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

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

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

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

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.

2026

The best mix often comes from companies that do not just benefit from stronger oil, but can also hold up if prices cool off again. That’s why balance sheet strength, disciplined capital returns, and clear growth plans matter just as much as the commodity itself.

TVE

Tamarack Valley Energy (TSX:TVE) is a Canadian producer with a big footprint in the Clearwater and Charlie Lake plays, and over the last year it kept leaning harder into Clearwater growth while also increasing shareholder returns. In late 2025, it laid out a 2026 budget with about 70% of spending aimed at Clearwater development and water flood expansion, showing where management sees its best economics.

Fourth-quarter 2025 production averaged 68,635 barrels of oil equivalent per day (boe/d), up 4% from a year earlier, while Clearwater production climbed 16% to 50,049 boe/d. Tamarack also generated about $390 million in free cash flow in 2025 and returned roughly $262.3 million to shareholders through buybacks and dividends. This is more of a cash flow story than a plain earnings multiple story. That adds some risk, but if oil stays firm, Tamarack’s production growth and buyback support could keep it in the spotlight.

HWX

Headwater Exploration (TSX:HWX) is a heavy oil producer, mainly in Alberta’s Clearwater, spending the last year proving it can keep growing volumes while staying disciplined. In January and March, management highlighted strong reserve growth, steady drilling results, and an operations update that pointed to continuing momentum. When investors get excited about oil again, they usually want producers that can translate stronger prices into real cash flow, not just good headlines.

Its latest results looked solid. Headwater posted record 2025 average production of 22,776 boe/d, up 12% from 2024, and generated $326.2 million in adjusted funds flow from operations, or $1.37 per basic share. The stock trades at about 19 times trailing earnings and yields roughly 3.6%, so it is not dirt cheap. However it still looks reasonable for a producer with no net debt and steady operational momentum. The main risk is obvious. Heavy oil names can stay volatile if benchmark prices or differentials turn against them. Still, if oil remains a hot topic, Headwater has the kind of clean balance sheet and growth profile that investors tend to reward.

ENB

Enbridge (TSX:ENB) does not need oil prices to soar to work, but often benefits when energy demand stays strong and investors want dependable income with energy exposure. Over the last year, Enbridge stock kept expanding its gas and pipeline footprint, and it said in December that it expects a higher 2026 core profit as demand stays firm and new projects enter service. That gives investors a different way to play the oil story without taking on the same kind of drilling risk.

The earnings case stayed sturdy. Enbridge stock reported record 2025 results, with annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) up by $1.3 billion and adjusted earnings up by $541 million from 2024. It reaffirmed 2026 guidance for adjusted EBITDA of $20.2 billion to $20.8 billion and distributable cash flow per share of $5.70 to $6.10. Enbridge stock trades at about 22.5 times trailing earnings and offers a forward dividend yield above 5.4%, which makes it appealing for investors who want oil-linked relevance without betting everything on crude itself. The risk, of course, is that it will not move as dramatically as a producer in a full oil rally. But for steadier income and scale, Enbridge stock still looks hard to ignore.

Bottom line

If oil stays front and centre, these three stocks offer different ways to play it, plus income through dividends with even $7,000.

That mix gives investors a nice way to watch the oil trade without relying on only one kind of winner.

The post Oil Is Back in Focus: 3 Canadian Stocks to Watch 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 recommends Enbridge. The Motley Fool has a disclosure policy.

2026

A 10% yield that could be a dividend trap

Timbercreek Financial (TSX:TF) is a dividend stock that witnessed a sharp 9.6% dip in the week it released its fourth-quarter 2025 earnings. This dip increased its dividend yield to 10.2%. The earnings dimmed investors’ confidence in the safety of Timbercreek’s dividends.

Timbercreek offers short-term mortgages to REITs for developing or acquiring income-generating properties. Its total mortgage portfolio is $1.2 billion as of December 31, 2025, an increase from $1.5 billion a year ago. The mortgage portfolio has increased, and its expected credit loss was marginally up. Timbercreek earns money from net interest income and lender fees.

The Bank of Canada’s interest rate cuts reduced Timbercreek’s weighted average interest rate to 8.1% in the fourth quarter of 2025 from 8.9% a year ago. As of December 31, 2025, more than 86% of its net mortgage portfolio has reached its floor rate. The mortgage has a minimum interest rate beyond which the interest will not reduce, even if the Bank of Canada cuts interest rates. The net interest income remained almost flat as a dip in interest rates was offset by a bigger mortgage portfolio.

Timbercreek has been resolving Stage 3 loans by selling secured assets at a loss. It even reported a loss on fair value through profit and loss (FVTPL). While it has shown improvements in loan volumes, the increase in Stage 3 loans and reduction in FVTPL impacted its net income and funds from operations (FFO). Thus, its dividend payout ratio increased to 96.7% in 2025 from 88.3% in 2024.

Three reasons to avoid Timbercreek Financial’s 10% yield

Credit risk: Although mortgage activity has improved, the credit risk is high. Many commercial activities are moving slowly amid uncertainty from the US-Canada trade tensions.

Bottomed Out: It is difficult to say if Timbercreek has bottomed out or not. With 86% of the mortgage portfolio reaching a floor, the dip in interest income could slow. However, if the worst is not yet over, it remains to be seen if it can withstand a slowdown in lending or a bigger Stage 3 loan.

The risk-reward ratio: If 10% yield is considered as the risk premium, the reward is not attractive enough.

Until the payout ratio starts decreasing and the lender shows improvement in FFO, Timbercreek could be a dividend trap, as dividends will feel the first hit of declining cash flows.

Investor takeaway

A better risk-to-reward ratio is of SmartCentres REIT, as it has started reducing its dividend payout ratio from 91.7% in 2024 to 89.2% in 2025. The REIT is offering a 6.7% annual yield. In the worst-case scenario, Timbercreek slashes dividends by 50%, in which case, the yield will fall to 5%.

The post This 10% Yield Looks Tempting — but It Could Be a Dividend Trap  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. The Motley Fool has a disclosure policy.

2026

Against this background, here is a high-yield dividend stock you can buy and hold for a decade of income. This Canadian stock has been consistently paying dividends for years and is well-positioned to sustain its payouts.

A high-yield dividend stock to hold for decades

While the TSX has several high-quality dividend stocks offering steady payments, SmartCentres REIT (TSX:SRU.UN) stands out for its compelling yield, durable distributions, and monthly payouts.

SmartCentres REIT currently distributes $0.154 per share each month, yielding approximately 6.5% annually based on its recent closing price of $28.41. Further, SmartCentres’ monthly dividends are well-protected.

Supporting the REIT’s payouts is its high-quality real estate portfolio. Its assets are concentrated in high-traffic retail locations, often anchored by top retailers. This positioning supports resilient net operating income (NOI), even through varying economic conditions. Strong tenant demand in these locations has historically translated into high occupancy levels and favourable lease renewal rates, both of which support consistent rental income and steady dividend payments.

Into SmartCentres’ recent earnings

SmartCentres REIT has been consistently delivering solid operational performance, reflecting the resilience of its retail-focused portfolio. As of December 31, 2025, the trust maintained a high in-place and committed occupancy rate of 98.6%, reflecting both disciplined asset management and sustained tenant demand.

Notably, strong foot traffic across its properties and a stable tenant mix supported same-property net operating income (NOI) growth of 2.9% for the fourth quarter of 2025. When excluding anchor tenants, NOI growth was even more robust at 5.1%. This performance was primarily driven by higher lease-up activity, renewal spreads in retail assets, and improving occupancy in newer segments such as self-storage and residential rentals.

Leasing activity remained a key driver of growth. During the quarter, the REIT leased approximately 35,500 square feet of previously vacant space, bringing total leased space to roughly 430,000 square feet for 2025. In parallel, demand for newly developed retail space continued to build, with 33,000 square feet of new leases executed in the quarter and 125,000 square feet for the full year. This sustained leasing momentum points to healthy retailer demand despite broader macroeconomic uncertainties.

Rental rate growth further highlights the REIT’s pricing power. Lease renewals delivered an 8.4% increase in rents excluding anchor tenants. Importantly, the REIT collected more than 99% of its rental revenue during the period, a level that signals both tenant financial health and the reliability of income streams.

Overall, SmartCentres REIT’s latest results reflect a well-balanced combination of high occupancy, steady leasing demand, and meaningful rental growth. This positions it well to consistently pay its monthly dividends.

SmartCentres REIT to sustain its payouts

SmartCentres REIT is well-positioned to steadily grow cash flow. Its retail portfolio remains stable, supported by high occupancy rates, while additional upside is coming from its mixed-use development projects. The REIT benefits from a reliable tenant base, increased leasing demand, and a solid balance sheet, all of which support consistent NOI growth and help sustain its monthly distributions. On top of that, its large reserve of underutilized land creates meaningful opportunities for long-term expansion.

If you purchase 1,000 shares of SmartCentres REIT, you could expect to earn roughly $154 per month in dividend income. Over a full year, that adds up to more than $1,848 in dividends.

The post 1 High-Yield Dividend Stock You Can Buy and Hold for a Decade of Income appeared first on The Motley Fool Canada.

Fool contributor Sneha Nahata 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

Undoubtedly, if you’re still more than a decade away from your expected retirement or if you’ve got no plans on retiring at all, it still makes more sense, at least in my humble opinion, to prioritize the total returns you’ll get, rather than the income you’ll receive by cranking up the yield. When it comes to total returns, we’re talking about the sum of capital gains and dividends (or distributions and interest).

Arguably, for those who are just going to reinvest the dividends trickling in every quarter or so, it makes more sense to focus on capital and dividend appreciation over yield.

In any case, this piece will consider TFSA (Tax-Free Savings Account) funds, which will take the effects of taxation out of the question unless, of course, we’re talking about the 15% U.S. dividend withholding tax that Canadian investors will get dinged before the cash hits their portfolio.

Don’t overextend your risk profile with such a huge sum of TFSA cash

So, whether you’ve got $2,500 or $25,000 to put to work, I do think that it’s worth looking at the traits beyond just yield. Most notably, dividend growth and capital gains are more compelling attributes for those with more yield flexibility. If you’re willing to settle for a 2-4% yield instead of a 6-8% yield, odds are that the capital gains side of the equation and the dividend growth might just lead to better total returns over an extended period of time.

That is, of course, unless you time your entry into an artificially high yielder with precision and ride a rebound that allows you to lock in the swollen yield while enjoying a hefty recovery. For most investors who don’t want to take on bigger risks for a shot at bigger gains with a hefty sum (do remember that capital losses can’t offset gains in non-registered accounts), though, I think playing it a bit cautiously is the better move for most.

In any case, let’s look at an extreme example with a name like Telus (TSX:T), while it yields 9.9%. Telus might be a blue chip, but shares are under serious pressure, the dividend growth is paused, and it’s unclear what the next path forward is as management scrambles to turn the tide.

Based on such a yield, a $25,000 sum would be just shy of $2,500 per year. And in a TFSA, that’s tax-free. Given that Telus shares are a falling knife, though, don’t ignore the capital losses, which could more than nullify the big payout and result in a negative total return for any given year. In the past year, T’s stock has been down just over 17%. The dividend softens the blow, but still, investors must weigh the risks.

The case for reliability with the VDY

Personally, I’d stick with a Vanguard FTSE Canadian High Dividend Yield Index ETF (TSX:VDY), which yields closer to 3.5%. With a diverse mix of Canada’s blue-chip dividend payers and a good amount of appreciation and dividend growth potential from the top weightings, I’d be content collecting the relatively modest $875 or so from the ETF instead of “chasing” yield in riskier corners of the market.

Also, with the VDY, you’re getting a hefty dose of financials and energy, two of the dividend-growthiest parts of the Canadian market. In terms of reliable cash flow, the VDY ought to be a one-stop shop, in my view, for income, long-term gains, value, and keeping management expense ratios low (Vanguard does this very well).

The post How to Convert $25,000 in TFSA Savings Into Reliable Cash Flow appeared first on The Motley Fool Canada.

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

2026

While sticking with easy-to-understand companies with “economic moats” might not be the most exciting thing to do in the world, I do think that investing in what you know can be a great way to reduce the chances that you’ll panic once the broad stock market heads lower. Indeed, sometimes, a stock will start marching lower for no good reason. And if you know the business and can separate the noise from the actual business itself, you might be able to know the right move in a moment of market-wide panic.

In any case, if I were to put a $1,000 sum to work today, I’d have a closer look at the tech scene, especially the blue-chip names that may still be misunderstood by most investors amid the meteoric rise of AI.

Now, you don’t need to buy the enterprise software companies with the agentic edge if you can’t even explain in two sentences what such a firm does. That said, I do think it’s a wise idea to consider some of the names you know well and ask yourself if it’s able to recover from a dip, which may be more fear-based and irrational.

Microsoft stock: A bargain in a bear market moment

At this juncture, I’d look to names like Microsoft (NASDAQ:MSFT), which remains down 23%, even as the S&P 500 makes new highs, just north of 7,000. The enterprise software giant is behind all the products we’re probably well familiar with now. Whether that’s the Office suite, the Windows operating system, the Xbox gaming console, LinkedIn, or even Copilot.

Of course, the company is betting on the success of Sam Altman’s OpenAI. And according to the benchmarks, OpenAI’s ChatGPT isn’t an undisputed heavyweight champ anymore.

With Anthropic making the headlines these days, I do think that investors would probably pile into Dario Amodei’s safety-focused AI firm rather than Sam Altman’s OpenAI, especially since they’re spending quite aggressively to keep the gas on the pedal. Either way, I think Microsoft’s AI future is about more than just OpenAI. It’s already got a game plan with its own frontier models and an AI team that might just be able to keep up with or beat OpenAI’s ChatGPT.

Shares go for around 21 times forward price-to-earnings (P/E). That’s cheap for Microsoft standards. And I think it might not take long before the market is willing to pay over 30 times P/E for the name again. Either way, Microsoft is a terrific AI innovator that is definitely worth a second look here.

The post The Stocks I’d Most Want to Own If I Had $1,000 to Put to Work Today appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has positions in Microsoft. The Motley Fool recommends Microsoft. The Motley Fool has a disclosure policy.

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