According to Statistics Canada, based on the 2023 contribution year, Canadians aged 30–34 had an average Tax-Free Savings Account (TFSA) balance of just $16,760. At first glance, that may seem reasonable – but when you look closer, it reveals a significant missed opportunity.

Historically, stocks have delivered some of the strongest long-term returns among major asset classes. If that $16,760 had been fully invested in the Canadian market using the iShares S&P/TSX 60 Index ETF (TSX:XIU) as a proxy, it would have grown to about $31,509 today — an increase of roughly 88%, including distributions. That’s the quiet power of compounding at work.

The real issue: Underused TFSA room

What’s more striking is not the average balance itself, but the unused potential behind it. Canadians in this age group had $61,882 in unused TFSA contribution room. That’s a substantial amount of tax-free investing capacity sitting idle.

If that unused room had been invested in a broad Canadian exchange traded fund (ETF) similar to the iShares S&P/TSX 60 Index ETF, it could have grown to approximately $116,338. This gap highlights a key issue: the TFSA is not just a savings account — it’s one of the most powerful long-term wealth-building tools available to Canadians.

The takeaway is simple but often overlooked: time in the market matters more than timing the market. Delaying contributions doesn’t just defer investing — it reduces the compounding runway that drives long-term gains.

Two Canadian stocks that show what’s possible

To understand how disciplined TFSA investing can pay off, consider two top Canadian companies: Brookfield Asset Management (TSX:BAM) and Alimentation Couche-Tard (TSX:ATD).

Brookfield Asset Management is a global leader in alternative asset management, with investments spanning infrastructure, renewable power, real estate, and private equity. Its business model is built on managing large pools of capital and generating fee-related earnings, which can provide resilience across market cycles. For TFSA investors, BAM offers exposure to global growth themes while benefiting from long-term compounding — exactly the kind of profile that can thrive in a tax-free account. Moreover, it offers a dividend yield of about 4.1% and could grow it north of 10% per year. 

Alimentation Couche-Tard, on the other hand, represents another type of story. As one of the world’s largest convenience store operators, it has a track record of disciplined acquisitions, operational efficiency, and consistent earnings growth. Its ability to generate strong cash flow and reinvest in expansion has made it a long-term compounder. Holding a company like Couche-Tard in a TFSA means those gains remain shielded from taxes.

Both companies illustrate an important point: you don’t need speculative bets to build wealth in a TFSA. High-quality businesses, held and added to consistently over time, could do the heavy lifting.

Building the habit early

Maximizing a TFSA doesn’t require a lump sum windfall — it requires consistency. This year, the TFSA contribution limit is $7,000. That breaks down to about $583 per month, a manageable target for many working Canadians.

By contributing regularly and investing in a mix of broad market exposure and high-quality companies like Brookfield Asset Management and Alimentation Couche-Tard, investors can steadily close the gap between average balances and their full potential.

Investor takeaway

At age 30, the typical Canadian TFSA balance is modest — but the real story is the unused contribution room and lost compounding opportunity. The difference between average outcomes and strong ones comes down to consistent contributions and smart investing. By starting early, investing regularly, and focusing on quality assets, Canadians can turn their TFSA into a powerful engine for long-term, tax-free wealth.

The post How Do Most Canadians’ TFSA Balances Look at Age 30? appeared first on The Motley Fool Canada.

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• Here’s My Highest Conviction Canadian Stock to Buy Right Now

Fool contributor Kay Ng has positions in Brookfield Asset Management. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

Market volatility has a way of testing even the most disciplined investors. When headlines turn negative and portfolios dip, the instinct to do something can lead to costly decisions. The real question isn’t whether to act — it’s how to act intelligently. Should you rotate into gold, hide in consumer staples, or sit safely in cash? The answer, as is often the case in investing, isn’t either or. It’s about balance, patience, and using volatility to your advantage.

The case for gold as insurance

Gold has long been viewed as a safe haven during uncertainty. When inflation rises or geopolitical tensions flare, investors often pile into gold as a store of value. Canadian investors frequently turn to companies like Agnico Eagle Mines (TSX:AEM), a large gold producer, to gain exposure.

But here’s the reality: gold is not a productive asset. It doesn’t generate earnings or dividends like a business does. Its value is largely driven by sentiment and macroeconomic factors. That makes it useful as a hedge — but not necessarily useful as a core long-term growth engine.

A modest allocation to gold can help stabilize a portfolio during turbulence. However, over-allocating based on fear can limit your upside when markets recover. Think of gold as insurance: valuable in storms, but could be costly if overused.

Consumer staples: Stability with staying power

If gold is insurance, consumer staples are the foundation. These are businesses that sell everyday essentials — groceries, household goods, and pharmacy items — that people buy regardless of economic conditions. In Canada, Loblaw (TSX:L) is a prime example.

Staples companies tend to offer consistent cash flow, pricing power, and often reliable dividends. In the case of Loblaw, its 10-year dividend-growth rate is 8.3%, illustrating its power to beat inflation as a long-term investment. During market downturns, they typically decline less than high-growth sectors, making them attractive for defensive positioning.

That said, even staples aren’t immune to overvaluation. Investors often crowd into these names during uncertainty, pushing prices higher. Buying them at inflated valuations can reduce future returns. The smarter move is to accumulate quality staples gradually — especially when broader market weakness pulls them down along with everything else.

Cash: Optionality, not a destination

Holding cash can feel comforting when markets are volatile. It provides stability and the ability to deploy capital when opportunities arise. But cash comes with its own risk: inflation erodes its purchasing power over time.

The key is to view cash not as a permanent allocation, but as dry powder. When markets pull back, having cash allows you to buy strong businesses at better prices. This is where discipline matters most, because deploying cash during downturns requires going against fear-driven instincts.

Investors who consistently add to quality holdings during periods of weakness often come out ahead when markets recover. Timing the exact bottom is nearly impossible, but gradually investing through volatility is both practical and effective.

Investor takeaway: Diversify and lean into weakness

There’s no single safe place to hide when markets get rocky. Gold, staples, and cash each play a role — but none should dominate your strategy. A well-diversified portfolio that includes defensive assets, high-quality stocks, and some liquidity is far more resilient than one built on reactionary shifts.

Rather than trying to predict short-term market moves, focus on long-term positioning. Maintain exposure to strong businesses, keep some cash available, and consider small allocations to hedges like gold. Most importantly, use market weakness as an opportunity. Adding to quality investments when prices fall is one of the most reliable ways to build wealth over time.

The post Gold, Staples, or Cash: Where Should You Put Your Money When Markets Get Rocky? appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng 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.

Let’s face it: stock-picking isn’t for everyone. Even seasoned investors increasingly rely on exchange-traded funds (ETFs) to simplify their portfolios, reduce risk, and free up time. In 2026, with markets still shaped by global uncertainty, owning the right ETFs can be one of the smartest moves you make.

Here are three Canadian ETFs I’d seriously consider adding to a long-term portfolio right now.

Gain exposure to the core Canadian market

iShares S&P/TSX 60 Index ETF (TSX:XIU) remains one of the most reliable ways to gain exposure to Canada’s largest and most established companies. It tracks roughly 60 blue-chip stocks and offers a straightforward way to participate in the domestic economy.

What makes XIU a good candidate to consider in 2026 is it provides immediate diversification across the Canadian market. With a low management expense ratio (MER) of 0.18% and a yield around 2.2%, it provides cost-efficient access to dividend-paying giants. Its top holdings include Royal Bank of Canada (8.7% of the fund), Toronto-Dominion Bank (6.2%), Shopify (5.1%), Enbridge (4.1%), and Agnico Eagle Mines (3.9%) — a mix of financial strength and growth potential.

Yes, it’s heavily weighted toward financials (38.6% of the fund), energy (17.6%), and materials (15.3%), but that’s not necessarily a drawback. These sectors seem to continue to benefit from the current macro environment. For investors seeking a dependable Canadian core holding, XIU still earns its place.

Global diversification without the hassle

If you’re overly concentrated in Canada — as many Canadian investors are — iShares Core MSCI All Country World ex Canada Index ETF (TSX:XAW) offers an easy fix.

XAW provides exposure to thousands of companies across the U.S., Europe, and emerging markets — all in one ETF. With a modest MER of 0.22%, it’s a cost-effective way to access global growth trends, especially in technology (26.5% of the fund), industrials (12.7%), and consumer discretionary (9.8%).

This matters more than ever. Canada’s market is relatively small and heavily tilted toward a few sectors. XAW balances that out with significant exposure to global innovators and market leaders that simply aren’t available domestically.

Its historical returns — over 10% annually since its inception in 2015 — highlight the power of diversification. More importantly, it reduces your reliance on any single economy, which is critical in an unpredictable global environment.

One-stop growth for long-term investors

For investors who want maximum simplicity without sacrificing growth, they might like iShares Core Equity ETF Portfolio (TSX:XEQT).

XEQT is an all-equity, globally diversified ETF that automatically allocates across regions: roughly 45% U.S., 25% Canada, 25% international developed markets, and 5% emerging markets. In other words, it gives you instant exposure to the world’s growth engines in a single purchase.

With a low MER of 0.20% and strong historical performance with a compound annual growth rate of 13.3% since its 2019 launch, XEQT is built for long-term investors who can stomach market volatility. Its yield is modest at around 0.9%, but that’s because the focus here is capital growth — not income.

For younger investors or anyone building wealth over decades, XEQT offers a compelling “set-it-and-forget-it” solution.

Investor takeaway

In 2026, successful investing doesn’t have to mean picking individual winners. The right ETFs can deliver diversification, solid returns, and peace of mind. XIU provides a stable Canadian foundation, XAW unlocks global opportunities, and XEQT offers an all-in-one growth engine. Together — or even individually — these ETFs can form the backbone of a resilient, long-term portfolio. The idea is to dollar-cost average into your selected core long-term ETFs over time to build long-term wealth.

The post 3 Canadian ETFs I’d Seriously Consider Adding to My Portfolio in 2026 appeared first on The Motley Fool Canada.

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• How Do Most Canadians’ TFSA Balances Look at Age 30?
• The Simplest Way to Put $21,000 in a TFSA to Work in 2026
• 2 Canadian ETFs I’d Lock Into a TFSA and Never Touch
• TFSA Investors: Don’t Chase Yield — Do This Instead
• TFSA Investors Take Note — The CRA Is Actively Watching for These Red Flags

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

For Canadian investors, dividend stocks are more than just income generators — they’re a cornerstone of long-term wealth building. With favourable tax treatment on eligible dividends and a market rich in reliable cash-flow businesses, Canadians are uniquely positioned to benefit from dividend investing. 

But not all dividend stocks are created equal. The best ones combine consistent payouts, resilient business models, and long-term growth potential. Three names that embody these traits are Brookfield Asset Management (TSX:BAM), Canadian Natural Resources (TSX:CNQ), and Manulife (TSX:MFC).

Brookfield Asset Management: Global scale meets income growth

Brookfield Asset Management offers something rare: exposure to real assets across the globe with a fast-growing dividend. The company manages infrastructure, renewable power, real estate, and private equity assets — sectors that tend to generate stable, predictable cash flow even during economic uncertainty.

What makes Brookfield Asset Management particularly compelling is its asset-light model combined with strong fee-related earnings. As global demand for infrastructure and renewable energy continues to expand, Brookfield Asset Management is well-positioned to benefit. This growth feeds directly into its ability to raise dividends over time.

It offers a yield of about 4.1% to start, while its last two dividend hikes were about 15%. Its income and growth potential make it a foundational holding for income-focused investors who also want capital appreciation.

Canadian Natural Resources: Reliable cash flow in energy

Energy stocks can be volatile, but Canadian Natural Resources has built a reputation as one of the most disciplined operators in the sector. Its diversified asset base — spanning oil sands, conventional oil, and natural gas — helps smooth out earnings across commodity cycles.

What truly sets the company apart is its commitment to returning capital to shareholders. Canadian Natural Resources has a long track record of dividend increases (about 25 years), even navigating downturns that forced competitors to cut payouts. Its low-cost operations and strong balance sheet allow it to remain profitable across a wide range of oil prices.

For Canadian investors, this stock provides both income (a 3.9% yield) and a hedge against inflation, as energy prices often rise alongside broader cost pressures. While it’s important not to overconcentrate in any one sector, having a high-quality energy name like this in a diversified portfolio can add meaningful upside in certain markets.

Manulife: Income and international growth

Manulife offers a different kind of dividend opportunity — one rooted in financial services and global expansion. As one of Canada’s largest insurers, it generates steady cash flow from its core operations. But the real growth driver lies in Asia, where rising middle-class wealth is fueling demand for insurance and wealth management products.

The company has made significant strides in improving its efficiency and focusing on higher-return business segments. This has translated into a solid and growing dividend, supported by strong capital ratios. For investors, Manulife provides both dependable income and exposure to faster-growing international markets.

It offers a yield of about 3.4% to start, which is about 55% higher than the broader market, making it potentially attractive for income-focused portfolios. At the same time, its diversification beyond Canada helps reduce reliance on the domestic economy.

Investor takeaway

Building a strong dividend portfolio in Canada doesn’t require chasing the highest yields — it requires owning durable businesses that can grow and sustain their payouts over time. Brookfield Asset Management brings global diversification and dividend growth, Canadian Natural Resources delivers resilient income backed by strong cash flow, and Manulife combines steady dividends with international expansion.

Together, these three stocks offer a balanced mix of sectors, income stability, and long-term upside. For Canadians looking to build wealth while generating a reliable income, they represent a solid foundation worth considering.

The post 3 Dividend Stocks Worth Having in Every Canadian’s Portfolio appeared first on The Motley Fool Canada.

More reading

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• How Do Most Canadians’ TFSA Balances Look at Age 30?
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Fool contributor Kay Ng has positions in Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management and Canadian Natural Resources. The Motley Fool has a disclosure policy.

Turning a single $7,000 contribution into $70,000 may sound ambitious — but for disciplined, long-term investors, it’s an achievable goal. The key isn’t luck or speculation. It’s time, compounding, and smart stock selection inside your Tax-Free Savings Account (TFSA).

The power of time and compounding

To grow $7,000 tenfold, you need two ingredients: patience and a solid rate of return. Compounding works best when you give it years — ideally decades — to do the heavy lifting. The longer your investment horizon, the less you need to rely on short-term market swings.

Historically, the Canadian stock market has delivered strong long-term returns. Over the past decade, it has compounded at roughly 12.7% annually. At that rate, a $7,000 investment could grow to $70,000 in just over 19 years — without adding another dollar.

Of course, returns aren’t guaranteed. Markets go through cycles driven by interest rates, economic conditions, and global events. But long-term investors who stay invested through volatility have consistently been rewarded. The takeaway is simple: time in the market matters far more than timing the market.

Aim for market-beating stocks

While matching the market can get you to your goal, outperforming it can get you there faster. That’s where careful stock selection comes in.

Consider leaders like Royal Bank of Canada (TSX:RY) and Canadian Natural Resources (TSX:CNQ). Over the past decade, these companies have delivered annualized returns of approximately 16.4% and 18.8%, respectively — well above the broader market. These results didn’t happen overnight; they came from strong business models, consistent earnings growth, and disciplined management.

RBC earns a diversified mix of revenues – approximately half of it comes from interest income from loans and mortgages, while the rest comes from fee-based businesses like wealth management, advisory, and trading. This diversification matters. When lending slows, such as during a recession, capital markets or wealth management could help offset that. 

CNQ is one of Canada’s largest oil and gas producers with a diversified asset base of oil sands, conventional crude oil, and natural gas operations. The business is well-managed and creates long-term shareholder value, including increasing its dividend for about 25 years. For example, its 10-year dividend growth rate was nearly 18% per year.

The lesson isn’t to chase past winners blindly. Instead, look for companies with durable competitive advantages, reliable cash flow, and long growth runways. Canadian banks, energy producers, and select global growth companies can all play a role in a TFSA designed for long-term compounding.

Just as important is valuation. Even great companies can underperform if you overpay. That’s why experienced investors often build positions gradually and buy more aggressively during market corrections.

Build a simple, disciplined strategy

Growing your TFSA into a five-figure — or even six-figure — portfolio doesn’t require constant trading. In fact, simplicity often wins.

Start with a diversified basket of high-quality stocks across key sectors. Reinvest any dividends to accelerate compounding. Stay consistent, avoid emotional decisions, and resist the urge to react to short-term noise.

Most importantly, think long term. A TFSA is one of the most powerful investment tools available to Canadians because all gains are tax-free. That means every dollar of growth stays in your account, compounding further over time.

Investor takeaway

Turning your $7,000 TFSA contribution into $70,000 or more is entirely possible with the right mindset. Focus on long-term investing, aim for strong — ideally market-beating — returns, and stay disciplined through market ups and downs. By owning quality businesses like Royal Bank of Canada and Canadian Natural Resources, buying on dips, and letting compounding work over time, you give yourself a realistic path to achieving that tenfold growth.

The post How to Grow Your 2026 TFSA Contribution Into $70,000 or More appeared first on The Motley Fool Canada.

More reading

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• 5 TSX Dividend Stocks With Solid Yields Built for Steady Cash Flow in Any Market

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

According to the latest Statistics Canada data (released in 2025, based on the 2023 contribution year), Canadians aged 50–54 hold an average Tax-Free Savings Account (TFSA) fair market value of just $30,190. 

While that seems like a decent sum at first glance, the reality is more sobering when you consider how little income that amount can realistically generate — and how much unused opportunity still exists.

If that $30,190 were placed into a guaranteed investment certificate (GIC) earning 3% annually, it would produce only about $906 in yearly income. That’s hardly enough to meaningfully support retirement goals, especially with inflation steadily eroding purchasing power.

The real missed opportunity

Perhaps even more eye-opening is the average unused TFSA contribution room of $57,855 for this age group. That’s a substantial amount of tax-sheltered space sitting idle. At the same modest 3% return, this unused room represents an additional $1,736 in annual income being left on the table.

Combined, that’s over $2,600 per year in potential tax-free income — not from taking on excessive risk, but simply from fully utilizing available contribution room. The takeaway is clear: the issue isn’t just how much Canadians are investing, but how much they’re not.

The good news? Catching up is more achievable than many think. The 2026 TFSA contribution limit is $7,000, which breaks down to about $583 per month or $269 every two weeks. Framing contributions this way makes the process far more manageable and sustainable, especially for those still earning steady income in their peak working years.

Why growth matters more than safety

While GICs offer stability, they often fall short when it comes to building long-term wealth. For funds that won’t be needed for at least five years, investors should strongly consider shifting toward higher-growth assets like equities. 

Yes, markets fluctuate — and history reminds us that downturns such as the 2008–2009 financial crisis and the 2020 pandemic crash can happen unexpectedly — but those who stay invested in quality businesses are typically rewarded over time.

The key is not to avoid volatility altogether, but to own resilient companies that can endure it.

Three Canadian stocks built for the long run

Among the most reliable long-term holdings in Canada are Royal Bank of Canada (TSX:RY), Fortis (TSX:FTS), and Canadian Natural Resources (TSX:CNQ) — each representing a cornerstone sector of the Canadian economy.

Royal Bank of Canada is the country’s largest bank, with diversified revenue streams spanning retail banking, wealth management, and capital markets. Its consistent profitability and long history of dividend growth make it a foundational holding for income-focused investors. 

Fortis, a regulated utility, offers exceptional stability with predictable cash flows and a track record of increasing dividends for half a century, appealing to those seeking lower volatility. 

Meanwhile, Canadian Natural Resources provides exposure to the energy sector, combining significant production scale with disciplined capital allocation and a commitment to returning cash to shareholders through dividends.

Together, these companies offer a balance of income, growth, and resilience — exactly what a TFSA portfolio needs to compound effectively over time. They provide an average yield of about 3.3% assuming an equal-weight position in each.

Investor takeaway

The average 50-year-old Canadian is behind where they could be with their TFSA — but not beyond recovery. With over $57,000 in unused contribution room and manageable annual limits, there’s a clear path to improvement. By consistently contributing and focusing on high-quality, dividend-growing stocks instead of low-yield savings products, investors can significantly boost their long-term, tax-free income.

The post What the Typical 50-Year-Old Canadian Really Has Saved in Their TFSA appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Fortis. The Motley Fool has a disclosure policy.

Buying high-quality dividend stocks during market pullbacks has long been one of the most reliable ways to build wealth. The strategy is simple: own great businesses, reinvest the income, and take advantage of volatility rather than fear it. One top candidate today is Brookfield Asset Management (TSX:BAM), a dividend stock with the potential to outperform the broader Toronto Stock Exchange (TSX) for years to come – especially when purchased on dips.

A powerful combination of income and growth

Brookfield Asset Management jumps out with a dividend yield of approximately 4.5%, roughly double the 2.3% yield offered by the iShares S&P/TSX 60 Index ETF, a common benchmark for the TSX. This elevated yield is not just a function of income – it also reflects opportunity. The stock has declined about 27% from recent highs, giving long-term investors a more attractive entry point.

More importantly, BAM has demonstrated a strong commitment to dividend growth, increasing payouts at a double-digit rate since it was spun off in 2022. This signals confidence in its business model and cash flow generation. For investors, that means rising income over time — one of the key drivers of long-term outperformance.

Why Brookfield could outpace the TSX

Historically, the TSX has delivered solid returns, with a 10-year annualized gain of about 12.5%, including cash distributions. However, Brookfield Asset Management’s forward-looking growth profile suggests it could do much better.

The company expects earnings to grow at about 20% annually over the next five years and beyond. If achieved, that level of growth alone would significantly outpace the broader market. On top of that, analyst consensus indicates the stock may be undervalued by about 20%, implying additional upside from multiple expansion – potentially adding nearly 5% annually.

When you combine earnings growth, valuation upside, and a strong dividend, Brookfield offers a compelling total return profile that could approach 25–30% annually over the next five years. While no forecast is guaranteed, the ingredients for market-beating performance are clearly in place.

Risks to understand before you invest

Of course, no investment is without risk – and Brookfield Asset Management is no exception. Its global alternative asset management business is inherently complex. The firm operates across real estate, infrastructure, renewable energy, and private equity, often using layered financing structures. Managing this kind of scale can introduce operational challenges.

That said, much of its debt is non-recourse, meaning liabilities are tied to specific assets rather than the company. At the corporate level, BAM maintains a relatively conservative balance sheet, with a long-term debt-to-capital ratio of about 21% and a solid investment-grade S&P credit rating of A-.

Other risks include regulatory complexity across global markets, reliance on key personnel, and growing exposure to cybersecurity threats as digital infrastructure investments expand. These are real risks – but they are also typical for a global leader operating at this scale.

Investor takeaway

Brookfield Asset Management combines a high and growing dividend, strong earnings growth potential, and a discounted valuation – an uncommon trio in today’s market. While risks exist, they are balanced by prudent financial management and a proven track record. For long-term investors willing to embrace risk and volatility, this dividend stock looks well-positioned to outperform the TSX again and again.

The post This Dividend Stock is Set to Beat the TSX Again and Again appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has positions in Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

Is TELUS (TSX:T) stock worth buying at today’s discounted price? For Canadian investors seeking income and potential turnaround gains, the answer is more nuanced — but increasingly compelling.

The Canadian telecom sector has faced prolonged pressure, and TELUS has not been spared. Trading at $16.41 per share at writing, the stock now offers a striking dividend yield of roughly 10.2%. While that headline number may attract income investors, it also signals market skepticism — specifically, concerns that the dividend may not be sustainable in its current form.

Dividend risk — or opportunity in disguise?

TELUS’s dividend profile is the central issue. In 2025, the payout ratio was about 69% of free cash flow, but that figure benefited from non-core asset sales. Strip those out, and the picture weakens. In 2024, the payout ratio was about 107% of free cash flow, and based on net income, the 2025 payout ratio reached an unsustainable 146%.

This raises a realistic possibility of a dividend cut. However, that may not be entirely negative. Even if TELUS were to reduce its dividend by half, investors would still receive a yield of about 5.1% — well above the broader Canadian market average of roughly 2.3%. In other words, a reset could make the dividend safer while still leaving it attractive.

Leadership change could drive a turnaround

A major catalyst is the incoming CEO, Victor Dodig, former leader of CIBC. From a recent Globe and Mail article, “How Telus’s unexpected CEO change came about”: “Over a decade at the helm of CIBC, Mr. Dodig delivered the largest takeover in the bank’s history and rebuilt the balance sheet and culture, moving the bank from worst to first on customer satisfaction.”

His arrival on July 1 could mark a turning point. Strategic actions may include asset sales, cost discipline, and potentially a dividend adjustment. TELUS’s credit rating has already slipped from BBB+ in 2021 to BBB-, underscoring the need for balance sheet repair.

Potential divestitures include TELUS International and TELUS Agriculture — segments that have struggled with margin pressure and execution challenges. Selling underperforming assets could free up capital to reduce debt and refocus on core telecom operations.

Valuation and long-term upside

Despite these challenges, TELUS’s core business remains resilient. The company reported over one million customer additions for the fourth consecutive year in 2025, alongside strong loyalty in its postpaid mobile segment. It also achieved adjusted EBITDA growth of 3.1% in its core operations, indicating underlying stability.

From a valuation perspective, the stock currently trades at roughly a 20% discount to the analyst consensus price target, implying potential upside of nearly 26%. That discount reflects current uncertainty — but also creates an opportunity for patient investors.

Importantly, Canada’s major telecom companies have long histories of maintaining dividends. While a reduction is possible, a complete elimination remains unlikely.

Investor takeaway

TELUS stock is not without risk, particularly regarding its dividend sustainability and balance sheet. However, much of that risk appears priced in. With a new CEO poised to take action, potential asset sales on the horizon, and a still-solid core business, the dividend stock offers a credible turnaround story.

For long-term investors, with an investment horizon of at least five years, willing to accept short-term volatility — and the possibility of a dividend cut — the stock could represent an attractive mix of income and capital appreciation potential.

The post Is Telus Stock Worth Buying at Its Current Price? appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has positions in TELUS. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

Building a reliable stream of passive income isn’t just about finding high yields — it’s about owning companies that can grow their payouts year after year. In Canada, a handful of proven businesses have demonstrated the ability to increase dividends through economic cycles, rewarding patient investors with rising income and long-term capital appreciation. The following three dividend stocks offer a decent blended yield as well as consistently grow their payouts over time.

Canadian Natural Resources: Income backed by strong cash flow

Canadian Natural Resources (TSX:CNQ) remains one of the most dependable dividend growers in the energy sector. Despite the inherent volatility of commodity prices, the company has increased its dividend for roughly 25 consecutive years. Even more impressive, its dividend has grown at an annualized rate of about 18% over the past decade.

This consistency is driven by its portfolio of long-life, low-decline assets, which provide stable production and predictable cash flow. These characteristics allow the company to generate significant free cash flow even during weaker oil price environments. Management has also demonstrated discipline in capital allocation, using a mix of organic growth, acquisitions, and technological improvements to enhance efficiency.

For investors, this translates into a dividend that is both resilient and positioned for continued growth. While energy stocks can be cyclical, and it would be safer to buy shares on market pullbacks, analysts currently believe  Canadian Natural Resources is fairly valued at about $63 per share with a yield of nearly 4%. Long-term investors should continue to enjoy a growing dividend from the energy stock.

Power Corporation: Diversified growth with steady dividend increases

Power Corporation (TSX:POW) offers a nice mix of stability and growth through its diversified financial services holdings. Currently yielding around 3.8%, the company has increased its dividend consistently for over a decade, with a 10-year growth rate near 7%.

What makes Power Corp. particularly attractive is its multiple growth engines. Its controlling stake in Great-West Life provides exposure to insurance, retirement, and wealth management — with meaningful exposure (about 29% of adjusted earnings) to the growing U.S. market. In addition, the company continues to expand its alternative asset platforms, including private equity, credit, and infrastructure investments.

Another key driver is its investment in Wealthsimple, a rapidly growing fintech platform that appeals to younger investors through digital trading and robo-advisory services. These initiatives position Power Corp. to benefit from both traditional and emerging financial trends.

Although management targets dividend growth of 5–7% annually, recent increases have exceeded that range, suggesting potential higher growth. For income investors, Power Corp. delivers a balanced mix of current yield and sustainable dividend growth.

Brookfield: Lower yield, higher long-term income potential

Brookfield (TSX:BN) may not offer the highest starting yield, but it compensates with strong long-term growth potential. The company has increased its dividend for over a decade, achieving a 10-year growth rate of approximately 10%.

With roots stretching back more than a century, Brookfield has evolved into a global investment powerhouse managing over US$1 trillion in assets. Its ability to invest across multiple sectors and geographies — particularly in areas where capital is scarce — gives it a unique competitive advantage.

Brookfield also invests significant capital (about US$180 billion) alongside its clients, aligning its interests with long-term value creation. This disciplined approach has resulted in exceptional performance, with annualized returns of about 19% between 1993 to 2025.

For investors willing to accept a lower initial yield, Brookfield offers the potential for steadily rising dividends and meaningful capital appreciation over time.

Investor takeaway

These three Canadian dividend stocks demonstrate that growing passive income is achievable with the right investments. Canadian Natural Resources offers high growth potential in the energy sector, Power Corporation provides diversified and steady expansion, and Brookfield delivers long-term compounding potential. Together, they highlight a powerful strategy: focus not just on yield, but on companies capable of increasing dividends consistently for years to come.

The post 3 Canadian Dividend Stocks Whose Passive Income Continues to Grow Over Time appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has positions in Brookfield. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation and Canadian Natural Resources. The Motley Fool has a disclosure policy.

In a market often dominated by short-term thinking, there’s something powerful about locking in a reliable, growing stream of income and letting time do the heavy lifting. For long-term investors, especially those focused on building wealth through dividends, opportunities don’t need to be flashy — they need to be durable. Right now, a TSX stock offering around a 4.5% dividend yield offers exactly that kind of opportunity.

This is the type of investment I’m comfortable buying today and holding for decades.

A proven dividend machine

When I look for a long-term holding, consistency is everything. I want a company that has demonstrated resilience across economic cycles — booms, recessions, and everything in between. That’s why I’m drawn to large Canadian banks, particularly the Bank of Nova Scotia (TSX:BNS).

With a history that stretches back nearly two centuries, the Bank of Nova Scotia has built a reputation for stability and shareholder returns. It has paid dividends for nearly two centuries and has increased those payouts over time. This kind of track record doesn’t happen by accident — it reflects a deeply ingrained culture of financial discipline.

A 4.5% yield is attractive on its own, but the real magic comes from dividend growth. Even modest annual increases can significantly boost your income over time, especially when dividends are reinvested. This creates a compounding effect that can quietly transform a modest initial investment into a substantial income stream decades down the road.

Positioned for long-term growth

While Canadian banks are often seen as mature businesses, Bank of Nova Scotia offers an added layer of growth potential through its international operations. With a strong presence in Latin America like Mexico, the bank is not solely dependent on the Canadian economy.

This geographic diversification provides exposure to faster-growing regions, which can help drive earnings over the long term. While international operations can introduce greater volatility, they could also open the door to higher growth than what’s typically available in Canada alone.

Meanwhile, the bank continues to benefit from its core strengths: a solid domestic banking franchise, strong capital ratios, and a diversified mix of revenue streams (Canadian and international banking, wealth management, and capital markets). These fundamentals help support both the dividend and long-term capital appreciation.

Why I’m holding for decades

The key to successful dividend investing isn’t just picking the right stocks — it’s holding them long enough for compounding to work its magic. Selling too early can mean missing out on years, even decades, of growing income.

With Bank of Nova Scotia, I see a company that can continue to generate steady earnings, pay reliable dividends, and gradually increase those payouts over time. That’s exactly the kind of business I want to own through market ups and downs.

Short-term price fluctuations don’t concern me nearly as much as the long-term trajectory of the business. As long as the fundamentals remain intact and the dividend continues to grow, I’m content to hold — and even add more shares during market corrections.

Investor takeaway

A 4.5% dividend yield backed by a stable, well-established financial institution is a good starting point for long-term investors. Bank of Nova Scotia combines a nice blend of income, growth potential, and resilience. By buying and holding this stock for decades, investors can benefit from both a steady income stream and the powerful effects of compounding over time.

The post A 4.5% Dividend Yield: I’m Buying This TSX Stock and Holding for Decades appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has positions in Bank of Nova Scotia. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.