The Canadian stock market retreated from its record highs on Wednesday as fears of further escalation in the Middle East sent crude oil and natural gas prices higher, prompting investors to adopt a more cautious stance. A day after closing above the key 35,000 level for the first time, the S&P/TSX Composite Index gave up a large part of its recent gains, concluding the session at 34,802 with a decline of 368 points, or 1% from its previous close.

Despite intraday gains in consumer staples and financial stocks, steep declines in other key sectors, such as technology, healthcare, and mining, dragged the TSX benchmark lower. Investors largely shifted into a risk-off mode as rising geopolitical tensions fueled concerns about energy supplies, inflation pressures, and the broader economic outlook.

Fresh developments from the Middle East remained at the centre of market attention after Iran and the U.S. exchanged new strikes, further testing the fragile ceasefire between the two countries.

Top TSX Composite movers and active stocks

Lithium Americas, Aya Gold & Silver, AbraSilver Resource, and Nexgen Energy were the worst-performing TSX stocks for the day, with each plunging by at least 8%.

In contrast, Advantage Energy, GFL Environmental (TSX:GFL), DPM Metals, and Athabasca Oil climbed by at least 3.1% each, making them the day’s top-performing TSX stocks.

Notably, GFL stock climbed by 3.3% to $48.24 per share after the company and OPAL Fuels announced progress on two new renewable natural gas (RNG) facilities in Alabama and Georgia. The jointly owned projects are expected to add about 15 million gasoline gallon equivalents of RNG supply capacity and fuel roughly 800 heavy-duty trucks.

GFL said the facilities will support its greenhouse gas reduction goals while generating stable, long-term returns. The projects will also convert landfill methane into low-carbon transportation fuel. Investors appeared to welcome GFL’s RNG portfolio expansion and its potential to drive future growth.

Based on their daily trade volume, Canadian Natural Resources, BlackBerry, BCE, Telus, and Enbridge were the five most active stocks on the Toronto Stock Exchange.

TSX today

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

While any signs of easing U.S.-Iran tensions could weigh on oil prices, renewed attacks in the Gulf or around the Strait of Hormuz may keep energy markets volatile.

In addition, trade-sensitive TSX stocks could also draw attention today after U.S. president Donald Trump proposed a new 10% tariff on Canadian exports tied to forced-labour enforcement concerns. However, most Canadian exports to the United States could remain unaffected, as the proposed tariff would apply only to goods that do not comply with the Canada-United States-Mexico Agreement rules.

On the corporate events side, the TSX-listed Saputo will announce its latest quarterly results after the market closing bell.

Market movers on the TSX today

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The post TSX Today: What to Watch for in Stocks on Thursday, June 4 appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Bce, BlackBerry, Canadian Natural Resources, and Enbridge. The Motley Fool recommends Aya Gold & Silver, Canadian Natural Resources, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

Finding growth stocks after they’ve already doubled or tripled might not offer the best risk-reward opportunity for investors. Instead, finding them after a major pullback can give you far more attractive opportunities. When a company’s long-term outlook remains intact but its share price moves sharply lower due to temporary challenges, Foolish investors get a chance to buy a quality business at a discount.

One Canadian growth stock that appears to fit that description right now is Pet Valu Holdings (TSX:PET). The company operates in a consumer market that has historically remained resilient through economic cycles, while continuing to benefit from strong customer loyalty and recurring demand. Although Pet Valu stock has struggled over the last year, its underlying business continues expanding through store growth, premium product offerings, and digital investments.

In this article, I’ll explain why this growth stock could be worth buying aggressively after its recent decline.

Why Pet Valu stock stands out

If you don’t know it already, Pet Valu is a specialty retailer of pet food, pet supplies, and pet-related products. This Markham-based firm runs more than 850 corporate-owned and franchised stores across the country under banners including Pet Valu, Bosley’s by Pet Valu, Total Pet, and Tisol Pet Nutrition & Supply.

Its product lineup includes items like premium pet food and treats, accessories, health products, and aquariums.

At the time of writing, Pet Valu stock traded at $18.69 per share with a market cap of roughly $1.3 billion. Although the stock has recovered by nearly 8% over the last 10 sessions, it’s still down nearly 52% from its 52-week high, making it look undervalued to buy right now based on its long-term growth prospects.

Revenue growth continues despite temporary margin pressures

Pet Valu’s stock may be under pressure, but its latest numbers show the business is still growing. In the first quarter of 2026, the company’s revenue rose 3.2% year-over-year (YoY) to $287.9 million, while its system-wide sales climbed 2.5% to $375.2 million. That’s not explosive growth, but it does show that demand for pet products remains stable even in a tougher consumer environment.

However, Pet Valu’s adjusted net profit dropped by 14.8% YoY to $21.6 million last quarter. Still, this doesn’t look like a broken business. The company opened eight new stores and ended the quarter with 870 stores across its network.

The pet products retailer also generated $13.1 million in free cash flow and declared a quarterly dividend of $0.13 per share, giving investors some income from its 2.8% dividend yield while they wait for a recovery.

What could drive recovery?

One of Pet Valu’s biggest growth drivers remains its store network. The company now expects to open about 40 new stores in 2026, which should support its revenue growth even if its same-store sales remain modest in the near term.

The company’s updated 2026 outlook calls for revenue growth of 2% to 4% on a comparable 52-week basis. It also expects an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of about 21%, showing that its management still sees room to protect profitability despite value-seeking consumer behaviour and higher fuel costs.

Moreover, Pet Valu is also reinvesting in the business. It plans around $35 million of business reinvestment this year, including net capital expenditures and transformation costs. These investments mainly focus on improving areas such as technology, e-commerce, omni-channel capabilities, and supply chain efficiency.

Foolish bottom line

Pet Valu’s latest quarter wasn’t perfect, but it also wasn’t alarming enough to ignore the stock’s long-term potential. Its revenue is still growing, the store base continues expanding, and the company expects more new locations in 2026.

For investors willing to look beyond near-term margin pressure, the recent pullback in PET stock could be a chance to buy a top Canadian growth stock at an attractive price. If Pet Valu can keep gaining market share, improve efficiency, and benefit from continued demand for pet essentials, the stock could reward patient shareholders handsomely in the years to come.

The post 1 Growth Stock That’s Pulled Back 52% – and Looks Worth Buying Aggressively 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 Pet Valu. The Motley Fool has a disclosure policy.

Oil prices can turn fast, but so can opportunity. Energy investors have had plenty to watch lately. Crude prices remain jumpy, natural gas demand keeps building, and global buyers still want reliable supply from stable countries. That puts Canada back in focus. The trick, as always, is avoiding companies that only look good when commodity prices run hot. Investors need producers with strong assets, disciplined spending, and enough financial strength to handle the next price swing.

TOU

Tourmaline Oil (TSX:TOU) fits that brief better than almost anyone on the TSX. The company is Canada’s largest natural gas producer, with operations across the Alberta Deep Basin, northeast British Columbia, and the Montney. That scale gives it a real edge when markets get choppy. It can spread costs, control infrastructure, and move gas to better-priced markets.

Tourmaline stock looks relevant now as natural gas could regain attention as power demand rises and liquefied natural gas exports ramp up. In its latest first-quarter results, Tourmaline stock reported record production and pointed to higher free cash flow expectations for 2026 and 2027. That gives investors a useful mix of growth potential, income, and a balance sheet that doesn’t need heroic commodity prices to work. It also gives investors one of the cleaner ways to ride Canadian gas without reaching too far down the risk ladder.

The dividend adds another draw. Tourmaline stock planned a $0.50 quarterly base dividend for late June, and it has used special dividends before when cash flow allows. At writing, its yield now sits near 3.1%. The risk comes from gas prices. If North American prices weaken again, the stock could wobble. Still, for investors who want a blue-chip energy name with gas leverage, Tourmaline stock deserves a close look.

BIR

Birchcliff Energy (TSX:BIR) offers a smaller, more leveraged way to play the same theme. It focuses on the Montney in Alberta, producing natural gas, light oil, condensate, and other liquids. That makes it more sensitive to commodity prices than Tourmaline stock, but also gives it more torque if gas prices improve.

Birchcliff stands out now because it rebuilt momentum after a tougher stretch for gas producers. In May, the company reported strong first-quarter 2026 results and declared a $0.03 quarterly dividend. That payout won’t make income investors rich overnight, but it shows management still wants to return cash while funding growth.

The appeal here comes from operating leverage. If gas prices improve, Birchcliff could see cash flow move higher quickly. Its Montney position also gives it long-term relevance as LNG Canada and broader gas demand reshape the market. The risk is that smaller energy producers can take harder hits when prices fall. Therefore, Birchcliff suits investors who can handle volatility and want more upside than a steadier giant might offer.

ARX

ARC Resources (TSX:ARX) brings a different twist. It already ranks among Canada’s strongest Montney producers, with a mix of natural gas and liquids that supports steady cash flow. Its first-quarter 2026 numbers showed why the market likes it. ARC reported net income of $584 million, or $1.03 per share, up sharply from last year.

The bigger catalyst, though, is Shell‘s planned acquisition of ARC. Shell agreed to buy the company in a deal worth about $16.4 billion, including assumed debt. That gives ARC shareholders exposure to a major global energy company, while also showing how valuable Canadian Montney assets have become.

For investors, ARC now looks less like a pure standalone stock and more like a deal-driven opportunity. The upside depends on the transaction closing and the value of Shell shares. The risk comes from deal timing, regulatory issues, or changes in energy sentiment. Still, Shell’s interest sends a strong message: high-quality Canadian gas assets matter.

Bottom line

Oil volatility can scare investors away, but it can also spotlight the stronger names. Tourmaline stock offers scale, Birchcliff offers torque, and ARC offers a takeover-backed vote of confidence. For long-term investors who can stomach commodity swings, these three TSX energy stocks look well-positioned for the next big chapter.

The post Oil Volatility Is Back: 3 Canadian Stocks to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Tourmaline Oil. The Motley Fool has a disclosure policy.

When prices stay hot, investors often look for companies tied to hard assets. Gold, iron ore, and oil don’t make grocery bills cheaper, but they can help portfolios handle a world where costs refuse to cool. Canada’s consumer price index (CPI) rose 2.8% in April, up from 2.4% in March, so investors have reason to think about inflation protection. That’s why today, we’re going to take a look at three stocks that stand out.

ABX

Barrick Mining (TSX:ABX) looks especially relevant when inflation nerves rise. Gold often attracts investors when money feels less powerful, interest-rate expectations wobble, or geopolitical risk climbs. Barrick stock gives investors direct exposure to that gold theme, with copper upside.

Barrick mines gold and copper across several countries, with assets in North America, Latin America, Africa, and the Middle East. In its latest quarter, the company produced 719,000 ounces of gold and 49,000 tonnes of copper. It also generated US$5.2 billion in revenue and strong free cash flow.

The catalyst here comes from gold prices. Barrick’s latest results benefited from a much stronger realized gold price, which helped offset lower production. The company also announced a large buyback, giving investors another source of value if cash flow stays strong.

Still, Barrick carries real risk. Mining costs can rise, governments can change rules, and higher-risk regions can create surprises. Gold stocks can also drop quickly when the metal cools. Even so, if inflation sticks around, Barrick stock offers one of the clearest TSX ways to play that fear.

LIF

Labrador Iron Ore Royalty (TSX:LIF) takes a different route. This stock can appeal to investors who want exposure to industrial inflation, infrastructure demand, and commodity cash flow without owning a traditional miner.

LIF owns an interest in Iron Ore Company of Canada and receives royalties tied to its operations. That gives shareholders exposure to high-quality iron ore, including pellets used in steelmaking. Steel demand can benefit when governments and companies spend on infrastructure and energy. Inflation keeps attention on hard-asset supply chains.

The near-term picture looks more mixed, though. In the first quarter of 2026, LIF reported net income of $0.21 per share, down from the year before. Equity results from IOC also weakened. So this isn’t a spotless momentum story, and investors need to remember that iron ore prices can swing hard, and LIF’s dividend can move with cash flow.

Still, the stock has a place in an inflation-aware portfolio. Its structure can produce attractive income when iron ore markets cooperate. It also gives investors a focused commodity royalty play. If infrastructure spending remains firm and iron ore pricing improves, LIF could look more interesting.

IMO

Imperial Oil (TSX:IMO) rounds out the list, in my opinion, with a familiar inflation hedge: energy. When fuel prices rise, consumers feel the pain right away. Energy producers, however, can see cash flow improve when oil prices stay strong. Imperial has oil sands assets, refining operations, and a disciplined capital plan. That mix matters in a choppy market.

The latest quarter showed both strength and limits. Imperial reported net income of $940 million, down from a year earlier, as weaker crude realizations and refinery disruptions hurt results. Upstream production held near 419,000 barrels of oil equivalent per day (boe/d), while refinery throughput dropped to 384,000 boe/d. Those numbers show why investors shouldn’t treat energy stocks as automatic winners.

Imperial has several advantages. It raised its quarterly dividend to $0.87 per share this year, and also plans to invest in high-return oil sands projects while keeping a tight focus on costs. If oil prices stay elevated, Imperial could keep rewarding shareholders through dividends. The risk comes from oil itself. Prices can fall fast when demand weakens or supply rises. Refining outages can also bruise earnings.

Bottom line

For investors worried about hot inflation, Barrick stock, LIF, and IMO all bring something useful. None of them removes risk completely, that would be impossible. But each connects to real assets, cash flow, and pricing power in a world where inflation still has teeth.

The post 3 Canadian Stocks That Could Win if Inflation Stays Hot appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe 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.

It’s not always easy to find a dividend stock that combines dependable income with meaningful long-term growth. Many investors focus on high yields, but strong businesses with predictable cash flow and room to expand often make better investments over time. And when such a dividend stock pulls back or trades below its long-term potential, it can create an attractive entry point for patient investors.

Utility stocks could be a good example of that balance. Their services are essential, which helps keep demand stable regardless of economic conditions. That stability can translate into reliable earnings and dividends. Let’s take a closer look at one top Canadian dividend stock from the utility sector that stands out as a long-term buy-and-hold investment right now.

A dividend-paying stock built for stability

The stock I want to highlight is Algonquin Power & Utilities (TSX:AQN), a diversified utility firm that provides electricity, natural gas, water, wastewater, and transmission services to more than one million customer connections across Canada and the United States. The company focuses on delivering essential services, which gives it a relatively predictable business model and a recurring revenue base.

As of June 2, AQN stock traded at $8.19 per share and carried a market cap of $6.3 billion. While the stock has risen nearly 11% over the last year, it still trades nearly 16% below its 52-week high. The company also rewards its investors with reliable quarterly dividends and currently offers a yield of 4.3%.

Recent results show resilience despite an uncertain economic environment

In the first quarter (ended in March 2026), Algonquin’s adjusted net profit fell by nearly 9% year-over-year (YoY) to US$99.6 million. While this profit figure was slightly lower than a year ago, it remained solid given the broader economic environment.

The company’s regulated services segment continued to be its largest earnings contributor, generating net profit of US$119.4 million. Meanwhile, its hydro group reported net profit of US$2.1 million, compared with US$16.6 million in the first quarter of 2025, primarily due to a tax basis step-up related to the hydro group’s reorganization.

More importantly, Algonquin continues to demonstrate operational and financial discipline through its “Back to Basics” strategy, which focuses on strengthening core operations and improving long-term shareholder value.

What could drive future growth?

One of the biggest reasons investors may want to consider Algonquin for the long haul is its focus on becoming a premier pure-play regulated utility. Regulated utility businesses tend to provide largely predictable earnings and cash flows, which can support growth and dividend payments.

Lately, the company has also made meaningful progress on the regulatory front. In the last year, it received orders resolving rate cases in Missouri, California, and Massachusetts, while also filing a settlement agreement in Arizona. These developments could give it greater earnings visibility and support its future revenue growth.

Another long-term advantage is Algonquin’s focus on sustainable energy and water solutions. As demand for cleaner energy infrastructure continues to grow, the company is positioned to benefit from ongoing investment in essential utility services.

Foolish takeaway

Algonquin Power & Utilities combines a stable utility business, a 4.3% dividend yield, and a strategy focused on long-term regulated growth. While it may not deliver overnight gains, its dependable operations, improving financial flexibility, and exposure to growing energy and water infrastructure needs make it a great dividend stock for investors willing to think in decades rather than months.

The post 1 Canadian Dividend Stock Down 16% 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors often debate whether growth, value, or dividend stocks offer the best long-term returns. In reality, a well-rounded portfolio can benefit from exposure to all three. Growth stocks can drive capital appreciation, value stocks can provide attractive risk-reward opportunities, and dividend stocks can generate dependable income while helping reduce volatility.

In this article, I’ll highlight one top Canadian stock in each category that could deliver strong returns in the years ahead.

Growth: BlackBerry stock

For growth-focused investors, the stock I’d start with is BlackBerry (TSX:BB), a Canadian tech firm that has been reinventing itself while gaining traction in cybersecurity and embedded software. The Waterloo-based company provides intelligent software solutions for governments and enterprises around the world.

In its latest quarter (ended in February), BlackBerry delivered 10% year-over-year (YoY) revenue growth, marking a return to top-line growth for fiscal 2026. Its QNX division, which develops embedded software used across industries, generated record quarterly revenue of US$78.7 million, up 20% YoY.

Momentum isn’t limited to QNX. BlackBerry’s secure communications segment also returned to YoY growth last quarter as demand for digital sovereignty solutions increased, along with rising global defence spending. Meanwhile, its operating cash flow rose 9% YoY to US$45.6 million.

BlackBerry stock closed at $14.23 on June 2, giving it a market cap of $8.3 billion. Its shares have climbed an impressive 174% so far in 2026 alone, reflecting growing investor confidence. With its QNX platform embedded in more than 275 million vehicles worldwide and expanding into robotics and physical artificial intelligence (AI) applications, I expect BlackBerry stock to continue soaring.

Value: Atkinsrealis stock

For investors looking for value backed by strong fundamentals, Atkinsrealis Group (TSX:ATRL) could be worth considering today. Based in Montreal, this engineering services firm runs its business across multiple global markets and provides consulting, design, project management, and infrastructure solutions.

The company’s first-quarter results highlighted the strength of its business. Its quarterly revenue jumped 18% YoY to $3 billion, while its segment-adjusted EBIT (earnings before interest and taxes) grew 12%, backed by strong execution across its engineering services and nuclear operations.

One of the most attractive aspects of the business is its solid backlog. Atkinsrealis currently has about $20 billion in contracted work, providing excellent revenue visibility for the years ahead.

Despite these strong fundamentals, ATRL stock has dived by around 15% over the last three months to currently trade at $80.99 per share. Given the company’s strong balance sheet, financial flexibility, and expanding opportunities in nuclear energy, I wouldn’t be surprised if this value stock witnesses a strong recovery in the near term.

A dividend stock built for the long run

When it comes to dependable income, Fortis (TSX:FTS) remains one of Canada’s most respected dividend stocks. The utility operator has a diversified portfolio of regulated electric and gas assets across North America.

In the latest quarter ended in March 2026, the company posted adjusted net profit of $501 million, nearly flat on a YoY basis. It also invested $1.4 billion in capital projects during the quarter, keeping pace with its annual capital plan of $5.6 billion.

Its large-scale projects, such as the Big Cedar Load Expansion and Tilbury Liquefied Natural Gas (LNG) Storage Expansion projects, could turn out to be important drivers of future growth for the utility firm.

Going forward, Fortis plans to increase its rate base from $42.4 billion in 2025 to $57.9 billion by 2030, reflecting a compound annual growth rate of 7%. That growth is expected to support annual dividend increases of 4% to 6% through 2030, making Fortis an attractive option for investors seeking reliable and growing income.

The post Growth, Value, Dividends: 1 Canadian Stock in Each Category to Buy Immediately appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in BlackBerry. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

Canada’s smart money isn’t just watching the natural gas opportunity from the sidelines, it’s buying aggressively, and nobody is more convincing than the corporate insiders running the show. If you’re looking for a founder-led energy leader where the CEO treats market dips like a personal shopping spree, Tourmaline Oil (TSX:TOU) stock demands your attention.

Tourmaline Oil stock: The insider conviction play

Over the trailing 12 months, eight Tourmaline insiders have poured nearly $23.7 million into open-market purchases of their employer’s stock. In the last three months, insider selling has dropped to absolute zero, while accumulation has continued without flinching.

CEO Mike Rose has been the headline act. Throughout March, April, and May 2026, he repeatedly scooped up blocks of TOU shares, adding more than $3.9 million in stock over the past six months alone. When one of the few people who know the Western Canadian Sedimentary Basin better than everyone else keeps buying TOU stock with his own millions, it’s a signal worth weighing heavily. Independent Director Travis Toews and Vice President of Capital Markets James Heard also chipped in with smaller, but equally telling, purchases over the same stretch.

Yes, insider sales occasionally happen. Scott Kirker, Chief Legal Officer, sold about $10.1 million worth of stock during the past half-year. But insiders sell for all sorts of personal reasons – retirement and estate planning, diversification, a dream cottage – which makes a sell signal far weaker than the thunderclap of coordinated, relentless buying. The direction of the smart money here is unmistakable: accumulation.

Why TOU stock insiders seem so confident

Tourmaline Oil is Canada’s largest natural gas producer and operates the country’s third-largest gas processing midstream assets. It also boasts the highest insider ownership among its peer group, so leadership quite literally eats its own cooking. And that meal is getting tastier.

Production hit a record in the first quarter, with full-year 2026 guidance set at 620,000 to 640,000 barrels of oil equivalent per day (BOE/d). Even more impressive, operating costs per barrel dropped 8% year over year during the first quarter to $4.75, and management expects to hit just $4.50 per BOE for the full year – down another 9%. Lower breakevens mean Tourmaline stock may generate more free cash flow even while natural gas prices remain deeply frustrating.

That cash flow engine is firing on all cylinders, in part because the company is capturing significantly higher prices for its natural gas liquids (NGLs). Thanks to an agreement with the AltaGas Ridley Island Propane Export Terminal, Tourmaline ships propane directly to premium Asian markets, tying a chunk of its NGL revenues to strong JKM and TTF international benchmarks. Management forecasts a 30% year-over-year jump in NGL realizations for 2026, a tailwind few Canadian peers can match.

Meanwhile, the TOU balance sheet is a fortress. Net debt stood at $1.5 billion as of March 31, 2026, well below the company’s long-term target of $1.75 billion. With leverage already better than planned, Tourmaline has the luxury to pile up free cash flow and then decide how to distribute it. Given management’s track record, a special dividend later this year is entirely plausible, along with possible share repurchases.

The regular quarterly dividend already yields a respectable 3%.

What the CEO recently said

During the first quarter earnings call last month, CEO Mike Rose put it bluntly: “Every aspect of our business is getting better. Lower Western North American gas prices are masking that in the short term. It’s gonna be a double win for shareholders when this all turns around, and we think it can happen within a quarter on the local pricing front.”

Is Tourmaline Oil stock a Buy alongside well-informed insiders?

TOU stock trades at a forward adjusted P/E of roughly 14.9, slightly above its five-year average of 12.9. In normal times, that might give a value investor a pause. But new investors are buying a stock with increasingly better fundamentals. New buyers of TOU stock will own a growing, lowest-cost producer with integrated infrastructure, falling costs, surging NGL revenues, a pristine balance sheet, and the boss actively staking millions on the outcome. The premium is more than justified.

With artificial intelligence (AI) driven power demand gathering steam and Canadian gas destined to play a long-term role in global energy supply, Tourmaline Oil is built to dominate for decades. The well-informed insiders are already betting big.

The post Some of the Smartest Canadian Investors Are Piling Into This TSX Stock appeared first on The Motley Fool Canada.

More reading

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Tourmaline Oil. The Motley Fool has a disclosure policy.

Inflation can sneak up fast. One month, prices look annoying. The next, investors start wondering which companies can raise prices, protect margins, and still sell products customers actually need.

The important part is that Canadians are finally talking about it. A recent Capital One Canada survey found that 50% of Canadians agree that keeping finances private has done more harm than good. Furthermore, 61% found that when they talked more openly about finances, they reported more concrete returns.

So, now that you’ve taken that step towards being more open about your finances, where should you turn?

HPS

Hammond Power Solutions (TSX:HPS.A) looks interesting right now. Hammond stock makes dry-type transformers, power quality products, and related electrical equipment. It sells the boring-but-critical gear that helps power factories, data centres, mines, renewable projects, commercial buildings, and grid upgrades. In an inflationary market, that kind of demand can matter a lot. Customers may delay a nice-to-have purchase. They can’t delay reliable power forever.

Costs can flare up again on a global scale, and Canadians need to prepare. When they do, companies with pricing power, strong order books, and exposure to infrastructure spending can look far more appealing than businesses that need shoppers to keep opening their wallets.

Into earnings

Hammond stock’s latest quarter showed exactly why this stock deserves attention. In the first quarter of 2026, revenue climbed 31.5% year over year to a record $265 million. That growth came from stronger shipments in the United States and Mexico, custom power transformers, data centre activity, and pricing increases. Its backlog also sat 94.6% higher than last year, which gives the company better visibility than many smaller industrial names. Better still, shipments from its new Mexico plant started on schedule, adding capacity when customers already need more supply.

That backlog is the real draw here. Inflation can squeeze companies when they need to chase new business at the wrong price. Hammond stock already has strong demand in front of it. Data centres need massive amounts of electrical infrastructure. Manufacturers continue to automate. Utilities and private buyers still need to update aging systems. Even if the economy slows, the long-term need for more electricity doesn’t disappear.

Hammond stock also benefits from a practical inflation hedge inside its own business model. It sells essential equipment into projects where reliability often matters more than bargain pricing. If copper, steel, labour, or tariff costs rise, the company has shown it can use price increases to help offset pressure. That doesn’t make it immune, but it does make it more resilient than a company selling discretionary products into a nervous consumer market.

Considerations

The risk comes from valuation and margins. Hammond isn’t a hidden bargain anymore, trading at a trailing price-to-earnings (P/E) ratio around 59 and a forward P/E ratio around 35. That means investors already expect plenty of growth. If orders slow, data centre spending cools, or margin pressure lingers, the stock could pull back sharply.

And margins do deserve attention. Gross margin improved from 29.2% in the fourth quarter of 2025 to 30.1% in the first quarter of 2026, but it still slipped from 31.5% a year earlier. Net earnings also fell to $19.6 million from $26.2 million last year, even with higher sales. That shows inflation can cut both ways. Hammond stock can pass along some costs, but it can’t control every input price or every tariff effect.

Still, I’d rather own a company fighting margin pressure while demand rises than one trying to protect profits as customers walk away. Hammond sits in the right part of the market for this moment. It supports electrification, data centres, infrastructure, and industrial growth. Those themes don’t rely on one hot product cycle.

Bottom line

For investors worried that inflation could hit harder, Hammond Power Solutions offers a smart mix of growth and necessity. Hammond stock carries risk after a big run. Yet the business looks built for a world where power demand keeps rising, and costs stay stubborn. That makes it one TSX stock I’d buy before inflation steals more market confidence, especially for investors who can handle volatility and think in years, not weeks.

The post 1 TSX Stock I’d Buy Before Higher Inflation Hits Harder appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool has a disclosure policy.

If there’s one thing that income investors absolutely love, it’s a high yield. But Canadian income-focused investors need to look beyond that tasty TSX dividend yield.

If that payout is too high, it can raise questions about whether the number is supported by its underlying assets. If the payment is too low, it may lag behind other income-focused options.

Fortunately, there’s one ETF for investors to consider that offers a TSX dividend yield that is almost too good to be true. The question for investors is whether that yield reflects genuine income strength or if it is hiding bigger risks. That’s especially true when evaluating a TSX dividend yield that appears unusually high.

That ETF to consider right now is Hamilton Enhanced Canadian Covered Call ETF (TSX:HDIV).

Let’s try to answer that question by taking a closer look at that ETF.

HDIV’s TSX dividend yield really stands out

The first thing that investors are going to notice about the Hamilton Enhanced Canadian Covered Call ETF is that the yield comes out to 9.7%. That is far beyond what’s offered by other Canadian dividend stocks, and even other High-yield dividend ETFs.

In fact, the average blue-chip stock carries a yield in the 3% to 5% range. This makes the payout of this fund roughly double what is on the market. That’s reason enough to raise a few eyebrows.

Part of the reason for that is that high yields often come with certain assumptions. That includes the view that the payout is risky, the underlying assets are under pressure, or the distribution isn’t sustainable. That is, after all, what we’ve seen recently with some of Canada’s big telecom stocks, and even some under-pressure utility stocks.

So then, what’s in the ETF that makes this TSX dividend yield so high?

What the ETF actually holds and how it works

Hamilton Enhanced Canadian Covered Call ETF isn’t a traditional equity ETF. Instead, it’s a fund‑of‑funds that holds other covered‑call ETFs. This setup lets the fund stack several income‑generating strategies together.

It’s also a major reason why the fund consistently ranks among the higher‑yielding TSX income ETFs.

Covered‑call ETFs generate income by selling call options on their holdings. This creates steady premium income, which is then paid out to investors. Because this ETF holds several of these ETFs at once, that premium effect is amplified.

The result is a yield that looks much larger when compared to traditional TSX dividend stocks. Instead of relying on dividends alone, the fund pulls income from option premiums, underlying ETF payouts, and market volatility.

That volatility component is key. When volatility rises, option premiums increase, boosting income potential. When volatility falls, premiums shrink, resulting in a reduced payout. This means that the distribution isn’t fixed and can fluctuate depending on the market.

Should investors view this TSX dividend yield as an opportunity or a warning?

The Hamilton Enhanced Canadian Covered Call ETF can be attractive for income‑focused investors who prioritize cash flow. The fund’s strategy is designed to generate high monthly income and deliver on that objective.

However, the same strategy introduces the risks that come from prolonged market weakness. That’s why investors compare this ETF to other high‑yield ETFs in Canada before deciding how it fits into their income strategy.

For those investors who understand and have an appetite for some risk, the yield may represent an opportunity as a small addition to a larger, well-diversified portfolio.

The post This TSX Dividend Yield Looks Almost Too Good – Here’s What the Numbers Actually Show appeared first on The Motley Fool Canada.

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Fool contributor Demetris Afxentiou 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.

Sticky inflation can keep interest rates higher for longer, squeeze households, and make growth plans more expensive. Yet it can also push investors toward companies with hard assets, contracted cash flow, and services people still need.

That’s where TC Energy (TSX:TRP), Northland Power (TSX:NPI), and Brookfield Renewable Partners (TSX:BEP.UN) enter the conversation. Each one sits close to energy infrastructure, offers income, and could react differently if inflation keeps hanging around. So let’s get into it.

TRP

TC Energy owns and operates natural gas pipelines, power assets, and energy infrastructure across North America. That gives it a useful role when demand stays steady and customers want reliable supply.

Its latest results showed why investors still come back to it. TC Energy reported a strong first quarter for 2026, with comparable earnings before interest, taxes, depreciation and amortization (EBITDA) rising 14% from last year to more than $3 billion. That’s a big number, and it supports the idea that this isn’t some boring pipeline stock. The company also declared a quarterly dividend of $0.88 per share, bringing its yield to 3.7% at writing.

The catalyst here comes from demand for natural gas, especially as electricity needs rise. Data centres, industry, and households all need power. Gas infrastructure can help support that demand when renewable output swings. Sticky inflation could also make TC Energy’s predictable cash flow more attractive.

The risk? Debt and large projects matter more when rates stay high, and investors shouldn’t ignore that. Still, TC Energy offers the kind of steady, essential business that can hold attention when inflation makes the market nervous.

NPI

Northland Power sits on the other side of the same theme. It’s a renewable power producer with offshore wind, onshore renewables, and efficient natural gas assets. Inflation can hurt renewable developers because turbines, labour, and financing all cost more. So investors need to be picky.

Yet NPI stock’s latest quarter offered a stronger story. Revenue from energy sales rose to $775 million in the first quarter of 2026 from $665 million a year earlier. Net income also climbed to $161 million from $111 million. That’s the kind of improvement investors want to see when the macro backdrop looks messy. Add in a dividend yield near 3% and it looks like a strong choice.

Power demand keeps growing, and governments still want cleaner grids. NPI stock has projects and operating assets that could benefit from that demand over time. If inflation stays sticky, contracted power revenue can help. But higher borrowing costs can slow new development and pressure valuations. That makes NPI stock more of a patient investor’s pick. It has upside if renewable sentiment improves, but it carries project and financing risk.

BEP

Brookfield Renewable Partners may offer the broadest way to play the theme. It owns hydro, wind, solar, storage, and other clean power assets around the world. That scale gives it flexibility. It can recycle capital, partner with institutions, and pursue deals when weaker players struggle.

Brookfield Renewable reported record first-quarter results in 2026, with funds from operations (FFO) over the last 12 months reaching US$1.4 billion, or US$2.08 per unit, up 12% from the prior-year period. It also pays a quarterly distribution of US$0.40 per unit, yielding about 4.2% at writing.

The timely catalyst comes from electricity demand. Artificial intelligence (AI), electrification, and industrial growth all need more power. Brookfield Renewable can serve that demand across markets, not just in Canada. The risk remains valuation and debt sensitivity. Higher rates can weigh on renewable assets, and currency swings also matter for Canadian investors.

Bottom line

Sticky inflation doesn’t hurt every stock equally. It punishes fragile balance sheets and vague growth stories. That said, it can reward essential infrastructure, contracted cash flow, and energy assets tied to long-term demand. TC Energy brings stability. Northland brings recovery potential. Brookfield Renewable brings global scale. And each offers dividend income to help you get by even with $7,000 invested.

Together, they give investors three different ways to prepare if inflation refuses to leave.

The post Sticky Inflation Could Change Everything for These 3 Canadian Stocks appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.