The Tax-Free Savings Account (TFSA) is one of the best investment vehicles available to Canadian investors. The TFSA’s tax‑free structure means every dollar of dividend income stays in your pocket, and every reinvested payout compounds without friction. This makes them ideal for holding that perfect dividend stock.

That tax-free compounding effect is especially powerful when paired with a dividend stock that delivers consistent, recurring cash flow year after year.

There are more than a few of those perfect dividend stock options on the market to fit that role. But there’s one in particular that offers the durable cash flow and a long history of payments that makes it the top of the list.

The dividend stock to own is Enbridge (TSX:ENB).

What makes Enbridge a compelling income pick

Enbridge is one of the largest energy infrastructure companies on the continent. The energy titan operates a network of pipelines, storage assets, gas utilities, and renewable power projects.

Enbridge’s core business moves and distributes energy that both households and industries rely on daily. This gives Enbridge a certain level of stability that few sectors, if any, can match.

That’s because most of Enbridge’s revenue comes from regulated or long‑term contracted arrangements. As a result, much of Enbridge’s revenue is tied to regulated assets and long-term take-or-pay contracts, so the company’s cash flow behaves more like a utility than a traditional energy producer.

In other words, Enbridge generates a predictable cash flow even when commodity prices swing.

That stability has allowed Enbridge to become popular with income‑focused investors. Enbridge has paid dividends for over seven decades and has earned a reputation as a dependable source of passive income.

As of the time of writing, Enbridge’s dividend carries a yield of 5.21%. Adding to that appeal is the three-decade-long streak of annual increases that Enbridge has provided. That fact alone makes this a compelling dividend stock for any TFSA portfolio.

This level of payout consistency is rare in the Canadian market and reflects the stability of Enbridge’s underlying infrastructure assets.

That reliable, diversified and defensive business model provides Enbridge with a stable, recurring source of revenue. That revenue allows Enbridge to invest in growth initiatives and pay out a generous quarterly dividend.

How Enbridge drives long-term TFSA income growth

One of the biggest advantages of holding a dividend stock like Enbridge inside a TFSA is the ability to reinvest distributions tax‑free. That’s because those reinvested dividends can significantly accelerate portfolio growth over time.

Inside a TFSA, that compounding happens without any tax drag, allowing investors to capture more of Enbridge’s steady cash generation over decades.

When factoring in Enbridge’s three-decade record of increases, the potential for long-term growth is significant. Prospective investors should also note that Enbridge isn’t standing still.

The company has a multi-billion-dollar backlog of projects that will further increase revenue, and by extension, support the growth of that dividend further.

Then there’s the defensive appeal of Enbridge.

Enbridge’s diversified portfolio, which includes liquid pipelines, natural gas transmission, gas distribution utilities, and a growing renewable energy segment, helps to reduce reliance on any single part of the energy market.

That’s a huge defensive advantage that is often overlooked. For TFSA investors looking for a dividend stock that can weather economic cycles, that diversification is a meaningful advantage.

Is Enbridge the right dividend stock for your TFSA?

If you have up to $21,000 in new TFSA contribution room this year, Enbridge is a dividend stock worth considering. Enbridge’s essential business model, diversified asset base, and long history of paying dividends make it a strong option for investors seeking a dividend stock for the long-term.

For many TFSA investors, however, the balance of strengths and risks still tilts in Enbridge’s favour. Its dependable dividend, combined with the TFSA’s tax-free compounding, can help build meaningful long‑term wealth. If you’re looking to put new contribution room to work in a stable, income‑focused way, Enbridge is a name that deserves a closer look.

The post Have $21,000 in TFSA Room? Here’s a Dividend Stock Worth Considering appeared first on The Motley Fool Canada.

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

2026

The Tax-Free Savings Account (TFSA) is an excellent tool for Canadian investors. Any income or capital gains earned inside the account are completely tax-free, making it ideal for long-term compounding. The key is to fill it with high-quality investments you can confidently hold through market cycles.

Here are three Canadian ETFs that jump out as strong, long-term TFSA candidates.

Build a strong Canadian core

iShares S&P/TSX 60 Index ETF (TSX:XIU) is a foundational exchange-traded fund (ETF) for Canadian investors seeking reliable, long-term growth. It tracks the S&P/TSX 60 Index, giving you exposure to many of Canada’s largest and most established companies in a single investment.

With approximately $20.6 billion in assets, XIU is one of the most liquid ETFs in the country. Its low management expense ratio (MER) of 0.18% keeps costs minimal, while a yield of about 2.3% provides a steady stream of income. Importantly, the ETF is heavily weighted toward sectors where Canada excels, including financials (37% of the fund), energy (19%), and materials (15%).

Top holdings include the Big Five Canadian banks, as well as leading names, such as Enbridge, Canadian Natural Resources, and Shopify. Over the past decade, XIU has delivered an annual return of roughly 13.4%, illustrating its ability to build wealth over time. For investors seeking a dependable Canadian core, XIU is hard to beat.

Don’t miss global growth

While Canadian stocks are solid, limiting your portfolio to one country may not provide sufficient diversification. That’s where iShares Core MSCI All Country World ex Canada Index ETF (TSX:XAW) comes in.

XAW provides instant global diversification by investing in U.S., international, and emerging market equities. With about 63% allocated to the U.S. and meaningful exposure to countries like Japan (5.9% of the fund) and the U.K. (3.5%), it ensures you benefit from growth wherever it occurs.

The ETF holds around $3.7 billion in assets and maintains a low MER of 0.22%. Its sector allocation includes: information technology (25% of the fund), financials (16%), industrials (12%), consumer discretionary (9.7%), health care (9.0%), complementing Canada’s more traditional sectors.

Over the last 10 years, XAW has returned approximately 12.7% annually. Adding this ETF to your TFSA helps reduce concentration risk and positions your portfolio to capture global growth.

One-stop simplicity for long-term investors

For investors who prefer a hands-off approach, iShares Core Equity ETF Portfolio (TSX:XEQT) offers a complete, all-in-one solution.

XEQT holds a diversified mix of underlying ETFs, providing exposure to thousands of stocks worldwide. It maintains a 100% equity allocation designed for maximum long-term growth and is automatically rebalanced to stay aligned with its target weights.

With approximately $15.2 billion in assets and a competitive MER of 0.20%, XEQT combines convenience with cost efficiency. Its geographic exposure includes about 43% in the U.S., 25% in Canada, and smaller allocations to international markets.

Although its yield is modest at around 0.9%, the focus here is growth. The ETF has delivered a five-year annual return of about 14%, making it an attractive option for investors who want simplicity along with domestic and global growth.

Investor takeaway

A successful TFSA strategy focuses on long-term growth, diversification, and low costs. XIU provides a strong Canadian foundation, XAW adds global exposure, and XEQT delivers an all-in-one solution for effortless investing. 

By holding a combination of these ETFs — or even just one aligned with your style — you can build a resilient, tax-free portfolio designed to compound wealth for decades. Investors can utilize dollar-cost averaging to build their positions over time.

The post 3 Canadian ETFs Worth Tucking Into a TFSA and Holding for the Long Haul appeared first on The Motley Fool Canada.

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

2026

Escalating geopolitical tensions have kept the Canadian stock market volatile in recent months. As a result, many solid businesses are just treading water. However, some great stocks are still thriving. And that’s exactly the kind of stocks long-term Foolish investors look for. Businesses that don’t just deliver solid numbers today but are also building a stronger future. In this article, I’ll talk about this company, Saturn Oil & Gas (TSX:SOIL), and tell you why this hot stock could be worth considering.

Decoding Saturn Oil & Gas’s business model

If you don’t know it already, Saturn Oil & Gas is a Canadian energy company focused on acquiring, exploring, and developing oil and natural gas assets in Western Canada. Its operations are mainly concentrated in Alberta and Saskatchewan, targeting formations such as Midale, Frobisher, Bakken, Viking, Cardium, and Kaybob.

In simple terms, the company focuses on producing oil and gas, but what sets it apart is how efficiently it operates and how strategically it grows through acquisitions.

Right now, Saturn stock trades at $6.28 per share with a market cap of $1.1 billion. The stock has delivered exceptional returns over the past year, surging 220%.

What’s fueling the fire?

Saturn’s latest earnings clearly highlight strong operational momentum as it posted record production in the fourth quarter of 2025 at 43,657 barrels of oil equivalent per day (boe/d), exceeding its guidance. For the full year, its production averaged 41,728 boe/d, marking a 46% increase per debt-adjusted share.

Efficiency has been another key strength. In 2025, the company’s adjusted funds flow reached $464 million, up 22% YoY (year over year). For the year, its free funds flow came in at a record $223 million, translating into a 50% free funds flow yield.

This strong cash generation has allowed the company to strengthen its balance sheet and reward shareholders. Saturn repaid $110 million in debt during 2025, ending the year with $761.5 million in net debt. It also returned over $33 million to shareholders through share buybacks, including $12 million in the fourth quarter alone.

A future built on strategic growth

Saturn Oil & Gas continues to focus on expanding its core areas through disciplined acquisitions. In 2025, it invested $94 million in tuck-in deals, increasing its development opportunities, including more than 380 identified open-hole multi-lateral drilling locations. The company’s reserves are also trending higher.

Despite lower oil price assumptions, its net asset value per share remains solid across all reserve categories.

Looking forward, Saturn expects production between 41,000 and 42,000 boe/d, with capital spending of $40 million to $50 million in the first quarter of 2026. Meanwhile, its focus remains on generating free funds flow, reducing debt, and maintaining disciplined capital allocation.

Saturn Oil & Gas is not just benefiting from strong commodity prices. It is building a business focused on efficiency, growth, and long-term value creation. For investors looking for a high-growth energy stock, this is one name worth considering.

The post A Scorching-Hot Stock Worth the Growth Jolt 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

When it comes to investing in your TFSA, a lot of people treat it like a place to take big swings, looking for the next hot stock that can hopefully double or triple quickly.

And while that can work on rare occasions, it’s not how you build real long-term wealth.

The real power of a TFSA isn’t hitting one big trade or a few high-potential stocks; it’s the long-term compounding potential created by its tax-free nature.

It’s the perfect place to own high-quality businesses that can grow for years, reinvesting the income they generate and letting that tax-free growth build over time.

That’s why I don’t bother trying to find the next hot stock. Instead, I focus on finding companies that I can hold essentially forever.

And when it comes to my portfolio, the best “forever” stock I own has to be Brookfield Infrastructure Partners (TSX:BIP.UN).

Why Brookfield Infrastructure is the perfect long-term TFSA stock

At its core, Brookfield Infrastructure owns assets that the global economy depends on every single day. These are businesses such as utilities, pipelines, data infrastructure, transportation assets, and more.

That already makes Brookfield a stock you can have confidence buying and holding in your TFSA. Its entire business model is built on owning assets that provide essential services.

Every time energy is transported, goods are moved, or data is processed, infrastructure like what Brookfield owns is being used.

So, Brookfield doesn’t need explosive growth or perfect economic conditions to succeed. As long as the world keeps functioning, these assets continue to generate cash flow.

On top of that, much of its revenue is backed by long-term contracts or regulated frameworks, which makes that cash flow highly predictable.

But in addition to its reliability, what really makes Brookfield one of the best Canadian stocks to own in your TFSA is how it grows.

The company isn’t just sitting back, operating its assets and collecting income. It’s continuously looking for opportunities to buy infrastructure that’s undervalued, improve it, and then either hold it or sell it at a higher value.

That cycle of buying, improving, and reinvesting is a huge reason why it’s been able to consistently grow over time. And it’s also why management targets long-term total returns between 12% to 15%.

Why it’s a company you’ll want to own forever

When you combine that type of consistently growing long-term business with the tax-free nature of the TFSA, that’s where the significant opportunity lies.

Brookfield Infrastructure already offers a solid yield of 5% at current market prices, and more importantly, it consistently increases its distribution over time.

So, not only are you generating passive income, but that income is constantly growing.

And because it’s inside a TFSA, every dollar of that income and every bit of capital appreciation is completely tax-free.

That’s where compounding really starts to take over. Not only are you not losing anything to taxes, but if you reinvest those distributions, your position just continues to grow over time.

Now, of course, it’s not completely risk-free; no stock is. Like most infrastructure companies, Brookfield uses debt to fund its assets, which means higher interest rates can create some pressure.

But the difference is that a large portion of its contracts are linked to inflation. So, as prices rise, its revenue often increases as well, which helps offset some of that pressure.

So, when you factor in the essential nature of its assets, the global diversification of its portfolio and its track record of recycling capital and expanding operations, there’s no question it’s a stock you’ll want to own in your TFSA for years.

It’s not a stock you buy expecting quick gains. It’s a business you own because you want an investment that can generate income and grow steadily for decades.

And for me, that’s exactly what I want in my TFSA. I’m not trading it. I’m holding it, reinvesting the income, and letting compounding do the work.

The post My 1 Forever TFSA Stock — and Why I’ll Never Let it Go appeared first on The Motley Fool Canada.

Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

2026

Establishing a reliable monthly income stream is a goal of every investor. This is especially true where market volatility can impact portfolios without warning. That’s why a monthly income exchange-traded fund (ETF) that provides a steady income can play an important role in any portfolio.

And there’s one monthly income ETF that’s built just for Canadian investors seeking predictable distributions without the complexity of individual holdings.

Why a monthly income ETF still matters in today’s market

Monthly income remains a priority for many investors. That’s because it aligns with real-world budgeting. Bills, groceries, and everyday expenses don’t arrive quarterly, and neither should cash flow.

A monthly income ETF helps smooth out the timing mismatch that often comes with traditional dividend schedules. Having a consistent source of monthly income helps reduce the stress often associated with quarterly budgeting.

Investors of monthly payers also benefit from another often-underrated advantage that comes from seeing deposits hit each month. This helps to keep long-term strategies easier to work within manageable time periods.

There’s no shortage of great monthly income ETF options to choose from right now. The one that Canadian investors should consider is iShares Diversified Monthly Income ETF (TSX:XTR).

How XTR builds a diversified income engine

XTR fits neatly into any portfolio, offering a simple, diversified way to capture income without needing to chase yield or time the market.

The ETF is structured to hold a curated mix of other iShares ETFs rather than individual holdings. This design gives broad exposure across multiple asset classes and holdings. It also keeps the portfolio incredibly easy to understand.

The result is that XTR blends equities, bonds, and other income‑producing assets to create a balanced income engine. The equity sleeve provides growth potential and dividend income, while the fixed‑income portion adds stability and a predictable yield. This combination helps smooth out performance across different market cycles.

More importantly, it also reduces the impact of market volatility from any single asset class.

That diversification appeal is huge. XTR is diversified across sectors, geographies, and income sources. This means that the fund will provide steady income rather than aggressive capital appreciation.

In short, it’s a monthly income ETF built for consistency over super-high yields.

What to expect from XTR’s monthly payouts

That reliable recurring monthly distribution is one of the most attractive parts of XTR. The yield is generated from the payout of the underlying holdings, which can include dividends, bond interest, and other streams.

Those individual parts can fluctuate with the market, so that means the yield can, too. That being said, XTR is focused on stability, making it a dependable option for those seeking a monthly income ETF for the long haul.

As of the time of writing, XTR pays out $0.04 per share monthly. For investors with $40,000 to drop into the ETF, that investment will generate a monthly income of just over $130.

XTR isn’t built to deliver high yield returns or rapid growth. Instead, it focuses on delivering steady, repeatable income, and it does that well.

Where XTR fits in a long-term income strategy

For long-term investors, XTR represents a diversified, simple, all-in-one income solution. It can be a core holding to a longer-term portfolio, or a standalone income generator for retirees.

Investors not ready to draw on that income yet can choose to reinvest those earnings, allowing the monthly income ETF to continue growing without further contributions.

Buy it, hold it, and watch your income grow.

The post A 4% Yield Monthly Income ETF That You Can Take to the Bank 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 equity markets are currently navigating a period of heightened geopolitical uncertainty. At the same time, concerns about high inflation and pressure on consumer spending are creating additional challenges. Despite these headwinds, several high-quality TSX stocks remain compelling opportunities. In particular, a number of fundamentally strong companies are still trading under $50 and have room to run.

Many of these Canadian stocks are positioned to benefit from durable demand trends and solid execution.

Against this backdrop, here are two TSX stocks trading under $50 with significant upside.

Under $50 TSX stock #1: Bird Construction

Bird Construction (TSX:BDT) is one of the top TSX stocks trading under $50 with significant upside. The company is a leading construction and maintenance provider in Canada, with operations spanning civil infrastructure, industrial projects, and defence-related work, segments that tend to benefit from sustained government and institutional investment.

Over the past three years, Bird Construction has delivered exceptional returns to shareholders. The stock has generated total gains exceeding 395%, representing an average annualized return of more than 70%. Despite macroeconomic pressures affecting parts of the broader construction sector, the company has continued to demonstrate operational resilience while positioning itself for future expansion.

Supporting Bird’s growth outlook is its substantial project pipeline. In 2025, the company reported a combined backlog and pending backlog of more than $11 billion. This large order book provides significant revenue visibility over the coming years and reflects strong demand across its core markets. Much of this demand is driven by structural factors, such as increased public infrastructure spending, energy transition initiatives, and government-backed defence projects, which generate stable, multi-year project activity.

Financially, Bird Construction maintains a solid balance sheet, which enhances both stability and strategic flexibility. Its capital position allows management to pursue selective acquisitions that expand its target market and strengthen long-term growth prospects while maintaining financial discipline.

Overall, Bird Construction’s robust backlog, exposure to Canada’s infrastructure expansion, and long-term revenue visibility position the company as a compelling investment opportunity with meaningful upside potential.

Under $50 TSX stock #2: SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX:SES) is another attractive long-term stock that is trading under $50. The company operates across waste management and energy infrastructure, delivering services that support recurring revenue streams and consistent cash flows. This business model provides resilience and stability across market cycles, positioning it for long-term growth.

SECURE Waste shares have grown at an average annualized rate of approximately 55% over the past three years, generating total gains exceeding 272%. SECURE’s growth reflects strong operational performance and investor confidence in the company’s long-term strategy.

Recent tariff-related uncertainty has weighed on the company’s metals recycling segment, but these pressures are temporary. SECURE Waste continues to benefit from strong momentum in its core waste management and infrastructure businesses, which remain the primary growth drivers for the company.

In addition, SECURE Waste maintains a pipeline of long-duration infrastructure projects that are expected to support sustained expansion. As these projects become operational, they are expected to meaningfully contribute to earnings, with a notable increase in adjusted EBITDA anticipated beginning in 2026.

Looking ahead, SECURE plans to continue investing in high-return organic growth opportunities while expanding its infrastructure network to meet rising customer demand. At the same time, a potential recovery in the metals recycling segment could provide incremental earnings support and further strengthen overall growth prospects. Together, these factors position SECURE Waste Infrastructure to deliver attractive long-term returns for investors.

The post 2 TSX Stocks Priced Under $50 That Could Have Meaningful Room to Run appeared first on The Motley Fool Canada.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

2026

In today’s uncertain economic environment, building passive income has become increasingly important. Beyond providing financial stability, it can also help offset the impact of rising prices. One of the most convenient and cost-effective ways to generate passive income is by investing in monthly dividend-paying stocks. Additionally, reinvesting these regular payouts can further enhance long-term returns.

With this in mind, here are three top monthly dividend stocks that could help you generate around $150 in monthly income with a $30,000 investment, equally allocated among them.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) operates the Pizza Pizza and Pizza 73 restaurant brands through a franchise-based model, earning royalties tied to franchisee sales. This structure helps shield its financials from rising input costs, such as commodity and wage prices. In its recently reported fourth-quarter results, same-store sales edged up 0.2%, with a 1.8% increase at Pizza 73 more than offsetting a slight 0.1% decline at Pizza Pizza locations.

Both brands experienced lower customer traffic, which management attributed to cautious consumer spending and increased competition. However, higher average ticket sizes – driven by a rise in premium delivery orders – helped support overall sales. Meanwhile, adjusted EPS (earnings per share) remained flat at $0.245.

Looking ahead, Pizza Pizza Royalty focuses on driving growth through value offerings, menu innovation, ongoing restaurant renovations, and an improved digital customer experience. The company also plans to expand its traditional restaurant network by 2–3% this year. Supported by these initiatives, it appears well-positioned to sustain its dividend payouts. It currently pays a monthly dividend of $0.0775 per share, yielding 6.1%.

SmartCentres Real Estate Investment Trust

Another top monthly dividend stock worth considering is SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which currently offers an attractive yield of 6.9%. The REIT owns and operates 198 strategically located properties across Canada and benefits from a strong tenant base, with 95% of tenants having regional or national presence. Additionally, about 60% of its tenants provide essential services, helping maintain consistently high occupancy levels regardless of broader economic conditions. This stability enables SmartCentres to generate reliable cash flows and maintain steady monthly distributions. It currently pays a monthly dividend of $0.15417 per share.

Looking ahead, SmartCentres continues to expand its portfolio, with 87.4 million square feet of development projects in its pipeline, including 0.8 million square feet currently under construction. These growth initiatives, combined with its resilient occupancy levels, are expected to support its financial performance and sustain its ability to deliver attractive monthly dividends to investors.

Whitecap Resources

My final pick is Whitecap Resources (TSX:WCP), which currently offers an attractive forward yield of 5%. The oil and natural gas producer operates primarily in the Western Canadian Sedimentary Basin. Ongoing geopolitical tensions in the Middle East, coupled with disruptions such as the closure of the Strait of Hormuz – which carries nearly 20% of global petroleum liquids – have driven oil and natural gas prices higher.

Elevated commodity prices tend to benefit producers like Whitecap. The company has also strengthened its production capabilities through its merger with Veren, completed in May 2025. In addition, it boasts a robust resource base, with 2.2 billion barrels of oil equivalent in proved and probable reserves, representing a reserve life index of more than 16 years. Whitecap plans to invest $2–$2.1 billion this year to enhance its production capacity. In a supportive pricing environment, higher output could continue to drive its financial performance, underpinning both potential share price gains and sustainable dividend payouts.

The post How to Generate $150 in Passive Income With $30,000 in 3 Stocks appeared first on The Motley Fool Canada.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.

2026

Dividend stocks that raise their payouts regularly are a highly attractive bet in this environment. The smartest dividend stocks raise their dividend as profits and cash flows rise.

Get capital and dividend compounding with dividend growth stocks

These stocks tend to have good pricing power, so they can grow their income (and payout) even when inflation is elevated. That helps protect the value of your income stream over time.

Likewise, if you are getting earnings per share growth, you are likely getting capital appreciation (especially over time). You get a compounding double-whammy. Your income compounds and your stock price compounds. It’s the best of both worlds.

If you are looking for some top dividend growth stocks, here are two Canadian stocks that just raised their dividend payouts.

This company has 33 years of dividend growth

Thomson Reuters (TSX:TRI) has been a Canadian tech titan for years. However, software stocks have come upon hard times. Its stock is down 32% this year and 51% in the past 52 weeks.

It has been one of the most impacted stocks from the artificial intelligence (AI) software apocalypse. Traditionally, this stock has traded at a premium to other software peers. Today, it trades at a more reasonable price-to-earnings (P/E) ratio of 20 times. That is the lowest valuation it has traded for in eight years.

Thomson provides professional data solutions such as financial analytics, legal software, and tax/accounting software. Over 80% of its revenues are recurring with a very minimal mix of transactional revenues.

Certainly, AI is a threat. However, for a trusted incumbent like Thomson Reuters, it is also an opportunity to provide new agentic solutions for its large customer base. If you can believe that narrative, the stock could be a buying opportunity given it is much cheaper today.

Thomson has raised its dividend for 33 consecutive years. It just raised its dividend in February by 10%. That is the fifth consecutive 10% increase. Today, it yields 2.8%, which is reasonably attractive here.

This stock has 36 years of dividend growth

Toromont Industries (TSX:TIH) is somewhat the counter investment thesis to Thomson Reuters. If you don’t want any AI-risk exposure, this could be a stock to hold. Toromont is a major provider of yellow iron and construction equipment in Eastern Canada.

Despite operating in a somewhat cyclical industry, it has been a long-term compounder. Its stock is up 104% in the past five years and 471% in the past 10 years.

It is benefiting from a very strong pricing environment for commodities. Sectors like mining and energy are thriving right now, and that is driving up demand for new equipment.

Likewise, the Canadian government has promised a streamlining of investments for nation-building projects. That should continue to push up demand for equipment maintenance, repairs, new equipment purchases, and leases. Its thermal management business has been delivering particularly strong growth and margin improvement.

Some of these positives are already reflected in the stock price. It is trading with a P/E ratio of 27, which is above its 10-year average of 21. You may want to be a little cautious about deploying a full position into this stock today, especially given that this industry can be a bit cyclical.

Toromont has a 57-year dividend history. TIH stock has raised its dividend for 36 consecutive years. In February, it raised its dividend by 7%. While it only yields 1.1% today, you could get a nice profile of income and dividend growth over a long period.

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

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

2026

Amid optimism about a potential de-escalation of the Iran conflict – following encouraging remarks from US President Donald Trump and Iranian President Masoud Pezeshkian – global equity markets rose yesterday, with the S&P/TSX Composite Index climbing 2.6%. However, despite this rebound, the Canadian benchmark index remains about 5.1% below its recent highs.

Against this backdrop of broader market weakness, several high-quality companies have come under pressure in recent months. This pullback presents a compelling opportunity for investors to accumulate fundamentally strong stocks at more attractive valuations. With solid business models, promising growth prospects, and discounted share prices, these two companies stand out as attractive buys right now.

Dollarama

Dollarama (TSX:DOL) is a leading Canadian discount retailer that has come under pressure after reporting a mixed fourth-quarter performance last month. The company posted revenue of $2.1 billion, up 11.7% year over year, driven by contributions from its 402 Australian stores – acquired last June – along with the addition of 75 new stores in Canada over the last four quarters and modest same-store sales growth of 1.5%. However, the same-store sales growth fell short of analysts’ expectations of 2.6%, with management citing unfavourable weather and calendar shifts as key headwinds.

Despite solid top-line growth, profitability showed some strain. Operating income rose 13.3%, but operating margins declined by 190 basis points due to lower gross margins and higher selling, general, and administrative (SG&A) expenses. Still, adjusted earnings per share (EPS) increased 2.1% to $1.43, slightly ahead of the consensus estimate of $1.41.

Looking ahead, Dollarama’s fiscal 2027 guidance appears to have unsettled investors. The company expects to return to its historical pace of opening 60–70 stores annually and forecasts same-store sales growth of 3–4%, which is below market expectations. It also plans capital expenditures of $420–470 million, with the midpoint representing a significant year-over-year increase, l argely due to investments in a new logistics hub in Western Canada. These factors have contributed to the recent weakness in the company’s share price.

However, Dollarama’s long-term growth story remains compelling. The retailer plans to expand its Canadian store network from 1,691 locations to 2,200 by fiscal 2034, while its Australian footprint could grow from 401 to 700 stores. Additionally, contributions from its investments in Central American Retail Sourcing (CARS) and Inversiones Comerciales Mexicanas (ICM) should support future growth. Backed by these expansion initiatives, Dollarama remains well-positioned for sustained growth. The company also rewarded its shareholders by recently raising its quarterly dividend by 13.4% to $0.12 per share.

Waste Connections

Another stock that has seen notable selling pressure is Waste Connections (TSX:WCN), whose share price is down 19.5% from its 52-week high. The non-hazardous solid waste management company has faced headwinds over the past year, including weaker recycled commodity prices, reduced renewable energy credits from landfill gas, softer waste volumes, and delays in reopening its Chiquita Canyon landfill.

Despite these near-term challenges, WCN’s long-term outlook remains solid. The company continues to grow through both organic initiatives and strategic acquisitions. Following the launch of five renewable natural gas (RNG) facilities, it is further expanding its footprint, with additional projects expected to come online by the end of this year. Management also plans to commission a new state-of-the-art facility next year, which could support future growth.

Backed by reliable cash flows and a healthy balance sheet, WCN is well-positioned to pursue aggressive acquisitions. The company has identified several private businesses that could collectively add around $5 billion in annualized revenue. At the same time, it is leveraging technology, including AI-driven solutions, to drive operational efficiency and productivity. Efforts to improve employee engagement and safety are also underway, which should help reduce voluntary employee turnover and strengthen customer retention.

Considering its resilient business model, expansion strategy, and improved operational efficiency, WCN appears undervalued at current levels and presents an attractive buying opportunity for long-term investors.

The post Have $2,000? These 2 Stocks Could Be Bargain Buys for 2026 and Beyond appeared first on The Motley Fool Canada.

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

2026

Amid ongoing geopolitical tensions in the Middle East and elevated oil and natural gas prices, global equity markets have become increasingly volatile. In this uncertain environment, investors may consider accumulating high-quality dividend stocks to strengthen their portfolios and generate steady, reliable passive income. Backed by well-established businesses, strong cash flows, and consistent payouts, the following three TSX stocks stand out as attractive options in the current market.

TC Energy

TC Energy (TSX:TRP) is a leading midstream energy company that transports nearly 30% of the natural gas consumed in North America. It also operates a diversified portfolio of power-generating assets with a total capacity of 4.65 gigawatts. Notably, about 98% of its earnings come from rate-regulated assets and long-term take-or-pay contracts, making its financial performance less sensitive to economic cycles and market volatility. This stability supports consistent cash flows and has enabled the company to increase its dividend for 26 consecutive years. It currently offers an attractive forward yield of 4.1%.

Looking ahead, rising natural gas demand and production across North America continue to drive growth opportunities for TC Energy. The company plans to invest $6–$7 billion annually in expansion projects to capitalize on this trend. Supported by these initiatives, management expects adjusted EBITDA to grow at an annualized rate of 3–5% through 2028, reinforcing the sustainability of its future dividend payouts.

Fortis

Fortis (TSX:FTS) is another compelling choice for income-focused investors, supported by its regulated asset base, an impressive 52-year track record of dividend growth, and solid long-term growth prospects. The company serves approximately 3.5 million customers across the United States, Canada, and the Caribbean, providing essential electricity and natural gas services. Nearly all of its assets are regulated, with about 95% tied to low-risk transmission and distribution operations. This stability helps shield the utility’s financial performance from economic volatility, enabling consistent dividend increases. It currently offers a forward yield of 3.3%.

Looking ahead, Fortis plans to invest $28.8 billion over the next five years to expand its asset base. These investments could drive 7% annualized growth in its rate base, reaching $57.9 billion by 2030. In addition, its focus on preventive maintenance, operational efficiency, and energy transition initiatives should support steady earnings growth. Backed by these factors, management expects to increase its dividend by 4–6% annually through the end of the decade, reinforcing its appeal as a reliable income stock.

Telus

My final pick is Telus (TSX:T), a telecom giant that has delivered consistent dividend growth since 2011. While the company paused its dividend growth program in December 2025 to strengthen its balance sheet, it continues to offer an attractive quarterly dividend of $0.42 per share, yielding 9.3%.

Telus stands to benefit from the ongoing digitization of businesses and the rising adoption of artificial intelligence, both of which are driving increased demand for reliable telecommunications infrastructure. The company also plans to invest $2.3 billion this year to expand and enhance its network and digital capabilities. Supported by these initiatives, Telus expects its revenue and adjusted EBITDA to grow by 2–4%, while free cash flow could rise 10% to $2.45 billion.

Despite the temporary pause in dividend growth, Telus’s expanding addressable market, improving cash flow profile, and continued investment in growth position it well to maintain its strong income appeal, making it an attractive option for income-focused investors.

Investors’ takeaway

On average, these three TSX stocks offer a dividend yield of around 5.5%. As a result, a $10,000 investment equally allocated among them could generate more than $137 in quarterly income, translating to an annual passive income of over $548.

The post Looking for a 5.4% Average Yield? These 3 TSX Stocks Are Worth a Look appeared first on The Motley Fool Canada.

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

2026