Considering how quickly global markets keep going up and down this headline-riddled year, investors with a tendency to make quick and well-timed bets based on the news are struggling to make good decisions. Things seem to be changing at a moment’s notice, and risk-loving investors might be struggling to make the right bets. It’s all too unpredictable in the moment.

Canadians with a long investment horizon might feel like buying and holding on for dear life is the best way to invest in 2026. With all the roaring headlines making markets wobble and flip overnight, a calm approach to investing that looks through all this noise can be a much safer way to put your money to work.

Today, I will discuss two TSX energy stocks and two tech stocks that can be buy-and-hold winners to consider for your self-directed portfolio.

Energy stocks for the cyclical energy market

Energy stocks are staples in many investor portfolios, especially as long-term holdings. Enbridge Inc. (TSX:ENB) and Suncor Energy Inc. (TSX:SU) can be excellent anchors for energy stocks that do well as long-term holdings. Enbridge is a $163.20 billion market-capitalization giant in the Canadian energy industry. The Calgary-headquartered company has an extensive energy infrastructure network that services the North American energy industry.

Through its network, Enbridge transports around a fifth of the crude consumed in North America. It also has a growing natural gas and electricity utility segment that offers stable and predictable revenue to offset the volatility of the energy sector.

Suncor Energy is another major player in the energy sector, but it focuses more on the production side of things. The integrated energy company handles everything from extracting the crude oil from oil sands and offshore facilities, then refining and selling the end-product to consumers through its wholesale and retail distribution networks in Canada and the US.

The global disruption in the energy industry will make Canadian oil more valuable going forward, especially if the Middle East conflict doesn’t come to a reasonable conclusion. A future where Canadian energy giants might be increasingly important can make Suncor and Enbridge stock good bets to consider.

Canadian tech stocks

In the tech sector, two companies feel like strong contenders for long-term holding: OpenText Corp. (TSX:OTEX) and Kinaxis Inc. (TSX:KXS).

OpenText is a $7.9 billion tech firm that sells tech-based tools for cybersecurity, information management, and workflow management tools, which are critical for large enterprises. The company’s focus, especially over the last year, has been to encourage clients to take cloud subscriptions, support integration, and cut costs. The company has also divested and sold off some non-core assets to focus more on its core cloud-based products accordingly.

Kinaxis is a tech stock operating in another space that has high demand: Supply chain management. Now more than ever, businesses worldwide are facing pressure from supply chain disruptions. Kinaxis’ platform helps its clients worldwide streamline supply chain management, letting them pivot quickly as the demand shifts, providing the ability to become significantly more efficient.

The more deals that Kinaxis and OpenText make to keep cash flowing, the more the market will keep rewarding the two companies. In turn, investors can benefit.

Foolish takeaway

Regardless of how well-chosen your investments are, it’s important to remember that even the most resilient stocks are not immune to market volatility. When you invest in the long run, consider going for companies that can weather the storm and emerge stronger on the other side. Against this backdrop, these four TSX stocks can be good investments to consider.

The post 4 Canadian Stocks That Could Pay Off for Patient Investors in 2026 and Beyond appeared first on The Motley Fool Canada.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Kinaxis. The Motley Fool has a disclosure policy.

2026

The Tax-Free Savings Account (TFSA) is one of the most underused Canada Revenue Agency (CRA) benefits, especially among Gen Zs and millennials. A TD Bank Survey found that Gen Zs and Millennials don’t invest but rather put their money in the TFSA as a normal savings account to be withdrawn later. It is only when people are near retirement that they make the best use of their TFSA.

If you understand how a TFSA can enhance the power of compounding with its tax-free investment growth and withdrawals, you will never leave the contribution room unused.

The one stock to keep inside a TFSA forever

A TFSA allows you to grow your investments tax-free. Which means you pay no tax on dividends, interest, and capital gains. However, you cannot trade in a TFSA as stock trading is considered business income and not investment income. An investment requires you to hold the stock for at least a few months to a year before selling it.

One stock you might want to keep inside a TFSA forever is Canadian Natural Resources (TSX:CNQ). It is a high dividend growth stock that can help you compound your TFSA with its dividend income.

The dividend growth side of CNQ Stock

Canadian Natural Resources has what many energy companies don’t. A low-cost advantage. It has low maintenance, high-value reserves, and an extensive infrastructure to produce and store natural gas and oil. This advantage has helped the company generate profits from the energy transition from oil to natural gas and grow dividends between 2% and 50% in the last 25 years. In 21 of these 25 years, the company has delivered double-digit dividend growth.

This growth is higher than the market’s. Suppose you invested $10,000 in Canadian Natural Resources and $10,000 in the TSX 60 Index in 2010. Canadian Natural Resources would be generating an annual dividend of $1,357.50 today, and the investment would be worth $36,505. The same amount in the TSX 60 Index would have become $26,988, with no dividend.

CNQ’s 0.8% dividend yield in 2010 is now a 13.6% yield, as the dividend grew at an average annual rate of 21%. When it comes to dividend growth stocks, never look at the yield but at the growth rate.

How to optimally use CNQ stock in a TFSA

Canadian Natural Resources does not offer a dividend reinvestment plan (DRIP). However, the dividend income from CNQ can be used to buy other growth and cyclical stocks. That can help you compound your returns. Some interesting cyclical stocks to consider are Air Canada, which tends to rise in July and December, the peak seasons. Another stock worth buying in the March–June dip is Shopify, as it tends to rise in the holiday season of November and February.

You could also consider investing the CNQ dividend amount in opportunistic buys, like Topicus.com and Micron Technology. Topicus.com is a long-term growth stock that increases cash flow by acquiring software companies with regular and sticky cash flows. Micron is a cyclical buy as growing demand for memory chips from data centre spending has created a supply shortage. Micron stock is falling amidst the developments around the Iran war. However, its secular growth remains intact, creating a buying opportunity.

The one dividend stock that you keep forever in the TFSA can help you build up a sizeable portfolio. It is not where you invest but how you invest that makes the difference.

The post The 1 Stock I’d Keep Forever Inside a TFSA  appeared first on The Motley Fool Canada.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify and Topicus.com. The Motley Fool recommends Air Canada, Canadian Natural Resources, and Micron Technology. The Motley Fool has a disclosure policy.

2026

Investing for your future doesn’t have to be complicated or risky. With the right approach, you can build a Tax-Free Savings Account (TFSA) that generates nearly constant income while your capital continues to grow. Imagine putting $50,000 to work and receiving a consistent stream of passive income in return. While it may sound like a dream, it’s definitely achievable with the right mix of investments.

One effective way to do this is by investing in real estate investment trusts (REITs) such as Nexus Industrial REIT (TSX:NXR.UN) and BTB Real Estate Investment Trust (TSX:BTB.UN). These companies own and manage income-generating properties across Canada, allowing you to benefit from real estate without the challenges of owning physical assets.

Nexus Industrial REIT stock

Nexus Industrial REIT is focused on acquiring and managing industrial properties across primary and secondary markets in Canada. Its portfolio includes around 89 properties with a total gross leasable area of approximately 12.9 million square feet. The REIT generates steady income through rental payments from tenants that rely on industrial space for their operations.

After climbing nearly 8% over the last year, its stock currently trades at $7.61 per unit with a market cap of $742.1 million. More importantly for income investors, Nexus offers a monthly distribution with a yield of 8.4%.

The REIT’s recent performance has been supported by its strategic shift toward becoming a Canada-focused pure-play industrial REIT. In 2025, it completed two value-accretive projects, including a 325,000 square feet expansion in St. Thomas, Ontario, and a 115,000 sq ft small-bay industrial complex in Calgary. These developments are expected to support future NOI (net operating income) growth and strengthen recurring rental income.

In its latest results for the fourth quarter and full year 2025, Nexus reported solid operational performance despite some tenant-related vacancies. Its NOI came in at $33 million, supported by fair value gains of $20.3 million. Industrial same-property NOI rose 2.8% YoY (year-over-year) to $30 million, highlighting stable demand for its properties.

Looking ahead, Nexus expects mid-single-digit same-property NOI growth in 2026, driven by lease-up activity and improving rental spreads. With a focused strategy and strong asset base, it remains well-positioned for long-term income generation.

BTB REIT stock

BTB Real Estate Investment Trust owns and manages a diversified portfolio of industrial, suburban office, and necessity-based retail properties across Canada. Its portfolio includes 75 properties with a total leasable area of about 6.1 million square feet.

BTB units currently trade at $3.83 with a market cap of $338.1 million. Over the last 12 months, its stock has gained 12.3%. It also offers monthly dividends with a yield of 7.8%, making it another attractive option for income-focused investors.

The REIT delivered strong leasing performance in 2025, completing leases for 742,162 square feet, which represents 12.4% of its total portfolio. This included both renewals and new leases, reflecting its ability to retain and attract tenants. Notably, the average rent on renewed leases increased by 10.6%, pointing to solid asset performance.

From a financial standpoint, BTB reported rental revenue of $130.1 million for 2025, slightly higher than the previous year. Its cash same-property NOI rose 2% YoY to $78.5 million. AFFO (adjusted funds from operations) per unit increased by $0.007 to $0.388, while the payout ratio improved to 77.3%, indicating sustainable distributions.

Moreover, BTB is focusing on portfolio optimization and strategic expansion. It recently acquired three industrial properties in Alberta for $31.5 million, adding 143,118 square feet to its portfolio. These moves could strengthen its industrial exposure and support long-term growth.

The post How to Set Up a $50,000 TFSA That Generates Nearly Constant Income appeared first on The Motley Fool Canada.

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

2026

The price of gold has been on a wild ride in recent years. Since escaping from its long-term “support” price of around US$1,700 in 2021, the beautiful metal has risen 168% in price (or 200% going by the 52-week high closing price of $5,247). Granted, the rally in the price of gold has been interrupted a few times. We’re actually in the midst of a minor correction right now, with gold futures down 10.8% from their 52-week high. Nevertheless, gold is in a major secular uptrend. It’s natural to ask whether the pullback we are now seeing is a buying opportunity.

Coming up with an answer to that question isn’t easy. Metals don’t produce cash flows, meaning that conventional discounted cash flow valuation methods don’t work for gold. With gold, value is a simple function of supply and demand. So, coming up with a specific “target price” for gold is tough. Nevertheless, the fact that central banks around the world – including those of China and Russia – are ramping up their gold purchases provides hope that demand will continue rising relative to supply. In light of this, allocating some of your portfolio to gold in this environment probably does make sense.

How much of your money to allocate to gold

Once you’ve decided that you want to invest in gold, your next step is to determine what percentage of your money you’ll invest in it. Here, your guiding principle should be diversification. Gold is a massive asset, worth $32 trillion worldwide. However, global equities and bonds are worth $256 trillion combined. Therefore, an allocation of perhaps 10%–12% to gold would make sense in a globally diversified passive investment portfolio.

In which form should you own gold?

After deciding on your gold allocation, you need to determine in which form you should own gold. There are several options here. First, there is physical bullion. This leaves you with physical coin to store somewhere, which can be costly. On the flip side, this is the most useful type of gold in a “civilizational extinction” scenario. Next, there is gold futures. These essentially let you speculate on the price of gold without holding it. Finally, there is gold stocks, shares in gold miners that pay you dividends based on how much gold they extract and sell. Owing to their economic efficiencies, gold stocks are the most profitable gold-based assets to hold during bull markets.

An example of a Canadian gold stock that has done well

Given that stocks are among the best vehicles through which to own gold, the next question is “which gold stock should you buy?” There are countless choices out there, from dime a dozen Junior miners to established global companies.

For my money, one of the most legitimate and promising TSX gold stocks out there is Barrick Mining (TSX:ABX). Barrick is a Canadian mining firm that mines for both gold and copper. It is profitable enough to pay a dividend that yields 4.1% as of Tuesday’s market close. On a total return basis – that is, factoring in dividends as well as capital gains – the stock has gained 245% over the last 10 years, ahead of the TSX. And, in fundamental terms, the underlying company is thriving, with revenue and earnings up 31% and 140%, respectively, in the trailing 12-month period. Barrick Gold can do much more for you than what you’d get by stashing gold under your pillow. Its stock is very much an option worth considering.

The post Is It Worth Buying Gold in Your TFSA When the Price Pulls Back? appeared first on The Motley Fool Canada.

Fool contributor Andrew Button has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

Investing in the stock market can feel exciting, especially when you have a clear plan and a small amount like $1,000 ready to deploy. The key is to focus on fundamentally solid stocks that offer not just short-term momentum but also strong long-term potential. Right now, some companies from the energy sector continue to stand out, with a few of them delivering solid returns and stable income.

Two such stocks that deserve attention are Suncor Energy (TSX:SU) and TC Energy (TSX:TRP). Both companies combine strong operational performance with reliable dividends, making them really attractive picks. Let me explain why.

Suncor Energy stock

Suncor Energy is a leading Canadian integrated energy company with operations spanning oil sands development, production, refining, and retail distribution through its Petro-Canada network. SU stock currently trades at $91.72 per share with a market cap of $108.9 billion. Over the last year, it has surged by 63.6%, reflecting strong investor confidence.

Suncor’s recent growth has been driven by solid execution and operational strength. In its fourth-quarter 2025 results, the company reported adjusted funds from operations of $3.2 billion and free funds flow of $1.7 billion. It also returned about $1.5 billion to shareholders through dividends and share buybacks, highlighting its focus on rewarding investors.

Operationally, Suncor delivered impressive results. It achieved record upstream production of 909,000 barrels per day, up 34,000 barrels per day from the previous year. Refining throughput also hit a record 504,000 barrels per day, with refinery utilization reaching 108%. These numbers underline the company’s efficiency and ability to generate strong cash flows.

Looking ahead, Suncor plans to return 100% of excess funds to shareholders in 2026, including an estimated $3.3 billion in share repurchases. It has also increased its quarterly dividend by around 5%. At the same time, the company continues to invest in lower-emissions power and renewable fuels, aligning with evolving industry trends.

TC Energy stock

TC Energy (TSX:TRP) is another strong player in the energy space, operating an extensive network of natural gas pipelines and power generation assets across North America. The stock trades at $88.16 per share with a market cap of $91.8 billion and has gained 26.1% over the past year. It also offers a quarterly dividend yield of 4%.

The company’s recent performance reflects strong operational execution. In the fourth quarter of 2025, TC Energy reported a 13% YoY (year-over-year) increase in comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) to $3 billion. Segmented earnings rose by 15% to $2.2 billion. A major driver behind this growth has been record pipeline activity. Canadian natural gas pipelines averaged 27.2 Bcf/d (billion cubic feet per day), while U.S. pipelines reached an all-time high of 39.9 Bcf in daily deliveries. Mexico operations also remained strong, with flows averaging 2.7 Bcf/d and power deliveries rising 11% YoY.

Going forward, TC Energy expects to bring about $4 billion worth of new capacity online in 2026. Its capital spending is projected between $6 and $6.5 billion before non-controlling interests. The company also remains focused on maintaining a healthy balance sheet and meeting its long-term financial targets.

Should you invest $1,000?

If you have $1,000 to invest right now, focusing on strong, cash-generating businesses can make a big difference over time. Suncor Energy and TC Energy both offer a mix of growth, income, and stability, backed by solid fundamentals and clear long-term strategies. While no investment is without risk, these two energy stocks provide a balanced way to participate in the sector while benefiting from dividends and potential capital appreciation.

The post The Stocks I’d Choose First If I Had $1,000 to Put to Work 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

Market uncertainties often make one review their retirement savings. Ask those who lost a significant chunk of their life savings in the 2008 Financial Crisis. The changing macroeconomic situations may permanently alter the financial landscape for retirees yet again. On one side, you have artificial intelligence (AI) changing the way we work, drive, live, consume content, and learn. Is this AI efficiency coming at a cost? It is difficult to tell. On the other side, the oil and gas supply chain is undergoing a shift. At such times, how does one tell what is sufficient when it comes to retirement savings.

Why $1 million in retirement savings may not be enough anymore?

Until last year, a $1 million retirement savings account gave Canadians peace of mind to retire and live off the passive income these savings generated. However, this may not be enough anymore.

Retirement is no longer defined by age. Many millennials are looking to retire early. If you are not 60 or above, the Canada Revenue Agency (CRA) retirement payouts are not coming to your rescue.

Early retirement

If you are in your late 40s and looking to retire with just a $1 million pool, your savings won’t suffice. Firstly, Canada Pension Plan (CPP) and Old Age Security (OAS) benefits are still 15 years away. Second, your retirement years are longer, which means you want your savings to last longer than 20 years, which is ideally the scenario for retirement at 60. Lastly, lower employment/business income during early retirement could affect the CPP payout, as you do not contribute to CPP from investment income.

Medical inflation

A $1 million retirement savings account may not be enough to cover medical inflation. Medical and long-term care costs will grow at an accelerated rate, and medical insurance can only cover a certain portion of your medical costs. The rising cost of medicines, procedures, hospital stays, and a significant doctor supply crunch means long waits and high costs. If you have a significant medical condition, like diabetes, you might want to consider having a separate portfolio of $1 million dedicated to medical bills.

Taxes

If you are considering building your retirement pool in a Registered Retirement Savings Plan (RRSP), it may not be tax-efficient upon retirement. RRSP withdrawals are subject to withholding tax and can affect your OAS pension, which depends on your income threshold. Once your RRSP ends, you have to shift the money to a Registered Retirement Income Fund (RRIF), which has a minimum withdrawal limit.

Thus, a Tax-Free Savings Plan (TFSA) is an ideal instrument to build a million-dollar retirement pool for emergency money, medical bills, and discretionary spending.

Slowing dividends

Another major issue retirees of tomorrow face is slowing dividends. The business environment is getting challenging and competitive. This has slowed dividends, with many dividend aristocrats altering their dividend policies. While dividend stocks can give you regular income, they may not be able to fight inflation.

How to build your retirement pool

Does this mean you can’t retire on your own terms? Not exactly.

It means that traditional retirement planning strategies have to adapt to the new normal. Instead of relying solely on dividend stocks, your retirement pool needs to have growth stocks that can beat medical inflation. You have to use a TFSA at its optimum to prevent the CRA from taking a big bite from your savings.

The future is AI and technology, and they are the stocks that can give you the accelerated growth your retirement savings need. If you have already invested in Nvidia and made windfall gains, consider booking profits from some shares and investing in Micron Technology (NASDAQ:MU). Micron stock has slipped significantly amidst the Iran war. However, that doesn’t change its secular growth outlook from data centre memory chips.

The money is flowing into building AI data centre chips, making them cash cows of tomorrow. Micron will benefit from the chip shortage, as high demand will help get a higher price. Like Nvidia, Micron may also witness two to three growth phases as the share of higher-margin data centre memory chips will bring windfall gains at least for the rest of 2026 and beyond.

The post Why $1 Million in Retirement Savings May Not Be Enough Anymore   appeared first on The Motley Fool Canada.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.

2026

High-yield dividend stocks are an attractive investment to power your income stream. However, focusing solely on high yields is risky. A more prudent approach is to look for TSX stocks with attractive dividend yields and sustainable payout ratios.

In addition to high yield and payout sustainability, investors should consider companies with solid fundamentals and a proven history of dividend payments. Businesses that consistently generate solid cash flows and maintain disciplined capital allocation are better positioned to sustain and grow their dividends over time. A long track record of reliable distributions also signals management’s commitment to returning value to shareholders.

Equally important is the company’s ability to deliver profitable growth. Firms that continue to expand revenue and earnings are more likely to maintain steady payouts while also increasing dividends in the future.

Against this background, here are three high-yield dividend stocks to power your income stream in 2026.

High-yield dividend stock #1: SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) stands out as a dependable high-yield dividend investment for income investors. The REIT distributes $0.154 per unit each month, equivalent to an annual yield of about 6.8%. Its high yield, long record of consistent payouts, and stable operations make it a reliable source of recurring income.

The REIT’s future distributions appear well supported by the high-quality real estate portfolio, which continues to deliver solid net operating income. Its properties occupy prime retail locations, sustaining strong leasing demand and healthy renewal rates that help maintain predictable rental revenue and stable cash flow.

SmartCentres’ retail portfolio continues to attract steady customer traffic, supporting tenant sales and overall leasing activity. By the end of 2025, occupancy stood at 98.6%, while rent collection exceeded 99% of revenue. Lease renewals, excluding anchor tenants, generated rental rate growth of 8.4%, highlighting resilient demand within its retail-focused portfolio.

Looking ahead, steady demand for its retail properties, a solid mixed-use development pipeline, and large land holdings position SmartCentres REIT to sustain its payouts.

High-yield dividend stock #2: BCE

BCE (TSX:BCE) is another high-yield dividend stock to power your income. Canada’s communications and media services giant has historically rewarded shareholders with consistent dividend increases. However, facing intensifying competition, regulatory pressures, and rising operating expenses, BCE reduced its annualized dividend last year from $3.99 to $1.75 per share.

While the dividend was reduced, the move strengthened BCE’s financial position and enhanced its ability to sustain its future payouts. By lowering the dividend, BCE has redirected capital toward debt reduction, strengthening its balance sheet, and preserving a greater share of internally generated cash flow.

Management now aims to maintain a dividend payout ratio between 40% and 55% of free cash flow, a range more sustainable over the long term. Even after the cut, BCE stock still offers an attractive dividend yield of 5.2%.

BCE’s diversified operations also support its long-term outlook. The company generates revenue from wireless services, fibre broadband infrastructure, enterprise technology solutions, and media assets. Its diversified revenue and ongoing efforts to improve margins and customer retention are expected to support steady free cash flow growth and maintain dependable dividend payments.

High-yield dividend stock #3: Whitecap Resources

Whitecap Resources (TSX:WCP) is another cash-generating stock to add to a TFSA portfolio. The energy company pays a monthly dividend of $0.061 per share, yielding about 4.8% based on the April 6 closing price of $15.19.

Whitecap has a long history of returning capital to shareholders. Between January 2013 and December 2025, the energy company distributed approximately $3 billion in dividends. Its payouts reflect its ability to generate reliable cash flow even during periods of volatility in global commodity prices.

Its dividend payments are supported by a diversified portfolio of energy assets, manageable debt levels, and a significant inventory of drilling opportunities. Further, Whitecap’s acquisition of Veren strengthened its growth prospects. The deal expanded its asset base and operating footprint. Greater scale improves market access and solidifies Whitecap’s competitive position, supporting future production, cash flow growth, and dividend payments in the years ahead.

The post 3 High-Yield Dividend Stocks to Power Your Income Stream in 2026 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 and Whitecap Resources. The Motley Fool has a disclosure policy.

2026

Supplementing your income with dividends is a smart way to earn greater wealth over time. It’s not a get-rich-quick scheme, it’s one that requires patience and discipline. In the long run, the passage of time and the compounding of returns will likely allow you to accumulate more wealth than you can imagine.

In this article, I’ll take a look at Capital Power Corp. (TSX:CPX) stock, a growth-oriented power producer that has been providing shareholders with strong total returns over the last 10 years – in the form of both dividends and capital appreciation.

Capital Power – A brief history

For starters, let’s look back for a brief review of Capital Power. This background can help build the case for Capital Power shares.

The company was created in July 2009 to separate Epcor Utilities Inc.’s generation business into a new, publicly-traded independent power producer. Since then, the company has consistently followed a business model that focuses on generating stable and growing cash flows from a contracted and merchant power generation portfolio.

Today, Capital Power is focused on natural gas-fired generation, which involves burning methane to create electricity. This is the cheapest and quickest form of energy, with a booming demand profile. With a 90% natural gas weighting, the company has positioned itself to benefit from this surge in power demand.

Since 2009, the company has grown capacity by more than four times. This means that the power producer has greater scale and diversity to lead it into the next few years.

CPX stock on the TSX

At this time, Capital Power stock is yielding a generous 4.1%. This dividend is supported by strong cash flows, a strong balance sheet, and a growing business. And Capital Power has a variety of opportunities to continue to grow.

For example, power prices and spreads are increasing rapidly. As such, there’s a vast opportunity for re-contracting at much better terms. This is resulting in contracts with higher pricing and longer duration. As an illustration of the kind of value that this has to the company, I’d like to single out two recent re-contracting results.

The first is the Midland Cogeneration Venture in Michigan. Last year, the company signed new contracts for this facility which resulted in an 85% lift in its earnings before interest, taxes, depreciation, and amortization (EBITDA). Similarly, the company entered into a new contract for its Arlington Valley facility, at 140% above the existing contract.

Over and above this, the power producers will continue to benefit from the unprecedented rise in energy demand that’s expected in the coming years. In 2025, its adjusted EBITDA increased 18% to $1.6 billion and its adjusted funds flow from operations increased 29% to $1.1 billion. This is evidence that the company’s current strategy and macro backdrop is working in its favour.

How much to invest in CPX stock for $1,000 in annual dividends

So, in order to receive $1,000 in annual dividends from CPX stock, we must buy 362 shares. To be exact, this would give you $1,001.57 in dividend income. Considering that CPX’s stock price is currently trading at $66.87, this requires an investment of approximately $24,200.

The bottom line

As one of the lesser-known utility stocks, Capital Power has clear advantages. It’s rapidly growing, consistent results will continue to support a growing dividend and share price. Currently CPX’s stock price is trading at a mere 20 times next year’s expected earnings. With a dividend yield of 4.1%, this is a utility stock to consider for your dividend income needs.

The post How Many Capital Power Shares Would it Take to Earn $1,000 in Annual Dividends? appeared first on The Motley Fool Canada.

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

2026

Passive income has become increasingly important in today’s uncertain economic environment, shaped by ongoing geopolitical tensions, persistent inflation, and workforce restructuring driven by rapid AI adoption. Building reliable passive income streams not only enhances financial stability but also helps investors achieve their long-term financial goals more efficiently. Reinvesting these regular payouts can further accelerate wealth creation through compounding.

One of the most convenient and cost-effective ways to generate passive income is to invest in high-yield, monthly-dividend-paying stocks. These investments provide consistent cash flow while reducing reliance on market timing. Moreover, holding such investments in a Tax-Free Savings Account (TFSA) allows investors to earn and reinvest dividend income tax-free, thereby maximizing overall returns.

Against this backdrop, here are two top monthly-paying stocks that stand out as compelling additions to a TFSA portfolio right now.

SmartCentres Real Estate Investment Trust

Real estate investment trusts (REITs) are required to distribute at least 90% of their taxable income to unitholders, making them particularly attractive for income-focused investors. Against this backdrop, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) stands out as a compelling option. The REIT owns and operates 198 strategically located properties across Canada and benefits from a high-quality tenant base, with approximately 95% of tenants having regional or national footprints. Notably, about 60% of its tenants provide essential services, helping maintain stable occupancy levels regardless of broader economic conditions.

In addition to its resilient occupancy, ongoing lease renewals and new leasing activity – combined with solid rent growth – should continue to support its financial performance. This strength enables the REIT to maintain attractive distributions, currently offering a monthly payout of $0.1547 per unit, which translates to a forward yield of about 6.8%.

Looking ahead, despite macroeconomic pressures and elevated costs, demand for retail real estate remains firm, partly due to constrained new supply amid high construction expenses. This environment positions SmartCentres well to benefit, especially given its robust development pipeline of approximately 87 million square feet, including about 0.8 million square feet currently under construction.

Given its stable occupancy, strong tenant mix, and long-term growth initiatives, SmartCentres appears well-positioned to continue delivering reliable monthly income, making it an attractive choice for investors seeking consistent passive income.

Pizza Pizza Royalty

Another attractive monthly-paying Canadian dividend stock offering a yield above 6% is Pizza Pizza Royalty (TSX:PZA). The company operates 694 Pizza Pizza restaurants and 100 Pizza 73 locations through its franchise network and generates revenue by collecting royalties based on franchisee sales. This asset-light model insulates its financials from direct exposure to rising input costs, such as food prices and labour wages.

Additionally, the company aims to provide stable, predictable returns by maintaining consistent monthly distributions despite the restaurant industry’s seasonal nature. Its current monthly payout of $0.0775 per share yields 6.03% on a forward basis.

Looking ahead, PZA continues to expand its footprint and expects to grow its traditional restaurant count by 2–3% this year. At the same time, ongoing initiatives – including menu innovation, enhancements to its digital ordering experience, and a continued focus on restaurant renovations – are likely to support same-store sales growth.

Given these strategic initiatives and the stability of its royalty-based revenue model, PZA appears well-positioned to sustain its dividend payouts in the coming years, making it an excellent choice for income-focused investors.

The post 2 TSX Stocks That Turn Dividends Into Reliable Monthly Paycheques appeared first on The Motley Fool Canada.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2026

A $14,000 investment in high-quality dividend stocks can help build a steady stream of passive income. The strategy becomes even more powerful when those investments are held within a Tax-Free Savings Account (TFSA). Because any dividends earned or capital gains realized in a TFSA are completely tax-free, investors can keep the full value of their returns and allow their capital to compound more efficiently over time.

For investors seeking passive income, focus should be on TSX stocks with dependable dividend histories. These Canadian companies generate consistent and predictable cash flows and are better equipped to maintain and grow their distributions, even during periods of market volatility.

With these considerations in mind, here is a dividend-paying TSX stock that stands out as a strong investment for passive income investors. Based on its recent closing price and dividend yield, allocating $14,000 to this dividend stock could generate $725.6 in annual passive income.

Top passive income stock: Enbridge

Enbridge (TSX:ENB) stock is a compelling option for investors seeking dependable passive income within a TFSA. It offers an attractive dividend yield of 5.2% and has a long history of consistent distributions, making it a reliable income stock.

Notably, Enbridge has consistently paid dividends for more than 70 years and has shown a strong commitment to dividend growth. Since 1995, the energy infrastructure company has raised its dividend by about 9% per year. This sustained track record reflects ENB’s ability to navigate commodity cycles and varying economic conditions while continuing to return capital to investors.

Supporting Enbridge’s consistent dividend payments is its low-risk, diversified business model. The company generates cash flow from a highly diversified network of energy infrastructure assets, which helps reduce earnings volatility and drives distributable cash flow (DCF). A substantial portion of Enbridge’s EBITDA is derived from regulated operations or long-term take-or-pay contracts, limiting direct exposure to commodity price fluctuations and providing a predictable revenue base that supports its dividend program.

Further, much of Enbridge’s EBITDA is tied to inflation-adjusted agreements, which can help offset rising costs and support cash flow expansion over time.

Enbridge’s extensive energy infrastructure network further strengthens its position. The company’s pipelines and related assets connect major supply regions with key demand centres across North America. This results in strong asset utilization and positions the company to benefit from ongoing energy demand.

Overall, Enbridge is a top stock for TFSA investors seeking worry-free passive income for years to come.

Make $725.60/year in tax-free passive income

Enbridge is well-positioned to sustain its dividend growth streak in the years ahead. Its diversified revenue streams, high utilization of infrastructure assets, and largely low-risk, contract-based operating model support stable growth in distributable cash flow (DCF) per share, creating a reliable foundation for consistent dividend payments and future increases.

Over the past five years, Enbridge has returned roughly $38 billion to shareholders through dividends. Moreover, management expects to distribute between $40 billion and $45 billion during the next five years, supported by expanding regulated and contracted cash flows. Its targeted DCF payout ratio of 60% to 70% appears sustainable, allowing ENB to balance shareholder returns while retaining sufficient capital to fund future growth initiatives.

Enbridge is expected to benefit from accretive brownfield investments that expand or optimize existing infrastructure. These projects carry lower execution risk and benefit from favourable energy market fundamentals. In addition, Enbridge’s secured capital backlog of $39 billion provides long-term visibility into earnings growth and cash flow stability.

Beyond its traditional operations, Enbridge stands to benefit from structural shifts in the broader energy landscape. Rising electricity demand and ongoing energy transition initiatives are expected to create additional opportunities for infrastructure investment and expansion.

At the current dividend rate, an investment of $14,000 in Enbridge stock would allow an investor to acquire approximately 187 shares. Based on the company’s current payout, this position would generate about $181.39 in quarterly dividend income, or roughly $725.60 in annual passive income.

The post TFSA: Invest $14,000 in This TSX Stock and Create $725.60 in Annual Passive 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 Enbridge. The Motley Fool has a disclosure policy.

2026