Investors who buy before economic fears fade usually want businesses that can hold up while everyone else stays nervous. That often means companies with everyday demand, pricing power, and enough earnings strength to keep growing even if consumers turn cautious. The nice part is that when fear hangs around, these kinds of Canadian stocks can still trade at reasonable valuations. That gives long-term investors a chance to buy quality before confidence comes roaring back.

PBH

Premium Brands (TSX:PBH) fits that idea as it sells the kinds of food people keep buying in all kinds of economies. It owns a wide mix of specialty food and distribution businesses across meat, seafood, sandwiches, baked goods, and more. Over the last year, it stayed busy expanding its footprint, including completing the acquisition of Stampede Culinary Partners after year-end and signing an agreement to sell its 74% interest in Shaw Bakers. That kind of portfolio reshaping gives it more room to focus on higher-growth areas.

The latest earnings were strong. Premium Brands reported record 2025 revenue of $7.48 billion, up from $6.47 billion in 2024, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to a record $672.2 million from $593.7 million. Adjusted earnings per share (EPS) climbed to $4.57 from $3.98, and free cash flow reached $294.8 million. That’s solid progress for a consumer-facing company operating through commodity inflation and a fussy shopper backdrop.

Valuation still looks fair enough for a business with this kind of scale, with a trailing price-to-earnings (P/E) ratio of roughly 93.7 at writing. That multiple looks elevated partly because reported earnings lag adjusted operating performance. The more useful point may be the outlook. Management guided for 2026 sales of $9.25 billion to $9.55 billion and adjusted EBITDA of $870 million to $910 million. Risks remain, especially around beef costs and consumer sensitivity, but this still looks like a high-quality name worth buying before sentiment improves.

LAS

Lassonde (TSX:LAS.A) is a quieter Canadian stock, but that’s part of the appeal. It makes and markets fruit juices, drinks, and specialty food products, with strong operations in Canada and the United States. That gives it exposure to staple categories rather than the kinds of purchases consumers quickly cut. Over the last year, it kept building for future growth, including pushing ahead with its New Jersey facility, which management says remains on budget and on schedule for completion in early 2027.

Its 2025 results showed real momentum. Lassonde reported sales of $2.93 billion, up from $2.60 billion in 2024. Operating profit rose to $226.1 million from $174.7 million, while adjusted EBITDA jumped to $344.1 million from $275.8 million. Profit attributable to shareholders reached $149.7 million, and EPS climbed to $21.94 from $16.73. That’s the kind of earnings growth that gets more attention once macro fears start easing.

The valuation also looks far more grounded. Lassonde holds a trailing P/E of about 10.5 as of writing. Management is also still targeting growth while aiming to reach $3 billion in sales. The risks are straightforward: input costs, consumer spending pressure, and execution on expansion projects. Even so, for a defensive food name with improving profitability, Lassonde looks like the kind of stock that could rerate once investors stop hiding from the economy.

Bottom line

If you want to buy before economic fears fade, these two Canadian stocks make a lot of sense. Premium Brands offers a broader growth story with portfolio moves and rising sales, while Lassonde brings steadier staple demand and a much cheaper valuation. Neither one is flashy, and that’s exactly the point. When the mood finally improves, solid businesses like these often get noticed in a hurry.

The post 2 Canadian Stocks to Buy Before Economic Fears Fade 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

Investors seeking to replicate the consistency of a paycheque could consider dividend-paying stocks that distribute cash on a regular schedule. In Canada, a small group of companies pays dividends monthly. However, the frequency of dividends alone is not a sufficient investment criterion. The more important factors are the sustainability and resilience of those payouts, especially across economic cycles.

A dependable paycheque portfolio should include Canadian stocks backed by durable business models, steady revenue and earnings growth, and disciplined capital allocation. Moreover, these firms should maintain a sustainable payout ratio. These factors enable them to maintain distributions during periods of economic stress, reducing the risk of dividend cuts.

Ultimately, building a paycheque portfolio is less about chasing high yields and more about constructing a reliable income stream. Against this background, here are two stocks that pay monthly and have reliable distributions.

Dream Industrial REIT

Dream Industrial REIT (TSX:DIR.UN) is a top Canadian dividend stock to build a paycheque portfolio. The real estate investment trust focuses on industrial real estate, owning urban logistics and distribution properties across Canada, the U.S., and Europe. This geographic spread helps stabilize earnings by limiting exposure to any single market.

Its tenant base is also well diversified, with no industry contributing more than 18% of total rent. This reduces customer concentration risk and maintains stable rental income even when specific sectors face downturns.

Strong leasing demand continues to support high occupancy and favourable rental rates, which in turn drive reliable operating income and consistent distributions. It currently pays a monthly dividend of $0.058 per share, yielding 5.1% based on its recent closing price of $13.82.

Looking ahead, the REIT is likely to benefit from rising in-place rents, improving leasing conditions, and high occupancy. It reported an occupancy rate of over 96% in the last reported quarter and highlighted strong tenant retention. These factors will likely support its future growth.

In addition to core operations, Dream Industrial is expanding into complementary revenue streams, including solar energy projects and its private capital platform. These initiatives are growing quickly and contributing meaningfully to overall earnings.

Management is working to strengthen free cash flow and reduce the payout ratio, improving long-term distribution sustainability. At the same time, capital is being reallocated from non-core assets into higher-quality properties and development projects with durable demand.

With a solid portfolio, stable occupancy, and diversified income sources, Dream Industrial REIT appears well-positioned to maintain and grow its monthly distributions.

Whitecap Resources

Whitecap Resources (TSX:WCP) is another attractive stock to build a paycheque portfolio. The energy company pays a monthly dividend of $0.061 per share, yielding 4.8% near the current market price of $15.09.

Whitecap stock has a solid distribution history. Between 2013 and the end of 2025, the company distributed roughly $3 billion in dividends. This track record is notable given the cyclical nature of oil and gas markets, where commodity price volatility often disrupts cash flow stability. Whitecap’s ability to sustain and distribute capital through multiple price cycles indicates a disciplined capital allocation framework and resilient underlying operations.

The company benefits from a diversified asset base and a significant inventory of drilling opportunities, which provide flexibility in capital deployment. Its relatively conservative balance sheet further strengthens this position.

The recent acquisition of Veren represents a strategic step in enhancing Whitecap’s growth trajectory. By expanding its asset base and geographic footprint, the company gains scale advantages and improved access to higher-value markets. Additionally, increased production volumes support the negotiation of longer-term marketing agreements, which can help stabilize realized pricing.

Looking forward, management expects to maintain its base dividend payout ratio in the 20% to 25%, which is sustainable. This conservative payout framework provides a buffer against commodity price downturns while allowing incremental dividend growth. Overall, Whitecap is a dependable income stock.

Earn over $82 per month

An investment of $20,000, split evenly between Dream Industrial REIT and Whitecap Resources, can help diversify your paycheque portfolio and generate a steady monthly income of over $82.

The post How to Build a Paycheque Portfolio With 2 Stocks That Pay Monthly appeared first on The Motley Fool Canada.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.

2026

Sometimes, a stock shoots higher on big news, leaving investors wondering if they’ve already missed the move. That’s exactly what just happened with one of the top Canadian dividend stocks, ARC Resources (TSX:ARX). The stock popped by over 21% in a single day after the company agreed to be acquired by Shell (NYSE:SHEL) in a $22 billion deal.

With ARX stock now trading at $31.22 per share, the big question is: Is there any upside left, or has most of the opportunity already played out?

Why ARC Resources stands out in the energy space

Among Canadian dividend stocks that have attracted long-term investors, ARC Resources has built a strong reputation as a top Montney-focused producer. Its operations are centered on unconventional natural gas, condensate, and crude oil across Alberta and northeast British Columbia.

Before this rally, the stock had been trading well below its highs, offering a solid dividend yield and a more attractive entry point. Now, after the surge, ARX trades just a couple of percentage points below its 52-week high, with a market cap of roughly $17.7 billion.

Strong production and disciplined financial performance

ARC Resources delivered impressive results in recent quarters. Its average production reached a record 408,382 barrels of oil equivalent per day in the fourth quarter of 2025, including a record 118,898 barrels per day of crude oil and condensate.

On a per-share basis, production rose 10% year-over-year (YoY), reflecting strong operational efficiency. Financially, the company generated $874 million in funds from operations and $668 million in operating cash flow.

Meanwhile, its free funds flow came in at $415 million in the fourth quarter, while net profit stood at $260 million.

Pricing strength and smart capital allocation

One of ARC’s key strengths is its ability to secure better pricing for its natural gas. Last year, it realized an average price of $3.51 per thousand cubic feet, which was $1.65 higher than the Alberta Energy Company (AECO) benchmark. This marked the 13th consecutive year that it exceeded AECO pricing by at least 20%.

The company also strengthened its asset base with a $1.6 billion acquisition of condensate-rich Montney assets in the Kakwa region, supporting future production growth.

In 2025, ARC’s reserves continued to expand, with proved developed producing reserves rising 15% YoY and total proved plus probable reserves increasing 9%. It also replaced 121% of its reserves, marking its 18th consecutive year of strong reserve replacement – a key indicator of long-term sustainability.

Operationally, ARC remained active, drilling 144 wells and completing 157 during the year. Its total capital spending of $1.9 billion stayed within guidance, reflecting a disciplined approach to growth.

What the ARC-Shell deal means for investors

Under the agreement announced on April 27, ARC shareholders will receive $32.80 per share, paid through a mix of cash and Shell shares. That represents a 27% premium to the stock’s pre-announcement price.

However, with the stock now trading close to that level, the remaining upside is relatively limited and largely depends on the deal closing as expected in the second half of 2026.

The acquisition also highlights ARC’s quality. Shell is buying a low-cost, high-quality Montney producer with strong reserves and a proven track record. Once the transaction is complete, ARC investors will effectively transition into owning a stake in Shell – a global energy giant with a more diversified business and broader cash flow base.

For existing shareholders, most of the easy gains have already been captured. For new investors, this is no longer a typical “buy the dip” opportunity, but rather an event-driven situation with returns tied to deal completion. That also means investors may want to look beyond ARX stock, as the TSX still offers several other fundamentally solid dividend stocks that could provide better value right now.

The post This Canadian Dividend Stock Just Jumped 21% – Should You Still Buy? 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

Chasing dividend yield, especially with your TFSA (Tax-Free Savings Account), can be a recipe for disaster if you’re not careful. Sometimes, the high yield that’s on your radar might be too good to be true, especially if the free cash flow payout ratio is on the high side. And if a firm’s already on the ropes, with earnings expected to be in a tough spot in the next year or so, perhaps that added yield isn’t worth the extra risk that you’ll need to take on.

At the end of the day, higher reward, and remember that includes yield, tends to accompany high risk. And as a value investor, you must analyze the risk/reward trade-off to ensure that you’re getting a good idea.

Indeed, it’s these “getting a dollar for three quarters” kinds of propositions that investors should look for, whether or not you consider yourself a passive income investor, a growth investor, or something in between. In my view, all investors ought to strive to be value investors.

Value ought to come first

If that means getting a bit more growth than the market prices in for your investment dollar or a bit of extra yield (don’t forget about dividend growth as well!), the goal is to stretch every dollar you put to work in markets as far as it can go.

If you’re looking for bargains when you go shopping for pricey electronics or just about anything else, while putting in the homework to ensure you’re getting the best product for the price, you should be more than willing to do even more analysis when it comes to your investments.

Of course, it’s all too easy to follow the tip of a friend, colleague, or some expert strategist on television. That said, there’s only one person who’s accountable for their moves: it’s the investor. With that, putting in more than a good dose of due diligence, I think, is only shrewd, especially when it comes to your TFSA.

Your TFSA is arguably the ultimate compounding machine, and if you can minimize the losers you add to it, I do think you can get that snowball rolling quite quickly.

So, if you’re not chasing yield, what should you chase when it comes to your TFSA?

Beyond value, I’d say chasing dividend growth and predictability of future earnings growth is the way to go. Share buybacks matter, too!

Of course, if you’ve got a top dividend grower with an earnings roadmap that couldn’t be more predictable, all bets are off if the price of admission is too steep. Indeed, value is the number-one trait that must be passed before all else is considered, whether it’s dividend growth potential, yield, or growth prospects.

Dividend growth could be better than yield over the long run

Instead of a distressed 10%-yielder (sorry, Telus investors!), perhaps a name like CN Rail (TSX:CNR) could be a wise bet. The stock took off 4.4% in Thursday’s session, and with the name coming back in a big way ahead of earnings, I’d argue that the 2.5%-yielder is a great bet while its yield is still historically elevated.

Of course, it’s the dividend growth profile and wide moat that are stars of the show. Either way, the name still looks cheap at 20.6 times trailing price to earnings (P/E), especially considering the potential for a big freight comeback once the economy starts moving faster.

The post Stop Chasing Yield in Your TFSA — Here’s What to Do Instead appeared first on The Motley Fool Canada.

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

2026

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