This article first appeared on our U.S. website.

Quantum computing occupies a strange place in the investing universe. The technology promises to revolutionize everything from drug discovery to cryptography, and it overlaps with artificial intelligence in ways that could accelerate both fields.

While traditional computers process information one step at a time using bits that are either 0 or 1, quantum computers use qubits that can represent both states at once. This gray-scale quality allows them to explore many possible answers simultaneously, potentially solving certain complex problems far faster. For investors, that could unlock meaningful gains in lucrative industries, but the technology is unproven at scale, and the handful of pure-play quantum computing stocks are not yet profitable.

Still, the U.S. government keeps writing checks to accelerate research in this field. Retail investors search for IonQ (NYSE:IONQ) and Rigetti Computing (NASDAQ:RGTI) hundreds of thousands of times per month. Others have turned to quantum computing ETFs to spread their bets across the sector. Yet, most of those contracts have had no material, long-term impact on share prices, according to a Motley Fool analysis. As of mid-2026, over the past year, a basket of 11 pure-play quantum stocks tracked in this analysis has trailed the Nasdaq-100.

That gap between enthusiasm and returns tells a promising story. Quantum computing is real, the game-changing potential is undeniable, and the government funding is serious. With US$151 million in obligated federal dollars since 2008, the U.S. Department of Defense is picking up most of the tab so far. This next-generation computing technology has massive implications for national security, so the government needs to take a deep interest in it. The U.S. wants to be on the leading edge if and when quantum computers start to break encryption or revolutionize military strategy.

Still, a Motley Fool analysis of stock price reactions to individual contract awards found that government money rarely moves these stocks in any lasting way.

This is actually good news, in a counterintuitive way. It means investors can stop chasing funding headlines and start evaluating these companies on what actually matters: the technology, the competitive landscape, and the long road to commercialization.

Which quantum computing companies have received the most U.S. government funding?

Federal funding has not been distributed evenly across the quantum computing sector. Infleqtion (NYSE:INFQ), formerly known as ColdQuanta, leads all companies with approximately US$90 million in obligated federal dollars since 2008. IonQ, Rigetti, and privately held PsiQuantum round out the top four recipients, though the total figures for those three companies fall below Infleqtion’s share.

Infleqtion leads federal funding because its neutral-atom technology operates at room temperature, allowing for portable, field-deployable hardware that pure-play computing rivals can’t match. This unique hardware enables the company to secure contracts for both long-term quantum computing and immediate national security needs, like GPS-free military navigation and quantum sensing. And the company has been around for decades under two different names.

Ultimately, its almost two-decade track record with agencies like DARPA and the U.S. Department of Defense has made it the government’s most trusted partner for domestic quantum infrastructure. When the government’s CHIPS funding came around, Infleqtion was poised to grab the lion’s share.

Then there is D-Wave Quantum (NASDAQ:QBTS), sitting at the bottom of the leaderboard with just US$40,000 of federal funding awards. That is not a typo — forty thousand dollars, across almost two decades of federal quantum spending.

Four of the companies in this analysis have received exactly zero U.S. federal funding for one simple reason: Xanadu Quantum Technology (NASDAQ:XNDU), Horizon Quantum (NASDAQ:HQ), Arqit Quantum (NASDAQ:ARQQ), and IQM Quantum Computing (NASDAQ:IQMX). The common thread? These four are headquartered outside the United States, which makes them ineligible for most U.S. federal contracts and grant programs. (Xanadu is based in Toronto.)

The CHIPS Act complication

In May 2026, the U.S. Department of Commerce announced that nine quantum computing companies had signed letters of intent for US$2.013 billion in CHIPS Act funding. That figure dwarfs the US$151 million obligated over the prior 18 years. Headlines were written. Stocks popped. Investors got excited.

Twenty trading days later, every single one of those gains had evaporated.

The letters of intent are non-binding pledges, not actual money. Until binding agreements are signed and funds are formally obligated, the US$2 billion exists only as a press release. This analysis excludes CHIPS Act pledges from all funding totals for that reason. That act brought significant funding to many semiconductor companies, but the quantum computing provisions were less impressive.

Do government contracts actually move quantum computing stocks?

The short answer: Rarely.

A Motley Fool analysis of stock price reactions to individual U.S. federal contract awards found that the typical contract produces no measurable long-term effect on share prices. This holds even after controlling for overall market movement and sector-wide swings among quantum peers.

If anything, the pattern runs slightly negative. Companies that received contracts tended to underperform both the Nasdaq and other quantum stocks in the weeks following an award. Buying quantum stocks on contract news would have been a losing strategy more often than not, especially if you didn’t see the temporary jump coming ahead of time. Most investors are locked in inflated starting prices with limited staying power.

The exception that proves the rule

IonQ’s stock did see significant, long-term gains after the company was awarded a US$13.4 million Air Force Research Laboratory contract in 2022. The military ordered a trapped ion quantum computer from IonQ, and the stock posted a sustained double-digit gain that held up even after accounting for market and peer movements. IonQ delivered the computer in 2025. The Air Force isn’t using the system for military operations, but it’s gaining experience with quantum computing to take advantage of it once such systems become powerful enough. Early tests included sending quantum data via visible light signals — a first step toward combining quantum computing with fiber-optic communications equipment.

That contract was IonQ’s largest and most heavily publicized award, though. The lesson: a contract has to be big enough and newsworthy enough to break through the noise. A US$2 million award buried in a government database doesn’t move the needle, and the money isn’t enough to fund quantum research with market-moving implications in the long run.

Should government contracts factor into a quantum computing investment?

Here is the honest answer: Government funding is a signal that smart people in national security think quantum computing matters. It is not a guarantee (or even a suggestion) that any particular stock is about to go up.

The CHIPS Act announcement moved prices for about three weeks. Individual contracts barely register. Investors who built a strategy around chasing government headlines would have been disappointed repeatedly.

That finding is not an argument against quantum computing stocks. It is an argument for tuning out the funding noise.

The technology has genuine long-term potential, and the federal government’s continued interest is one data point in its favor. But “the government gave this company money” is not an investment thesis. It is a headline, quickly forgotten on Wall Street and rarely making a notable difference to the company’s business prospects.

Investors interested in quantum computing have better questions to ask. Which companies are making technical progress? Who has a credible path to commercialization? What does the competitive landscape look like in five years? Those questions are harder to answer than “who got the biggest contract,” but they are the ones that matter.

The next government headline is unlikely to provide a useful signal for any of those factors.

The post Which Quantum Computing Stocks Get the Most U.S. Government Funding – and Does It Matter? appeared first on The Motley Fool Canada.

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The Motley Fool recommends IonQ. The Motley Fool has a disclosure policy.

Foolish investors always love to hear dividend hike news from stocks they already own. Usually, increasing dividends also shows that management feels good about the company’s earnings, cash flow, and ability to keep growing. Of course, no dividend is guaranteed, but businesses that raise their payouts year after year tend to have a solid financial base and strong fundamentals behind them.

Two well-known Canadian companies recently gave investors another reason to pay attention. National Bank of Canada (TSX:NA) followed strong banking results with a higher quarterly dividend, while Thomson Reuters (TSX:TRI) extended a dividend-growth streak that now stretches beyond three decades.

Let’s take a closer look at both stocks, their financials supporting these latest dividend increases, and why each could still appeal to long-term income investors.

National Bank stock

National Bank of Canada offers investors a great mix of rising income, strong earnings growth, and expanding operations. The bank mainly provides personal and commercial banking, wealth management, capital markets, and international financial services.

Its shares have gained 60% over the last year and 34% year to date to currently trade at $230.99 apiece, giving the bank a market capitalization of about $88.7 billion. At this market price, it has a 2.3% annualized dividend yield.

That strong share-price performance has been backed by National Bank’s improving results. In the second quarter of its fiscal 2026 (ended in April), the bank’s net income rose 38% year-over-year (YoY) to about $1.2 billion, while its adjusted earnings advanced 13% to $3.23 per share. Growth across its business segments helped drive those gains. Lower provisions for credit losses also played a major role, since its quarterly results a year ago included initial provisions tied to acquired Canadian Western Bank loans.

Similarly, National Bank’s wealth management net income climbed 18% YoY to $274 million, while U.S. specialty finance and international net income rose 10% to $186 million.

Following those strong results, National Bank raised its quarterly dividend by 6% to $1.32 per share. Meanwhile, the bank continues to pursue synergies from its Canadian Western Bank acquisition and plans to expand further through transactions involving selected Laurentian Bank portfolios.

With solid capital levels, growing earnings, and another payout increase, National Bank remains an attractive choice for investors seeking dependable dividend growth.

Thomson Reuters stock

For investors looking beyond the banking sector, Thomson Reuters also offers a healthy combination of recurring revenue, artificial intelligence (AI)-linked growth, and rising dividends.

In short, Thomson Reuters provides software, information, and technology to legal, accounting, compliance, and media professionals. Its shares currently trade at $145.55 per share with a market cap of $63.5 billion. The stock has fallen 20% year to date, while its annualized dividend yield stands at 2.6%.

This weakness in TRI stock contrasts with the underlying strength in the company’s operating results. Its first-quarter revenue rose 10% YoY to US$2.1 billion, helped by a 10% rise in recurring revenue and 15% growth in transaction revenue. Meanwhile, its organic revenue grew 8%, while the legal professionals, corporates, and tax, audit, and accounting professionals segments delivered combined organic growth of 9%.

The company’s adjusted earnings also climbed 10% YoY in the latest quarter to US$1.23, and free cash flow jumped 19% to US$332 million. Demand for many of its products, such as Westlaw, CoCounsel, Practical Law, Pagero, and Confirmation, supported growth across its core businesses.

Encouraged by these results, Thomson Reuters raised its annualized dividend by 10% to US$2.62. That marked its 33rd consecutive year of dividend increases and its fifth straight 10% hike. Moreover, the company is continuing to invest in AI, including its acquisition of Noetica.

Its long dividend-growth record, healthy recurring revenue, and continued investment in AI-powered professional tools make Thomson Reuters an appealing stock for long-term investors.

The post 2 Great Canadian Stocks That Just Raised Their Payouts Again appeared first on The Motley Fool Canada.

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

A second paycheque normally arrives with a second boss, extra deadlines, and at least one meeting that could’ve been an email. A Tax-Free Savings Account (TFSA) holding the right monthly payer offers the cash-flow part without adding anyone to the organizational chart.

Investment income and capital gains generally grow tax-free inside a TFSA. Withdrawals also won’t increase taxable income or reduce federal income-tested benefits, making those monthly deposits particularly useful during retirement. But there are a few things to know.

Before you invest

The contribution rules still require attention. The 2026 limit is $7,000, while someone eligible every year since 2009 who has never contributed could have $109,000 of room. Unused room carries forward, but withdrawals only return as new room the following calendar year. Investors should check their own records before contributing because overpayments face a 1% monthly tax.

Monthly payments aren’t automatically better than quarterly ones. They simply match recurring expenses more neatly and allow faster reinvestment. The real work involves checking cash-flow coverage, debt, occupancy, and whether the underlying business can keep producing income.

Real estate investment trusts (REITs) can perform that job particularly well. REITs collect rent from properties and distribute much of the resulting cash to shareholders. Grocery stores, pharmacies, and warehouses can make especially useful tenants because Canadians rarely cancel dinner during an economic slowdown.

A stock to consider

Choice Properties Real Estate Investment Trust (TSX:CHP.UN) could therefore be a nice addition. Choice stock recently traded at about $16.50. Its $0.065 monthly distribution annualizes to $0.78 per unit, producing a yield of approximately 4.8%, or roughly 5% when rounded.

Choice stock is Canada’s largest REIT, with a national portfolio of retail properties, industrial facilities, and mixed-use developments. Many locations are anchored by Loblaw grocery stores and pharmacies, giving the portfolio a decidedly necessity-based flavour. Apparently, milk and prescriptions make the best rent collectors.

First-quarter occupancy remained 98.1%. Management expects annual funds from operations (FFO) between $1.08 and $1.10 per unit for 2026. Against that range, the $0.78 annual distribution would consume approximately 71% to 72% of FFO, leaving some cash for debt, development, and unexpected costs.

Looking ahead

Choice stock is also preparing to acquire approximately $5 billion of First Capital REIT’s urban retail assets as part of a larger transaction with KingSett Capital. First Capital shareholders and the court have approved the arrangement, although closing conditions remain.

The properties could expand Choice stock’s presence in densely populated Canadian neighbourhoods where grocery-anchored retail space remains difficult to replace. Existing operations are already growing, with first-quarter same-property cash net operating income increasing 3%.

At roughly 15 times the midpoint of management’s FFO guidance, the units aren’t sitting in the bargain bin. The valuation nevertheless looks reasonable for near-full occupancy, covered monthly income, and a potentially larger urban portfolio.

Bottom line

There are a few points to consider. Loblaw provides well over half of Choice stock’s rental revenue. That tenant is financially strong, yet such concentration means trouble at one company could affect a large portion of the portfolio. Higher refinancing costs, development delays, and integration problems following the First Capital transaction add further risk.

Even so, a $10,000 investment would currently produce approximately $39.85 per month. Reinvesting those payments could gradually purchase more units, allowing one of Canada’s larger monthly dividend stocks to build an increasingly useful TFSA paycheque.

No stock is perfect enough to become an entire TFSA, and distributions aren’t guaranteed. Held beside companies from other industries, however, Choice stock’s covered yield, nearly full portfolio, and expansion opportunity could keep those monthly deposits growing long after the first paycheque arrives.

The post The Perfect TFSA Stock: A 5% Yield With Monthly Paycheques 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.

Twelve dividend deposits can make a portfolio feel remarkably similar to a paycheque. The shareholder doesn’t clock in, attend meetings, or pretend to enjoy team-building exercises. The cash simply arrives each month.

Monthly dividends aren’t inherently more valuable than quarterly payments. They are, however, easier to match with recurring bills and quicker to reinvest. Each payment can purchase additional shares, allowing the next dividend to arrive on a slightly larger pile of investments.

The yield still needs proper inspection. Investors comparing Canadian dividend stocks should check whether free cash flow covers the payout, how much debt the company carries, and whether earnings depend on something unpredictable. A tempting yield can become considerably less charming after a dividend cut. So, let’s look at one stock on the strong side.

WCP

Whitecap Resources (TSX:WCP) offers an appealing balance between income and growth. At a recent $16, its $0.0608 monthly dividend annualizes to $0.7296 per share, producing a yield of approximately 4.6%.

WCP stock produces light oil, natural gas, and natural gas liquids across Western Canada. Its assets include conventional fields with relatively predictable production and large unconventional properties capable of supporting years of drilling.

WCP stock became a much larger producer after completing its combination with Veren in 2025. First-quarter production reached 391,416 barrels of oil equivalent per day (boe/d), rising 119% year over year as the acquired properties joined the portfolio. This has set it up for some strong cash flow.

A supported payout

First-quarter free funds flow reached $349 million, while declared dividends consumed $221.3 million. That represents a payout ratio of approximately 63% based on free funds flow, leaving money available for debt reduction, drilling, share repurchases, and the occasional commodity-market surprise.

The shares also trade at roughly 4.7 times annualized first-quarter funds flow per share. Commodity prices can change that valuation quickly, but the current multiple doesn’t appear demanding for a producer with greater scale, investment-grade debt, and a monthly payout.

At the current payout, the position would generate approximately $38.30 each month. Reinvesting that cash could accelerate compound growth, while investors seeking income could use it to cover part of a recurring expense without selling shares. What’s more, should investors see the same growth as WCP stock made in the last year, investors could look forward to a further 63% return! Here’s what that might look like from a $10,000 investment on the TSX today.

Foolish takeaway

WCP stock’s dividend isn’t guaranteed. Lower oil and natural gas prices could reduce free cash flow, while integration problems, drilling disappointments, debt, and future cleanup obligations could pressure returns. The board reviews and declares the dividend monthly, so investors shouldn’t mistake frequent payments for permanent ones.

I would therefore hold WCP stock alongside companies from less cyclical industries rather than make it the entire income portfolio. With the Veren assets expanding production and current cash flow covering the payout, today’s 4.6% yield could provide a useful monthly reward while the larger business builds value for patient shareholders.

The post A 4.6% Dividend Stock That Pays Cash Monthly 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.

Electricity demand has rediscovered its appetite, and apparently it skipped breakfast. The International Energy Agency expects global power consumption to grow by an average of 3.6% annually through 2030, considerably faster than during the previous decade.

Artificial intelligence (AI), data centres, manufacturing, electric vehicles (EV), and building electrification all need more power. Generating that electricity requires enormous investments, giving established producers opportunities to expand assets, secure contracts, and grow cash flow.

Still, utilities don’t travel upward in a perfectly tidy line. Projects cost billions, debt becomes painful when rates rise, and issuing shares can upset existing investors. That occasionally creates a buying opportunity, provided the company is adding profitable assets rather than simply collecting expensive problems.

Independent power producers deserve extra care. Unlike regulated utilities, they can face changing wholesale power prices alongside construction and commodity risks. Investors considering buying stocks in Canada should therefore examine contracts, free cash flow, debt, and project economics before becoming emotionally attached to a juicy dip.

TA

This brings me to TransAlta (TSX:TA), down about 21% at writing from 52-week highs. The decline looks more interesting as the long-term demand story remains intact, even as several short-term developments have given investors indigestion.

TransAlta stock produces electricity through hydroelectric, wind, solar, battery-storage, and natural-gas assets across Canada, the United States, and Australia. Its diversified fleet gives the company several ways to earn, although results can still fluctuate with production and Alberta power prices.

First-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 24% to $204 million. Free cash flow declined 27% to $102 million as lower production and softer power prices weighed on results. That explains some caution, but the June share sale supplied the shove.

A buyable dip

TransAlta stock issued 18.23 million shares at $19.20 to raise roughly $350 million. Dilution rarely inspires a parade. However, the money will help fund two newly built natural-gas peaking facilities near Denver, Colorado, rather than disappearing into some mysterious corporate cupboard.

The facilities provide 318 megawatts (MW) of capacity and are fully covered by contracts with investment-grade customers lasting at least 25 years. TransAlta stock expects them to contribute approximately $110 million of annual adjusted EBITDA and $45 million of free cash flow, with the acquisition adding to free cash flow per share immediately after closing.

Looking ahead

Management also maintained its 2026 outlook for $950 million to $1.05 billion of adjusted EBITDA and $350 million to $450 million of free cash flow. Using the midpoint and the expanded share count, TransAlta stock trades near 15 times expected free cash flow. That looks reasonable for a company adding long-term contracted assets while advancing its Alberta data centre opportunity.

The company also signed an agreement with Brookfield and CPP Investments to develop a data centre site at Keephills, where TransAlta stock would become the exclusive site and power provider. It is not revenue in the bank yet, but it offers a direct route from rising computing demand to future electricity sales.

Foolish takeaway

Now, it’s not risk-free. The Colorado acquisition must still close, while its debt and integration requirements could disappoint. Lower Alberta power prices, outages, regulatory changes, or a delayed data centre project could also keep the shares under pressure.

That said, I would therefore build a position gradually and keep practicing disciplined stock selection. TransAlta stock’s dip comes with genuine risks, yet contracted growth, rising electricity demand, and a much friendlier valuation could give patient investors considerably more power than today’s share price suggests.

The post Buy the Dip: 1 Utility Stock That Looks Like a Steal After Falling 21% appeared first on The Motley Fool Canada.

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• Canadians: Here’s How Much You Need Saved in Your TFSA to Retire

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.

Retirement math has a wicked sense of humour. Wanting another $20,000 of annual income does not require another $20,000 in savings. Using a cautious withdrawal rate, it can add more than half a million dollars to the target.

Latest retirement-income research suggests a 3.9% starting withdrawal rate for someone planning a 30-year retirement with consistent inflation-adjusted spending. At that rate, $500,000 supports roughly $19,500 during the first year. A $1 million portfolio supplies $39,000.

That said, portfolio income does not need to cover everything. The Canada Pension Plan (CPP), Old Age Security (OAS), workplace pensions, and other income provide the foundation. Building a complete Canadian retirement plan begins by calculating the gap they leave behind.

So, how much do you need?

The average new CPP payment at 65 was $877.01 monthly in April 2026. Adding the maximum monthly OAS payment of $751.97 produces approximately $19,548 of annual government income. CPP and OAS are taxable, while Tax-Free Savings Account (TFSA) withdrawals generally are not. Using those benefits and that 3.9% starting rate produces the following estimates.

The short answer is therefore about $524,000 for a modest $40,000 annual lifestyle, rising to roughly $781,000 for $50,000 of total cash flow. Apparently, retirement also offers luxury pricing.

Of course, these figures are starting points, not guarantees. Retiring early, living longer, paying high investment fees, or suffering a market decline immediately after retirement could require more. Maximum CPP, a workplace pension, a spouse’s income, or flexible spending could reduce the amount considerably.

But why a TFSA?

Investment growth and withdrawals inside a TFSA generally remain tax-free. Withdrawals do not increase taxable income or reduce federal income-tested benefits such as OAS or the Guaranteed Income Supplement (GIS), making the account unusually useful in retirement.

The 2026 contribution limit is $7,000. Someone who was at least 18 in 2009, remained eligible every year, and never contributed could have $109,000 of room. That does not cap the account’s value, though. Investment gains can push a TFSA far beyond total contributions without creating an overcontribution.

Unused room carries forward, while withdrawals return as contribution room the following calendar year. Younger Canadians and newer residents will have smaller limits, so everyone should check personal records before attempting to deposit several hundred thousand dollars. The CRA would notice that little flourish.

A balanced stock

Reaching these targets requires long-term growth, which makes Manulife Financial (TSX:MFC) worth considering as part of a diversified TFSA. The company sells insurance, manages investments, and provides retirement products across Canada, the United States, and Asia.

First-quarter core earnings per share (EPS) increased 11%, supported by business growth and continued share repurchases. Manulife stock also pays a $1.94 annual dividend, producing a yield near 3.1% at writing.

The shares trade around 17 times trailing earnings, although they are no longer bargain-bin cheap after a strong rally. Market volatility, wealth-management outflows, insurance claims, and weaker Asian growth remain risks, so Manulife stock should accompany diversified funds, bonds, and cash rather than occupy the entire account.

Bottom line

All said and done, a TFSA balance between $524,000 and $1.04 million will not appear through one heroic stock purchase. Regular contributions, reinvested dividends, sensible diversification, and several gloriously boring decades can nevertheless turn today’s available room into tomorrow’s tax-free retirement paycheque.

The post Canadians: Here’s How Much You Need Saved in Your TFSA to Retire 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.

There are multiple reasons for having $15,000 in your Tax-Free Savings Account (TFSA). You may have past TFSA contributions carried forward, creating sufficient room to invest $15,000. Or you might have just sold a growth stock that has earned you good profits, which you are looking to rebalance into passive income.

Just how a $15,000 TFSA balance need not come from your working income, monthly payouts need not come from monthly dividend stocks.

How to use TFSA to bring in $49 a month starting with only $15,000

If not monthly stocks, then what? Three quarterly dividend stocks with different payout dates can help you get a payout every month. You may wonder why take the effort. Monthly dividend stocks do not offer the attractive dividend growth rates that quarterly dividend stocks do.

Building a dividend ladder with quarterly stocks

Enbridge (TSX:ENB) pays dividends on the first of March, June, September, and December. It slowed its dividend growth in the pandemic from 10% to 3%. However, the pipeline operator is expected to grow dividends by 5% annually from 2027 onwards. This dividend growth will be supported by the massive gas pipeline projects coming online in the next three years. Now is a good time to buy Enbridge stock as new projects could drive up its share price.

The next leg in the dividend ladder

Complementing Enbridge’s dividend is Power Corporation of Canada (TSX:POW) with a dividend yield of 2.88% and a dividend growth rate of 10%. Power Corporation’s dividend dates are 26th of April, July, October, and January. This creates a two-month gap from Enbridge’s dividend dates. Cenovus Energy (TSX:CVE) has dividend dates closer to March 31, but the yield is only 2.16%. A $5,000 investment can get you the April payout of $25.96 if you invest in Cenovus and $35.38 if you invest in Power Corporation. A one-month delay can create a difference of $10.

Beyond dividend amounts and dates, let’s compare the two stocks on safer dividends. Financial holding company Power Corporation provides a safer dividend option as it gets its dividends from its two operating companies, Great-West Lifeco and IGM Financial. Insurance premiums and mutual fund investments help them earn strong cash flows. Moreover, Power Corporation has a 22-year history of paying dividends. Cenovus started paying dividends in 2021 when the oil sector began its upcycle. Its dividends are yet to test the downcycle.

If safety is your requirement, Power Corporation is better for the long term.

The final ladder in the TFSA monthly dividend

Emera (TSX:EMA) is an energy holding company with dividend dates completing the missing pieces of the monthly grid. With a 3.87% dividend yield and a 3-4% dividend-growth rate. It has gas power and gas utilities in the United States and Canada and earns dividends from the utility bills. The company slowed its dividend growth in the last two years but could likely resume growth.

If you opt for Power Corporation, you can get a monthly payout in the $35 to $63 range, with an average monthly payout of $49.

The post How to Use Your TFSA to Bring in $49 a Month Starting With Only $15,000 appeared first on The Motley Fool Canada.

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

Canadian investors are using their self-directed Tax-Free Savings Account (TFSA) to create investment portfolios that can deliver tax-free passive income and boost personal wealth.

TFSA 101

The government launched the TFSA in 2009 to give Canadians another vehicle in addition to the Registered Retirement Savings Plan (RRSP) to build savings for retirement or to meet other financial goals. Since inception, the cumulative maximum TFSA contribution room has increased to $109,000 per person for anyone who has qualified every year.

Capital gains, dividends, and interest income earned inside a TFSA are tax-free and can be removed as tax-free income at any time. Any withdrawals made from a TFSA automatically open up equivalent new contribution room in the following calendar year, in addition to the regular TFSA limit increase.

Retirees can use the TFSA to generate tax-free income that won’t put their Old Age Security (OAS) pensions at risk of a clawback. Younger investors might decide to maximize TFSA contributions and bank RRSP space for later years when they will likely have higher salaries. RRSP contributions reduce taxable income, so the tax savings are larger when a person is in a higher marginal tax bracket.

GICs or dividend stocks

Rates offered on Guaranteed Investment Certificates (GICs) have increased in recent weeks in step with a jump in bond yields. Non-cashable GICs offer the best rates. Normally, the longer the term, the higher the rate that is offered, but that isn’t always the case.

At the time of writing, investors can get non-cashable GIC rates above 3.30% for one-year GICs and more than 4% for five-year certificates, depending on the issuer. These rates are comfortably above the current rate of inflation in Canada, which came in at 2.8% in June. As long as the GIC is within the $100,000 threshold and is from a Canada Deposit Insurance Corporation (CDIC) member, the funds are safe.

It is important to plan cash needs before locking up big chunks of savings in multi-year GICs. Investors should ensure they have access to funds for emergencies. In addition, a surge in inflation could quickly drive rates much higher, as occurred in 2022 and 2023, so there is a risk of missing out on potential higher rates.

Dividend stocks are another popular TFSA investment for both retirees and younger savers. Dividend yields are often higher than GIC rates and steady dividend growth raises the return on the initial investment. Companies that boost their dividends annually tend to see their share prices move higher over the long run. Stocks also provide good liquidity, as they can be sold at any time to access the funds.

On the downside, there is a risk of capital loss. Share prices can fall below the purchase price. Sometimes they take years to recover, or never return to previous levels. Dividends are not 100% safe, although top dividend-growth stocks are unlikely to reduce their distributions.

Enbridge (TSX:ENB), for example, has increased its dividend annually for more than 30 years and the stock currently offers a 5% dividend yield.

The company continues to grow through acquisitions and has a secured capital program of $40 billion in development projects. This should enable steady dividend increases in the coming years. Long-term holders of Enbridge’s shares have enjoyed attractive total returns.

The bottom line

The right mix of GICs and dividend stocks is different for each investor depending on the person’s age, risk tolerance, required returns, and need for quick access to the invested funds.

In the current market conditions, investors can quite easily build a diversified TFSA portfolio with GICs and dividend-growth stocks to get an average yield of at least 4%. This provides a return above inflation while also reducing portfolio risk.

The post How to Build a Balanced TFSA Focused on Income and Capital Gains appeared first on The Motley Fool Canada.

More reading

• How to Use Your TFSA to Bring in $49 a Month Starting With Only $15,000
• 2 Canadian Stocks With 5% Dividend Yields
• TFSA Passive Income: 3 TSX Dividend Stocks to Buy on Dips
• How to Use Your TFSA to Turn a $7,000 Contribution Into $545 a Year
• RRSP Investing: 2 TSX Stocks to Start a Dividend Portfolio

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

The Tax-Free Savings Account (TFSA) a great place to build an income stream. You don’t pay tax on your dividends, interest, and gains. That means all the income sticks with you. With the right mix of dividend stocks inside a TFSA, you can earn over $2,500 of income per year.

If you want a mix of quality dividend stocks, a 4% average portfolio yield will give you a good mix of quality companies and attractive income returns. You would need around $63,000 invested to hit a $2,500 per year minimum income target at that yield.

Here is how I would put together an income portfolio with $63,000 inside a TFSA.

Dream Industrial: An income dream for your TFSA

I would firstly put $15,750 into Dream Industrial Real Estate Investment Trust (TSX:DIR.UN). It yields 4.8% today. Your investment would earn $63.53 monthly or $762.30 annually.

Dream manages a large portfolio of multi-tenanted industrial properties across Canada, the U.S., and Europe. It just announced a substantial acquisition to buy a major management and development platform in Europe. This will place Dream as the leading asset manager in Europe.

The REIT has solid occupancy and a diverse mix of high-credit tenants. It’s an intriguing buy even today.

Topaz Energy

Topaz Energy (TSX:TPZ) is another stock to buy with $15,750 in a TFSA. It yields 4.3% right now. Your investment would earn $172.20 quarterly or $688.80 annualized.

This is an energy infrastructure and royalty business in Western Canada. It has assets in some of the best basins in the Canadian energy patch. As more wells are drilled in these regions, it sees its income organically grow. It also regularly acquires land royalties into its stream.

This is a really well-managed business that has a great record of dividend growth. As energy sector sentiment improves in Canada, Topaz should continue to see solid total returns over time.

Pembina Pipeline: A top TFSA infrastructure stock

Pembina Pipeline (TSX:PPL) is an attractive TFSA income stock. It yields 4% today. A $15,750 investment would earn $160 quarterly or $640 annually.

Pembina operates a diversified energy infrastructure business. It plays a crucial role in getting Canadian energy to end markets. Over 85% of its income is contracted. That income widely supports its dividend.

Pembina has an attractive mix of capital growth projects including an LNG export terminal, data centre power, and various pipeline and midstream expansions. If you want a well-managed business with a steadily rising dividend, this is a great stock to hold in a TFSA.

Propel Holdings

Propel Holdings (TSX:PRL) is another stock to add to your TFSA income portfolio. It yields 3.5% today. Your $15,750 investment would earn $139.50 quarterly or $558.54 annually.

This is the wildcard stock in the mix. It is a little bit higher risk, but also higher reward. Propel provides small, short-term loans to non-prime consumers. It’s a risky segment. However, Propel uses an A.I. platform to smartly and efficiently underwrite loans.

The company has been growing at a double-digit rate. It continues to see strong opportunities in the U.K. and United States. This stock is a bit sensitive to interest rates and the broader economy, so that is something to monitor while you own this investment.

The Foolish takeaway

By combining these four stocks in a TFSA, you would be set to earn $2,650 of tax-free annual income.

The post How to Use Your TFSA to Average $2,650 Per Year in Tax-Free Passive Income appeared first on The Motley Fool Canada.

More reading

• How to Use Your TFSA to Generate $78 in Monthly Tax-Free Income
• How I’d Turn $15,000 in My TFSA Into $50 Monthly Income
• How to Use Your $45,000 TFSA to Collect $190 Every Month
• How to Convert $25,000 in TFSA Savings Into Reliable Cash Flow
• How to Use Your TFSA to Turn $30,000 Into $140 Monthly Cash Flow

Fool contributor Robin Brown has positions in Propel. The Motley Fool has positions in and recommends Propel. The Motley Fool recommends Dream Industrial Real Estate Investment Trust, Pembina Pipeline, and Topaz Energy. The Motley Fool has a disclosure policy.

Roughly half of global crop yields depend on fertilizer. Remove it, and the grocery aisle becomes considerably less exciting, considerably faster. Few products are more cyclical in price yet more stubbornly necessary.

The Food and Agriculture Organization says fertilizer contributes to approximately half of global crop yields, with demand expected to increase as the population approaches 10 billion. Farmers may delay purchases when crop prices weaken, but soil eventually wants its nutrients back. Apparently, even dirt keeps a balance sheet.

That recurring demand can support a decades-long investment, although the dividend still deserves inspection. Investors should compare the payout with earnings and cash flow, watch debt, and confirm management continues investing in the business. A quarterly dividend also isn’t inferior to a monthly one when those payments are being reinvested through several Canadian dividend stocks.

Commodity companies rarely travel in a straight line. Fertilizer prices rise, encourage additional supply, and eventually retreat before the cycle begins again. Those swings can produce attractive entry points when the long-term demand remains intact, which brings one Saskatchewan giant into focus.

NTR

Nutrien (TSX:NTR) recently closed about 20% below its 52-week high of $116.95. Its dividend produces a yield near 3.3% at writing as well, while management increased the payment by 1% for 2026.

The company produces potash, nitrogen, and phosphate fertilizers while operating an enormous agricultural retail network across North America, South America, and Australia. This combination allows Nutrien stock to earn from both manufacturing crop nutrients and selling farmers fertilizer, seeds, crop-protection products, and services.

Its greatest advantage sits beneath Saskatchewan. Nutrien stock operates massive potash mines with long reserve lives, existing transportation connections, and production capacity that would take a new competitor years and billions of dollars to recreate. The world can develop new software rather quickly. Building a potash mine before lunch remains trickier.

Into earnings

First-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 30% to US$1.1 billion. Record potash sales volumes, higher fertilizer prices, and stronger retail results supported the increase, while management maintained its full-year guidance.

The dividend also consumed approximately half of fiscal 2025 adjusted earnings per share (EPS). That leaves some breathing room for weaker periods, mine investment, debt reduction, and share repurchases, although no commodity dividend should ever be treated as guaranteed.

Nutrien currently trades around 13.5 times trailing earnings. That isn’t bargain-bin territory, but it looks reasonable for a global fertilizer leader trading 20% below its recent peak. Investors considering buying stocks in Canada could build the position gradually instead of attempting to predict fertilizer’s next dramatic mood swing.

Foolish takeaway

Lower potash or nitrogen prices could reduce earnings quickly. Farmer affordability, weather, trade restrictions, energy costs, currency movements, and geopolitical developments can also send fertilizer markets wandering in unexpected directions. Nutrien stock’s phosphate and international retail operations have produced uneven returns as well. So, these are all points to consider before picking up the stock.

That said, those risks make Nutrien stock better suited to a diversified portfolio than an all-in wager. Still, its irreplaceable assets, improving results, and exposure to rising food demand could allow patient investors to reinvest a 3.3% yield while the next several decades provide the real harvest.

The post This TSX Dividend Stock Is Down 20% and Worth Holding for Decades appeared first on The Motley Fool Canada.

More reading

• A Canadian Dividend Stock Down 34% I’d Buy for Retirement Income
• Dip Buyers Could Win Big: 2 of the Best Canadian Stocks to Buy Now
• What the Typical 40-Year-Old Canadian Has in Their TFSA and RRSP
• 1 Undervalued Canadian Dividend Stock I’d Buy Now and Hold for Years
• 1 Canadian Dividend Stock I’d Buy Before Inflation Heats Up Again

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