Let’s face it: stock-picking isn’t for everyone. Even seasoned investors increasingly rely on exchange-traded funds (ETFs) to simplify their portfolios, reduce risk, and free up time. In 2026, with markets still shaped by global uncertainty, owning the right ETFs can be one of the smartest moves you make.

Here are three Canadian ETFs I’d seriously consider adding to a long-term portfolio right now.

Gain exposure to the core Canadian market

iShares S&P/TSX 60 Index ETF (TSX:XIU) remains one of the most reliable ways to gain exposure to Canada’s largest and most established companies. It tracks roughly 60 blue-chip stocks and offers a straightforward way to participate in the domestic economy.

What makes XIU a good candidate to consider in 2026 is it provides immediate diversification across the Canadian market. With a low management expense ratio (MER) of 0.18% and a yield around 2.2%, it provides cost-efficient access to dividend-paying giants. Its top holdings include Royal Bank of Canada (8.7% of the fund), Toronto-Dominion Bank (6.2%), Shopify (5.1%), Enbridge (4.1%), and Agnico Eagle Mines (3.9%) — a mix of financial strength and growth potential.

Yes, it’s heavily weighted toward financials (38.6% of the fund), energy (17.6%), and materials (15.3%), but that’s not necessarily a drawback. These sectors seem to continue to benefit from the current macro environment. For investors seeking a dependable Canadian core holding, XIU still earns its place.

Global diversification without the hassle

If you’re overly concentrated in Canada — as many Canadian investors are — iShares Core MSCI All Country World ex Canada Index ETF (TSX:XAW) offers an easy fix.

XAW provides exposure to thousands of companies across the U.S., Europe, and emerging markets — all in one ETF. With a modest MER of 0.22%, it’s a cost-effective way to access global growth trends, especially in technology (26.5% of the fund), industrials (12.7%), and consumer discretionary (9.8%).

This matters more than ever. Canada’s market is relatively small and heavily tilted toward a few sectors. XAW balances that out with significant exposure to global innovators and market leaders that simply aren’t available domestically.

Its historical returns — over 10% annually since its inception in 2015 — highlight the power of diversification. More importantly, it reduces your reliance on any single economy, which is critical in an unpredictable global environment.

One-stop growth for long-term investors

For investors who want maximum simplicity without sacrificing growth, they might like iShares Core Equity ETF Portfolio (TSX:XEQT).

XEQT is an all-equity, globally diversified ETF that automatically allocates across regions: roughly 45% U.S., 25% Canada, 25% international developed markets, and 5% emerging markets. In other words, it gives you instant exposure to the world’s growth engines in a single purchase.

With a low MER of 0.20% and strong historical performance with a compound annual growth rate of 13.3% since its 2019 launch, XEQT is built for long-term investors who can stomach market volatility. Its yield is modest at around 0.9%, but that’s because the focus here is capital growth — not income.

For younger investors or anyone building wealth over decades, XEQT offers a compelling “set-it-and-forget-it” solution.

Investor takeaway

In 2026, successful investing doesn’t have to mean picking individual winners. The right ETFs can deliver diversification, solid returns, and peace of mind. XIU provides a stable Canadian foundation, XAW unlocks global opportunities, and XEQT offers an all-in-one growth engine. Together — or even individually — these ETFs can form the backbone of a resilient, long-term portfolio. The idea is to dollar-cost average into your selected core long-term ETFs over time to build long-term wealth.

The post 3 Canadian ETFs I’d Seriously Consider Adding to My Portfolio in 2026 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 Enbridge. The Motley Fool has a disclosure policy.

2026

Heightened geopolitical tension, persistent inflation concerns, trade disruptions, and broader macroeconomic uncertainty are likely to keep the equity market volatile. Thus, allocating capital to defensive stocks, Canadian companies whose businesses tend to remain stable even when the economic environment deteriorates, will add stability to your portfolio.

Notably, defensive stocks are backed by companies that witness resilient demand for their products and services through economic cycles. Two sectors that consistently stand out in this category are consumer staples and utilities. Consumer staples companies offer everyday necessities such as food, groceries, and household products. Utilities, meanwhile, provide critical services like electricity and energy distribution. Consumers continue to rely on these services regardless of economic conditions, allowing companies in these industries to maintain stable cash flows even when discretionary spending slows.

Against this backdrop, here are the top defensive stocks to buy now for stability. These companies have solid fundamentals and resilient business models.

Canadian defensive stock #1: Loblaw

Loblaw (TSX:L) is a top Canadian stock to buy right now for stability and growth. Canada’s largest grocery and pharmacy retailer benefits from steady demand for essential goods, including food and healthcare products. Because these items remain necessary regardless of economic conditions, Loblaw enjoys a reliable revenue base that supports consistent earnings.

This defensive strength has translated into impressive capital appreciation for investors. Over the past five years, Loblaw stock has surged by more than 279%, far outperforming the broader equity market. Supporting Loblaw’s growth has been its strong same-store sales and value pricing strategy, which appeals to a wide range of customers. Loblaw has also strengthened customer loyalty through its rewards ecosystem and digital tools, which encourage repeat purchases and larger shopping baskets by connecting online platforms with its extensive store network.

At the same time, the company continues to invest heavily in operations to sustain future growth. Loblaw is expanding its retail footprint with new stores while modernizing its supply chain through automation in distribution centers. These upgrades aim to improve logistics costs and enhance inventory management, ultimately supporting stronger margins.

Looking ahead, the growing penetration of private-label products, the expansion of discount store formats, and higher-margin services such as healthcare and retail media are strengthening Loblaw’s growth prospects. Overall, the retailer remains well-positioned to deliver steady growth and stability.

Canadian defensive stock #2: Fortis

Fortis (TSX:FTS) is another top Canadian stock to add stability to your portfolio. It focused on transmission and distribution of electricity and benefits from a large regulated asset base, which provides predictable earnings.

Thanks to its growing regulated asset base, Fortis has consistently increased its dividend for 52 years in a row. Moreover, this growth trajectory will likely continue in the years ahead.

Looking ahead, Fortis plans to deploy approximately $28.8 billion in capital over the next five years. The spending will be focused on regulated utility infrastructure, including transmission and distribution networks. The move will strengthen its low-risk earnings base.

These investments are expected to increase Fortis’s rate base to $58 billion by 2030, adding stability to its operations and supporting higher earnings and dividend payments. Management currently expects to grow its future dividend by 4% to 6%.

Further, Fortis is likely to benefit from structural growth in electricity demand. Expanding industrial activity, the electrification of transportation, and the rapid growth of energy-intensive infrastructure such as data centers are expected to drive higher power consumption, supporting Fortis’s growth. At the same time, Fortis’s strong balance sheet and the sale of non-core assets augur well for growth.

Overall, Fortis is a reliable defensive stock for stability, income, and growth.

The post Canadian Defensive Stocks to Buy Now for Stability 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

When it comes to Canadian stocks with serious momentum and wind at their back, it’s hard to look past those red-hot shares of Barrick Mining (TSX:ABX), which have gained close to 114% in the past year. Of course, the incredible rally has not been without its fair share of bumps in the road.

The stock recently dipped more than 26% as part of a March dive. Indeed, the big plunge in the price of gold contributed to the amplified hit to the chin in shares of the big gold miners. Even after a nice relief bounce, it’s still a pretty uneasy time to get into the name, especially since it’s hard to know what the future holds for gold prices, especially as they tumbled in the face of a geopolitical crisis.

Gold’s coming back with stocks. It might be time to bet big on miners for added torque

Though time will tell if the latest dip into a bear market is the start of a new trend that sees last year’s gains get wiped out, I think that longer-term investors might have reason to treat the latest plunge as nothing more than a correction. In the grander scheme of things, a 26% drop might be more of a “correction on steroids” than anything else, especially considering the magnitude of the 2025 move.

While I’d discourage “playing” the price of any underlying commodity, I think that there are benefits to exposing one’s portfolio to gold. While physical gold is a steadier place to be, I think the miners compensate for the higher level of risk and volatility with significant upside. It’s more of a levered play on gold, so to speak.

And while that operating leverage has worked against gold miners historically, I think that the valuations are depressed enough such that there might be serious value to be had as gold picks up and the miners really start bringing in the cash flows. In a higher gold price climate, the miners are absolute cash cows that can offer huge dividend hikes, special dividends, and buybacks.

Of course, all bets are off when gold tumbles, though. And those who can’t handle a steeper drop on the way down might wish to reconsider buying the latest dip in a name like Barrick.

So, what’s more interesting about Barrick while it’s still down about 15% from its high?

The stock goes for a ridiculously low value multiple, now hovering at 14.8 times trailing price-to-earnings (P/E). That doesn’t price in a lot of optimism, if you ask me. Looking into next year, the shares look even cheaper, now going for just north of 10 times forward P/E.

While I can’t predict gold’s next move in 2025, I think that the bull case could be very rewarding for a name like Barrick, especially as the firm makes moves to shed its relative discount to its peers. The company set a cautious tone for the year, but with a more conservative guide comes greater potential to surprise to the upside.

Combined with big exploration projects, especially in Nevada, I think that the pieces are there to help spark more outperformance versus the peer group. With new leadership and a focus on improving the risk profile, I think Barrick is well on its way to not only trading more in line with its mining peers, but perhaps at a slight discount. Either way, Barrick looks as good as gold here, at least in my view.

Some may view the gold miners as a risky way to play a “safe-haven” asset. But I think they’re a more rewarding play that can pay huge dividends on the way up, making them worthy for those willing to accept the added risks.

The post This Stellar Canadian Stock Is up 114% This Past Year, and There’s More Growth Ahead 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

This year has not been the calmest for stock market investors worldwide. The most recent foray of developments on a global scale has seen Israel and America start a war with Iran, which has, in turn, closed the Strait of Hormuz. Conflicting news coming from our neighbours south of the border keeps causing fluctuations, and it seems like it is becoming next to impossible to know how to deploy cash into the markets to take advantage of the rapid market movements.

There are opportunities to be leveraged in this market environment, but those with a long investment horizon might fare better than most. If you have yet to use the additional contribution room in your Tax-Free Savings Account (TFSA), here are a few high-quality Canadian stocks you can consider allocating some of that space to as long-term bets.

A restaurant business and a critical agricultural stock

While most of the world’s attention is on oil and energy, food is another vital element being affected by the crisis in the Middle East.

Now, Restaurant Brands International (TSX:QSR) is a massive name in the restaurant industry that owns major quick-service food brands. The company has a franchise model that lets it minimize capital expenses while generating healthy and recurring revenue. When things become increasingly expensive, people will want affordable convenience, and fast food definitely offers that.

Then, there is Nutrien (TSX:NTR), one of the world’s most important companies for the agricultural industry. The company produces and sells critical crop inputs that commercial farmers worldwide need to improve and protect crop yields. It offers massive exposure to nitrogen and potash, backed by an extensive retail distribution network.

As global supply chains become increasingly disrupted, QSR stock offers relief through affordable convenience. At the same time, NTR stock offers exposure to products that will become increasingly more valuable to combat potential food scarcity.

Retailers that offer entirely different benefits

People spending on retail change their buying habits based on the economic environment.

At one end of the spectrum is Aritzia (TSX:ATZ), a premium fashion company with several high-quality names under its belt. It has a massive and loyal customer base and has been expanding its presence in the United States. When people have more to spend, consumers will not shy away from indulging themselves by investing in nice clothes that make them feel good. The scenario changes when they need to start saving.

Dollarama (TSX:DOL) comes in as a retail stock that goes completely the opposite way. Dollarama owns and operates the country’s largest chain of discount retail stores. It offers everyday items at lower and fixed price points to its customers. When budgets tighten and people look to save whatever they can, discount stores like Dollarama offer the relief they need.

The combination of these retail stocks offers a good balance between consumer wants and needs that savvier investors can leverage as long-term investments.

Foolish takeaway

Refreshing your TFSA with a few solid long-term picks can be a good way to put your money to work in the market right now. Owning Nutrien and Restaurant Brands International offers you exposure to the agriculture and restaurant industries, both of which are crucial. Dollarama offers exposure to a segment of retail that does well in all market cycles, and Aritzia can help investors benefit from growing buying power as the economy gradually improves. If you have been wondering how to deploy $7,000 into the stock market for substantial tax-free returns, these four stocks warrant being on your radar.

The post 4 Canadian Stocks Worth Adding to Give Your TFSA a Fresh Direction appeared first on The Motley Fool Canada.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Dollarama, Nutrien, and Restaurant Brands International. The Motley Fool has a disclosure policy.

2026

The defensive nature of utilities is on full display against massive headwinds, primarily caused by geopolitical tensions. Thus far in 2026, the sector is TSX’s third-best performer after energy and basic materials. Surprisingly, industry heavyweights such as Canadian Utilities and Fortis are not leading the surge.

In the current environment, Northland Power (TSX:NPI) and Brookfield Renewable Partners (TSX:BEP.UN) are significantly outperforming the broad market (+6.25%) with staggering year-to-date gains of 35.33% and 30.76%, respectively. Both utility stocks could be headed for a strong 2026, offering safety and upside to income-focused investors.

Clear direction

Power producer Northland Power owns and operates a diversified portfolio of energy infrastructure assets in Canada, Europe, and across Asia. The assets of this $6.3 billion company include offshore and onshore wind, solar, natural gas and battery energy storage. Since the business is anchored by 95% long-term contracted cash flows, NPI can endure a volatile market.

At $23.95 per share, the dividend yield is 3.01%. Management announced a 40% dividend cut in November 2025 to protect the balance sheet. According to its CEO, Christine Healy, the strategic decision aims to free internal funding for projects that will define clean energy production in the next decade.

In Q4 2025, revenue from energy sales rose 26% year over year to $723 million, while net income climbed 93% to $290 million. The financial results restored investors’ confidence. Healy said NPI has a clear direction moving forward. She expects the five-year strategic plan to double the current operating capacity of 3.5 gigawatts (GW) to seven GW by 2030.

Regarding dividend consistency, NPI hasn’t missed a quarterly payment since 2018. More importantly, the cut brought dividends to a sustainable level. The funds freed by the dividend reduction will support the Hai Long flagship offshore wind project in the Taiwan Strait and in the Baltic Sea off Poland.

Expanded renewable footprint

Brookfield Renewable Partners has a diversified global reach and boasts a strong renewable power platform across five continents. The $14.7 billion renewable power company targets total returns of 12% to 15%, including 5% to 9% annual distribution growth. If you invest today, BEP.UN trades at 47.91 per share and pays a lucrative 4.76% dividend (quarterly payout).

According to management, the diversified operating portfolio generates stable, inflation-linked cash flows. Brookfield Renewable commits to allocating 70% of funds flow from operations (FFO) to distribution payout. Capital deployment to advance high-value projects over the next five years could reach up to $10 billion.

The several large-scale transactions in 2025 expanded its global renewables footprint. Its CEO, Connor Teskey, also noted the robust energy demand growth following multi-decade trends of reindustrialization and electrification, and now the ongoing data centre development: “We believe we are exceptionally well-positioned to capture this significant opportunity and deliver outsized earnings growth in the years to come.”

Strong buys

Expect investors’ interest in power producers in the utilities sector to further heighten if geopolitical tensions persist. Northland Power and Brookfield Renewable Partners are performance engines in 2026, driven by renewable infrastructure. Both utility stocks are strong buys given their lower risk profiles and income-generating potential.

The post 2 Canadian Utility Stocks That Could Be Headed for a Strong 2026 appeared first on The Motley Fool Canada.

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

2026

A $500 investment might not look like much, but it can still do real work when you put it into a company with a recognizable brand, room for recovery, and a stock price that leaves space for upside. It’s perfect for investors who want a simple idea with a clear story. Buy a business Canadians already know, then wait for earnings, cash flow, and sentiment to improve.

CGX

Cineplex (TSX:CGX) is much more than a movie theatre chain now. It dominates the Canadian exhibition business, but also brings in money from advertising and location-based entertainment through brands such as The Rec Room and Playdium. That wider setup helps because the business no longer lives or dies on a single blockbuster weekend. It has premium screens, food sales, arcade-style venues, and loyalty ties through Scene+, which give it a few more ways to pull people in and keep them spending.

Over the last year, Cineplex stock also gave investors a few reasons to pay attention again. It renewed its normal course issuer bid in August 2025, giving it the ability to buy back shares, and later sold Cineplex Digital Media for $70 million in cash. Management said those proceeds could support buybacks, debt reduction, and general corporate needs. That’s the kind of housekeeping recovery investors like to see from a company still rebuilding its balance sheet.

There were also signs that the operating story kept moving in the right direction. Cineplex stock expanded its media reach by adding advertising sales for Landmark Cinemas starting in January 2026, while its location-based entertainment segment kept benefiting from newer venues opened in late 2024. Even its early 2026 box office trend looked decent: January box office came in at 114% of the prior year, and first-quarter box office through February was running at 104% of the comparable 2025 period.

Into earnings

Now for the numbers. In 2025, Cineplex stock reported revenue of $1.285 billion, up slightly from $1.275 billion in 2024. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $253.1 million from $250.7 million, while adjusted EBITDA improved to $91.6 million from $90 million. It still posted a net loss from continuing operations of $36.9 million, but that was a major improvement from the $104.2 million loss a year earlier. So this isn’t a fully healed story, yet it’s clearly a better one than it was.

The fourth quarter showed the same mixed but improving picture. Revenue slipped 1.8% to $334.8 million as attendance fell 8.9%, yet spending per guest kept climbing. Box office revenue per patron rose to a record $13.87, and concession revenue per patron hit $9.92. That tells you Cineplex stock is getting better at making money from each visit, even when fewer people walk through the doors.

Valuation is where the $500 idea starts to get interesting. Cineplex stock held a market cap of about $624 million at writing, an enterprise value of about $2.3 billion, a forward price-to-earnings ratio of 20.3, and a price-to-sales ratio of just 0.50. That’s not screamingly cheap on forward earnings, but it does look modest against revenue for a company with a national brand and recovery potential. The catch is the balance sheet still carries weight, including $791.3 million of face-value long-term debt and nearly $967.1 million in lease obligations.

Bottom line

That’s why Cineplex stock fits only if you want a higher-risk recovery stock with real upside. It has improving cash, with cash and equivalents up to $134 million at year-end 2025 from $83.9 million a year earlier, stronger media revenue, growing entertainment venues, and a film slate that could support better attendance in 2026.

But it also still depends on consumer spending and a steady run of compelling releases. For $500, though, that risk looks easier to stomach. You’re not betting the farm. You’re making a small, focused wager on a Canadian comeback story that still has some popcorn left in the bag.

The post The Smartest TSX Stock to Buy With $500 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

When it comes to long-term investing, some of the most reliable opportunities come from industries related to real-world demand, and lumber is one such sector. Whether it’s housing, infrastructure, or industrial development, wood products remain essential across multiple parts of the economy. As construction activity continues across North America, companies operating in this space could continue to benefit.

For investors looking to diversify beyond traditional market sectors, lumber stocks can offer a mix of stability and cyclical upside. In this article, let’s take a closer look at two Canadian companies that seem well-positioned to benefit from ongoing demand in this space.

Stella-Jones stock: A stable business built on essential demand

Stella-Jones (TSX:SJ) has carved out a strong niche by focusing on products that support critical infrastructure. Its portfolio includes utility poles, railway ties, and industrial wood products, along with residential lumber distribution across North America.

SJ stock is currently trading at $82.86 per share with a market cap of $4.5 billion. Over the last year, it has climbed 26%, reflecting strong investor confidence. It also offers a small quarterly dividend with a yield of 1.6%.

From a financial perspective, the company delivered solid results in 2025. Its revenue reached $3.5 billion last year, while EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $661 million, representing an 18.9% margin. Strong operating cash flow of $557 million allowed Stella-Jones to reinvest in the business, pursue acquisitions, and return $158 million to shareholders.

This financial growth has been driven largely by its utility products segment, where sales rose 9% excluding acquisitions. Even with slightly higher manufacturing costs impacting margins, the company improved its operating income to $516 million and posted a net profit of $337 million.

Meanwhile, Stella-Jones is continuing to invest in growth. Its planned US$50 million facility in the southeastern United States is expected to strengthen its presence in infrastructure-related products – a segment that tends to generate consistent long-term demand.

West Fraser stock: A cyclical player positioning for recovery

West Fraser Timber (TSX:WFG) could be another amazing stock to consider right now for investors seeking to benefit from lumber demand. As one of the largest wood product manufacturers, it operates across lumber, engineered wood products, pulp, and paper.

After climbing nearly 7% over the last four months, WFG stock currently trades at $89.05 per share with a market cap of $6.9 billion, and provides a dividend yield of about 2%.

Its recent results reflect the challenges of a cyclical industry. In the fourth quarter of 2025, the company reported revenue of about US$1.2 billion but posted a net loss of US$751 million, mainly due to restructuring and impairment charges.

However, the company is actively working to improve its cost structure. It has been shutting down underperforming mills while ramping up production at more efficient, modernized facilities. These steps could position its business for stronger margins when market conditions improve.

For 2026, West Fraser expects modest demand in lumber and is targeting shipments between 2.4 and 2.7 billion board feet. While some segments may remain soft, its focus on operational efficiency and cost control could support a gradual recovery.

Why these lumber stocks look attractive to buy

Both of these companies offer exposure to a sector that remains essential to economic activity. Stella-Jones stands out for its stability and infrastructure-driven revenue streams, while West Fraser provides leverage to a potential cyclical rebound. For long-term investors, combining stable performers with turnaround opportunities can be a smart way to build a balanced portfolio.

The post 2 Canadian Lumber Stocks to Watch Right Now appeared first on The Motley Fool Canada.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Stella-Jones and West Fraser Timber. The Motley Fool has a disclosure policy.

2026

Building a dividend income portfolio that can pay regular income even in a crisis requires a mix of stocks from different sectors, having different dividend policies and capital allocation strategies. This is because a company’s crisis handling capacity depends on the management’s proactiveness in identifying risks and executing strategies efficiently.

Three TSX stocks that could generate assured dividend income

You can build a diversified dividend income portfolio of high-yield stocks, dividend growth stocks, and a dividend reinvestment plan (DRIP).

SmartCentres REIT for high yield

Among all Canadian REITs, SmartCentres REIT (TSX:SRT.UN) has a high dividend yield of 6.7%. Behind the high yield is its regular and assured 23% rental income from Walmart. Walmart attracts other retailers, and SmartCentres used this strength to diversify its tenant base. It is now converting the land around its stores into city centres.

The REIT has a high leverage, but that is manageable as most of it is used to build commercial offices and apartments and sell them. The sale proceeds are used to repay debt or extend it to build more houses and offices. As the population around its stores increases, the value of retail stores appreciates and helps it command a higher rent.

The REIT has sustained through the 2008 Financial Crisis and the pandemic without dividend cuts. Its dividend payout ratio as a percentage of funds from operations increased to more than 90% in 2023 and 2024 amid a slowdown in house sales and a sharp correction in real estate prices. At such times, SmartCentres REIT paused new developments and only focused on existing ones to maintain liquidity. As real estate prices improved, the REIT lowered its payout ratio to 89.2% in 2025 by selling houses and restarting new projects. Its strong execution shows it can sustain its high yield.

Power Corporation of Canada for dividend and capital growth

Power Corporation of Canada (TSX:POW) is a financial holding company, and its strength is dividend growth. Its two major holdings, Great-West LifeCo and IGM Financial, have been growing dividends significantly as premiums and investments increased. POW also has exposure in private equity and power through Sagard and Power Sustainable. They help generate capital gains.

Power’s diversified financial portfolio and a mix of capital and dividend growth make it ideal to increase your dividend income. However, it does not offer a DRIP.

CT REIT for DRIP compounding

CT REIT (TSX:CRT.UN) is one of the best stocks for a DRIP as it grows its dividend every July by an average rate of 3% and offers an additional 3% shares on the dividend amount reinvested. So, if you reinvest the $100 dividend, you will get DRIP shares worth $103. That is better than the 2% discount most DRIP stocks offer.

CT REIT manages to offer a DRIP because of its arrangement with its parent, Canadian Tire. The REIT doesn’t have to spend on advertising or pay a brokerage to get a tenant. The dividend amount retained through a DRIP allows it to buy and develop new stores for Canadian Tire and get recurring rent. Thus, it can offer a DRIP.

How these TSX Stocks could generate $1,790 in dividend income

When you know what to expect from each stock and optimize its strengths, you can maximize your dividend income. A $10,000 investment in each of the three stocks can buy you 143 shares of POW, 580 shares of CT REIT, and 362 units of SmartCentres REIT. Only CT REIT offers a DRIP, which means the entire 580 shares can be put in a DRIP.

The high yield of SmartCentres will compensate for DRIP compounding. POW’s 3.8% annual dividend yield would not discourage you from investing in it, as the real returns will come from the 7% average annual dividend growth it offers.

A $30,000 investment now can give an annual dividend of $1,602 in 2026, which could grow to $1,790 by 2030 by utilizing its full potential.

The post How Splitting $30,000 Across 3 TSX Stocks Could Generate $1,315 in Dividend Income appeared first on The Motley Fool Canada.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Walmart. The Motley Fool has a disclosure policy.

2026

Amid the announcement of a ceasefire and ongoing peace talks between the United States and Iran, Canadian equity markets have staged a strong recovery, with the S&P/TSX Composite Index climbing over 9.3% from its lows last month. However, uncertainty about the outcome and durability of these negotiations persists.

In this environment, investors may benefit from adding high-quality dividend stocks that offer both portfolio stability and a steady stream of passive income. Notably, dividend-paying stocks have historically outperformed their non-dividend-paying peers over the long term. With that in mind, here are my top two picks.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) stands out as a solid dividend stock, supported by its long history of payouts, strong cash flows, and attractive yield. The bank offers a diverse suite of financial services spanning +55 countries, and its diversified revenue streams help generate stable, reliable earnings, enabling it to pay dividends consistently since 1833. It has also grown its dividend at an annualized rate of 4.7% over the past decade and currently offers a forward yield of 4.28%.

The bank’s financial performance has also shown improvement, with adjusted earnings per share rising 16.5% year over year to $2.05 in its most recent first-quarter results, driven by strength across all four business segments. Additionally, its CET1 (common equity tier-one) ratio increased by 10 basis points to 13.3%, reflecting a stronger capital position and enhanced ability to absorb potential losses during periods of financial stress.

Alongside these improvements, BNS is advancing its multi-year strategy to strengthen its North American presence while optimizing and reducing exposure to higher-risk, lower-return Latin American markets. This shift could enhance earnings stability and support more sustainable long-term growth, thereby reinforcing its capacity to deliver consistent, growing dividends. Despite these positives, the company’s valuation looks reasonable, with the next-12-month (NTM) price-to-sales and price-to-earnings multiples of 3.2 and 12.3, respectively. Considering these factors, BNS appears to be an attractive buying opportunity at current levels.

Enbridge

Enbridge (TSX:ENB) is another compelling dividend stock, supported by its contracted business model, consistent dividend growth, and attractive yield. The energy infrastructure company operates an extensive pipeline network that transports oil and natural gas under a tolling framework and long-term take-or-pay contracts. In addition, it owns three natural gas utility businesses and a portfolio of renewable energy assets backed by power-purchase agreements.

A large share of its earnings comes from regulated assets and long-term contracts, with about 80% linked to inflation. This structure makes Enbridge’s financial performance relatively resilient to macroeconomic fluctuations and economic cycles. Backed by this stable business model and strong cash flows, the company has paid dividends for more than 70 years and increased its payout for 31 consecutive years. It currently offers a forward yield of 5.39%.

Looking ahead, rising oil and natural gas production and consumption in North America continue to support demand for Enbridge’s services. The company has identified approximately $50 billion in growth opportunities through the end of the decade and plans to invest $10–$11 billion annually to fund these projects. As these investments progress, management expects adjusted earnings before interest, taxes, depreciation, and amortization and distributable cash flow per share to grow at a steady single-digit pace. Given these factors, Enbridge appears well-positioned to sustain dividend growth, making it an attractive buy amid this uncertain outlook.

The post 2 No-Brainer Dividend Stocks to Buy Hand Over Fist appeared first on The Motley Fool Canada.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy.

2026

A year can change the whole story. Stocks that looked too risky, too expensive, or simply too messy 12 months ago can surprise investors when management executes, margins improve, or the market finally notices what was hiding in plain sight. That’s exactly why we’re looking at these three rebounding names today.

BBD

Bombardier (TSX:BBD.B) looks nothing like the old turnaround headache many investors gave up on. It’s now a focused business jet maker, and over the last year, it has continued to prove that its recovery is not just a good headline. In February, it reported fourth-quarter revenue of US$3.69 billion, up nearly 19% year over year, delivered 64 aircraft in the quarter, and finished 2025 with free cash flow of US$1.07 billion. Full-year revenue reached US$8.7 billion, while backlog climbed to US$17.5 billion. Management now expects 2026 revenue above US$10 billion and more than 157 jet deliveries.

That helps explain why Bombardier stock has ripped higher. Even after the run, Bombardier stock still looks more like a maturing industrial story than a hype trade. The data shows a market cap of around $24.2 billion and a trailing price-to-earnings ratio of 19 at writing. That’s not dirt cheap, but not outrageous either. The catch is obvious: demand for private jets can cool fast in a weaker economy, and trade noise with the United States has not fully disappeared. Still, one year later, this is a very different beast.

LSPD

Lightspeed Commerce (TSX:LSPD) felt like the poster child for investors who got burned on growth stocks for a while there. But the last year brought something the market had been begging for: discipline. In its fiscal third quarter of 2026, Lightspeed stock posted revenue of US$312.3 million, up 11% year over year, with gross profit up 15% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$20.2 million. Operating cash flow came in at US$28.9 million, and the company ended the quarter with US$479 million in cash.

What makes Lightspeed stock relevant now is that it is no longer selling pure hope. Management raised its fiscal 2026 outlook and now expects revenue of roughly US$1.216 billion to US$1.22 billion and adjusted EBITDA of about US$72 million. It’s also pushing harder into payments, hospitality in Europe, and retail in North America, while adding artificial intelligence (AI) features to the platform. Valuation helps the case too, with an enterprise value-to-revenue multiple of about 0.66. The risk is that this is still not a steady blue-chip. Growth needs to hold up, and competition in commerce software is fierce. But the doubters have had less to work with lately.

ATRL

AtkinsRéalis (TSX:ATRL) may be the quietest winner of the bunch, but it has been just as convincing. The company, formerly known as SNC-Lavalin, now looks more like a global engineering and nuclear growth story than a restructuring case. In fourth-quarter 2025 results, services revenue climbed 16.6% to $2.9 billion, adjusted earnings before interest, taxes (EBIT) for services rose 18.9% to $288.7 million, and adjusted net income from PS&PM jumped to $160.9 million. For the full year, services revenue reached $10.8 billion, and the backlog hit a record $21.2 billion.

That backlog is the big clue. Demand across engineering, infrastructure, and especially nuclear has been strong, and management expects nuclear revenue of about $2.5 billion in 2026. The company also benefited from stronger cash flow and acquisitions that expanded its reach in the United States and Australia. Even after the stock’s climb, the numbers still look reasonable beside the growth. The shares trade around $91, while outside market data pegs the market cap near $15 billion. The main risk is execution. Big project businesses always carry margin and cost-overrun headaches. Even so, AtkinsRéalis has spent the last year proving it deserves more credit than the market once gave it.

Bottom line

A year later, these three TSX stocks all tell the same basic lesson: sometimes the market gets too stuck on the old story. Bombardier stock turned a comeback into hard cash flow. Lightspeed stock turned a messy growth narrative into a more disciplined one. AtkinsRéalis turned a long repair job into a record backlog story. While not risk-free, all three have done something that matters even more. They made the doubters work a lot harder.

The post A Year Later: 3 TSX Stocks That Proved the Doubters Wrong 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 Lightspeed Commerce. The Motley Fool has a disclosure policy.

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