In an environment marked by rising inflation, geopolitical uncertainty, and job disruptions driven by growing AI adoption, building a reliable passive income stream has become increasingly important. Investing in high-quality monthly dividend stocks remains one of the most efficient and accessible ways to generate consistent income.

For instance, allocating $20,000 evenly across the following two Canadian stocks could produce a monthly income of over $100. Moreover, by holding these investments in a Tax-Free Savings Account (TFSA), investors can benefit from tax-free dividend income and capital appreciation.

With this in mind, let’s explore these two stocks in detail.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is a compelling monthly dividend stock to consider. The REIT owns and operates 198 strategically located properties across Canada, with roughly 90% of Canadians living within 10 kilometres of one of its centers. Its tenant base is also strong and diversified, with about 95% of tenants being national or regional retailers and nearly 60% offering essential services. This combination supports consistently high occupancy levels, even during periods of economic uncertainty.

Backed by stable occupancy, steady lease renewals, and ongoing leasing activity, SmartCentres has maintained solid financial performance, allowing it to deliver reliable monthly distributions. It currently pays a monthly dividend of $0.15417 per share, yielding around 6.51% on a forward basis.

Looking ahead, demand for retail space remains resilient, supported by economic growth and limited new supply due to elevated construction costs. At the same time, SmartCentres continues to expand through an extensive development pipeline of 87.4 million square feet of mixed-use projects spanning retail, residential, seniors housing, and self-storage. Of these, approximately 0.8 million square feet are already under construction.

Given its strong asset base, stable income profile, and ongoing development initiatives, SmartCentres appears well-positioned to sustain its financial performance and continue paying attractive monthly income to investors. Additionally, its valuation remains reasonable, with a forward price-to-earnings multiple of 14.5.

Pizza Pizza Royalty

Another attractive monthly dividend stock for income-focused investors is Pizza Pizza Royalty (TSX:PZA). The company earns royalty income from a network of 694 Pizza Pizza and 100 Pizza 73 restaurants operated by franchisees. With its revenue tied to franchisee sales rather than earnings, its financial performance is less sensitive to commodity price swings and wage inflation, resulting in stable and predictable cash flows.

PZA is structured to deliver consistent monthly distributions, providing smooth returns for investors despite the seasonality typical of the restaurant industry. It currently pays a monthly dividend of $0.075 per share, yielding 5.86% on a forward basis. While its payout ratio stood at 105% in the fourth quarter of 2025—slightly above its 100% target—improving operating performance in upcoming quarters could help bring it back in line.

Looking ahead, the company continues to expand its footprint, targeting 2–3% growth in its traditional restaurant count this year. It is also investing in menu innovation, enhancing its digital ordering platform, and renovating old restaurants to support same-store sales growth. Coupled with a reasonable forward price-to-earnings multiple of 16.7, PZA appears to offer an appealing combination of income and growth potential.

The post How to Use Just $20,000 to Turn Your TFSA Into a Reliable Cash-Generating Machine 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. The Motley Fool has a disclosure policy.

2026

The earlier you start investing, the faster you can grow rich and retire early. Yet many Canadians in their 20s do not use the Tax-Free Savings Account (TFSA) to its optimum. Statistics Canada’s TFSA contribution numbers for the 2023 tax year teach us something about Canadians’ investment behaviour.

Canadians have used only 20–30% of their TFSA contribution room through their peak working age of 30–50. We considered the Fair Market Value (FMV) to arrive at this figure. The contribution could have been lower as the investment returns are included in the FMV.

What the average Canadian TFSA balance at 60 can teach us

However, the TFSA contributions increased significantly from age 50. People in the 55–59 age group invested 25% more than those in the 50–54 age group. Those in the 60–65 age group invested 20% more than those in the 55–59 age group.

You can see that Canadians are playing catch-up to their TFSA savings after 50. No matter how much you invest in later years, it cannot compensate for the 20 years lost by staying away from the market.

Instead of investing $13,167 in the TFSA at age 60, had you invested that amount at age 45 in the iShares S&P/TSX Capped Information Tech Idx ETF (TSX:XIT), your TFSA FMV would be very different. Going 15 years back from 2023 means April 2008, before the financial crisis hit in September 2008.

In April 2008, the XIT ETF was trading near $8.36. A $13,167 investment would have bought you 1,575 units of the ETF, which are now worth $111,840. This TFSA FMV is more than double the $45,109 average TFSA balance 60-year-old Canadians have.

Even if you did not invest in the technology ETF but a dividend stock like Canadian Natural Resources (TSX:CNQ), your TFSA FMV would be $38,085.33. Adding up 15 years of cumulative dividends, you would have received $10,810 in passive income alone. In 2026, your 626 CNQ shares would fetch you $1,565 in annual passive income. Such returns would be possible had retirees of today started retirement planning at age 45.

Why invest in a technology ETF through a TFSA?

The XIT ETF is an attractive buy even today as it gives you exposure to Canada’s top-performing technology stocks. This ETF has dipped 19% from its October 2025 peak. It has the potential to grow your money by 15–20% annually for the next 15 years. A 15% compounded annual growth rate (CAGR) could convert $10,000 to $71,370, and a 20% CAGR to $144,070.

Technology keeps evolving. Different companies have different inflection points. The XIT ETF invests in all fundamentally strong companies, giving you comprehensive exposure to the technology supply chain. Here are two instances to give you a fair understanding of how the ETF manages to give an 18% CAGR.

The pandemic upside and limited downside

Shopify and Lightspeed Commerce were among the best-performing stocks during the pandemic. They drove XIT ETF’s value up 142% by October 2021. The ETF keeps rebalancing the holdings to replicate the index weightage. The index caps the relative weight of any single constituent at 25%. This prevents the downside risk as frequent profit booking and reinvesting take place. Thus, the ETF dropped 48% in the 2022 tech meltdown when Shopify and Lightspeed lost 83–88% of their value.

The artificial intelligence boom

The XIT ETF is now riding the AI boom, with Celestica taking the lead as the top holding in the ETF. While Celestica’s stock has rallied more than 1,500% since October 2023, the XIT ETF rallied 75% as it has recently increased its holding in the stock.

The ETF gives you exposure to all technology cycles, and rebalancing helps mitigate risk, making it a buy even at its high price.

The post What the Average Canadian TFSA Balance at 60 Can Teach Us appeared first on The Motley Fool Canada.

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Canadian Natural Resources, Celestica, and Lightspeed Commerce. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

2026

Canadian investors may be missing one of the market’s clearest themes right now: copper. While plenty of attention still goes to artificial intelligence (AI) software and big tech, the quieter opportunity sits one layer deeper in the supply chain.

Why copper?

Copper producers look appealing because the metal touches just about everything investors keep hearing about, from grid upgrades to electric vehicles to data-centre expansion. In fact, AI and defence could lift copper demand by 50% by 2040, with copper prices pushing to a seven-week high recently as supply worries and trade jitters kept the market tight.

That helps explain why copper stocks keep trending. Investors want exposure to growth, but many also want something more tangible than a software story. Copper gives them a way to play electrification, infrastructure, and industrial spending all at once. When markets start thinking about what powers AI rather than just what runs it, miners with strong assets suddenly look a lot more interesting.

There’s also a supply-side angle that keeps the trend alive. New mines take years to build, disruptions still pop up, and analysts keep debating whether the market will swing into bigger deficits. Even when forecasts differ, the long-term setup still looks attractive for producers that can grow output without blowing up their balance sheets. So, let’s look at two on the TSX today.

ERO

Ero Copper (TSX:ERO) runs copper operations in Brazil, with Caraíba as its core asset and Tucumã as the newer growth engine. Over the last year, Tucumã moved into commercial production, which changed the tone around the copper stock from “promising project” to “real output story.” Ero also posted record 2025 results, with revenue climbing to US$785.8 million from US$470.3 million in 2024, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped to US$409.7 million from US$216.2 million. Net income attributable to owners reached US$263.7 million, a sharp turnaround from a 2024 loss.

Valuation still looks fairly reasonable for a miner with that kind of growth. It’s not dirt cheap for a copper stock, but it also doesn’t look stretched if Tucumã keeps ramping and copper prices stay supportive. Management reaffirmed 2026 guidance for 67,500 to 77,500 tons of copper production, which would mark another step higher from 2025. The risk, of course, sits in execution. Single-asset hiccoughs, cost inflation, or weaker copper prices can still hit a growth miner hard.

HBM

Hudbay Minerals (TSX:HBM) gives investors copper exposure, but with more scale, more diversification, and a longer runway. The copper stock operates in Peru, Manitoba, and British Columbia, and it spent the last year proving it can still deliver through disruptions. In 2025, Hudbay generated record annual revenue of US$2.2 billion and record adjusted EBITDA of US$1.1 billion, while producing 118,188 tons of copper and 267,934 ounces of gold. Fourth-quarter revenue alone hit a record US$732.9 million.

The bigger story now is growth. Hudbay said 2026 copper production should rise 5% to about 124,000 tons, helped by higher throughput in British Columbia. It also extended Constancia’s expected mine life to 2040, and in March agreed to buy the remaining Arizona Sonoran stake in a deal worth about US$1.48 billion, adding even more long-term U.S. copper exposure. The stock is not exactly hiding anymore. Still, investors may accept that premium because Hudbay now has scale, improving cash flow, and major optionality through Copper World and Arizona. The main risk is that it has a lot of moving parts, and large growth plans always come with execution pressure.

Bottom line

The huge trend Canadian investors may be missing is not flashy at all. It’s simply the metal behind the buildout. Ero offers a higher-growth, more concentrated copper bet, while Hudbay brings size, diversification, and a deeper project pipeline. If copper stays central to the next phase of industrial growth, both copper stocks look like smart ways to get in before the trend feels obvious.

The post Canadian Investors Are Missing This Huge Trend Right Now appeared first on The Motley Fool Canada.

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.

2026

Smart long-term buys today usually share a few traits. They control durable assets, throw off strong cash, and still have room to grow even if the economy wobbles. Right now, gold names also have another tailwind: higher bullion prices. That gives quality producers and royalty companies more cash to reinvest, return to shareholders, or use for new deals. For investors thinking in years instead of quarters, that mix can still look pretty compelling.

LUG

Lundin Gold (TSX:LUG) stands out as it already has a high-quality mine and a clear growth runway. It owns the Fruta del Norte mine in Ecuador, which management calls one of the highest-grade operating gold mines in the world. Over the last year, the story kept getting better. Lundin announced a CEO transition to Jamie Beck in September 2025, kept posting strong drill results at FDNS and FDN East, and then moved to deepen its balance sheet flexibility with a silver stream deal tied to LunR Royalties in early 2026.

The numbers look strong, too. Lundin reported 2025 revenue of US$1.78 billion, free cash flow of US$926 million, and gold production of 498,315 ounces. It also paid US$664 million in dividends during the year. Then, in the first quarter of 2026, production still climbed to 119,742 ounces, showing the momentum did not fade after a huge year. The catch is valuation at 23 times earnings. That can work over time, especially with a 4.2% yield, but any pullback in gold prices would still matter.

OR

OR Royalties (TSX:OR) gives investors exposure to gold through royalties and streams instead of direct mine operations. That model can be attractive over the long haul because it limits operating risk while still benefiting from rising production and stronger metal prices. Over the last year, OR kept building that portfolio. In February 2026, the gold stock announced deals tied to San Gabriel and Spring Valley, and by April, it had already posted preliminary first-quarter 2026 deliveries while continuing share buybacks.

Its 2025 results were the best in its history. OR reported record revenue of US$277.4 million, record operating cash flow of US$245.6 million, and record net earnings of US$206.1 million. It also ended the year debt-free, with US$142.1 million in cash, and rolled out fresh 2026 guidance and a new five-year outlook. That gives the story real staying power. The stock is not exactly cheap, though. Market data shows it trading around 37 times earnings. Still, for a business with low direct operating exposure and room to grow through acquisitions, that premium makes some sense.

FNV

Franco-Nevada (TSX:FNV) may be the steadiest pick of the three. It does not operate mines and instead owns royalties and streams across a huge portfolio, which helps reduce single-asset risk. The gold stock says it has the largest and most diversified portfolio of cash-flow producing assets, with 430 assets covering roughly 70,500 square kilometres. Over the last year, it kept adding to that platform through financing deals, including transactions with i-80 Gold and Minerals 260, while Panama also approved a preservation and safe management program for Cobre Panama in April.

Its financial performance stayed just as impressive. Franco-Nevada reported record 2025 revenue of US$1.82 billion, net income of US$1.11 billion, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$1.66 billion, and 519,106 gold equivalent ounces sold. That is a serious base for a long-term holding. The downside is obvious. The gold stock traded at roughly 43 times trailing earnings, with a market cap close to $65 billion. That leaves less room for error. Even so, if gold stays firm and more large assets keep moving forward, Franco still looks built to win over time.

Bottom line

Put it all together, and these three stocks each offer a different kind of long-term appeal. Lundin Gold brings operating torque and exploration upside. OR Royalties offers growth with less direct mining risk. Franco-Nevada gives investors a premium, diversified royalty model. None is dirt cheap today, so that is worth respecting. But for Canadians building a portfolio meant to last, all three gold stocks still look like smart buys worth keeping on the radar.

The post 3 Canadian Stocks That Look Like Smart Long-Term Buys Today appeared first on The Motley Fool Canada.

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

2026

The Canadian equity market offers several high-quality dividend stocks that reward shareholders with consistent dividend payments and growth. Among these top dividend payers, there are a few dependable dividend stocks that I’d turn to first when markets start getting difficult.

These Canadian companies tend to operate in defensive sectors where demand remains relatively stable regardless of macroeconomic conditions. Their revenue streams are often supported by long-term contracts, regulated frameworks, or essential services, which insulate earnings from cyclical downturns. This structural resilience translates into steady free cash flow generation, supporting reliable dividend distributions.

Moreover, their strong fundamentals, defensive earnings, and resilient cash flow position them well to sustain their distributions and consistently increase them in the coming years.

Against this background, here is the dividend stock I’d turn to first when markets start getting difficult.

A reliable Canadian dividend stock: Fortis

While several high-quality dividend stocks belong to defensive sectors, here I’ll focus on a top utility company. TSX utility stocks offer an excellent opportunity for investors seeking reliable, stress-free passive income. These stocks operate a defensive business and are known for consistent dividend payments. Their rate-regulated asset base helps generate predictable cash flows in market conditions, supporting their payouts.

In the utility sector, Fortis (TSX:FTS) is one of the reliable dividend stocks I’d consider as the market turns turbulent. The company’s asset base is heavily concentrated in regulated transmission and distribution operations, accounting for roughly 95% of its portfolio. This structure materially reduces exposure to commodity price volatility and broader economic swings, resulting in stable, highly visible earnings. For income-focused investors, this translates into a dependable base for dividend sustainability.

Over the past three years, the company has delivered average annual growth of approximately 6.5% in both its rate base and earnings per share (EPS). This steady growth has helped the company sustain its dividend-growth streak.

Fortis has increased its dividend for more than five decades, making it one of the most reliable long-term dividend growers. Last year, in November, Fortis raised its dividend by 4.1%, marking its 52nd consecutive year of dividend growth. Fortis stock currently offers a well-protected yield 3.3% based on its closing price of $77.49.

Fortis to keep growing dividends

Fortis appears well-positioned to maintain its record of dividend growth. The steady rate base growth provides Fortis with predictable earnings and supports consistent dividend payments.

The utility company’s $28.8 billion five-year capital plan is a key driver of its growth. Management expects the midyear rate base to grow from $42.4 billion in 2025 to $57.9 billion by 2030. Its growing rate base will support higher dividend payments. Fortis projects annual dividend increases of 4% to 6% through the end of the decade.

Looking beyond the current capital plan, Fortis retains multiple avenues for incremental growth. In the U.S., ongoing investment in electric transmission infrastructure is expected to support rising electricity demand and enable the integration of new energy sources, particularly renewables. Additional opportunities include transmission projects and regional upgrades in New York.

In Canada, Fortis is also targeting investments in renewable natural gas and liquefied natural gas infrastructure in British Columbia, alongside broader energy infrastructure development to accommodate accelerating demand across its service territories.

Overall, Fortis is well-positioned to deliver predictable cash flows, which positions it to keep paying and growing its dividend in all market conditions.

The post The Canadian Dividend Stock I’d Turn to First When Markets Start Getting Difficult appeared first on The Motley Fool Canada.

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

2026

Big ups and downs in commodity prices amid geopolitical tensions have made stocks volatile in 2026. And that seems to be testing investors’ patience. While this short-term noise can be distracting, Foolish investors may want to stay focused on the bigger picture and continue to hold fundamentally strong businesses that quietly build long-term wealth.

That’s especially true for Canadian bank stocks as they’ve long been known for their resilience, consistent earnings, and ability to reward shareholders through both dividends and capital appreciation. Even during uncertain economic periods, these large banks have shown an ability to adapt and grow. In this article, I’ll take a closer look at two top Canadian stocks from the banking sector that could be worth buying today and holding for at least the next five years.

A steady compounder with global strength

Royal Bank of Canada (TSX:RY) continues to set the benchmark for stability and performance in the Canadian bank sector. With operations spanning personal and commercial banking, wealth management, capital markets, and insurance, the bank benefits from a highly diversified revenue base.

RY stock currently trades at $239.83 with a market capitalization of $335 billion. Over the past year, it has surged by 47%, reflecting strong investor confidence. On top of that, it offers a 2.7% dividend yield, giving investors a reliable stream of quarterly income.

What’s driving this momentum in RY stock is its solid financial performance. In the most recent quarter (ended in January), Royal Bank reported record net income of $5.8 billion, marking a 13% year-over-year (YoY) increase. This growth was supported by strong contributions across its wealth management, personal banking, commercial banking, and capital markets segments.

Although its provision for credit losses saw a slight increase last quarter, it was more than offset by healthy loan growth and improved margins in its personal banking segment. More importantly, the bank’s balance sheet remains strong. It has a Common Equity Tier 1 (CET1) ratio of 13.7%, well above regulatory requirements, giving it a strong financial base to navigate uncertainties while continuing to invest in growth.

Royal Bank’s global presence and diversified operations position it well to capture opportunities across different markets. For long-term investors, it continues to be a dependable compounder with a track record of delivering consistent returns.

Another Canadian stock with improving fundamentals

Canadian Imperial Bank of Commerce (TSX:CM), or CIBC, has also been gaining momentum of late, backed by strong earnings growth and improving operational performance. Like its peers, CIBC operates across multiple segments, including personal banking, commercial banking, wealth management, and capital markets.

CIBC stock is currently priced at $149.84 per share, with a market cap of $138 billion. Over the last year, shares have jumped by an impressive 79%, making it one of the strongest performers among Canadian banks. It also offers a 2.9% dividend yield.

In the quarter ended in January 2026, CIBC’s revenue climbed by 15% YoY with the help of record contributions from all business segments. As a result, its reported net income surged by 43%, while adjusted net income climbed 23%. This growth came from a combination of higher revenues and a lower provision for credit losses, although partially offset by rising non-interest expenses.

Just like Royal Bank, CIBC’s capital position also remains solid, with a CET1 ratio of 13.4%. Beyond the numbers, the bank continues to invest in long-term growth with client-focused initiatives and digital improvements, all of which are likely to strengthen its competitive position. This combination of accelerating earnings, solid capital strength, and strategic focus makes CIBC an appealing stock to buy now and hold for the long term.

The post 2 Canadian Stocks Worth Buying Today and Holding for 5 Years 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

In an uncertain market, high-quality stocks usually have a few things in common. These generate steady cash flow, hold strong market positions, and keep finding ways to grow without betting the farm. I also want businesses that can handle a slower economy, absorb surprises, and still reward shareholders. That’s why I’d focus on proven Canadian names with durable earnings rather than chase whatever looks cheapest for a week.

CM

Canadian Imperial Bank of Commerce (TSX:CM) gives investors exactly what uncertainty tends to reward: scale, dependable earnings, and a healthy dividend. It remains one of Canada’s largest banks, with big positions in personal banking, commercial banking, wealth management, and capital markets. Over the last year, CIBC stock has kept building momentum, and its first-quarter 2026 results showed record revenue across all of its business units.

The numbers were strong. In the first quarter of 2026, CIBC stock reported adjusted net income of $2.7 billion, up 23% year over year, while adjusted diluted earnings per share (EPS) rose 25% to $2.76. Reported diluted EPS came in at $3.21, and adjusted return on equity reached 17.4%. Canadian personal and business banking net income rose 25%, while capital markets net income jumped 42%, so the strength was not coming from just one corner of the bank.

The valuation still looks reasonable for a stock with this kind of profit engine. CIBC stock trades around 15.5 times earnings, while the quarterly dividend stands at $1.07 per share. That’s not a bargain-bin multiple, but it’s also not demanding for a bank producing double-digit earnings growth and maintaining a CET1 ratio of 13.4%.

Looking ahead, CIBC stock still fits because it offers both income and resilience. Credit costs remain something to watch in any uncertain market, but the bank’s strong capital, broad business mix, and steady client activity give it the kind of foundation investors usually want when volatility picks up.

FSV

FirstService (TSX:FSV) is not a bank or a utility, but has built a very durable business through residential property management and a wide collection of home service brands. That makes it relevant in an uncertain market as a lot of what it does stays necessary even when consumer confidence gets wobbly. Over the last year, it also kept making shareholder-friendly moves, including an 11% increase to its quarterly dividend and a normal course issuer bid.

Its recent earnings showed why the market keeps treating it like a premium name. For full-year 2025, revenue rose 5% to $5.5 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 10% to $562.8 million, and adjusted EPS climbed 15% to $5.75. Then, in the first quarter of 2026, revenue rose another 5% to $1.3 billion, adjusted EBITDA edged up 2% to $105.7 million, and adjusted EPS reached $0.95. That kind of consistency is not flashy, but it is valuable when investors are nervous.

You do pay up for that quality. FirstService trades at 47 times earnings, with a quarterly dividend of US$0.305. So no, this one is not cheap. But the company keeps growing, keeps taking market share, and keeps expanding through tuck-in acquisitions. Management said the business remains focused on building growth momentum through the rest of 2026, even as some brands deal with competitive pressure and softer consumer demand. That mix of recurring demand, disciplined growth, and long-term execution is exactly why it still fits in a market that feels uneasy.

Bottom line

If I were buying just two high-quality Canadian stocks in this uncertain market, CIBC stock and FirstService would make a strong pair. CIBC stock gives you dependable income, a reasonable valuation, and strong banking earnings. FirstService gives you a premium growth business with a long record of execution. One brings stability, the other brings steady expansion, and together these look like the kind of mix that can keep working even when the market mood turns sour.

The post 2 High-Quality Canadian Stocks I’d Buy in This Uncertain Market appeared first on The Motley Fool Canada.

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

2026

There are plenty of great Canadian ETFs that are more than deserving of being added to the TFSA portfolio. With the TSX Index and S&P 500 roaring back in this second quarter, investors might be wondering what kind of rotation will be in the cards for the rest of the year and whether or not we’ve seen the lows for the year. Of course, it’s impossible to predict the markets near term or what the next steps will be with the conflict in the Middle East.

As the standoff in the Strait of Hormuz sends oil prices moving higher, perhaps it’s a bit too soon to be ringing the register on shares of the top energy producers. In a prior piece, I highlighted a few dipped oil names that I thought were going for a pretty good discount despite the recent surge in turbulence for the price of oil.

Volatility might stick around for longer: Are you ready?

In any case, timing the market is never a good idea, but finding solid risk/reward opportunities and low-cost hedges (perhaps against higher energy prices and the inflation it’ll spark) seems smart as the easy money is made and markets consider the next path forward. In any case, I think investors should be ready to manage more volatility and turbulence through the year. And that means being ready with cash to seize dips while also ensuring one doesn’t panic when things reverse course.

Personally, adding the right hedges, defensive dividend payers, deep-value plays, and other safety assets could be the move, especially if you’ve got too much invested in the return of the high-growth trade. At the end of the day, it’s all about finding the right balance and preventing your future self from being in a state of shock if the risk-on trade were to suddenly fold again due to some macro event, a growth scare, or an industry-wide rollover.

BMO Low Volatility Canadian Equity ETF: The best way to manage volatility?

The good news is there’s a one-stop shop ETF for investors who want to take on a more defensive posture. The BMO Low Volatility Canadian Equity ETF (TSX:ZLB) looks like it could be worth going for with its 1.9% dividend yield and modest 0.63 beta, which indicates that shares are less likely to follow the TSX Index in either direction, especially on those really turbulent days.

Sure, shares of the ZLB have trailed the market in the past year, and the more recent trajectory has been far more turbulent than expected, with shares suffering two separate “half corrections” in the last six months. While the low-volatility ETF hasn’t quite looked like itself of late, I would view the choppiness as more of an opportunity for long-term investors.

Underneath the hood, the ZLB is comprised of some of the most bulletproof utilities and durable (even slightly growthy) grocers. Add a hint of telecom and financials into the equation, and the ZLB certainly stands out as an even better utility and staples-heavy ETF to play things a bit more defensively. Of course, you’re also getting a good amount of financial exposure, but far less than that of the TSX Index.

In essence, it’s more diversified across the industries, with an emphasis on lower betas and dividend growth. If you’re looking to do well while managing market choppiness, I’d argue the ZLB is well worth the 0.39% (slightly higher than index ETFs) management expense ratio (MER) it commands.

The post One Standout ETF I’d Turn to When I’m Looking for Relative Safety appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette 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

One of the biggest mistakes investors make when building a long-term portfolio, especially when it comes to finding Canadian dividend stocks to buy, is spending too much time trying to predict where interest rates are going next.

There’s no question that interest rates are incredibly important. They’re the primary tool policymakers use to either stimulate or slow down the economy. On top of that, they directly impact the valuation of nearly every company on the market, particularly Canadian dividend stocks.

However, as important as they are, the reality is that consistently predicting interest rates is nearly impossible.

Even when things seem obvious, something always changes. Inflation stays sticky, growth slows, or new risks emerge that completely shift expectations. And that’s exactly where we are today.

Coming into 2026, investors were expecting more rate cuts as inflation continued to ease. But as we’ve seen time and time again, something unexpected can quickly change the outlook. In this case, geopolitical tensions and the war in Iran have added a new layer of uncertainty, forcing policymakers into a wait-and-see approach.

So, with rates essentially on hold for now, and uncertainty remaining elevated, it creates a challenging environment for investors.

That’s why, instead of trying to predict what rates will do next, the better approach is to focus on businesses that can continue to execute regardless of the environment.

And that’s exactly why Northland Power (TSX:NPI) is one of the top dividend stocks to buy right now.

Why Northland Power is built to handle this environment

One of the biggest reasons Northland is one of the best dividend stocks to buy today is because of how the business has already adapted to higher rates.

For years, it was primarily viewed as an income stock. It paid a steady dividend and attracted investors looking for a reliable yield. However, more recently, management made the decision to reset the dividend.

At first glance, that might look like a negative. And in the short term, it was. But in reality, it was one of the most important moves the company could make because instead of continuing to pay out a large portion of its cash flow, Northland is now retaining more capital internally.

And that matters a lot in a higher-rate environment because now the company doesn’t have to rely as heavily on expensive debt, it reduces the need to issue new shares, and it gives management more flexibility to fund its own growth.

So, while some investors saw the dividend reset as a weakness, and for existing investors, it was a setback, looking at Northland today, it’s in a much stronger position going forward. That’s why it’s one of the best dividend stocks to buy now, regardless of where interest rates go.

Why Northland is a top dividend stock to buy now

As a green energy company with significant growth potential both in the short term and over the long term, Northland is one of the most compelling dividend stocks to buy right now, especially because it’s more than just an income play.

The company has a global portfolio of renewable energy assets, including offshore wind, solar, and energy storage, and more importantly, it has several large-scale projects that are either nearing completion or already starting to come online.

And that’s where the opportunity really starts to show up because for the last few years, most of the focus has been on construction risk, rising costs, and higher interest rates. But as those projects get completed, that narrative begins to shift.

Cash flow becomes more visible, execution risk declines, and the market can focus more on the long-term earnings power of the business. At the same time, Northland’s operations are supported by long-term contracts that provide predictable revenue, helping support its dividend and overall stability. And as of Monday’s close, that dividend offered a yield of roughly 3%.

And if interest rates stabilize or eventually start to fall, that’s where the upside becomes even more compelling.

So, while the environment today may feel uncertain, that’s exactly why Northland is one of the best Canadian dividend stocks to buy now. It’s already adjusted to higher rates, continues to execute, and has a ton of long-term potential, regardless of what happens next.

The post With Rates Going Nowhere, Here’s 1 Canadian Dividend Stock I’d Buy Right Now appeared first on The Motley Fool Canada.

Fool contributor Daniel Da Costa has positions in Northland Power. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

As the April tax season concludes and Canadian investors look to deploy new Tax-Free Savings Account (TFSA) contributions, Canadian real estate investment trusts (REITs) remain a compelling asset class to check out for monthly dividends. Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) has just emerged as a leading investment candidate for passive income-focused portfolios this month.

The immediate catalyst for my bullish stance on this perfect TFSA stock is twofold: the successful closing of a $200 million Series H senior unsecured debenture offering and the renewal of Dream Industrial REIT’s units repurchase program. These moves signal a management team aggressively optimizing the REIT’s capital structure in a volatile interest rate environment, positioning the trust for another decade of growing monthly payouts to investors.

While the new reality for Canadian REITs is that interest rates may never get back to historical near-zero levels again in the near future, a structural undersupply of urban logistics space plays in Dream Industrial REIT’s favour, making it a perfect TFSA stock to buy in April for a 5.1% distribution yield receivable in regular monthly installments.

Dream Industrial REIT: A dream come true for TFSA income investors

Dream Industrial REIT’s 342 industrial properties portfolio possesses a strategic moat centred on “infill” logistics assets (small to mid-bay warehouses located in core urban markets). Unlike the “Big Box” property segment, which has seen a surge in speculative supply, infill assets still face strict geographic constraints and rising construction costs, making them difficult to replicate. This supply-demand imbalance has allowed the trust to maintain a committed occupancy rate of 96.2% going into 2026, up from 95.4% by September last year.

The business model is currently riding on a massive “mark-to-market” rent growth opportunity. Historically low leases signed years ago are now expiring, allowing management to capture leasing spreads of approximately 19.6% in 2025 through January 31, 2026. In high-demand regions like Ontario and Quebec, these spreads often exceed 50%.

Strong organic growth in rental income drove a 5.7% increase in Dream Industrial REIT’s same-property net operating income (SPNOI) over the past year, highlighting growing profitability. Furthermore, the REIT’s development pipeline is increasingly shifting toward Build-to-Suit projects, which de-risks new development capital expenditure by securing tenants before the first shovel hits the ground.

A cheap, yet valuable TFSA stock for monthly income

The DIR.UN monthly income distribution is exceptionally healthy for a 5.1% yielder. The trust pays $0.0583 per unit monthly, with an FFO (funds from operations) payout ratio hovering near 66%. The monthly payout appears safe, sustainable, and leaves ample retained cash flow for reinvestment. Reinvesting the respectable payout compounds your returns over time.

From a valuation perspective, Dream Industrial REIT units trading around $13.64 at writing represented a significant 18% discount to the $16.60 per unit net asset value (NAV) the trust reported in February. This implies the market is currently valuing the underlying real estate at a cap rate higher than private market transactions suggest.

On the liability side, the trust’s recent Series H debentures offered a 4.15% coupon, which the REIT effectively lowered to 4.003% via cross-currency swaps into euros. This sophisticated treasury management protects the bottom line from interest rate shocks that plagued lower-quality REITs. Dream Industrial REIT is able to borrow at lower rates in 2026 after receiving a credit rating upgrade in November 2025.

Management buying back units

Insider activity on Dream Industrial REIT units has remained constructive. A unit-repurchase program authorization to repurchase up to 10% of the trust’s public float acts as a floor for the unit price and reflects management’s belief that units are currently undervalued compared to their fair value.

Investor takeaway

While some investors fear the impact of debt refinancing on REIT economics in 2026, Dream Industrial REIT is accessing capital markets at favourable terms, while repurchasing its own undervalued units as it optimizes its portfolio.

DIR.UN offers a rare trifecta for TFSA income investors: a discounted entry point, a top-tier balance sheet, and a monthly payout that is essentially rent collected from some of the world’s largest logistics tenants. It’s a perfect April TFSA stock to buy for a 5.1% monthly yield and meaningful capital appreciation as the valuation gap to its NAV narrows.

The post A Perfect April TFSA Stock With a 5% Monthly Payout appeared first on The Motley Fool Canada.

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2026