Seasoned income investors know that there’s more to dividend investing than just chasing the highest yield. That being said, there is one investment on the market that carries a 7.5% TSX dividend yield that is worth a closer look.

That stock is Slate Grocery REIT (TSX: SGR.UN), and here’s why it could be a good addition to your portfolio.

What Slate Grocery REIT does

Slate is one of the better-known Canadian REITs. The company owns and operates a portfolio of grocery-anchored retail properties across the United States. In addition to the primary grocery tenants on those properties, Slate also has smaller secondary tenants that provide traffic and, by extension, rent.

Those secondary tenants include pharmacies, restaurants, banks, and other necessity-based businesses. It’s worth noting that those businesses are ones that consumers continue to visit regardless of how the broader economy fares.

This gives Slate a more defensive tilt over a traditional retail operation focused on non-essential spending. Grocery stores draw a steady stream of foot traffic that tends to bleed over to those secondary tenants, making them more valuable.

In total, Slate operates 115 properties that boast an occupancy rate of 93.6% as per the most recent quarter.

The company also completed over 569,000 square feet of leasing activity during the quarter.

Why this TSX dividend yield looks unusually high

When evaluating Slate, it’s easy to see why that yield attracts attention. At the current distribution, Slate pays out US$0.072 per unit each month. For investors that drop $12,000 into the REIT, that works out to approximately $900 per year factoring in the exchange rate.

That’s not enough to retire on, but that 7.5% yield is more than enough to generate a handful of new units each month from reinvestments alone. Over a longer period, that can compound into a substantial income stream.

More importantly, that’s far above what investors would receive from many of the other large Canadian dividend stocks or even broad-market ETFs.

The numbers behind Slate Grocery REIT’s monthly payout

Part of the reason for the elevated TSX dividend yield is that REITs like Slate are sensitive to interest rates and financing costs. When interest rates rise, the cost of borrowing and maintaining debt increases.

This puts pressure on businesses that are more capital intensive, such as REITs with their large real estate portfolios.

Slate’s monthly distribution looks manageable on an FFO basis. In the most recent quarter, the REIT generated funds from operations (FFO) of US$0.24 per unit, resulting in an FFO payout ratio of 87.6%.

However, the adjusted FFO payout ratio came in higher at 113.1%. AFFO accounts for additional recurring costs such as capital expenditures, leasing costs, and tenant improvements. These reduce the cash available after maintaining and leasing the portfolio.

This means that a payout ratio above 100% translates into Slate distributing more than it generates on that adjusted basis. For investors, that becomes something to watch over time.

That’s where Slate’s leasing activity and potential for higher rents become important. Both can help support stronger cash flow and make the distribution more sustainable over time.

In the most recent quarter, Slate announced that renewals were completed at a rate of 16.7% above expiring rents. The company also reported that new deals were completed with rates 41% above in-place comparable rents.

The quarterly update also highlighted another point that speaks to Slate’s future potential. The average in-place rent for the REIT came in at US$13.10 per square foot during the quarter. That’s far below the market average of US$24.79 per square foot.

This means that Slate has plenty of long-term potential to continue raising rents.

Is Slate Grocery REIT stock worth buying for its dividend?

No stock is without risk, and that includes investments such as Slate which offers some defensive appeal. Fortunately, Slate’s portfolio is well-diversified, has strong occupancy numbers, and caters to defensive retail segments.

Add in the potential for rents to rise over time, and you have more than just an ultra-high TSX dividend yield.

So, is the yield too good to be true? Not necessarily.

The AFFO payout ratio is something that investors should watch, but the strength of Slate’s portfolio and its potential for higher rents make it an intriguing option as part of a larger, well-diversified portfolio.

The post Is This TSX Dividend Yield Too Good to Be True? I Checked the Numbers 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 recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.

Go Residential Real Estate Investment Trust (TSX: GO.U) offers Canadian income-seekers a high-yielding ticket into luxury Manhattan multi-family apartments. It went public in July 2025, and the $309 million recently IPOed small-cap real estate play’s monthly distribution currently yields a juicy 7.7% annually that boosts a retirement portfolio’s passive income. I’m drawn to management’s execution during the trust’s first year and would consider buying units as a long-term hold as the trust closes a massive portfolio acquisition that could make it the second-largest residential REIT on the Toronto Stock Exchange.

A high-yield REIT with respectable fundamentals

Go Residential REIT’s units have traded 43% lower over the past year as the market weighed management’s aggressive growth plan, with the decline recently worsened by a fairly complex US$2.8 billion acquisition of 27 residential properties from H&R Real Estate Investment Trust (TSX: HR.UN), which heavily dilutes existing unitholders to 33.1% ownership (with H&R investors owning 66.9%).

Meanwhile, Go Residential REIT had executed well during its first year on the TSX. The trust’s residential properties offer “essential” luxury accommodation in New York’s Manhattan area. Given a strong 99.3% committed occupancy rate, its legacy properties are highly sought. Legacy apartments in the portfolio saw average rental per apartment grow to an average monthly rent of US$7,055 (CA$9,795), and a committed occupancy rate of 99.6% shows that operational fundamentals remained undeniably robust.

Management reported stellar second-quarter 2026 results, beating forecasts across revenue, net operating income (NOI), and funds from operations (FFO), supported by a stellar 73.4% NOI margin. However, adjusted FFO (AFFO) per unit came in slightly lower at US$0.23 against a US$0.25 expectation. This variance stemmed from a higher-than-forecast weighted average unit count (63,013,718 versus 55,462,534) rather than operational weakness.

Even with a higher unit count, the trust’s competitive monthly payout remained secure. The REIT posted an AFFO payout ratio of 68.5% for the second quarter and 65.7% for the first half of 2026, aligning closely with management’s target 65% annual payout policy.

Go Residential REIT goes for growth

Catalyzing its expansion, Go Residential announced a massive US$2.8 billion deal in August to acquire 27 properties from H&R REIT. Slated to close during the fourth quarter, the transaction will expand the trust’s portfolio to 35 properties and over 13,300 suites across eight U.S. residential markets. While the deal involves issuing 134.2 million new units, a US$30 million cash payment, and assuming CA$550 million in debentures alongside US$1.1 billion in debt, it quadruples the public float.

Growth will solve the small-cap liquidity discount and positions the trust well for institutional ownership. The H&R portfolio acquisition diversifies Go Residential REIT’s exposure beyond Manhattan to the vibrant, fast-growing U.S. Sun Belt metropolitan markets.

Meanwhile, H&R REIT, a diversified property owner that has been trying to simplify its portfolio and focus on high-quality residential assets, gets to easily liquidate non-core office, retail, and industrial assets to Go’s acquisition partners. However, the deal, which closes at a valuation of around $12.01 per H&R unit, may still be reasonable given that H&R units had a net asset value (NAV) of $16.23 by June 30.

Go Residential has gone for growth, and it may just have found a discounted way to do so in one scoop, while offering H&R unitholders an incentive, a deal premium (of 14.5% to pre-deal trading prices). H&R REIT had significantly cleaned its balance sheet to a debt ratio of around 40%, and the combined entity will have lower leverage while the deal may be accretive to Go Residential REIT’s distributable cash flow, measured by AFFO.

If the deal goes well, with its synergistic benefits realizable, it’s possible that this outsized acquisition may allow Go Residential’s distribution to remain safe and dependable for passive income.

Investor takeaway

Go Residential REIT appears as a compelling buy-and-hold investment for long-term passive-income generation with a 7.7% distribution yield backed by resilient luxury urban rentals, high occupancy, and a transformational scale-up via H&R REIT. While dilution and post-merger integration warrant ongoing monitoring, the risk-reward profile may justify a buy-and-hold position for income-focused portfolios before the juicy yield goes away.

The post I’m Considering This 7.7%-Yielding TSX Stock for Passive Income appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza 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.

The Canada Energy Regulator estimates electricity demand could rise anywhere from 26% to 85% between 2023 and 2050, depending on how quickly electrification develops. Data centres add another hungry mouth. The federal government estimates artificial intelligence (AI) data centres alone could require three to five gigawatts (GW) of electricity by 2030.

For context, that isn’t power companies preparing for another hot July. Canada needs more generating capacity, transmission lines, substations, storage, and grid connections.

Investors don’t need to predict exactly which technology wins. They can own the businesses getting paid to build and supply the system.

Move that power

Electricity investing really has two sides. Generators produce electricity using natural gas, hydro, nuclear, wind, solar, and other sources. Transmission and distribution companies then move that power from generating plants to homes and businesses.

Rising electricity demand can benefit both. Generators may sign larger or longer contracts, while regulated utilities can justify billions in new infrastructure. Regulators generally allow utilities to earn an approved return on those investments, meaning a bigger grid can eventually become a bigger earnings base.

That makes this bigger than another AI trade. Canadian manufacturing, housing growth, and transportation electrification all require more power, too. Investors looking at Canadian dividend stocks can therefore get exposure to a growth trend without abandoning cash flow. Two TSX stocks stand out to me.

CPX

Capital Power (TSX: CPX) owns electricity-generating facilities across Canada and the United States, including natural gas, wind, solar and battery-storage assets. Then Meta came on the scene. Capital Power stock recently signed a greater-than-10-year agreement to supply 250 megawatts of capacity and energy for Meta’s planned Alberta data centre. The project is expected to start taking power during the second half of 2028.

Meanwhile, second-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $351 million from $322 million last year, while adjusted funds from operations (AFFO) reached $328 million. Capital Power stock also increased its dividend for the 13th consecutive year, bringing the quarterly payment to $0.7048. At a recent share price of around $67, that creates a yield of roughly 4.2%.

The risk is that building and acquiring generating assets requires plenty of capital. Debt, financing costs, and weaker wholesale power prices can pressure returns. Still, long-term contracts increasingly give Capital Power stock something power investors adore almost as much as electricity itself: visibility.

H

If Capital Power stock produces electricity, Hydro One (TSX: H) owns much of the road it travels on. Hydro One is Ontario’s largest electricity transmission and distribution provider. That puts it directly in the middle of the province’s need to connect new homes, businesses, factories and generation projects.

Its latest quarter gave us a taste of what that can mean. Earnings per share (EPS) increased to $0.62 from $0.54 a year earlier as approved rates and higher peak demand lifted revenue. More interestingly, Hydro One is pushing several major transmission projects forward. That includes an approximately $1.9 billion Northeast Power Line and a $1.2 billion Longwood-to-Lakeshore project designed to increase electricity capacity in southwestern Ontario.

Hydro One invested $812 million during the second quarter alone and put $644 million of new assets into service. As more regulated assets enter the system, they can expand the base from which Hydro One earns returns. The stock offers a smaller yield than Capital Power stock, roughly 2.5% at recent prices, though Hydro One recently lifted its quarterly dividend from $0.3331 to $0.3531.

Bottom line

Neither stock is dirt cheap. Hydro One trades around 24 times trailing earnings, while Capital Power stock has already benefited from growing excitement around data centre demand. That creates valuation risk if growth disappoints.

Yet investors buying stocks in Canada shouldn’t assume the easiest opportunity arrives when Canada finally starts talking about an electricity shortage on the nightly news.

The post Canada Needs Far More Electricity: The Best TSX Power Stocks Won’t Wait for the Headlines appeared first on The Motley Fool Canada.

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• Here’s Where I’d Put $1,000 in Dividend Stocks This August
• Why Boring Utility Stocks Are Looking Good Right Now

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

Canadian investors are taking advantage of their growing Tax-Free Savings Account (TFSA) space to build investment portfolios that can generate tax-free income in addition to their other sources of pension earnings.

Best investments for TFSA income

The TFSA limit in 2026 is $7,000. This brings the cumulative maximum contribution room to $109,000 for anyone who has qualified since the launch of the TFSA in 2009.

Canadians have a lot of flexibility when it comes to the types of investments that can be held inside a TFSA, but most who are seeking income tend to stick with Guaranteed Investment Certificates (GICs) and Canadian dividend stocks.

The right mix of GICs and dividend stocks is different for every investor, depending on the person’s need for quick access to the funds, the minimum required return, and the appetite for risk.

GICs

The surge in bond yields in recent months has helped push up rates offered on GICs. Non-cashable GICs from some Canada Deposit Insurance Corporation (CDIC) members recently topped 4% for GICs in the three-year to five-year range. This is above the current rate of inflation in Canada, so it makes the GICs worth considering on a yield basis.

GICs are 100% safe as long as they are purchased from a CDIC member and are within the $100,000 limit. The downside of buying non-cashable GICs is that the money is locked up for the term and the rate is fixed. The cash isn’t available until the GIC matures, and rates can change significantly during that time, potentially leading to missed upside.

Dividend stocks

Top dividend stocks raise their distributions at a regular pace. Each increase in the payout drives up the shareholder’s yield on the original investment. This boost to income as dividends rise can help offset the impact of inflation on a retiree’s budget. Companies that hike their dividends consistently tend to also see their stock prices rise over the long run.

Stocks can be sold at any time to access money in the case of a financial emergency. This is important to consider if people need to maintain liquidity in their TFSA.

Owning stocks, however, comes with risks. The share price can fall below the purchase price and might not recover to the original level. In severe situations, a company might be forced to cut the dividend or completely halt the payouts in order to preserve cash flow. This is why it is important to consider stocks that have histories of providing steady dividend growth, even when the business goes through a rough patch.

Enbridge (TSX: ENB) is a good example of a Canadian dividend stock that consistently raises its dividends. In fact, Enbridge hiked the payout in each of the past 31 years. This occurred even as the company endured major upheavals in energy markets and volatility in interest rates.

Enbridge has the financial clout to grow the business through strategic acquisitions and development projects. The company purchased an oil export terminal and three natural gas utilities in the United States in recent years to diversify its assets. This expanded the revenue stream while adding more exposure to opportunities in the American market.

The current $41 billion capital program is spread out across the various business groups and is expected to help drive distributable cash flow higher by about 5% per year over the medium term. That should support ongoing dividend increases. Investors who buy ENB stock at the current price can get a dividend yield of 5.6%.

The bottom line

Canadian TFSA investors can quite easily put together a diversified portfolio of GICs and dividend stocks to get an average yield of 4% today. On a TFSA of $109,000, this would generate $4,360 per year in tax-free income. That works out to more than $363 per month.

The post TFSA Pension: How to Average $363 Per Month in Tax-Free Passive Income appeared first on The Motley Fool Canada.

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• Income Investors: A 3-Stock TFSA Strategy for the Rest of the Year

The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

The search for the top dividend stocks in Canada for retirees starts well before retirement. Retirees of tomorrow need investments that provide consistent income today and continue to grow over longer periods.

That is part of the reason retirees turn to established businesses with reliable payouts and a strong history of growth.

While there’s no shortage of great dividend payers on the market, three in particular are worth considering right now.

Consider this stock for dividend growth

Fortis (TSX: FTS) is one of Canada’s best-known regulated utility stocks. The company offers electric and natural gas utility services to parts of Canada, the United States, and the Caribbean.

Fortis’s operations provide essential services to those markets and generate a predictable, recurring cash flow, even when the broader economy slows. This allows Fortis to reliably invest in growth initiatives and pay one of the most stable dividends on the market.

As of the time of writing, Fortis offers investors a yield of 3.37%. Fortis also boasts the second-longest dividend growth streak in Canada. The company has provided annual upticks to its dividend for over five decades.

This handily makes Fortis one of the top dividend stocks in Canada for retirees who want a growing stream of income.

Generate a higher-yield income from essential infrastructure

Another option for investors to consider is Enbridge (TSX: ENB). Enbridge is one of the largest energy infrastructure companies on the planet. The company operates a portfolio of pipelines, renewable energy assets, and natural gas utilities.

The bulk of Enbridge’s cash flow is derived from long-term contracts and regulated utility operations. This helps Enbridge generate more predictable cash flow, allowing the company to pay its quarterly dividend and invest in growth.

That growth comes primarily from Enbridge’s multi-billion-dollar backlog of projects.

As of the time of writing, Enbridge’s quarterly dividend carries a yield of 5.56%. This makes it one of the better-paying options on the market. And like Fortis, Enbridge has an established precedent of annual increases that stretches back over three decades.

Add some financial strength and long-term growth

Rounding out the top dividend stocks in Canada for retirees is one of Canada’s big bank stocks. Royal Bank (TSX: RY) operates a diversified business that includes personal and commercial banking, wealth management, and insurance.

The big banks are renowned for their long-term stability, providing both dividend and capital growth over long periods. In fact, the bank has seen its stock price surge 41% over the trailing 12-month period. Over a longer five-year period, Royal Bank has surged over 110%.

As of the time of writing, Royal Bank’s yield comes in at 2.48%. That’s lower than both Enbridge and Fortis, but it comes with over a century of paying dividends and that long-term growth potential.

The top dividend stocks in Canada for retirees

Fortis, Enbridge, and Royal Bank are some of the top dividend stocks in Canada for retirees because each stock offers growth, income, and some defensive appeal. Additionally, each stock fills a different role in a well-diversified portfolio.

Fortis provides defensive dividend growth and consistency that utility stocks provide. Enbridge offers higher current income and a diversified energy infrastructure backbone. Finally, Royal Bank adds financial-sector exposure with long-term growth potential.

In my opinion, one or all of the above should be core holdings in a well-diversified portfolio.

The post The Top Dividend Stocks in Canada for Retirees appeared first on The Motley Fool Canada.

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Fool contributor Demetris Afxentiou has positions in Enbridge and Fortis. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

There’s a wonderfully annoying thing about the stock market. The correction you’ve been patiently waiting for can arrive right after prices have already climbed 15%.

Suddenly, that glorious 10% dip isn’t much of a bargain: a slightly lower price than yesterday and a higher price than the one you could’ve paid months ago.

This’s why long-term investors can spend far too much energy searching for the perfect entry price. Price still matters, of course. Paying anything for anything is a terrific strategy for becoming poorer. Yet when the investment horizon stretches across decades, time has an advantage that a clever limit order simply can’t recreate.

Don’t wait

Vanguard studied this question using historical and simulated market data. Its research found that investing a lump sum immediately beat gradually holding money back and investing later about two-thirds of the time.

Stocks have historically produced positive returns over long periods, so cash sitting on the sidelines usually misses more upside than it avoids downside. Nobody rings a little bell before the next rally begins.

Consider an investor who can contribute $7,000 annually and earns an illustrative 8% return. If those contributions are made at the beginning of each year, starting now could produce about $345,960 after 20 years.

These returns aren’t guaranteed, and real markets will behave much less neatly. Still, the lesson survives different return assumptions. Missing an early year doesn’t merely mean losing that year’s gain. It removes years of future compound growth on top of it.

That’s why this stock could be useful.

H

Hydro One (TSX: H) owns and operates much of Ontario’s electricity transmission and distribution infrastructure. It earns regulated returns by moving electricity through an enormous network of poles, wires, substations, and transmission lines. That rather unglamorous job is becoming more valuable as Ontario needs more electricity for population growth, manufacturing, data centres, electrification, and new generation.

Hydro One stock is already building for it. The company has been advancing several major transmission projects across Ontario, including new infrastructure serving northeastern, southwestern, and eastern parts of the province. As projects enter service, they can expand Hydro One stock’s regulated asset base, providing another foundation for future revenue and earnings.

The latest numbers show the process working. Second-quarter earnings per share increased to $0.62 from $0.54 a year earlier. Hydro One stock also placed $644 million of new assets into service during the quarter. This is the kind of growth that can look rather boring on Tuesday afternoon and considerably more impressive after 10 years.

Valuation

Hydro One stock recently traded around $56, leaving the stock at roughly 24 times trailing earnings. I wouldn’t call that bargain-bin territory. The quarterly dividend recently increased to $0.3531 per share, or about $1.41 annualized, producing a yield near 2.5%, so nothing exciting there either

Plus, there are legitimate risks. Hydro One stock depends heavily on Ontario regulation, and regulators ultimately determine how much the company can earn on its investments. Massive infrastructure spending also requires financing, and higher borrowing costs can pressure returns. Its latest quarter already included higher financing charges as outstanding long-term debt increased.

Those risks are reasons to consider the valuation, not necessarily reasons to spend another five years waiting for perfection. Investors buying stocks in Canada can also build a position gradually. Buying some shares now and adding through future contributions leaves room to take advantage of a correction without requiring one to get started.

Bottom line

There will always be another reason to wait. Earnings season is coming. Rates might change. Stocks have rallied. Stocks might fall. Tuesday feels weird.

Long-term wealth usually isn’t built by correctly guessing. It comes from owning productive businesses long enough for revenue, earnings, dividends, and reinvestment to pile on top of one another.

Hydro One stock won’t be the cheapest stock every day you own it. Yet if Ontario’s electricity needs keep expanding and Hydro One keeps turning that demand into a larger regulated asset base, giving the business another decade to compound could prove far more valuable than saving a few dollars on the original share price.

The post You Don’t Need the Perfect Entry Price: You Need More Time in the Market appeared first on The Motley Fool Canada.

More reading

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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.

Enbridge (TSX: ENB) stock has had an decent run over the last five years. In that period, it has risen 39%, while paying a dividend that (at the beginning of the run) was around 7%. Factoring in both dividends and capital gains, it has outperformed the TSX.

It’s not hard to see why Enbridge would run up so much.

As North America’s largest pipeline, it has 2,840 kilometres of pipeline spanning all across North America. It is a vital supplier of oil to the United States. It’s also a utility, supplying 75% of Ontario’s natural gas. Enbridge’s solid position is further reinforced by the difficulty of getting new, competing pipeline projects approved. If you recall the planned Keystone XL pipeline, that long-awaited project was shut down after U.S. President Biden declared the environmental risks too great. Since then, few new North American pipelines have opened.

All of these difficulties that Enbridge’s competitors have with getting projects moving, is a boon to Enbridge itself, which already has continent-spanning pipeline infrastructure in place. Granted, some of the regulatory issues affect Enbridge itself — it has had trouble getting expansions approved — but it is largely protected by red tape that makes life nearly impossible for its competitors.

So, Enbridge, from a “big picture” perspective, has a lot going for it. With that said, there are also some red flags that merit mentioning — reasons that, for my money, are cause enough to not buy the stock.

Valuation

One factor that Enbridge does not have in its favour right now — at least not strongly — is value. For a company whose earnings declined in the trailing 12-month (TTM) period, and over the last five years, Enbridge trades at inexplicably high multiples. At today’s price, it trades at 23.65 times earnings. 1.55 times sales and 2.3 times book. The earnings multiple is a little higher than the TSX as a whole. The sales and book value multiples are lower. Given that TSX’s earnings are not growing, these multiples appear high. Even the price-to-sales and price-to-book multiples, while being lower than the TSX’s, are high, because TSX earnings are overall increasing while ENB’s aren’t.

Growth and profitability

In the previous section, I wrote that Enbridge isn’t growing much. That’s true, but there are some caveats, so it makes sense to look at growth in more detail.

In the TTM period, Enbridge’s revenue grew 29%, which is pretty good. However, all of its pre-tax, pre-depreciation earnings metrics (e.g., earnings before interest and taxes, earnings before interest, taxes, depreciation, and amortization) grew by low single digits, while its net income shrank. It looks like there could be issues with cost management here.

We see a similar trend when we look at longer term timeframes. Over the last five years, Enbridge’s revenue grew by 14% compound annual growth rate (CAGR), while its earnings shrank by 2% CAGR. Its free cash flow (FCF) has almost always been negative.

Turning to profitability: Enbridge has a 7.3% net margin, a -1.24% FCF margin, a 9.7% return on equity, and a 4.2% return on capital. These metrics aren’t terrible, but they don’t inspire a ton of confidence either. So, I reiterate: Enbridge’s valuation when considered alongside its growth and profitability appears questionable.

Future prospects

Now, a company’s past growth/profitability history doesn’t say everything there is to be said about its future prospects. Sometimes a new pipeline project can cause a company like Enbridge to experience a growth spurt. However, Enbridge keeps getting thwarted by courts in its attempts to build or expand pipelines. So any growth it enjoys will be very incremental growth from raising tolls charged to new or renewing clients. So, it does not appear that Enrbidge’s growth rates will pick up in any serious way.

The bottom line

Enbridge is certainly a fine company. However, it’s not one that is growing especially fast, which calls into question the wisdom of buying it at a nearly 24 price-to-earnings ratio. Personally, I would look elsewhere for appealing investment opportunities.

The post Is Enbridge Still a Buy? Here’s My Take appeared first on The Motley Fool Canada.

More reading

• TFSA Pension: How to Average $363 Per Month in Tax-Free Passive Income
• The Top Dividend Stocks in Canada for Retirees
• High-Yield Dividend Stocks in Canada for Beginners
• TFSA Investors: 2 Discounted Dividend Stocks to Consider Now
• Income Investors: A 3-Stock TFSA Strategy for the Rest of the Year

Fool contributor Andrew Button has no positions in the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

Canada’s Big Six banks just pulled off the investing equivalent of six siblings bringing home excellent report cards at once. Every bank beat Bay Street’s third-quarter earnings estimate. Profit grew, capital remained sturdy, and the economy declined to provide the disaster investors had been preparing for.

That should make choosing a bank stock easy. Unfortunately, the share prices also grew. Canadian banks recently traded near 15 times forward earnings, their highest sector valuation since 2010 and well above the roughly 10.8 times decade average. A great quarter is considerably less useful when the price already reflects expectations of a future increase.

How to compare

Adjusted earnings growth shows whether profit is improving after unusual items are removed. Return on equity (ROE) measures how efficiently each bank turns shareholder capital into earnings. Investors comparing Canadian bank stocks should then examine credit losses, capital strength, valuation, and whether the quarter relied too heavily on trading revenue. So, let’s take a look.

Royal Bank produced the highest return, but its premium valuation leaves little room for a stumble. CIBC delivered broad growth, although its price-to-book ratio has expanded sharply. Scotiabank finally cleared its 14% return target, then the stock celebrated with a 7% earnings-day jump. BMO still faces U.S. integration work, while National Bank must digest Canadian Western Bank and pursue its Laurentian Bank portfolio deal.

TD edges the pack

Toronto-Dominion Bank (TSX: TD) operates Canadian and U.S. banking franchises alongside wealth management, insurance, and wholesale banking. Adjusted earnings reached $2.77 per share, up 26% and approximately $0.30 above consensus. That was the strongest earnings beat of the reporting season.

The quality was encouraging. Canadian banking produced record earnings, wholesale banking profit climbed 87%, and reported U.S. banking profit rose 41%. Adjusted U.S. profit increased a more repeatable 12% as loan and deposit margins improved. TD now plans to open 100 U.S. branches by the end of 2028, giving the previously troubled division a visible growth project.

TD’s 14.3% Common Equity Tier 1 (CET1) ratio was the strongest among the Big Six. That capital can support lending, buybacks, and the dividend while management funds its U.S. repair work.

Small dividend, but mighty

TD stock maintained its $1.12 quarterly dividend, equal to $4.48 annually. Near $165.87, the yield is approximately 2.7% at writing. The payout remains comfortably covered, but the share-price rally has turned a former high-yield bargain into a growth-and-income stock. Even so, here’s what $10,000 could bring in at writing.

Risk remains

TD expects fiscal 2026 U.S. anti-money-laundering remediation and control spending of approximately US$550 million, up from US$500 million. Important work remains through 2027, and regulators, not management, decide when the U.S. asset cap disappears.

Valuation supplies the second warning. TD stock trades near 17 times adjusted earnings, compared with approximately 13 times one year ago. I would open a starter position rather than arrive with a major investment ready to go, then add only as U.S. remediation milestones and earnings confirm the thesis.

Foolish takeaway

None of the Big Six look cheap enough to purchase without digging a bit deeper. TD stock is still my favourite because it combined the quarter’s strongest beat with the group’s best capital ratio and improving U.S. profitability. Investors developing long-term dividend investing habits can begin gradually. If TD completes its compliance repair while expanding earnings, today’s premium could become more reasonable before the stock ever feels cheap again.

The post The Big 6 Reported Earnings: Here’s My Favourite Bank Stock to Buy Now appeared first on The Motley Fool Canada.

More reading

• The Top Dividend Stocks in Canada for Retirees
• IMO, These Are the Best Canadian Dividend Stocks to Buy Now
• Is Your TFSA Big Enough to Retire Comfortably?
• Here Are 5 Stocks I Think Every Canadian Should Own
• Don’t Have a Pension? Here’s How Canadian Dividend Stocks Can Help

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

A six-figure Tax-Free Savings Account (TFSA) sounds like you’ve won the retirement game. Then retirement arrives and that impressive-looking balance suddenly has to help pay for groceries, property taxes, travel, home repairs, and perhaps another 30 years of life. The better question isn’t whether your TFSA looks big. It’s how much life it can actually fund.

That’s what makes the TFSA so valuable. Investment gains, dividends, and withdrawals can remain tax-free, while withdrawals don’t count toward income used to calculate federal income-tested benefits such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS). In retirement, keeping more of your money can be almost as useful as earning more of it.

So, how big is big enough?

The Canada Revenue Agency (CRA) set the 2026 TFSA contribution limit at $7,000. Unused room carries forward indefinitely, while withdrawals are generally added back to contribution room the following calendar year. Someone who was eligible every year since the TFSA launched in 2009 could have accumulated $109,000 of contribution room by 2026, although individual room varies. That’s why investors should check their own limit before contributing inside a TFSA.

There isn’t a universal retirement number, either. Canada Pension Program (CPP), Old Age Security (OAS), workplace pensions, Registered Retirement Savings Plans (RRSP), spending, and retirement age all change the equation. Still, a simple withdrawal illustration shows just how much the TFSA balance can matter.

A 4% withdrawal rate is only an illustration, not a promise that a portfolio will last. Yet it exposes an important point. A $100,000 TFSA could be a wonderful retirement supplement, but probably isn’t enough to retire on by itself. Getting toward $500,000 changes the conversation considerably, and reaching those larger balances requires growth rather than simply parking contributions in cash.

Consider SLF

This is where I’d want a combination of growth and rising income. One Canadian company I like for that job is Sun Life Financial (TSX: SLF), a global insurer and wealth manager with businesses spanning Canada, the United States, Asia, and asset management.

That mix gives Sun Life stock several ways to grow alongside an aging and increasingly wealthy global population. Its second-quarter results were particularly sturdy. Underlying net income climbed 11% year over year to $1.1 billion, while underlying earnings per share (EPS) rose 13%. Underlying return on equity reached a hefty 19.1%.

The dividend adds another layer. Sun Life stock now pays $0.96 per share quarterly, or $3.84 annualized, giving the stock a yield of roughly 3.4% at recent prices around $112. Better yet, the quarterly payout stood at $0.88 a year earlier. That’s the kind of dividend growth I’d rather own than chase an enormous yield that might disappear when conditions get ugly. Investors building retirement income can see why dividend growth can matter when choosing Canadian dividend stocks.

That said, Sun Life stock isn’t a savings account wearing a stock-market costume. Falling markets can pressure asset-management fees, while insurance claims, credit losses, currencies, and weaker economic growth can hurt earnings. A 3.4% dividend yield shouldn’t be treated as guaranteed income.

Bottom line

All in all, a retirement-sized TFSA doesn’t usually arrive through one heroic investment. It grows through years of contributions, reinvested dividends, and businesses capable of earning more over time. Your TFSA may not be big enough to retire on today. Give it enough time and enough productive assets, though, and the tax-free paycheque waiting at the other end could become considerably harder to ignore.

The post Is Your TFSA Big Enough to Retire Comfortably? appeared first on The Motley Fool Canada.

More reading

• I’d Buy This 1 Dividend Stock Before the Market Dips Again
• 5 Frugal Habits Retirees Can Finally Stop Feeling Guilty About
• How 1 RRIF Withdrawal Can Shrink Your OAS, and 1 Way to Boost it
• How Much TFSA Income Is Too Much for OAS Eligibility?
• CPP and OAS Aren’t Enough: Here’s How to Fill the Retirement Income Gap

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.

There’s a wonderfully annoying thing about the stock market. The correction you’ve been patiently waiting for can arrive right after prices have already climbed 15%.

Suddenly, that glorious 10% dip isn’t much of a bargain. It’s a slightly cheaper price than yesterday and still more expensive than the one you could’ve paid months ago.

This’s why long-term investors can spend far too much energy searching for the perfect entry price. Price matters, of course. Paying anything for anything is a terrific strategy for becoming poorer. Yet when the investing horizon stretches across decades, time has an advantage that a clever limit order simply can’t recreate.

That doesn’t mean buying every stock regardless of valuation. It means investors should be careful about turning “I’ll wait for a better price” into “Why am I still holding cash three years later?” And one stock offers a perfect example.

PPL

Pembina Pipeline (TSX: PPL) owns pipelines, natural-gas processing plants, fractionation facilities, storage, and export infrastructure across Western Canada and beyond. The beauty of that business is that Pembina doesn’t need oil or gas prices to hit the jackpot every quarter. Much of its infrastructure earns fees for transporting, processing, and handling energy products, creating a steadier stream of cash flow.

Second-quarter earnings rose 23% year over year to $512 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion. Management is targeting 5% to 7% compound annual growth in fee-based adjusted EBITDA per share through 2030. Investors waiting for the perfect entry price could therefore be watching the underlying business expand without them.

AI angle

The newest twist isn’t another pipeline. Pembina and its partners recently approved the 932-megawatt Greenlight Electricity Centre in Alberta. The natural-gas-fired facility will provide dedicated electricity to Meta’s enormous new data centre.

Greenlight is expected to enter service in the second half of 2030 and, once operating, generate about $310 million in annual run-rate adjusted EBITDA net to Pembina. That creates an interesting loop. Data centres require reliable power. Greenlight burns natural gas to provide it. That additional gas demand can also benefit Pembina’s existing processing and transportation network.

Meanwhile, Cedar LNG remains on track for late 2028, giving Pembina stock another route to connect Western Canadian natural gas with global customers. Suddenly, this isn’t simply a story about maintaining old pipelines.

Considerations

Pembina stock recently traded around $68. Its quarterly dividend is $0.74 per share, or $2.94 annualized, producing a yield of roughly 4.3%. That means investors are collecting meaningful income while waiting for Greenlight, Cedar LNG, and other projects to contribute. In fact, here’s what $7,000 could bring in at writing.

There are risks. Pembina has billions of dollars of projects underway, so construction costs and financing need monitoring. Regulatory delays can complicate infrastructure development, while weaker Western Canadian production would eventually reduce demand for its assets. I wouldn’t ignore those risks simply because the dividend looks attractive.

Still, investors buying stocks in Canada don’t have to solve the timing problem in one afternoon. Starting a position now and adding on future weakness lets investors take advantage of a correction without requiring one to begin.

Bottom line

There will always be another reason to wait. Pembina stock doesn’t need to be at its cheapest price ever for time to start working. With a roughly 4.3% yield along the way, waiting indefinitely for a perfect entry could eventually become the more expensive choice.

The post Why This 4.3% Dividend Stock Is Still a Forever Buy for Me appeared first on The Motley Fool Canada.

More reading

• I Found a Way to Pull $300 a Month, Tax-Free, From My TFSA
• Here’s My Plan for Turning $14,000 Into Lifelong TFSA Income
• Canada’s Data-Centre Buildout Has Already Begun: These Stocks Could Be Next
• I’m Building a $20,000 TFSA That Pays Me Almost Every Month
• Canada’s AI Boom Needs Far More Electricity: These TSX Stocks Could Provide It

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Meta Platforms and Pembina Pipeline. The Motley Fool has a disclosure policy.