It didn’t take long for the S&P 500 and TSX Index to surge to new all-time highs. Even if the conflict in the Middle East is ongoing, the market seems to think it is only a matter of time before the war in Iran ends. Of course, it might not take long before talks of an oil shock are back on the table should things escalate drastically. That said, I do think that the odds of a resolution and a further dip in oil prices are getting higher by the day.

And, with that, I don’t think there’s any stopping the broad markets from making up for lost time, especially as the AI trade looks to get right back into the driver’s seat. When it comes to high-conviction stocks, there are plenty of options to consider on the TSX Index, especially if you’re more of a value-conscious dividend investor. While there’s more growth and upside south of the border, I still think that the yields in Canada are tough to pass up.

Enbridge stock looks like a great buy on weakness

And in this piece, we’ll look at shares of Enbridge (TSX:ENB), a fantastic name that I think might be shaping up to be a terrific buy into weakness. The stock is down just shy of 5% from its recent high, and while the energy sector is under quite a bit of pressure, I do think that the midstream (pipeline) players ought to be spared, especially Enbridge, which continues to operate at a high level with impressive earnings clarity in the coming years.

Sure, investors might be shying away from energy after the hot start to the year, but the pipeline plays are a different kind of energy play, one that shouldn’t be moved all too much by a drastic downside in the price of oil.

An oil spike isn’t going straight to the bottom line of the firm since it’s a service (transporting energy) provider rather than a producer of the commodity. Either way, I think any sector-wide sluggishness that gets to shares of ENB is more of a longer-term buying opportunity for investors who want a large, growing dividend.

It’s a cash cow with more dividend hikes to come

With a multi-decade dividend growth streak and some impressive cash-flow-generative projects on both sides of the border, I like Enbridge’s footing as the AI boom continues to play out. The gas pipeline business in the U.S. stands out as quite compelling, especially as the firm looks to become more of a steady utility-like dividend titan with every deal it makes. Given the data centres coming online, I’d argue U.S. gas utilities are the place to be for a solid risk/reward.

At the end of the day, Enbridge is a $158 billion dividend heavyweight, and as it looks to serve data centres with natural gas transmission, I see the dividend growth streak continuing strong for many years to come. The big upside, in my view, is what happens if more big-tech firms look to team up with the energy transportation juggernaut as it continues to expand into renewables. Sure, green energy represents a sliver of the pie today, but in 10 years’ time, I do think it’ll be another pillar of steady growth.

At just 22.4 times trailing price-to-earnings (P/E), with a 5.3% dividend yield, perhaps dividend seekers looking for a deal might wish to keep watch as ENB stock passes the halfway point to a correction while the rest of the market starts really heating up.

The post Here’s My Highest Conviction Canadian Stock to Buy Right Now appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

2026

Market volatility, which is filled with sharp swings, unexpected headlines, and shifting sentiment, can test even the most patient investors. But Foolish investors know that these periods are exactly when strong, dependable businesses prove their worth.

That’s why having some reliable Canadian stocks in your portfolio matters, as they don’t just survive turbulence but continue to deliver steady growth and income. Let’s take a closer look at one Canadian bank that has shown it could do exactly that.

A reliable banking giant with strong momentum

The top TSX-listed bank stock I’m talking about is Canadian Imperial Bank of Commerce (TSX:CM), which has long been a cornerstone of the Canadian banking sector. With its diversified operations and consistent performance, it has built a reputation as a dependable choice for long-term investors.

CM stock currently trades at $147.40 per share with a market cap of $136.3 billion. Over the past year, it has surged 80%, reflecting strong investor confidence despite the broader market volatility. It also offers a dividend yield of around 3%, paid quarterly, making it appealing for income-focused investors.

Strong results across the board

CIBC’s latest financial performance highlights why it stands out during uncertain times. In the first quarter of its fiscal year 2026 (ended in January), the bank reported a 15% year-over-year (YoY) increase in revenue to $8.4 billion. Net income jumped 43% YoY to $3.1 billion, while adjusted net income came in at $2.7 billion. This growth was supported by higher loan volumes, improved net interest margins, and stronger fee-based income from wealth management. Its net interest margin reached 1.61%, or 2.06% when excluding trading activities.

On the profitability side, its diluted earnings per share (EPS) rose 47% YoY to $3.21, while adjusted EPS climbed 25% to $2.76. Meanwhile, return on equity (ROE) surged to an impressive 20.2%, up from 15.2% a year earlier.

Strength across business segments

One of CIBC’s key strengths is its ability to generate growth across multiple divisions. Its Canadian personal and business banking segment reported net income of $960 million, up 25% YoY. Its commercial banking and wealth management segment posted a 9% increase to $647 million, supported by higher assets under management and administration.

In the U.S., its commercial banking and wealth management operations saw net income rise 19% YoY to $294 million, benefiting from lower credit loss provisions.

Strong financial base

Beyond earnings growth, CIBC’s solid balance sheet adds another layer of confidence. In the latest quarter, the bank reported a Common Equity Tier 1 (CET1) ratio of 13.4%, along with a leverage ratio of 4.4% and a liquidity coverage ratio of 133%.

These strong metrics highlight its ability to withstand economic uncertainty while continuing to support growth and shareholder returns.

Why it stands out during volatility

What makes CIBC even more attractive in volatile markets is its balance, as it offers steady income through dividends, consistent earnings growth, and exposure to multiple business lines. While no stock is immune to short-term market swings, companies with strong fundamentals and disciplined strategies tend to recover faster and deliver better long-term returns.

The post The Canadian Stock I’d Want in My Corner When Volatility Strikes 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

A slowing economy doesn’t always call for hiding under the bed. If growth cools but stays positive, investors can still do well with companies that sell everyday essentials, lock in recurring cash flow, or own assets people keep using no matter what the Bank of Canada does next.

That is the sweet spot here. Investors can look for businesses with enough resilience to keep earnings moving, but enough growth to avoid becoming dead money. In that kind of market, paying a fair price for quality can make a lot more sense than grabbing the cheapest stock on the screen.

QSR

Restaurant Brands International (TSX:QSR) owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs, so it has a mix of value meals, coffee runs, and global growth. In its fourth quarter of 2025, revenue climbed to US$2.47 billion from US$2.30 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to US$772 million from US$688 million, and adjusted diluted earnings per share (EPS) jumped to US$0.96 from US$0.81.

System-wide sales rose 5.8%, while comparable sales grew 3.1%. Shares also trade at about 28.5 times earnings, which is not cheap, but the company just reaffirmed its growth algorithm and plans to return US$1.6 billion to shareholders in 2026. That is the kind of expensive that can still earn its keep.

T

TELUS (TSX:T) is a different kind of slowdown stock. Wireless, internet, and business connectivity do not vanish when the economy gets shaky, and TELUS stock adds a health business that gives it another lane for growth.

Its fourth quarter of 2025 showed 377,000 mobile and fixed customer additions, record free cash flow of $2.2 billion for the full year, and a 2026 target of about $2.45 billion in free cash flow. Fourth-quarter revenue came in at $5.3 billion, just below the prior year’s $5.4 billion.

The stock still carries a yield above 9%, and it trades around 25 times earnings, so you are clearly buying the income stream and stability case here. The risk is simple: competition stays fierce, and that payout leaves little room for disappointment. But positive movement is underway.

MRU

Metro (TSX:MRU) shows that Canadians still need groceries and prescriptions, as it offers both. In its fiscal first quarter of 2026, sales rose 3.3% to $5.29 billion. Food same-store sales increased 1.6%, pharmacy same-store sales climbed 3.9%, and adjusted diluted EPS rose 5.5% to $1.16.

Reported net earnings dipped because of timing and operational issues, including a temporary shutdown at its frozen food distribution centre in Toronto, but the core business still held up well. It trades around 21 times earnings, which is a premium for a grocer, yet investors often pay up for businesses that can still post clean results when households turn cautious.

BIP

Brookfield Infrastructure Partners (TSX:BIP.UN) rounds out the list with a global portfolio of utilities, transport, midstream, and data assets. That mix matters in a softer economy as many of its cash flows are contracted or regulated.

For 2025, it generated US$2.6 billion in funds from operations (FFO), or US$3.32 per unit, up 6% from 2024. The board also lifted the quarterly distribution 6% to US$0.455 per unit, marking its 17th straight annual increase. What makes it more interesting right now is that management expects FFO to move higher in 2026 and is expanding its growth pipeline to include artificial intelligence (AI) infrastructure. All while offering a yield near 5%.

Bottom line

If the economy cools without cracking, this is the kind of group that can still give investors something to smile about. QSR offers global brand power and value-focused demand. TELUS stock brings recurring revenue and a giant yield, though with more balance-sheet pressure. Metro adds plain old dependability, which is underrated when markets get nervous. Brookfield Infrastructure gives you durable assets and a little growth kicker from data and AI.

None is a screaming bargain. That is fine. In a middling economy, reliable businesses with solid cash flow often beat cheap stocks that only look good on paper.

The post 4 TSX Stocks to Buy if the Economy Slows but Doesn’t Break 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 Brookfield Infrastructure Partners, Restaurant Brands International, and TELUS. The Motley Fool has a disclosure policy.

2026

As geopolitical uncertainties continue to keep market volatility intact, Foolish investors are increasingly looking for buying opportunities in quality stocks. When a fundamentally strong company sees its stock decline due to broader market pressures, it should be seen as an attractive entry point for those willing to look beyond short-term noise.

That seems to be the case with one well-established Canadian company, Thomson Reuters (TSX:TRI), right now, as it continues to perform operationally despite a sharp drop in its share price. Let’s take a closer look at why TRI stock could be a strong long-term pick even after its recent decline.

A market leader facing short-term pressure

To put it simply, Thomson Reuters is a global content and technology firm that serves professionals across legal, tax, accounting, compliance, and media industries. Its products are deeply integrated into the workflows of its clients, making its business model both sticky and resilient.

Over the past year, however, TRI stock has fallen by nearly 50%, and it’s currently trading at around $126.91 per share with a market cap of about $56.3 billion. While such a decline may raise concerns at first glance, it’s important to understand what’s happening beneath the surface.

Strong fundamentals remain intact

Despite the stock’s decline, Thomson Reuters continues to deliver steady financial growth. For the full year 2025, the company’s total revenue rose 3% year-over-year (YoY) to US$7.5 billion. More importantly, its organic revenue grew by 7% YoY with the help of strong demand across its core segments.

Meanwhile, its “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) accounted for 82% of its total revenue and delivered 9% YoY organic growth both in the fourth quarter and for the full year.

At the same time, its profitability also improved as its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% from a year ago to US$3 billion, with margins expanding to 39.2% from 38.2% a year earlier. This highlights the company’s ability to scale efficiently while managing costs.

Betting big on AI-driven growth

One of the most important drivers of Thomson Reuters’s long-term story is its push into artificial intelligence (AI). The company’s CoCounsel AI platform has already been adopted by one million professionals across 107 countries.

This tool is designed for high-stakes industries, offering reliable, citation-backed insights tailored to specific jurisdictions. Its next-generation version is expected to bring more advanced capabilities, including conversational task execution that mirrors how professionals collaborate in real life.

These innovations position the company to benefit from the growing demand for AI-powered solutions in professional services — a market that is still in the early stages of adoption.

Why long-term investors may want to pay attention

Thomson Reuters is also taking steps to enhance shareholder value. It has announced a US$600 million share buyback program along with a US$605 million return of capital initiative, signalling confidence in its future.

The company now expects organic revenue growth of around 7.5% to 8% in 2026. It also anticipates further margin expansion of about 100 basis points and free cash flow of approximately US$2.1 billion. These projections suggest that the company’s growth trajectory remains intact despite recent market volatility.

While the recent decline in Thomson Reuters stock may seem concerning, its underlying business tells a different story. Overall, its strong cash flows, leadership in professional services, and commitment to shareholder returns make it a solid option for patient investors.

The post This Canadian Stock Down 50% Is Nearly Perfect for Long-Term Investors appeared first on The Motley Fool Canada.

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

2026

Finding a true long-term growth stock isn’t simple. While many companies ride short-term trends, only a handful are built to sustain momentum over time. The real winners are usually those operating in industries with rising global demand while quietly strengthening their position behind the scenes.

That’s the reason why resource-focused companies like Almonty Industries (TSX:AII) are starting to look attractive amid the ongoing market uncertainty. With geopolitical shifts and supply chain concerns becoming more important, businesses tied to critical minerals are worth considering. In this article, let me explain why this TSX growth stock could be uniquely positioned to benefit from this trend over the next three years.

This critical minerals stock is gaining solid momentum

Almonty Industries mainly operates in the tungsten mining space – a niche but increasingly important segment of the global economy. Tungsten is widely used in defence, industrial manufacturing, and advanced technologies, making it a strategic resource for many countries.

The company’s stock currently trades at $28.84 per share with a market cap of $8.2 billion. Over the past year, it has delivered an extraordinary 681% return, reflecting growing investor interest in its long-term potential.

A major milestone recently came from its flagship Sangdong Tungsten Mine in South Korea after the company delivered its first ore to the Run-of-Mine pad, marking its transition from development to active mining. This step brings it closer to full-scale commercial production and positions it as a key supplier outside China.

Growth supported by rising demand

Almonty’s recent financial performance highlights the impact of improving market conditions. In the fourth quarter, Almonty’s revenue rose 39% year-over-year (YoY) to $8.7 million, while its full-year revenue increased 13% YoY to $32.5 million. This growth has been supported by a sharp rise in ammonium paratungstate (APT) prices, which climbed significantly to around US$2,250 per metric tonne unit.

At the same time, the company reported a net loss of $102.3 million for the quarter and $161.9 million for the full year. However, this was largely due to non-cash revaluation losses tied to derivative liabilities, meaning it had a limited impact on actual cash flow.

Building a global footprint

Beyond current operations, Almonty is actively expanding its global presence. It recently acquired the Gentung Tungsten Project in Montana, adding a potential near-term U.S. production asset to its portfolio. This move aligns with its broader strategy of building a supply chain independent of China, which currently dominates global tungsten production. With increasing geopolitical focus on resource security, this positioning could prove highly valuable.

The company has also strengthened its leadership team with key executive appointments to support operations and development. At the same time, relocating its corporate headquarters to Montana brings it closer to U.S. government agencies and industrial partners.

Why this TSX growth stock stands out

Moreover, Almonty Industries is advancing a large-scale drilling program at Panasqueira to extend the mine’s life and support higher production levels. Its Gentung project is also expected to move toward production readiness in the near term.

With tungsten prices hovering near record levels of around US$2,500 per metric tonne unit, the timing of these developments could further strengthen its revenue potential. While the stock’s recent surge may raise questions, its long-term story is tied to structural demand rather than short-term trends. Its combination of expanding production, rising commodity prices, and geopolitical relevance gives it a unique edge.

The post Opinion: This Is the Only TSX Growth Stock to Own for the Next 3 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

The Tax‑Free Savings Account (TFSA) is one of the best tools for Canadian investors to use to build a dependable monthly income stream. Because growth and withdrawals are completely tax‑free, that means every dollar generated from your investments goes into your pocket.

When combining the TFSA with the right monthly‑paying REITs, the account can become a powerful, reliable income machine that delivers cash every single month.

Here’s a look at some of the best REITs to consider buying for a source of monthly income.

Option #1: RioCan Real Estate

RioCan Real Estate (TSX:REI.UN) is one of the largest REITs in Canada. The company has historically focused on commercial retail properties, but in recent years has shifted to include more mixed-use residential properties.

Those properties are located in high-traffic areas of Canada’s metro markets, catering to the strong demand for both retail and residential tenants.

More importantly, that strong demand and diversified tenant base makes RioCan one of the better-paying options on the market. In fact, RioCan’s uniquely diversified portfolio makes it an ideal alternative to owning real estate. As of the time of writing, the REIT offers a monthly distribution that carries a yield of 5.7%.

For TFSA holders, RioCan provides the perfect mix of retail and residential properties that add a layer of defensiveness. This helps to maintain predictable cash flow through different market cycles.

Option #2: Slate Grocery REIT

The second option to help generate monthly income is Slate Grocery REIT (TSX:SGR.UN). Slate is a grocery-anchored REIT. This provides an unusually defensive appeal to any portfolio, given the sheer necessity of food.

Slate also offers another unique distinction for investors to note, and that’s geography. Slate’s portfolio of over 100 grocery-anchored properties is U.S.-based.

In other words, Slate’s portfolio is comprised of stable, high-occupancy sites that provide essential products regardless of economic conditions.

That stable revenue base helps Slate to provide an appetizing monthly distribution. As of the time of writing, that yield works out to 7.4%, making it one of the better-paying options on the market.

For TFSA investors seeking monthly income, Slate offers a perfect balance between high-income potential and defensive appeal.

Option #3: SmartCentres REIT

The third option for monthly income seekers to consider is SmartCentres REIT (SRU.UN). SmartCentres is a retail-focused REIT that is focused on necessity-based retail.

A key factor in SmartCentres’ portfolio is that many of its properties are anchored by major national retailers. This translates into a stable revenue base that provides ample foot traffic to its properties. The recurring traffic to the larger anchor tenants also supports the smaller, secondary tenants on those properties.

In short, the unique tenant mix helps support stable occupancy and maintains SmartCentres’ predictable distributions. As of the time of writing, SmartCentres offers a yield of 6.6%.

For TFSA investors seeking steady monthly income, SmartCentres provides a unique middle ground. It can offer a higher yield than large blue‑chip REITs, but with a strong foundation of essential tenants. The REIT also has a long‑term development pipeline to add to future growth potential.

How to combine these REITs into a monthly income machine

The three REITs mentioned above can provide investors with a healthy source of monthly income. Here’s how an allocation of just $7,500 into each REIT can provide a monthly income stream.

Note that prospective investors who aren’t ready to draw on that income yet can choose to reinvest those distributions, allowing them to continue to grow until needed.

By combining these REITs inside a TFSA, investors can build a monthly income stream that grows tax‑free and supports long‑term financial goals.

The post How to Turn Your TFSA Into a Reliable Monthly Income Machine appeared first on The Motley Fool Canada.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.

2026

The vast majority of TSX dividend stocks distribute payments quarterly. However, a select few, including real estate investment trusts (REITs), break from the standard practice. Instead, they pay monthly, providing income investors with the consistent cash flow to help cover recurring expenses.

One standout among these monthly payers is Freehold Royalties (TSX:FRU) in the energy sector. The beauty of its payout frequency is that you can aim for a specific dollar amount each month. FRU currently trades at $16.91 per share and pays a generous 6.4% dividend.

If the goal is to earn $500 each month, the fastest way to hit it is to purchase 5,571 shares or invest $94,205.60. Fortunately, the massive capital outlay isn’t the only approach for regular investors. The power of compounding, through consistent accumulation of shares and dividend reinvestment, will eventually help reach the goal.    

Build your monthly cheque

Instead of a large sum upfront, use the staircase approach. It means you start with how much money you have. Assuming the starting point is $7,000 or the 2026 Tax-Free Savings Account (TFSA) annual contribution limit. The amount can buy approximately 414 shares.

The monthly dividend is $37.16, which is enough to buy 2.2 new shares every month (dividend reinvestment). If you can frontload the TFSA annual contribution limit on day one of each year, you get an extra 11 months of compounding growth every single year. It assumes the price and yield remain constant.

The timeline to reach $500 during the acceleration phase is 9 years and 1 month, or roughly 109 months. Your total out-of-pocket contribution is less than $94,205. More than $24,000 of it is free capital derived from dividends paid along the way. By the time you reach your target, you’ll have a nearly $95,000 asset working for you for the long term.

Pure-play royalty company    

Freehold Royalties offers exposure to Canada’s heavyweight energy sector. The $2.8 billion company owns land and collects royalties from 380 industry operators. As a pure-play royalty company, the business is low-risk, with “no” capital, operating, or abandonment costs.

The land portfolio in North America comprises crude and natural gas assets in premier basins. In 2025, royalty and other revenue increased 1.3% to $313.5 million compared with 2024, along with a 9% year-over-year increase in production to average 16,294 barrels of oil equivalent per day (boe/d). However, net income declined 38.6% to $91.8 million from a year ago.

Performance-wise, FRU is up 13% year to date. Freehold is generally sensitive to commodity prices as its revenues are directly linked to oil and natural gas prices. The spike in oil prices in 2026 will drive royalties higher. A low-price environment can threaten monthly payouts.

I checked the dividend track record and found out that FRU hasn’t missed a monthly dividend payment since 1999. Also, management targets a 60% long-term payout ratio.

Hit your income goal

Building a $500 monthly income stream is achievable through the right stock and disciplined strategy. Dividend reinvestment replaces the need for massive upfront capital. By accumulating shares using the staircase approach, you’ll hit your income goal in a relatively shorter period.

This table illustrates the “staircase approach” in action. Notice how the growth in monthly income accelerates in the later years as your total share count begins to do more heavy lifting than your annual contributions.

The post How to Earn $500 a Month From Freehold Royalties Stock appeared first on The Motley Fool Canada.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.

2026

Are you a Canadian investor holding U.S. stocks?

If so, congratulations! You are average!

While investors in all countries suffer from “home field bias” to some extent, few investors outright ignore the world’s biggest equity market, the good ol’ USA.

In Canada, it’s quite common for investors to hold U.S. stocks, especially blue chip tech stocks and index funds. Many Canadians hold U.S. stocks through their Canadian dollar-hedged equivalents (which aim to reduce exchange rate risk), as well as TSX-listed funds of U.S. stocks.

So, you are in good company holding U.S. stocks. Nevertheless, if you hold those stocks in a tax-free savings account (TFSA), there are some small print rules that influence how they are treated. In this article, I explore one small-print TFSA rule that affects your U.S. stocks in a very negative way!

U.S. dividend stocks are taxable inside a TFSA

One of the main fineprint TFSA rules you’ll need to be aware of is that U.S. dividend stocks are taxable within your TFSA. Taxable by the IRS, that is! While the Canadian government tends to honour the TFSA’s tax-exempt status (barring rule violations), the U.S. government is a whole other can of worms. Countries have the right to tax dividends that their companies pay, no matter where their holders are located. The U.S. imposes 15% withholding taxes on dividends paid by U.S. companies.

Let’s imagine that you’re holding Fortis Inc (TSX:FTS) stock in a TFSA. Fortis is a dividend stock that pays $0.64 in quarterly dividends, or $2.56 in annual dividends. The stock’s price is $78.15; so, the dividend yield is 3.27%. If you invest $50,000 into Fortis stock, you get $1,638 back in annual dividends. Here’s a table showing the numbers on that:

In a TFSA, you would pay zero dollars in taxes on all that income, because the TFSA completely shelters Canadian stocks from taxation. Easy peasy.

With U.S. stocks it’s different.

Let’s imagine a U.S. stock that’s identical to Fortis, apart from its country of origin. In Canadian dollar terms, its price is $78.15, and its annual dividends are $2.56. If you held this hypothetical stock, your pre-tax dividend income on a $50,000 position would be identical to that which you’d earn from Fortis: $1,638. The after-tax amount would be different, though. The U.S. charges a 15% withholding tax on all U.S. dividends received by Canadian holders. The TFSA does not spare you this tax. So, your after-tax dividends on the hypothetical U.S. stock would be $1,392.64. That is, $1,638.40 minus a 15% tax ($245.76).

A parting thought

As I showed above, U.S. dividend withholding taxes can be substantial, even if you hold U.S. dividend stocks in a TFSA. If this matter is a concern to you, you might want to hold your U.S. stocks in a registered retirement savings plan (RRSP) instead of a TFSA. Thanks to a tax treaty between Canada and the United States, U.S. stocks held in RRSPs are spared the withholding tax. Just something to think about when you contemplate whether to hold investments in an RRSP or TFSA.

The post The Small-Print TFSA Rule That Affects Your U.S. Stocks appeared first on The Motley Fool Canada.

Fool contributor Andrew Button has no positions in the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

2026

In the last year, there have been plenty of market worries and disruptions. The war in Iran has disrupted energy markets, driving the price of oil above $100 and disrupting the liquified natural gas markets. The full impact on energy stocks is yet to be seen, but there’s one monthly dividend stock that’s still going strong and likely to gain momentum.

Tourmaline Oil Corp.’s (TSX:TOU) stock price is trading at pretty much the same level as a year ago. But Tourmaline stock continues to pay out its monthly dividend as it faces a strong future. In fact, it has emerged as one of the best monthly dividend stocks in Canada today.

Why Tourmaline?

Tourmaline is a senior oil and gas company with a production profile that’s almost 80% weighted toward natural gas. The company’s operations are focused on three lucrative plays in the Western Canadian Sedimentary Basin – the Alberta Deep Basin, North East British Columbia Montney, and the Peace River Triassic Oil resource.

The company is heavily involved in the rapidly growing liquified natural gas (LNG) industry, thus enabling it to benefit from strong demand/supply fundamentals as well as strong pricing. In 2025, Tourmaline stock reported a 10% increase in production and a 6% increase in operating cash flow.

As one of Canada’s largest natural gas producers, Tourmaline stands to benefit greatly from the continued ramping up of LNG Canada. Global demand for North American LNG has continued strong, and the Iran war has taken out supply in the Middle East.

The Iran war fallout

Approximately one-fifth of the global LNG supply is produced by state-owned QatarEnergy, supplying buyers in Asia and Europe. According to Reuters, attacks have wiped out an estimated 17% of Qatar’s LNG capacity for up to five years. Early in the war, QaterEnergy’s LNG facilities were hit. This has left a gaping hole and a gaping question as to when they can be repaired and operations resumed. In the meantime, there’s a global shortage of LNG.

Buyers in Asia and around the world are certainly looking for new supply deals as the Middle East remains uncertain and dangerous. This means that North American LNG will increasingly be in demand.

For Tourmaline stock, the opportunity to fill in some of this lost supply is big. Tourmaline supplies U.S. LNG terminals with natural gas, and of course, LNG Canada is becoming an increasingly bigger player. In fact, the facility’s expansion is gaining momentum. The value of a politically safe and stable supply source has become more evident. While this was always an advantage for North American supply, disruptions like the Iran war remind us of this fact. Buyers are rethinking their decisions.

The monthly dividend stock that keeps giving

With Tourmaline (TOU) stock currently trading at approximately $61.00, this means that TOU stock is currently yielding 3.3%. This dividend yield is definitely a healthy one. But it’s also one that could prove to be understated. You see, the company has a policy to pay out 100% of its free cash flow in dividends. In years past, this has shown up through the payment of special dividends, which have been quite sizable in the good times.

The bottom line

TOU stock is one of the best monthly dividend stocks in Canada today. This is due to both its company-specific strengths and the macro backdrop of the energy sector. Yet, Tourmaline’s stock price has remained stuck at roughly $60. Consider buying it for reliable and growing monthly income.

The post One Year On: This Monthly Dividend Stock Hasn’t Missed a Beat appeared first on The Motley Fool Canada.

Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Tourmaline Oil. The Motley Fool has a disclosure policy.

2026

Paying up for a stock can feel a bit backwards. Most investors want a deal, not a premium price tag. But sometimes an “expensive” stock simply reflects a business that keeps executing, keeps growing, and keeps finding new ways to win. In that case, waiting for a perfect bargain can mean missing a great company altogether. That is where a few Canadian names still stand out, even after strong runs.

HPS

Hammond Power Solutions (TSX:HPS.A) makes dry-type transformers and related equipment. It sits right in the path of some very real demand trends. Electrification, grid upgrades, industrial investment, electric vehicle (EV) charging, and data centre expansion all need power infrastructure. Over the last year, HPS kept adding to that story with product moves such as its EV charging distribution transformer and smart transformer platform. All while announcing an acquisition of AEG Power Solutions’ transformer and power quality business to broaden its reach.

The valuation is not exactly sleepy. It shows a market cap of roughly $2.2 billion and a trailing price-to-earnings (P/E) near 27. Even so, the numbers still look strong enough to justify attention. In Q3 2025, revenue rose 14% year over year to $218 million, which management called its second-best quarter ever for shipments, while net earnings came in at $17.4 million and adjusted earnings per share (EPS) hit $1.56. Backlog was also up 27.7% from the start of the year, with large data centre orders arriving after quarter-end. In short, it still looks like a high-quality industrial business with room to grow.

LMN

Lumine Group (TSXV:LMN) is a software consolidator focused on communications and media software businesses. Investors often give those models premium valuations when they trust management’s capital allocation. Lumine stock spent the last year doing what it does best: buying, integrating, and building. It completed the purchase of Datafusion Systems in 2025 and then closed the acquisition of Synchronoss Technologies in February 2026, adding more scale to its long-term buy-and-hold model.

It is not cheap on the surface. It shows a market cap of about $6.3 billion, a trailing P/E of 38.7, and a forward P/E near 19.3. Yet the latest results show why investors are willing to pay up. For 2025, revenue climbed 15% to $765.7 million, operating income rose 31% to $275.7 million, and cash flow from operations jumped 106% to $236.5 million. Net income swung to $118.8 million from a loss in 2024. That is the kind of turnaround that tends to keep a premium multiple alive.

PBH

Premium Brands (TSX:PBH) owns a large portfolio of branded specialty food businesses, so it gives investors exposure to steady consumer demand with an acquisition twist. Over the last year, it has been busy. It completed the acquisition of Stampede Culinary Partners in January 2026 and also moved to sell its interest in Shaw Bakers, showing that management is still shaping the portfolio rather than letting it sit still.

This one also carries a valuation that can make investors pause. It lists a trailing P/E above 63, though the forward P/E is much lower at roughly 14, which tells you the market expects earnings to improve. The latest quarter helps explain that optimism. Premium Brands reported record Q4 2025 sales of $1.9 billion, up 15.7%, record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $179.5 million, and adjusted EPS of $1.29, up 22.9%. It also guided for 2026 sales of $9.25 billion to $9.55 billion and adjusted EBITDA of $870 million to $910 million. Commodity costs and consumer pressure remain risks, but this looks like a business still growing into its scale.

Bottom line

None of these stocks are bargain-bin buys. That is the point. HPS, Lumine stock, and Premium Brands all ask investors to pay a little more for quality, growth, and momentum. That can feel uncomfortable in the moment, but strong businesses often do look expensive before they look obvious. For investors willing to think a few years ahead instead of a few weeks, these three still look worth buying anyway.

The post 3 Canadian Stocks That Look Expensive (But I’d Buy Them Anyway) 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 positions in and recommends Hammond Power Solutions and Lumine Group. The Motley Fool has a disclosure policy.

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