibility to navigate challenges and invest in growth opportunities.

Now, the REIT expects 2% to 3% YoY growth in same-asset NOI and projects FFO per unit diluted in the range of $1.08 to $1.10 for 2026.

Income investors get a boost

For dividend investors, there’s more good news. The company recently increased its annual distribution to $0.78 per unit from $0.77. While the increase may seem small, it reflects a commitment to delivering consistent income to its unitholders.

Moreover, its focus on stable cash flows, high-quality tenants, and a disciplined growth strategy continues to support its ability to maintain and gradually grow distributions over time.

The post Here’s an Ideal TFSA Dividend Stock That Pays Consistent Cash appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar 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.

As escalating geopolitical tensions recently triggered a stock market sell-off, many quality stocks also started sinking. But for long-term investors, these moments often open the door to buying strong businesses at a bargain. In this article, I’ll highlight one of the best TSX dividend stocks that could be worth holding for decades.

A pet retail stock with deep roots in Canada

The TSX dividend stock I find really attractive right now is Pet Valu Holdings (TSX:PET). This Markham-headquartered company has built a strong presence in Canada’s pet care market over the years, becoming a go-to destination for pet owners. With more than 800 stores operating under banners like Pet Valu, Bosley’s, Total Pet, and Tisol, the company has created a wide and accessible retail network across the country.

What makes PET’s business even more attractive is the nature of demand for its products. No matter the broader economy, most pet owners continue to prioritize their pets, helping create stable sales for pet-focused businesses.

Despite that, its shares have plunged by nearly 38% over the last six months, making them look cheap to buy and hold for the long term. PET stock offers a 2.5% annualized dividend yield at the current market price of $21.35 per share.

Strong numbers highlight steady execution

Even as many retailers have struggled due to macroeconomic and geopolitical challenges lately, Pet Valu’s recent results show that it continues to execute well. In the fourth quarter of 2025, its system-wide sales increased 9.2% YoY (year-over-year) to $423.7 million, while its revenue rose 10.6% to $326.4 million.

On the profitability side, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 9.4% YoY to $74.6 million, making up 22.9% of revenue. Meanwhile, the company’s adjusted net profit climbed 5.5% from a year ago to $34 million. These numbers clearly reflect that its business is growing while maintaining solid profitability.

What’s driving performance behind the scenes

Like most retailers, Pet Valu is not immune to cost pressures. In the latest quarter, its gross margin edged down to 33% due to pricing and promotional investments. At the same time, selling, general, and administrative costs rose 13.6% YoY due mainly to higher wages, technology spending, and store-related expenses.

Even with these pressures, however, the company managed to grow by focusing on operational efficiency and customer engagement. Its proprietary brands and higher units per transaction helped it gain market share, showing that demand for its products remains strong.

Growth plans that support long-term potential

Despite short-term challenges, Pet Valu continues to focus on plans to expand its footprint and strengthen its fundamentals. The company plans to reinvest about $35 million into the business in 2026. This includes around $20 million in capital spending and $15 million in transformation initiatives aimed at improving efficiency and pricing strategies.

These investments should help the company stay competitive while unlocking new growth opportunities, especially in wholesale and distribution.

Why this dip could be a long-term opportunity

Pet Valu currently offers a great combination of steady demand, an expanding store network, and disciplined execution, making it a strong candidate for long-term investing. Its business is also supported by a loyal customer base and a category that tends to remain resilient over time. That’s an important advantage when thinking about holding a stock for decades.

The post 1 Magnificent TSX Dividend Stock Down 38% to Buy and Hold for Decades appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Pet Valu. The Motley Fool has a disclosure policy.

If you’ve been in the market, you’re probably aware it doesn’t always move in a straight line. There are ups, downs, and plenty of noise in between. Despite the market volatility, some fundamentally strong stocks continue to build momentum with consistent performance, strong financial management, and focused long-term strategies.

These stocks tend to outperform their peers when the broader market stabilizes. In this article, let’s take a closer look at one such Canadian stock that seems well-prepared to deliver solid returns in 2026 and beyond.

Surge Energy stock: Strong execution in a challenging environment

Surge Energy (TSX:SGY) is a Calgary-based oil and gas firm focused on light and medium crude oil assets across Alberta, Saskatchewan, and Manitoba. While it may not be among the most popular TSX stocks, its recent performance suggests it deserves more appreciation.

SGY stock is currently trading at $8.80 per share with a market cap of about $869.8 million. What makes Surge stock interesting is how it has managed to perform really well even during a weaker oil price environment, as it has rallied by over 80% in the last 12 months. In addition, the company also offers a 5.9% annualized dividend yield.

In 2025, Surge produced an average of 23,491 barrels of oil equivalent per day (boepd), exceeding its initial guidance by 1,000 boepd. This came despite a 14% YoY (year-over-year) drop in West Texas Intermediate (WTI) crude prices to US$64.77 per barrel.

At the same time, Surge maintained strong cost discipline. Its capital spending came in at $159.7 million, which was $10 million below budget and 18% lower than the previous year. These improvements helped the company deliver solid cash flows, as its adjusted funds flow (AFF) reached $279.2 million, while free cash flow (FCF) rose 21% YoY to $119.5 million.

Turning strong cash flow into shareholder value

After generating strong cash, Surge Energy is also using it effectively. In 2025, the company returned a significant amount to shareholders through dividends and share buybacks.

SGY stock paid $51.7 million in dividends and repurchased shares worth $8.7 million under its share repurchase program. On top of that, it reduced its net debt by $26.5 million to $220.6 million by the end of the year.

This balanced approach shows that the energy firm is focused on both rewarding investors and strengthening its financial base.

Reserves and drilling activity support long-term growth

Beyond its financials, Surge Energy’s operational base continues to expand. Its proved and probable reserves increased by 6% YoY to 95.7 million barrels of oil equivalent, supported by a strong 136% reserve replacement ratio. The company also reported a net asset value of $13.06 per share, which is notably higher than its current trading price.

In 2025, Surge drilled 58 wells and continued to expand its waterflood programs to improve recovery rates. These initiatives are important because they could help extend the life of its assets and boost long-term production.

Moreover, the company plans to drill 60 wells in 2026 while maintaining production around 23,000 boepd. It also expects adjusted funds flow of about $265 million and plans to maintain its dividend, which remains well-covered at less than 20% of projected cash flow.

Why this Canadian stock could stand out in 2026

Even in a softer commodity price environment, Surge Energy has managed to grow production, reduce costs, increase free cash flow, and return capital to shareholders. With more than 900 drilling locations and a long inventory of development opportunities, the company has a clear runway for future growth.

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

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Fool contributor Jitendra Parashar 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.

Canadian equities rose for the fourth consecutive session on Wednesday as the growing possibility of more rate cuts in the near term amid easing U.S. inflation pressures and heightened optimism around potential de-escalation in the Middle East further supported investor sentiment. The S&P/TSX Composite Index inched up by 54 points, or 0.2%, to settle at 34,156 — extending its week-to-date gains to 1.4%.

Although falling crude oil prices pressured the TSX-listed energy stocks, solid intraday gains in other key sectors like technology, healthcare, and financials drove the broader market index higher.

Top TSX Composite movers and active stocks

Curaleaf, Shopify, Energy Fuels, and Descartes Systems Group were the top-performing TSX stocks for the day, with each surging by at least 5.8%.

In contrast, BRP (TSX:DOO) stock crashed by more than 35% to $69.83 per share, making it the day’s worst-performing TSX stock. This massive selloff in DOO stock came after the Valcourt-based powersports company suspended its full-year fiscal 2027 guidance, citing changes in the U.S. tariff environment.

BRP said new tariff rules now impose a 25% duty on the total value of imported snowmobiles and most off-road vehicles, replacing the earlier structure, and could lead to more than $500 million in additional costs this year. DOO stock plunged as investors reacted to the guidance withdrawal and the significant cost pressure from tariffs, raising concerns about BRP’s profitability and near-term outlook.

Shares of Linamar (TSX:LNR) plunged by nearly 13% after the manufacturing company said it is maintaining its full-year 2026 outlook despite ongoing changes to U.S. tariffs. While its mobility business is expected to remain unaffected, Linamar flagged that parts of its industrial segment could see a more pronounced impact from the revised tariff rules.

LNR stock fell as investors appeared concerned about uncertainty around tariff-related impacts on Linamar’s industrial business, despite the company holding its overall guidance steady.

Orla Mining and TerraVest Industries were also among the day’s bottom performers on the Toronto Stock Exchange, with each falling by at least 6.5%.

Based on their daily trade volume, TD Bank, Canadian Natural Resources, Telus, Cenovus Energy, and Enbridge were the five most active stocks on the exchange.

TSX today

Commodity prices were largely mixed in early morning trading on Thursday, pointing to a flat opening for the resource-heavy main TSX index today.

Investors will also be closely watching geopolitical developments in the Middle East, where reports of potential talks between Israeli and Lebanese leaders are raising cautious hopes for de-escalation. At the same time, ongoing U.S. naval actions in the region and disruptions to oil flows through key routes like the Strait of Hormuz continue to add uncertainty to global energy markets.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest monthly manufacturing and weekly jobless claims data from the U.S. this morning.

Overall, TSX investors’ sentiment is likely to remain cautious as they weigh easing inflation expectations against persistent geopolitical and trade-related risks.

Market movers on the TSX today

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The post TSX Today: What to Watch for in Stocks on Thursday, April 16 appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Enbridge, Shopify, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brp, Canadian Natural Resources, Descartes Systems Group, Enbridge, Linamar, TELUS, and TerraVest Industries. The Motley Fool has a disclosure policy.