Are you scouting the market to see where you can best utilize your 2026 Tax-Free Savings Account (TFSA) annual limit? The TSX’s energy sector continues to outperform, although a sharp correction in oil prices is possible once the war in Iran ends. A safer alternative worth buying with $7,000 is a defensive stock in the Utilities sector.

Brookfield Renewable Partners (TSX:BEP.UN) will help you forget the FOMO (fear of missing out) feeling on energy gains. The premier utility stock continues to beat the broader market thus far in 2026. At $46.95 per share, the year-to-date gain is 28% compared to the TSX’s 7% return.

Furthermore, the dividend yield is an enticing 4.7%. A $7,000 investment today will generate $81.37 in tax-free income every quarter ($325.50 annually). Further price appreciation is a welcome bonus.

Strong start to 2026

Brookfield Renewable delivered robust financial results in Q1 2026, particularly a significant increase in funds from operations (FFO). In the three months ending March 31, 2026, FFO increased 19% year-over-year to a record US$375 million. Available liquidity at the quarter’s end was over US$4.7 billion.

According to its CEO, Connor Teskey, growing energy demand is occurring alongside a renewed focus on energy security. “In an environment with strong demand for low-cost, quick-to-market, and increasingly locally sourced energy, we are well positioned to deliver sustainable long-term cash flow growth for our investors,” he added.

Tesky credits Brookfield’s diverse global fleet and contracted, inflation-linked cash flows, as well as recent acquisitions, for the strong quarterly results. The financial strength can sustain dividend payments and support the annual dividend growth guidance of 5% to 9%.

On March 25, 2006, Brookfield, along with La Caisse, a Canadian public pension fund manager, entered a definitive agreement to acquire Boralex. The renewable energy producer will operate as an independent private company after the transaction closes in Q4 2026.

Massive development pipeline

Brookfield’s development pipeline, both projects under construction and in advanced development (80 gigawatts), has reached a massive scale (total 200 gigawatts). The new capacity coming online over the next several years provides visibility into future cash flows.

During the earnings call, Patrick Taylor, Managing Partner and Chief Financial Officer of Brookfield’s Energy Group, said, “We remain focused on delivering 12% to 15% long-term total returns for our investors, supported by our strong operating platform, disciplined capital allocation and our growing capital recycling program.”

Big Tech deal

In November 2025, Brookfield Renewable Partners signed a historic partnership with Microsoft. The deal involving 10.5 gigawatts of new renewable energy capacity to power the tech giant’s AI data centres is a growth catalyst for BEP.UN this year.

The $13.5 billion renewable energy company deal has ventured into the digital economy, which offers long-term growth. A broader agreement was signed beforehand covering a hydroelectric facility.

Business is as strong as ever

TFSA investors can take a cue from Teskey, who assured that the operating fundamentals and the business’s organic growth profile are as strong as they’ve ever been. Clearly, Brookfield Renewable Partners is the top Canadian stock to buy right now.

The post TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000 appeared first on The Motley Fool Canada.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy.

2026

Some stock market investment decisions keep you up at night. This isn’t one of them.

If I could pick just one exchange-traded fund (ETF) to anchor my portfolio for the next three decades, without second-guessing myself, it would be the iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV). Here’s why this low-cost, passively managed, monthly-income producing index fund has earned my conviction as a core holding in a retirement portfolio.

Best Canadian ETF to buy

The iShares Core MSCI Canadian Quality Dividend Index ETF is one of my best ETFs to buy for long-term holding. It’s $5 billion portfolio hunts for the best dividend stocks on the TSX. Its underlying index, the MSCI Canada High Dividend Yield 10% Security Capped Index, rigorously screens stocks for high quality dividend stocks using criteria such as return on equity, earnings stability, and debt-to-equity ratios that portray strong balance sheets. Only about 21 Canadian blue-chips make the cut, and they’re among the fittest dividend payers in Canada.

That quality-first approach has been rewarded. Since its launch in June 2017, the XDIV has delivered an annualized total return of roughly 13.6% to reward investors with a 210% total gain on investment. For a portfolio that collects dividends along the way, a double-digit compound annual growth rate is exceptional.

A $10,000 investment in the XDIV ETF at inception in 2017 could have grown to more than $30,000, with dividend reinvestment.

XDIV Total Return Price data by YCharts

A significantly low management expense ratio (MER) of $0.11% (or $1.10 per annum per every $1,000 invested) means investors get to keep most of the investment returns generated by the portfolio. They won’t lose much value to ETF management fees and expenses.

On top of hefty capital gains potential, investors in the XDIV ETF receive a dividend every single month. The most recent monthly dividend should yield a respectable 3.4% annually.

Where could future growth come from?

Skeptics might say past performance doesn’t guarantee future returns, and they’d be right. But the ETF’s design makes tomorrow’s growth potential equally plausible. Its concentrated holdings sit at the intersection of Canadian economic resilience and global demand. These include top-tier banks with fortress balance sheets, pipelines that form the backbone of North American energy, and utility giants that earn regulated, predictable economic returns through economic cycles.

If interest rates drift lower over the next cycle, yield-oriented assets should enjoy a valuation tailwind. Meanwhile, these large-cap, wide-moat companies keep growing their earnings and free cash flow.

Most noteworthy, the XDIV ETF’s passive rebalancing means investors won’t have to guess which pipeline or bank will win. Investors simply own the strongest TSX dividend stocks at all times.

A monthly income ETF you can depend on

The XDIV ETF pays a monthly dividend that yields about 3.4%. The yield appears better than the iShares Core S&P/TSX Capped Composite Index ETF‘s 2%, giving investors a meaningful bump in immediate cash flow. But what excites me more is the growth potential in those monthly payouts.

The monthly dividend ETF’s underlying holdings are stocks that have raised dividends through thick and thin. Since 2017, the ETF’s monthly distribution has climbed from roughly $0.07 per share to around $0.12 today. That’s an income raise almost every year, without investors lifting a finger. For a retiree or an income-focused TFSA, that growing monthly cheque feels like pure gold.

Why the XDIV ETF may be a best buy in any core portfolio

The iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV) can form the core of any portfolio, and it is eligible for registered investment accounts.

For a young investor building long-term wealth inside a TFSA, the monthly distributions turbocharge compounding, and the quality screen offers growth without speculative risk.

For a retiree, the growing income stream helps outpace inflation while the low MER keeps withdrawal values high. Even inside an RRSP, where foreign withholding taxes don’t apply, the sheer dependability of the holdings makes it a one-decision portfolio anchor.

Once the core is all set, it’s time to find the high conviction growth and income stocks that fit one’s investment objectives.

The post The #1 Index Fund I’d Hold in My Portfolio Forever — No Hesitation appeared first on The Motley Fool Canada.

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.

2026

Canadian retirees have quite the tightrope to walk as they seek to balance out growth potential, passive income (in the form of dividends, interest, distributions, and all the sort), as well as safety (lower volatility and defence against economic downturns). Of course, every individual retiree is going to have a different risk tolerance, income needs, and appetite for growth.

In any case, there is one common trait that I think every investor should seek to maximize at all costs: value. Whenever you can pay a dollar to get a dollar and change, investors should look to act. But, of course, it can be tough to tell what’s actual value and what’s a trap disguised as value.

In my view, it’s better to go for a modestly-discounted stock that’s out of favour than to go for the steepest markdowns, especially if you can’t fully grasp why a company is down and what more it’ll take to spark some kind of turnaround. Bottom-fishing isn’t easy, and if you don’t have an appetite for turbulence, perhaps prioritizing quality and reasonable prices could be the winning move over the long term.

Without further ado, here’s one safety stock that I think is defensive with a nice, growing dividend, an underrated longer-term growth profile, and a valuation that’s still not all too outlandish.

CN Rail stock looks cheap

Enter shares of CN Rail (TSX:CNR), which have been chopping around quite a bit this year, with steep surges and equally vicious drawdowns. Indeed, the stock is starting to get far choppier than the market in 2026. But despite the wild swings, I do view the name as a great comeback play with one of the most durable dividends out there (currently yielding 2.4%). I don’t know about you, but I’d rather get a 2.4% yield with a good shot of averaging dividend growth in the high single-digits (or even low double-digits in good times) over prolonged periods.

Of course, CN Rail is rolling through a rather harsh climate, and dividend growth might not be as generous as it used to be. Still, I think the rail icon is one of the steadier and more boring ways to build wealth over the decades. What’s most enticing is that the rail firm has one of the widest physical economic moats out there, one that AI cannot replicate!

Compared to a utility, you’re getting less yield (at least on average), a higher beta, and far more sensitivity to the state of the economy. Indeed, if we are headed for an AI-induced economic downturn, CNR stock is going to be a rougher ride. But I think it’ll all be worth it for the long-term dividend growth potential and the really depressed price of admission.

The company may be going through some rough times, but with a 19.3 times forward price-to-earnings (P/E), you’re paying a very fair price for a company with pricing power and the ability to bounce back once the economy picks up speed.

Bottom line

You can’t have a booming economy without CN Rail. And with encouraging volumes in the latest quarter, perhaps it’s time to board before the firm becomes more of an optimal operator while headwinds finally look to dissipate. CNR stock might be too choppy for some retirees, but for those who want a good price on a long-time dividend grower while the multiple is reasonable, I’d say it’s a great time to nibble.

The post A Reasonably Priced Safety Stock That Canadian Retirees Might Want to Know About appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has positions in Canadian National Railway. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

2026

Index exchange-traded funds (ETFs) are some of the best investments out there. Offering diversification, low management fees and liquidity, they beat most other funds an investor could purchase. Mutual funds are illiquid and can only be cashed out of once or twice per day. Hedge funds have high fees, typically underperform the market, and share the problems previously mentioned for mutual funds. Non-index ETFs usually charge high fees similar to hedge funds.

Compared to the other options discussed above, index ETFs offer the best of all worlds. They’re diversified. They have low management fees – sometimes as low as 0.01% per year. And finally, they are highly liquid, meaning that you can sell them whenever markets are open, typically eight hours per day Monday to Friday. It’s a pretty sweet deal.

With that being said, not all index funds are created equal. Some have higher fees than others. Some are more diversified. Some track reputable indexes, others track questionable ones. The variety is just as diverse as is found in the world of managed funds. It takes considerable research to find out which fund portfolio is right for you. In this article, I’ll explore one Canadian ETF that I’ve been buying in recent years.

Vanguard’s emerging markets ETF

The Vanguard FTSE Emerging Markets Index ETF (TSX:VEE) is a Canadian fund of emerging market stocks. It holds 6,355 stocks, most of them issued by companies in China and India. Its portfolio P/E and price/book ratios are 15.8 and 2.3, respectively, much lower than is the norm for Western markets. The fund has a 0.26% management fee, which is relatively low.

Emerging markets have potential

One of the big reasons why I like the VEE ETF is because the markets it invests in have a lot of potential. As mentioned previously, VEE’s P/E and price/book ratios are much lower than those of North American stocks. Additionally, these stocks have plenty of growth potential, with a 14.4% average growth rate. Finally, emerging market stocks have lower market caps than North American giants, meaning they benefit from the size premium. Overall, such stocks are very much worth looking at.

Wide diversification

One of the best things about VEE is its wide diversification. The fund holds 6,355 stocks, which is more than most index funds hold. The stocks furthermore are in different industries, reducing the correlation among the holdings. Low correlation is a key distinction between true diversification and merely numerical diversification. VEE ticks both of the important boxes when it comes to diversification.

Low fees

VEE’s 0.26% management fee is relatively low. It certainly isn’t the lowest you’ll find among index funds. Big S&P 500-based funds sometimes have fees as low as 0.01%! But VEE’s fee is significantly lower than what the average active fund charges.

A respected issuer

Last but not least, VEE is issued by a respected fund management firm, Vanguard. Vanguard is one of the “big three” index fund companies, along with BlackRock and State Street. It was one of the first funds ever to offer index funds, and it has accumulated considerable expertise in running such funds over the year. It’s an issuer you can trust.

Foolish takeaway

Investing in ETFs is usually a good idea. But you need to know which funds to hold. Invest in a low quality ETF, and you could get results as poor as if you’d invested based on dodgy stock tips. Invest in high quality funds like VEE, and you’ll likely go far.

The post Why I’m Buying This ETF Like There’s No Tomorrow and Never Selling appeared first on The Motley Fool Canada.

Fool contributor Andrew Button has positions in the Vanguard FTSE Emerging Markets ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

The Tax-Free Savings Account (TFSA) is the ideal place to buy and hold stocks for years and decades. You don’t pay any tax on the income that you earn inside the account. This can have a huge effect on your wealth given decades to compound.

Save big on tax by letting your winners multiply in your TFSA

When you think long term, you aren’t thinking about a quick 20% gain on your investments. Inside your TFSA, you are smart to look for stocks that multiply your wealth. You don’t want to have to pay any tax on a capital gain that could be worth hundreds of thousands of dollars.

Say you found a mix of stocks that could compound $109,000 (the total combined contribution for someone who was 18 or older in 2009) of your TFSA cash at a 15% compounded rate for 15 years. Your $109,000 contribution would be worth $886,939 at the end of that period. That is a $777,939 capital gain!

If that investment wasn’t in your TFSA, you could be owing the Canada Revenue Agency as much as $186,705 dollars in tax! Since it is in your TFSA, all that cash stays with you. The highest TFSA benefit comes from letting winners run for long periods of time.

If you are looking for some long-term winners for your TFSA, here are two stock ideas.

Constellation Software: Down, but a good bargain here

Constellation Software (TSX:CSU) might be a hard stock to consider buying right now. It is down 20% in 2026 and 50% over the past year. It certainly doesn’t look like a winner today. However, even after its collapse, it is still up 13,997% (a 28% compounded annual growth rate) over the past 20 years

Today, after the pullback, this TFSA stock looks very attractive given that its valuation has been clipped in half. You can buy this stock at the same growth rate (around 15%), but half the price.

The main reason for its collapse is concerns around AI disruption and slowing growth. Certainly, it is a concern to monitor. Yet, for an incumbent, entrenched software supplier, AI is likely to be a net benefit, rather than a detraction.

Constellation is broadly using AI across its organization to improve business operations and efficiency. Likewise, it is creating new AI services that it is presenting to its customers.

This is a company that grew revenues by 15% and cash from operations by 24% in 2025. It sure doesn’t look like the business model is broken. You can pick up this TFSA stock with an 8% free cash flow yield. It is isn’t often you can find such a high-quality business at such a great valuation.

Aritzia: A growing TFSA stock you don’t want to miss

While it may take some time for the market to regain interest in Constellation, one growth stock that is working today is Aritzia (TSX:ATZ). This company has been on a tear over the past few years. Its stock is up 22% in 2026, 140% in the past year, and 350% in the past five years (a 35% CAGR).

Aritzia is enjoying substantial success as it expands its brand of clothing from Canada into the U.S. U.S. revenues have already eclipsed Canadian sales. The exciting part is that it still has room to more than double its store count in the United States. Not to forget that it has not even started expanding internationally.

The apparel retailer just announced fiscal 2026-year-end results. Revenues increased 35% and net income per share soared 79.8%! It is targeting over 19% revenue growth and strong margin improvements in fiscal 2027!

While Aritzia is no longer a cheap stock today, it has strong momentum guiding the stock higher. If you want a stock with a long growth runway for your TFSA, Aritzia is the perfect bet.

The post The Ideal Canadian Stocks to Buy and Hold Forever in a TFSA appeared first on The Motley Fool Canada.

Fool contributor Robin Brown has positions in Aritzia and Constellation Software. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

2026

At first glance, the telecom giant BCE (TSX:BCE) might look like an easy buy. It’s one of Canada’s biggest telecom companies, it pays a solid dividend, and it operates in an industry that people rely on every single day. On top of that, the company has been pushing deeper into growth areas like fibre internet and artificial intelligence (AI)-powered business solutions.

So why hesitate? Because sometimes a good company and a good stock aren’t the same thing at a particular moment. BCE is still working through an important transition, and investors may want a bit more proof before jumping in too quickly. There’s a lot to like about BCE right now, but there’s also one key reason why patience could pay off. Let’s take a closer look.

BCE continues to strengthen its core business

Headquartered in Verdun, Quebec, BCE is one of Canada’s largest communications companies. Through brands such as Bell, Virgin Plus, Fibe, Lucky Mobile, Bell MTS, and Northwestel, the company provides wireless, broadband internet, television, media, and enterprise communication services across the country.

The company operates through two main segments: Bell Communication and Technology Services and Bell Media. Together, these businesses serve consumers, businesses, and government customers while also generating revenue from media, advertising, and digital platforms.

At the time of writing, BCE stock traded at $33.12 per share with a market cap of roughly $30.9 billion. Over the last year, it has climbed by around 12% while offering investors an attractive annualized dividend yield of 5.3%, with quarterly payouts.

Solid first-quarter results show operational strength

Earlier this week, BCE released its earnings report for the first quarter of 2026, which highlighted several encouraging trends despite some pressure on its earnings. The company posted 4% year-over-year (YoY) revenue growth, helping its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rise by 2.9%. However, its adjusted earnings slipped 8.7% YoY to $0.63 per share.

The company’s free cash flow improved slightly by 0.8% to $804 million. Although operating cash flow declined mainly due to higher taxes linked to strategic divestitures, several areas of the business delivered strong momentum.

Meanwhile, its Bell Business Markets segment’s revenue rose by 9.7% YoY, fueled largely by a massive 113% jump in its AI-powered solutions revenue. BCE also continued seeing strong subscriber growth following its Ziply Fiber acquisition, adding nearly 50,000 residential fibre-to-the-home internet subscribers during the quarter.

In addition, the company’s Crave streaming platform continued gaining traction, with subscriptions rising 25% YoY to 4.7 million users.

Why investors may still want to wait

Despite these positives, there’s one major factor investors should monitor before buying BCE stock aggressively: its capital allocation trend and long-term growth investments.

In general, telecom companies require enormous capital spending to expand fibre infrastructure, strengthen wireless networks, and support new technologies. BCE has been investing heavily in these areas, particularly fibre expansion and AI-related enterprise services.

While these investments could generate strong long-term returns, investors should wait to see clearer evidence that they are translating into stronger earnings growth and improving profitability. The recent declines in its adjusted earnings per share suggest the company is still in the middle of that transition phase.

In addition, BCE’s strategic divestitures, including the planned sale of its Bell Mobility land mobile radio network services business for $675 million, are intended to simplify operations and redirect capital toward higher-growth opportunities. Given this scenario, investors may benefit from waiting until the company clearly shows how effectively that capital is being deployed.

The post Don’t Buy BCE Stock Until This Happens appeared first on The Motley Fool Canada.

Fool contributor Jitendra Parashar has positions in BCE. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

Exchange-traded funds (ETFs) are becoming increasingly popular investment options for Canadians. One of the many appeals in that approach is owning a wider slice of the market rather than just one individual ticker. Prospective investors who look beyond those popular ETFs will find some that Canadians are sleeping on right now.

These ETFs have massive long-term potential for investors. Often, these come with a mix of diversification, income, and growth that is appealing to any investor’s portfolio.

Here are three of those lesser-known ETFs to consider today.

ZWC offers income strength that Canadians are missing

The first of the ETFS that Canadians are sleeping on is BMO CA High Dividend Covered Call (TSX:ZWC). BMO High Dividend Covered Call is one of the most overlooked income ETFs in Canada.

That’s surprising considering the ETF provides both steady cash flow and defensive positioning. BMO High Dividend Covered Call uses a covered‑call strategy on Canadian blue‑chip stocks. This helps to generate higher income while reducing volatility.

Part of the reason for that limited visibility of the fund is the general misunderstanding around covered calls. In short, there’s a stereotype that they’re too complicated, which makes many investors look beyond the very investment that’s designed for stability and yield.

That’s precisely where BMO High Dividend Covered Call fits into a portfolio. It offers income without excessive risk by leaning on established Canadian companies. The options enhance cash flow, making it appealing for income seekers.

As of the time of writing, BMO High Dividend Covered Call offers a monthly payout with a yield of 5.7%.

For prospective investors, BMO High Dividend Covered Call may be one of the ETFs that Canadians are sleeping on right now, but it doesn’t need to stay that way.

XDG brings global dividend growth

Canada’s market is full of strong performers that continue to provide solid income and growth. But that’s not to say that there aren’t other, perhaps better income and growth options outside of Canada.

That’s why the second of the three ETFs that Canadians are sleeping on is so important. iShares Core MSCI Global Quality Dividend Index (TSX:XDG) offers exposure to global dividend-growing companies.

More specifically, businesses with long records of increasing payouts, strong balance sheets, and diversified revenue streams.

And despite that appeal, iShares Core MSCI doesn’t get the attention it deserves. The fund simplifies the need to pick individual stocks or navigate currency risks. Instead, there’s a single fund that offers a basket of those global top performers that comes with a 2.87% yield.

In short, iShares Core MSCI isn’t just one of the ETFs that Canadians are sleeping on; it’s a long-term growth and income opportunity.

XRE is quietly positioned for a REIT rebound

A third variant of the ETFs that Canadians are sleeping on right now focuses on real estate investment trusts (REITs). The inflated interest rates that we’ve seen over the past several years have pushed investors out of REITs and into other segments of the market.

That rotation has created the environment why iShares S&P/TSX Capped REIT (TSX:XRE) is now one of the ETFs that Canadians are sleeping on.

iShares S&P/TSX Capped REIT provides exposure to Canada’s REIT market. These businesses generate recurring rental income that persists through economic cycles.

More specifically, the fund’s basket includes some of the largest and most established REITs, which often come with decades of experience and higher yields.

The fund offers a monthly distribution that, as of the time of writing, offers a yield of 4.9%.

For prospective investors, the key advantage here is owning a basket of some of the highest-yielding REITs on the market. This reduces the risk of owning one ticker but still offers the monthly distribution and diversification.

iShares S&P/TSX Capped REIT is a perfect example of an ETF that investors avoid due to recent performance, despite the improving market for the long term.

Will you buy these ETFs that Canadians are sleeping on?

No stock or ETF is without risk, and that includes the three ETFs mentioned above. That being said, the trio of options above offers investors a clear path to growth, income generation, and diversification on a sector and global scale.

Investors who can look past the popular array of Canadian tickers will find that these ETFs that Canadians are sleeping on are superb options that should be key in any larger, well-diversified portfolio.

The post The ETFs That Canadians Are Sleeping on But Shouldn’t Be Right Now appeared first on The Motley Fool Canada.

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.

2026

The Bank of Canada (BoC) recently kept its benchmark policy rate unchanged at 2.25% at the end of April and signaled caution amid global trade uncertainty, geopolitical tensions, and rising energy prices. While further rate cuts may now take longer than many investors initially expected, Canada’s economy is still projected to grow moderately over the next few years.

And whenever the BoC decides to cut or hold interest rates steady, I immediately start looking for sectors that could benefit from stable rates. That’s because steady rates could support the long-term projects of many businesses while reducing uncertainty around financing and expansion plans.

One TSX-listed stock that looks interesting in the current rate environment is Black Diamond Group (TSX:BDI). This Calgary-based company has rewarded investors with attractive returns lately while continuing to show strong fundamentals and expand across several high-demand industries.

In this article, I’ll explain why Black Diamond stock could be a smart TSX stock to consider after the BoC’s latest rate decision.

A diversified business with multiple growth drivers

If you don’t know it already, Black Diamond operates through two primary business segments: modular space solutions (MSS) and workforce solutions (WFS).

On the one hand, its MSS business rents modular buildings to customers across industries such as construction, education, industrial operations, government, and financial services. On the other hand, the company’s WFS segment provides workforce accommodation services, including turnkey camp operations and catering solutions.

In addition, Black Diamond also owns LodgeLink, a digital business-to-business marketplace focused on workforce travel, crew accommodations, and logistics across North America and Australia.

Despite macroeconomic uncertainties and stock market volatility, its shares have surged sharply, delivering 85% returns over the last year. As a result, this TSX stock currently trades at $16.83 per share with a market cap of roughly $1.2 billion. The company also offers a quarterly dividend with a yield of 1.1%.

Strong quarterly growth highlights momentum

In the first quarter, Black Diamond’s total revenue climbed 27% year-over-year (YoY) to $130 million. The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter also rose 21% YoY to $32 million, backed by strong demand across both operating segments.

One major driver behind this growth was its WFS segment, where revenue jumped by 54% YoY. Its recent acquisition of Royal Camp Services played an important role in boosting lodge services revenue and non-rental activity.

At the same time, the company’s MSS business also continued performing well as its rental revenue rose 5% YoY to $26.8 million, while utilization remained strong at 77.7%. The segment’s average monthly rental rates increased by 3% per unit, highlighting healthy customer demand and its pricing power.

Long-term growth opportunities remain strong

In Canada, elevated infrastructure activity and large-scale construction projects are driving demand for modular space rentals and workforce accommodations. Black Diamond could benefit from these long-duration investment trends.

Its WFS business also has a growing sales pipeline tied to resource projects, infrastructure developments, and potential defence-related spending opportunities.

Meanwhile, LodgeLink continues gaining traction. During the quarter, the platform delivered a 52% YoY increase in total trade value, helping drive net revenue growth of 37% YoY.

There’s also growing optimism around its Australian operations, which are starting to improve and may support future growth.

Why this TSX stock looks attractive right now

Black Diamond stock combines several qualities long-term investors often look for, including recurring rental revenue, strong industry demand, disciplined capital allocation, and multiple growth drivers. Also, the company maintains strong liquidity and relatively low leverage, giving it flexibility to pursue fleet expansion, acquisitions, debt reduction, and shareholder returns over time.

With the Bank of Canada holding interest rates stable, businesses tied to infrastructure, rental demand, and long-term development activity could continue to benefit from a supportive environment. And I expect Black Diamond to be one of them.

The post The Bank of Canada Held Rates Again – Here’s the 1 TSX Stock I’d Buy in Response appeared first on The Motley Fool Canada.

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

2026

Dividend stocks are typically well-established companies with healthy cash flows that return a portion of their profits to shareholders through regular payouts. As a result, investors can benefit from both long-term capital appreciation and a steady stream of passive income. In addition to generating regular income, dividend stocks can help build long-term wealth through compounding when distributions are consistently reinvested.

However, dividends are never guaranteed. Therefore, investors should focus on high-quality dividend-paying companies with strong fundamentals, resilient business models, and reliable payout histories. Against this backdrop, let’s look at two dividend giants that appear attractive following the recent pullbacks.

Telus

Telus (TSX:T), one of Canada’s three largest telecom providers, has remained under pressure over the last three years due to rising competition, elevated debt levels, and the suspension of its dividend growth program. The stock has lost nearly half its value over this period and is down 0.7% year-to-date, underperforming the broader equity markets. However, the prolonged decline has pushed its forward dividend yield to an attractive 9.5%, while the stock trades at relatively modest next-12-month price-to-sales and price-to-earnings multiples of 1.3 and 19.1, respectively.

Meanwhile, demand for telecommunications services continues to rise amid rapid technological advancements, growing data consumption, and increased adoption of remote work and digital commerce. To capitalize on these trends, Telus continues to expand its 5G and broadband infrastructure, which could support steady long-term growth. Management expects revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to rise by 2%–4% this year.

The company is also strengthening its cash flow profile. After increasing free cash flow by 11% to $2.2 billion in 2025, Telus expects another 10% increase this year to approximately $2.5 billion. In addition, it plans to reduce capital expenditures by 10% to $2.3 billion, thereby further improving financial flexibility. Management also aims to lower its net debt-to-adjusted EBITDA ratio to 3.3 by the end of this year and to 3 by the end of 2027.

Although concerns remain about the sustainability of its dividend given the elevated payout ratio, any potential adjustment could improve the company’s financial flexibility by accelerating debt reduction and strengthening its balance sheet. Considering its attractive valuation, improving free cash flow profile, and strong long-term industry fundamentals, I believe Telus remains an appealing investment despite near-term volatility.

Algonquin Power & Utilities

Another dividend stock that looks attractive right now is Algonquin Power & Utilities (TSX:AQN), which provides natural gas, water, and electricity services to approximately 1.3 million customers across the United States, Canada, Chile, and Bermuda. The utility stock has remained under pressure since its fourth-quarter results in March, declining about 11.7% from its 52-week high.

Following the recent pullback, Algonquin’s valuation has become more attractive, with the stock currently trading at forward price-to-sales and forward price-to-earnings multiples of 1.9 and 17.3, respectively. In addition, its forward dividend yield has risen to 4.2%.

Meanwhile, the company reported its first-quarter results today, with adjusted net income declining 8.6% year over year to $99.6 million. Lower earnings from its Regulated Services Group and Hydro Group weighed on overall profitability, while adjusted earnings per share (EPS) slipped slightly from $0.14 to $0.13. Unfavourable weather conditions, along with higher gas safety, operational, and maintenance expenses, also put pressure on earnings during the quarter.

Despite the near-term challenges, Algonquin continues to invest in long-term growth. The company plans to invest $3.2 billion between 2026 and 2028, which could expand its rate base at an annualized rate of 5–6%, reaching $9.7 billion by the end of 2028. Alongside these investments, favourable rate revisions could support stronger earnings growth in the coming years.

Considering its regulated asset base, visible growth pipeline, improving financial position, and attractive dividend yield, I believe Algonquin is an appealing long-term investment at current levels.

The post 2 Dividend Giants That Look Attractive After Recent Pullbacks appeared first on The Motley Fool Canada.

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

2026

Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.

That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.

Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.

AGF Management stock continues to reward shareholders

AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.

Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.

One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.

In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.

AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.

TD Bank stock remains a dependable dividend giant

Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.

Following a 70% jump over the last year, TD stock currently trades at $148.14 per share and carries a massive market cap of $247 billion. It’s also continuing to provide investors with a quarterly dividend yield of 3%.

TD’s latest results show why it remains a dependable dividend stock. In the February 2026 quarter, the bank’s reported net income jumped 45% YoY to $4 billion, while adjusted earnings rose 16% to a record $4.2 billion.

Similarly, the bank’s Canadian personal and commercial banking segment delivered record revenue and earnings with the help of higher loan and deposit volumes. Meanwhile, its wealth management and insurance business also posted record earnings, while wholesale banking benefited from strong trading and fee income growth.

Notably, TD ended the quarter with a strong Common Equity Tier 1 capital ratio of 14.5%, giving it a solid capital cushion. While the bank continues to spend on U.S. anti-money-laundering remediation and control improvements, its strong earnings base, large customer network, and diversified operations continue to support its dividends.

The post What is Considered a Good Dividend Stock? 2 Financial Stocks That Fit the Bill appeared first on The Motley Fool Canada.

Fool contributor Jitendra Parashar has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026