A bigger utility dividend can buy more groceries today. A faster-growing one can help with the groceries that cost more 10 years from now. Choosing between those jobs is more productive than declaring every familiar power company a retirement stock. I’d compare the payment, the earnings behind it, and the spending needed to grow. For new money held for years, I’d pay some starting income for a clearer growth path.

FTS

Fortis (TSX: FTS) owns regulated electricity and gas utilities across North America. Its customers pay for networks and service, with regulators setting the framework for recovering costs and earning returns. Investment in transmission and reliability can therefore expand earnings without requiring the company to invent a new product.

Its November 3 update introduced a $32.2 billion investment plan for 2027 to 2031 and extended annual dividend-growth guidance of 4% to 6% through 2031. The connection is that approved assets enter service, earn through customer rates, and support profit growth. The plan still needs financing, construction, and regulatory execution before all that potential becomes money for shareholders.

Fortis also raised its quarterly dividend to $0.665, or $2.66 annualized. I’d view the modest starting yield as the price of owning a business with a visible route to gradual increases. The danger is paying so much for that predictability that even successful execution produces a disappointing stock return.

EMA

Emera (TSX: EMA) owns regulated utilities including major operations in Florida and Atlantic Canada. Its investment plan also supports infrastructure growth, while customer needs provide recurring demand. The shareholder’s job is to distinguish growth in the company from growth attached to each share.

First-half adjusted earnings were $2.06 per share, slightly below $2.07 a year earlier. Additional shares helped finance the business while spreading earnings across more owners. That doesn’t erase the investment case, but it makes me less willing to assume every new project will translate quickly into a larger dividend.

The latest quarterly dividend is $0.74, annualizing to $2.96. First-half payments consumed about 71% of adjusted earnings for that period. I’d consider Emera for a larger starting payment, with financing costs, storm expenses, and customer-rate decisions setting the pace of future increases.

The same $10,000 decision

Using recent closes, here are alternative purchases before fees. Annual income assumes four quarters at the latest declared rate, including Fortis’s new payment.

Emera starts with about $104 more annual income. Its indicated yield is about 4.2%, against Fortis’s 3.2%. I’d give up that difference for Fortis’s clearer dividend-growth outlook if I were reinvesting for a decade. Someone spending the income now could reasonably prefer Emera.

What’s more, Fortis reports annualized total shareholder returns of 10.1% over five years and 10% over ten years through September 30, 2026. Those rates include dividends, so they aren’t amounts to which the current yield should be added.

At 10% compounded annually, $10,000 becomes approximately $25,937 after ten years. At a slower assumed 6%, it becomes about $17,908. The gap shows why price and future earnings deserve attention even for a familiar utility. Past returns provide context, while a retirement plan needs room for a less generous decade.

Bottom line

The Bank of Canada’s rate increase adds pressure to both businesses through borrowing costs and competition from interest-paying investments. I’d own either alongside other sectors and retain cash for near-term bills, rather than depending on share sales during a utility selloff.

Fortis gets my next purchase for growing dividend income, while Emera wins for a larger payment today. Held inside a Tax-Free Savings Account (TFSA) with enough room, reinvested dividends can add ownership as the utilities build. I’d let time and sensible entry prices do their part, giving future increases a chance to outgrow the smaller first cheque.

The post Fortis vs. Emera: Which Utility Gives Dividend Investors the Better Deal? appeared first on The Motley Fool Canada.

More reading

• Hey Planners: A 3.2% Dividend Stock to Build Your 2027 TFSA Contributions Around
• Want $6,000 a Year From Your TFSA? Here’s the Portfolio Size to Aim for
• Dividend Income vs. Selling Shares: Which Strategy Generates Better Cash Flow?
• Fortis Unveils Its Biggest Spending Plan Ever: $32.2 Billion for Power and Gas Projects
• What $30,000 Split Between a Bank and a Utility Could Pay in Dividends

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

Canadian pensioners are looking for ways to boost retirement income in order to keep up with the steady increase in the cost of living.

One popular strategy involves using contributions to a self-directed Tax-Free Savings Account (TFSA) to buy Canadian dividend stocks that offer yields above the rate of inflation.

Enbridge

Enbridge (TSX: ENB) has grown considerably over the past few decades and is now one of the largest companies on the TSX with a current market capitalization near $150 billion.

Being this big gives Enbridge the financial clout to make large strategic acquisitions while also moving forward on internal growth projects.

Enbridge has diversified its revenue stream, particularly in the United States, in recent years. The company spent US$3 billion to buy an oil export terminal in Texas in 2021. This has proven to be a well-timed move as demand for North American oil has surged due to subsequent wars in Ukraine and the Middle East.

Enbridge spent US$14 billion in 2024 to buy three American natural gas utilities. Those assets, when added to the existing gas utility holdings, turned Enbridge into the largest natural gas utility operator in North America. Again, the timing worked out well. Domestic natural gas demand is on the rise as new gas-fired power generation facilities are being built to provide power to new AI data centres. The utilities complement Enbridge’s gas transmission network, which already carried roughly 20% of the natural gas used in the United States.

Enbridge is also involved in natural gas exports. The company’s infrastructure supplies gas to liquefied natural gas (LNG) export facilities on the U.S. Gulf Coast. In Canada, Enbridge is a partner on the Woodfibre LNG export facility nearing completion on the coast of British Columbia.

In addition, Enbridge bulked up its renewable energy capabilities when it purchased the third-largest American wind and solar developer. The renewables division is building new solar and wind installations to provide power to American tech firms.

Enbridge trades near $67 per share at the time of writing. That’s down from $80 earlier this year. Investors who buy the pullback can now get a dividend yield of 5.8% from the stock.

BCE

BCE (TSX: BCE) used to be a top recommendation for retirees who wanted reliable annual dividend payments. The telecom giant has fallen out of favour, however, with the dividend crowd after it slashed the payout by more than 50% last year in an effort to preserve cash flow amid challenging market conditions and rising debt expenses.

BCE is working to streamline operations while also investing in new growth opportunities. The company is building sovereign data centres in Canada to provide corporate and government clients with secure options to keep their data on Canadian soil. South of the border, BCE spent $5 billion to buy Ziply Fiber, an internet services provider that BCE hopes will be able to grow as it expands into new markets. Fibre penetration in the U.S. is much lower than in Canada.

It will take time for the turnaround efforts to bear fruit, but BCE’s reduced dividend payout should be safe. Investors with a contrarian strategy can get a 5.8% dividend yield today from BCE.

The bottom line

Enbridge and BCE pay generous dividends with yields comfortably above the current rate of inflation. If you have some cash to put to work in a dividend portfolio focused on passive income, these stocks deserve to be on your radar.

The post TFSA Income: 2 High-Yield Dividend Stocks for Retirees to Consider Now appeared first on The Motley Fool Canada.

More reading

• For BCE vs. Enbridge, a 5.7% Yield vs. 5.9% (And the One I’d Prefer for Income)
• BCE Just Reported: What $10,000 Could Earn You in Dividends Today
• Enbridge Q3: Profit Nearly Doubles, and I Don’t Think the Dividend Stock is Done Yet
• How Much to Invest in BCE for $1,500 a Year in Dividends
• A Top TSX Dividend Stock Paying Close to 6% Today for Steady Passive Income

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

Are you planning to save money long-term using a tax-free savings account (TFSA)?

If so, it helps to know which stocks and ETFs you will be buying in the account.

Generally speaking, it is best to have a reasonably diversified portfolio, one with at least a few dozen stocks along with different asset classes (e.g., GICs, money market funds, REITs etc).

For the most part, investing your entire TFSA into an individual stock is not a good idea. Unless you have an information edge, it usually leads to underperformance. However, it is definitely possible to find defensive dividend stocks that are fairly safe and can add dividend income to your TFSA. In this article, I’ll explore one 3.2% dividend stock to build your 2027 TFSA contributions around.

Fortis

Fortis Inc (TSX: FTS) is one of Canada’s biggest and most successful utility companies. It is best known for its exceptional dividend track record, having raised its dividend 52 years in a row. Over the last 20 years, Fortis has outperformed both the S&P/TSX Capped Composite Index and the TSX Utilities sub-index. The fact that Fortis has performed well over the years does not guarantee that it will continue doing so in the future. However, as I will show in the next section, the company still has the advantages that powered its outperformance in the past.

Dividend discipline

One thing that Fortis has going for it, and a probable reason for its outperforming other TSX utilities, is its disciplined dividend policy. The company tends to pay out about 70% of its earnings as dividends. This is a lower payout ratio than many Canadian utilities have. In the utilities world, a lot of companies tend to push it with dividends, having payout ratios above 100%. Fortis doesn’t do that, which leaves it with more money to reinvest in its business.

Investments in growth

Another thing that has driven Fortis’ outperformance over the years has been its focus on growth. Utilities generally aren’t known as big growers, but Fortis has grown quite a bit over the decades, buying up utilities across Canada, the U.S. and the Caribbean. Fortis isn’t buying up any whole utilities these days, but the company is currently undertaking a $32 billion capital expenditure (CapEx) program that will drive a 7.5% compounded annual (CAGR) increase in the company’s rate base. The company expects this increase in the rate base to increase earnings over time.

Dividend potential

Fortis currently pays a $0.665 quarterly dividend. That works out to $2.66 per year. The stock cost $84.05 at the time this article was written. So, Fortis has/had a 3.2% dividend yield. If you invest $100,000 in the stock – a sum that many Canadians can deposit into a TFSA – you get roughly $3,160 in annual dividend income if the payout doesn’t change.

As you can see, Fortis has the potential to generate considerable dividend income. If the company keeps up its dividend growth track record, then it will pay out even more than the table above implies! Even if it doesn’t, $3,160 per year isn’t bad.

The post Hey Planners: A 3.2% Dividend Stock to Build Your 2027 TFSA Contributions Around appeared first on The Motley Fool Canada.

More reading

• Fortis vs. Emera: Which Utility Gives Dividend Investors the Better Deal?
• Dividend Income vs. Selling Shares: Which Strategy Generates Better Cash Flow?
• Fortis Unveils Its Biggest Spending Plan Ever: $32.2 Billion for Power and Gas Projects
• TFSA Investors: 4 Canadian Stocks to Buy and Hold for Life
• No Workplace Pension? Here’s the Math Behind a $1,000-a-Month Income Goal

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

A monthly payment feels more satisfying when it covers a bill you recognize. Internet, insurance, or part of the grocery shop suddenly has an income source of its own. The catch is that the investment needed can be larger than the cheque makes it sound. For a $150 monthly target from this industrial landlord, the current payment points towards roughly $43,100 in units.

Turn the target into units

Granite REIT (TSX: GRT.UN) pays a monthly distribution of $0.2958 per unit, annualizing to $3.5496. Dividing $150 by $0.2958 gives just over 507 units. Since I can’t buy a fraction in this example, I need 508 whole units to reach the target.

At the recent close of $84.88, those units cost $43,119.04 before fees. The distribution yield is about 4.2%, so the income comes from a fairly substantial investment. I’d make sure that amount fits the portfolio before letting one appealing monthly payment decide the allocation.

The holding produces approximately $150.27 monthly if the rate continues. One fewer unit would pay about $149.97, just below the goal. This is an actual monthly schedule, with a future purchase qualifying according to the relevant record date rather than automatically receiving a payment already declared.

The buildings behind the payment

Granite owns industrial properties in North America and Europe. Tenants use them for activities including manufacturing, warehousing, and logistics. Rental income supports the distribution, while leases, property improvements, and acquisitions can add earnings over time.

Its second-quarter adjusted funds from operations (AFFO) were $1.26 per unit. AFFO adjusts property earnings for items including maintenance and leasing costs. Three monthly distributions at the current rate total $0.89, or about 70% of that quarter’s AFFO. That leaves cash earnings after the payment, which helps finance investment and absorb weaker periods.

Existing properties also generated 8.3% growth in cash-based operating income at constant exchange rates. This removes currency movements from the comparison, showing that leasing and rent changes contributed to the result. For Granite, stronger rent from the properties already owned can improve the income base without requiring an endless acquisition programme.

Building towards the full holding

Someone starting with $10,000 could buy 117 units for $9,930.96. Those units would pay roughly $34.61 monthly at the current rate. Reinvesting that income and adding savings builds towards the larger holding without requiring the full $43,119 on day one.

To illustrate the time involved, growing $10,000 to the current target balance takes about 25.1 years at a 6% annual total return without further contributions. At 4%, it takes about 37.3 years. Those returns include reinvested distributions. Adding the yield again would count the same income twice, and future unit prices and payments will change the target.

Industrial demand can weaken, tenants can leave, and refinancing can become more expensive. Granite also has meaningful exposure to Magna-related properties. I’d keep emergency savings outside the holding and add other businesses alongside it, even if the monthly distribution stays covered.

Bottom line

I’d build Granite gradually for monthly dividend income, with the payment reinvested until needed. Holding it inside a Tax-Free Savings Account (TFSA) generally shelters Canadian tax, with sufficient personal contribution room required. New savings can bring the goal forward, while stronger rental earnings can help the eventual payment grow beyond the first bill it covers.

The post To Collect $150 a Month From Granite REIT, Here’s the Investment You’d Need appeared first on The Motley Fool Canada.

More reading

• Dividend Income in a TFSA: Why I Love This Tax-Free Setup
• Here’s a 4.2% Monthly Dividend Stock to Help Fund Your Retirement Dreams
• Can a $200-a-Month Investment Grow Into Real Income? I Ran the Numbers
• The Best Monthly-Paying Dividend Stock on the TSX Right Now
• This 4.2% Dividend Stock Pays Cash Each and Every Month

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Canadian stocks jumped sharply on Monday as surging metals prices, easing inflation concerns amid weakening oil prices, falling Treasury bond yields, and renewed hopes of a diplomatic resolution to the U.S.-Iran conflict helped improve investor sentiment. The S&P/TSX Composite Index jumped 657 points, or 1.8%, to 36,446 – marking its highest close in over two months.

While all key market sectors ended the session in the green, the TSX rally was mainly driven by solid intraday gains in mining, financial, and industrial stocks. This rally extended the TSX benchmark’s year-to-date gains to roughly 15%.

Top TSX Composite movers and active stocks

Hammond Power Solutions, Energy Fuels, Silvercorp Metals, and Hudbay Minerals were the top-performing TSX stocks for the day, with each surging by more than 9%.

In contrast, Curaleaf, Constellation Software (TSX: CSU), Thomson Reuters, and Vermilion Energy plunged by at least 2.5% each, making them the session’s worst-performing TSX stocks.

The weakness in Constellation Software stock came after the Toronto-headquartered tech firm released its third-quarter 2026 financial results. Its quarterly revenue jumped 19% year-over-year with the help of acquisitions, while organic revenue growth remained modest at just 2%.

Meanwhile, Constellation’s net profit edged up to US$212 million from US$210 million a year ago, but its free cash flow fell 16% to US$443 million in the latest quarter. Despite strong overall revenue growth, sluggish organic growth and declining free cash flow disappointed investors, putting pressure on CSU stock.

Based on their daily trade volume, Enbridge, Suncor Energy, Canadian Natural Resources, Telus, and Manulife Financial were the five most active stocks on the Toronto Stock Exchange.

TSX today

Commodity prices across the board, including oil and gold, fell sharply in early Tuesday trading, which will pressure the resource-heavy main TSX index at the open today.

While no major domestic economic releases are due, Canadian investors may want to keep a close eye on the key U.S. consumer inflation report this morning. The U.S. inflation figures could provide fresh clues about the Federal Reserve’s next interest rate decisions, potentially influencing bond yields and broader equity market sentiment.

Meanwhile, geopolitical developments will remain in focus after President Donald Trump suggested that renewed military strikes against Iran were highly unlikely, even as reports of fresh security threats highlighted lingering tensions in the Middle East.

On the trade front, Ottawa announced an extension of tariff relief measures on certain U.S. imports until June 30, 2028, while expanding support for Canadian mining and energy businesses.

Investors will also monitor quarterly earnings releases from several TSX-listed companies, including CCL Industries, Strathcona Resources, Freehold Royalties, Altius Minerals, Superior Plus, Finning International, Discovery Mining, Hydro One, and Keyera, today.

Market movers on the TSX today

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The post TSX Today: What to Watch for in Stocks on Tuesday, November 10 appeared first on The Motley Fool Canada.

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• 3 of the Best Canadian Stocks to Buy and Hold in a TFSA
• I’m Betting on Constellation Software’s Epic Acquisition Model After 17% Revenue Growth
• How Inflation Quietly Raises Your Retirement Target
• Hot Take: I Never Liked Lightspeed Commerce Stock
• Got $10,000 to Invest? Here’s How You Could Split It Between Your TFSA and RRSP

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources and Enbridge. The Motley Fool has positions in and recommends Constellation Software and Hammond Power Solutions. The Motley Fool recommends Altius Minerals, CCL Industries, Canadian Natural Resources, Enbridge, Freehold Royalties, Keyera, Superior Plus, TELUS, Thomson Reuters, and Vermilion Energy. The Motley Fool has a disclosure policy.

There’s a big difference between investing in a great company for the long term and buying its stock at the right price. And that difference becomes even more important when a business is growing rapidly, but its shares already carry a sky-high valuation due to enormous expectations.

Shopify (TSX: SHOP) could be a perfect example of such a stock. The Canadian e-commerce giant recently delivered another impressive quarter, with strong revenue growth, improving profitability, and healthy cash flow generation. Yet its stock has struggled to maintain consistent upward momentum, even as the underlying business continues to expand. This contrast raises an important question for long-term investors about how much future growth is already reflected in its share price.

Let’s take a closer look at Shopify’s latest financial performance and find out whether its premium valuation still leaves room for attractive returns in the long run.

Shopify stock

After rallying by 46% over the last six months, SHOP stock currently trades at $210.47 per share with a massive market cap of $270.7 billion. However, the stock has slipped 4% over the last year and trades nearly 18% below its 52-week high.

While these recent fluctuations reflect an uneven share price performance, Shopify’s underlying business continues to deliver impressive results.

A great quarter backed by strong growth

Shopify’s latest quarterly financial performance gives investors several reasons to remain optimistic, even as its expensive valuation raises concerns.

In the third quarter, the Canadian commerce giant’s revenue jumped 32% year-over-year (YoY) to US$3.7 billion. This growth was backed by a 35% YoY increase in its merchant solutions revenue to US$2.9 billion. Meanwhile, its subscription solutions revenue rose 20% to US$836 million.

Shopify’s gross merchandise volume, which represents the value of orders processed through its platform, also climbed 29% YoY in the latest quarter. Similarly, its monthly recurring revenue climbed about 19%, highlighting continued growth in its subscription business.

Shopify’s profitability and free cash flow are also improving

Interestingly, Shopify’s profitability improved at an even faster pace in the September quarter. Its operating income surged 66% YoY to US$568 million as revenue growth outpaced the increase in operating expenses. As a result, the company’s quarterly net profit jumped 75% to US$462 million.

Adding to the optimism, Shopify’s free cash flow soared 61% YoY in the third quarter to US$816 million. Its free cash flow margin also improved to 22% from 18% a year ago, reflecting the company’s ability to turn growing sales into cash.

Can Shopify justify its premium valuation?

While Shopify’s latest results are impressive, its lofty market valuation means investors also need to pay close attention to its future growth prospects.

The good news is that Shopify isn’t showing signs of slowing down anytime soon. For the fourth quarter of 2026, the company expects revenue to grow at a low-thirties percentage rate YoY, while gross profit is projected to increase at a high-twenties rate.

Beyond these near-term expectations, Shopify continues to focus on expanding its commerce platform across more sales channels, including emerging artificial intelligence (AI)-powered shopping experiences. These efforts could help it reach more merchants and benefit from the growing adoption of digital commerce.

However, with a market cap exceeding $270 billion, investors are already paying a substantial premium for Shopify’s future growth potential. This leaves SHOP stock vulnerable to sharp corrections if business growth slows or profitability falls short of expectations.

Foolish takeaway

Overall, Shopify’s strong financial performance, expanding cash flow, and promising growth opportunities make it an attractive long-term growth stock. Still, given its sky-high valuation, I believe patient investors may find a better opportunity to buy SHOP stock during a pullback.

The post Is Shopify Stock Too Expensive? A Great Quarter Meets a Sky-High Valuation appeared first on The Motley Fool Canada.

More reading

• Shopify’s Results Disappointed Wall Street: Buy, Sell, or Hold Before the Holiday Shopping Season?
• Dividend Income vs. Selling Shares: Which Strategy Generates Better Cash Flow?
• Holiday Test Ahead: Shopify Forecasts Another 30%-Plus Quarter as Shoppers Gear Up
• Shopify Stock Fell After Earnings: Here’s How I’d Judge It for a 10-Year TFSA
• Shopify Stock Tumbles Despite 32% Sales Growth: Buy Now, or Buyer Beware?

Fool contributor Jitendra Parashar has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

BCE (TSX: BCE) and Enbridge (TSX: ENB) are two popular Canadian dividend stocks offering attractive yields for income investors. With their dividend yields currently sitting at about 5.7% and 5.9%, respectively, both deserve consideration. However, when it comes to generating reliable passive income, I believe one has a clear advantage.

While BCE offers an intriguing turnaround opportunity following its dividend reset, Enbridge’s stronger dividend track record, healthier payout ratio, and more predictable growth outlook make it my preferred choice for income today. Here’s why.

Dividend history and safety: Enbridge has the edge

BCE investors haven’t forgotten the 56% dividend cut in May 2025. The reduction was necessary to address an unsustainable payout and help protect the company’s leveraged balance sheet. Nevertheless, investors should focus on whether today’s dividend is sustainable.

Following the cut, BCE’s dividend appears more manageable. Based on its 2026 free cash flow guidance of $2.1 billion to $2.3 billion, its payout ratio is expected to be approximately 81%. Management is also targeting $1.5 billion in structural cost reductions by 2028, which could strengthen future cash flow. BCE maintains an investment-grade BBB credit rating from S&P and has held its quarterly dividend at $0.44 per share since the reduction.

However, Enbridge offers considerably more dividend certainty. The energy infrastructure giant has paid dividends for more than 70 years and delivered approximately 30 consecutive years of dividend growth. Its recent annual increases had been around 3%.

More importantly, Enbridge targets a sustainable dividend payout ratio of 60–70% of distributable cash flow (DCF). Its stronger BBB+ credit rating from S&P also provides additional financial reassurance.

For investors prioritizing dependable income, Enbridge is the clear pick.

Recent results and growth outlook

BCE’s latest third-quarter (Q3) results showed signs of operational progress, but also highlighted its ongoing challenges. Revenue increased 2.2% year over year to nearly $6.2 billion, while adjusted EBITDA (a cash flow proxy) rose 0.9% to approximately $2.8 billion. Adjusted net earnings declined 5.2% to $695 million.

Operating cash flow increased 16% to $2.2 billion, but free cash flow fell 15% to $854 million, reflecting substantial investments in a fully contracted 300-MW AI data centre project in Saskatchewan and U.S. fibre expansion through Ziply Fiber. The data centre’s first phase is expected to come online in the first half of 2027.

For 2026, BCE expects revenue growth of 1–5% and adjusted EBITDA growth of 0–4%. However, adjusted earnings per share (EPS) could decline 5–11%, while free cash flow is forecast at $2.1 billion to $2.3 billion, down 28–34% from the previous year.

Enbridge, meanwhile, delivered more encouraging quarterly results. Q3 adjusted EBITDA increased 3.9% to $4.4 billion, adjusted earnings climbed 7.7% to nearly $1.1 billion, and adjusted EPS rose 6.5% to $0.49. DCF increased 4.8% to $2.7 billion.

Management reaffirmed its 2026 adjusted EBITDA guidance of $20.2 billion to $20.8 billion and DCF per share guidance of $5.70 to $6.10. It also expects approximately 5% average annual growth in adjusted EBITDA, DCF per share, and EPS over the medium term.

That visibility gives income investors greater confidence in Enbridge’s ability to sustain and gradually grow its dividend.

Valuation and my preferred income stock

Both stocks appear to trade at good valuations. At $30.57 per share at writing, BCE trades approximately 18% below the analyst consensus price target, implying potential upside of nearly 22%. Enbridge, at $66.14, trades about 15% below its consensus target, suggesting upside of approximately 18%.

The bottom line

I’d prefer Enbridge for income. Its slightly higher 5.9% dividend yield, more sustainable payout ratio, stronger dividend growth history, and clearer medium-term growth outlook provide a better mix of income and reliability.

BCE shouldn’t be dismissed, however. Successful execution of its AI data centre investment, U.S. fibre expansion, and cost-reduction initiatives could support a meaningful turnaround and potentially restore dividend growth over time.

The post For BCE vs. Enbridge, a 5.7% Yield vs. 5.9% (And the One I’d Prefer for Income) appeared first on The Motley Fool Canada.

More reading

• TFSA Income: 2 High-Yield Dividend Stocks for Retirees to Consider Now
• BCE Just Reported: What $10,000 Could Earn You in Dividends Today
• Enbridge Q3: Profit Nearly Doubles, and I Don’t Think the Dividend Stock is Done Yet
• How Much to Invest in BCE for $1,500 a Year in Dividends
• A Top TSX Dividend Stock Paying Close to 6% Today for Steady Passive Income

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

What would you do with an extra $300 every month in your budget? That could cover a bill or two, or even give some extra budget room. For investors looking to generate that income, RioCan (TSX: REI.UN) is an option that could help make that dream a reality.

Let’s take a look at what makes this a great option for investors to consider.

Why consider RioCan?

RioCan is one of the largest REITs in Canada. The company owns and manages a portfolio of necessity-based retail properties located in major markets around Canada.

That portfolio includes over 160 properties with nearly 31 million square feet of leasable space. The necessity-based focus of those properties is part of the appeal.

Everyday shopping for essentials draws in recurring traffic, which helps retailers maintain a customer base.

For would-be investors, that represents a way to get exposure to an established rental business without owning any property. Tenants pay rent to operate their stores, and RioCan uses that income to cover debt, pay expenses and pay a monthly distribution.

The other advantage to consider is the monthly payment that RioCan offers. Monthly distributions make it easier to budget around monthly bills and household expenses.

Even for those investors not looking to use that income right away, a monthly distribution can be reinvested immediately for future growth.

RioCan has also expanded into mixed-use residential properties in recent years. However, the REIT is now selling those residential assets to focus on its core retail business.

During the first nine months of 2026, RioCan sold its interests in five RioCan Living properties for gross proceeds of $376.2 million. These sales form part of its strategy to free up capital for its retail-focused business.

What supports the payout?

To look at whether RioCan’s monthly payment is supported, let’s first look at the most recent quarterly results.

In the most recent quarterly report, the REIT reported retail committed occupancy of 98.9%, which was a record. That number includes space covered by signed leases, in addition to space already occupied. In other words, it signals strong tenant demand.

Commercial same-property net operating income also increased 4.2% when compared to the same period last year. That measures operating growth across comparable properties, which helps investors assess performance beyond changes from acquisitions and sales.

Finally, core funds from operations, or core FFO, increased 5.1% per unit to $0.41 in the most recent quarter.

Build toward $300 per month

RioCan pays out a monthly distribution of $0.0965 per unit. Over the course of an entire year, that works out to $1.158 per unit.

To generate $300 each month in distributions, that requires just over $66,000 invested at the current yield of 5.5%.

Fortunately, investors can start with a lower amount that can compound. Starting with just $5,000 will generate an income of just over $270. While that’s far off from the $300 per month target, it is enough to generate a new unit of RioCan each month from reinvestments alone.

Coupled with regular contributions, that initial investment can provide long-term growth.

That makes RioCan a great option for any well-diversified income portfolio.

The post How Much to Invest in RioCan for $300 a Month in Dividends appeared first on The Motley Fool Canada.

More reading

• I’d Put My Entire TFSA Contribution Into This 5.5% Monthly Passive-Income Stock
• A 5% Dividend Stock to Buy for $100 Every Month
• Bank of Canada’s Rate Decision Is Less Than 2 Weeks Away: 3 TSX Stocks to Watch
• Still Working? Here’s a Monthly-Paying Dividend Stock Future Retirees Should Watch

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.

Rubbish has an impressive attendance record. Households keep putting bins out, and businesses still need collection even when the economy isn’t feeling ambitious. Owning part of that service can be attractive for a 10-year account. The investment gets less straightforward when everyone else has already noticed. I’d want the business to keep earning more, with a purchase price that leaves me a fair share of that progress.

A route worth owning

Waste Connections (TSX: WCN) collects, transfers, and disposes of waste across North America. Its attraction includes local route density, which means serving more customers without driving much further and disposal assets that competitors can’t easily recreate. Those advantages can help keep costs under control and support pricing.

Acquisitions add another growth route. A smaller operator can become more profitable within a larger network if routes, purchasing, and disposal are managed well. I’d pay for that repeatable improvement, while remembering that buying a company only creates value when the price and integration work out.

For a Tax-Free Savings Account (TFSA) investor, the goal is capital growth with less dependence on a fashionable product. Customers aren’t choosing a waste provider because it has the latest technology announcement. They’re paying for a service that needs to happen reliably, which gives management a recurring business to improve.

The quarter showed pricing at work

Third-quarter adjusted operating earnings before interest, taxes, and non-cash depreciation represented 34% of revenue. This margin shows how much remained after the operating costs captured in that measure. Holding it up despite higher diesel prices supports the case that pricing and efficiency can protect profits when costs rise.

Management raised its full-year outlook again and expected at least US$1.4 billion in adjusted free cash flow. That’s cash remaining after the company’s defined adjustments and capital spending. It can fund acquisitions, dividends, and repurchases without every growth decision requiring another trip to shareholders for money.

I’d judge future quarters on whether those cash earnings continue expanding per share. Higher sales from acquisitions can look impressive while debt or additional shares absorb the benefit. The shareholder gets paid by owning a more profitable slice, not simply a larger rubbish-collection empire.

A raise and a smaller share count

The company raised its quarterly dividend 10% to US$0.385, its sixteenth consecutive double-digit annual increase. The percentage sounds generous, but the payment starts small. It annualizes to US$1.54, so this remains a growth investment rather than a way to fund large bills today.

Repurchases also reduced the weighted-average diluted share count used in the quarterly earnings calculation. The figures below aren’t shares repurchased during the quarter. They show how many shares the profit was spread across on average.

That’s about 2.2% fewer shares. When earnings grow and the share count falls, each remaining share can receive a larger share of the profit. Paying a sensible repurchase price is essential, just as it is for my own purchase.

Price matters

At the recent close of $261.15, the current forward earnings sat at roughly 31. That means paying about $31 for each dollar of estimated future annual profit. Those estimates can change, and the valuation already assumes a strong business keeps performing.

I’d therefore start small rather than put an entire TFSA contribution into the stock at once. A slower economy can hurt commercial waste volumes, while acquisition integration, labour costs, and disposal obligations can pressure cash flow. The recurring service reduces some business uncertainty without removing price risk.

Bottom line

I’d buy Waste Connections gradually for a 10-year TFSA, with sufficient room and other industries alongside it. I’d reinvest the small dividend and let operations and repurchases build value per share. Among Canadian-listed stocks, this is a business I’d give time to compound, while keeping the price I pay firmly in the decision.

The post Would I Buy Waste Connections for a 10-Year TFSA? Here’s My Case appeared first on The Motley Fool Canada.

More reading

• TFSA Investors: 4 Canadian Stocks to Buy and Hold for Life
• Just 2 Months Left in 2026! Here’s How to Make the Most of Your TFSA Room
• Waste Connections Just Raised Its Dividend: Is It Too Late to Buy In?
• This Stock Just Raised its Dividend 10%, its 16th Straight Double-Digit Increase
• $1,000 Is Enough to Start Investing in Canada: Here’s the Proof

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

Telus Corporation (TSX: T) stock fell 2.9% after the third-quarter earnings release on November 6. The dip came on the initial response to a 33% year-over-year decline in earnings per share (EPS) to $0.16 due to an $800 million goodwill impairment of TELUS Health. However, the new management presented a Transformation Strategy that addresses the pressing issue of a fine balance between debt reduction and growth investment. If you are in it for the long term, Telus is a stock to add to your watchlist and monitor the strategy execution.

But if income is on your mind, Telus’s dividend is still not out of the woods.

What is Telus doing to make its dividend safe?

Telus is using a two-pronged approach to safeguard its dividend: reduce debt and invest in growth.

To reduce debt, it is looking to monetize its non-core businesses of TELUS Health and TELUS Agriculture & Consumer Goods. In the earnings call, CEO Victor Dodig stated that it is in an advanced stage with a prospective buyer for one asset in the health portfolio. Telus is also looking to streamline and improve business processes to unlock $900 million in annual cost savings by the end of 2028.

But what caught my attention the most was the equitization of its PureFibre network.

Going back to its roots: Equitizing PureFibre network

In a world where space internet and artificial intelligence (AI) are stealing the limelight, Dodig is eyeing unlocking the equity value of Telus’s core strength, the PureFibre network. Even today, the fibre network is “the gold standard for broadband connectivity, delivering capabilities that alternative technologies, including cable and satellite, simply cannot match,” said Dodig in the earnings call.

The regulatory change opened PureFibre network to competitors, allowing them to lease the network. Dodig is looking to unlock value from its fibre infrastructure the way it did with its wireless tower infrastructure through Terrion.

Telus created a wireless operator company, Terrion, and sold a 49.9% equity interest to institutional investor La Caisse for approximately $1.26 billion. It used the money to reduce debt. The way Terrion operates, Telus manages mobile network coverage, reliability, and superiority, while La Caisse manages infrastructure development, site management, and third-party co-location. There is recurring income coming from Terrion, but the capital locked in the infrastructure was released.

If Telus manages to successfully unlock equity value from PureFibre, its balance sheet could strengthen significantly. So far, the company maintains its target to achieve 3 times net debt-to-adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by 2028 from 3.6 times at present.

What should investors expect from Telus?

Telus has once again presented a practical and strong transformation strategy. The attention will be on its execution, for which management has also given three key metrics to watch for in every earnings report:

• Free cash flow growth of 10%
• Dividend payout ratio of 60% or lower
• Leverage ratio of 3.6x or lower.

There could be some quarters wherein Telus reports revenue declines and net losses as it implements the transformation strategy. As long as the three key metrics are on track, the long-term recovery and a 5.9% yield could be the reason to hold.

Protect your portfolio from a downside

However, let us not rule out the possibility of execution falling apart, and the stock price falling further or the company pausing dividends. Unless balance sheet strength returns, Telus stock has a downside risk. Consider protecting your portfolio from the short-term downside of Telus with a safer dividend stock like CT REIT. More than 90% of its debt is from unsecured debentures of parent company Canadian Tire. The kind of debentures it has issued does not create a repayment obligation. They are renewed with a new yield. Moreover, CT REIT has a dividend payout ratio of 72.5%.

With CT REIT, you get a 3% bonus on DRIP shares, a 3% average annual dividend growth, and a 5.4% annual yield. All the incentives Telus stopped are available in CT REIT.

The post Telus Dividend Safety: Is the Stock Still Worth Buying for Income? appeared first on The Motley Fool Canada.

More reading

• TELUS Stock: What $5,000 Invested Today Could Look Like in 5 Years
• Telus Reset its Dividend: Here’s My Buy, Sell, or Hold Take
• Telus vs. BCE: Which Dividend Looks Better After the Cuts?
• 3 Superior Canadian Dividend Stocks for Passive Income
• Telus’s Dividend Explained: Is It Safe to Buy for Income Today?

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.