Not all stocks are a buy on the dip. Early signs are visible in frequent management changes. Thus, many investors sell shares on senior management’s exit, particularly in small companies where the business depends on the owner.

Two Canadian stocks that could destroy your portfolio

goeasy (TSX:GSY) stock has already destroyed the portfolio of those who invested in it. The stock has lost 83% in value since September 2025, when short-seller Jehoshaphat Research highlighted major accounting discrepancies. Most of its findings came true in the fourth-quarter earnings.

The world has changed for goeasy as the key reason for buying this stock has vanished. goeasy is in the business of lending to subprime customers. They charge a higher interest rate ranging between 9.9% and 35%. This interest rate is attractive only when net charge-off (NCO) rates are low.

For a long time, goeasy maintained an NCO rate of 9.2%, which means 9.2% of its total loan portfolio is not recoverable. For a subprime lender, this is a good number as credit risk is maintained. Contained credit risk and a growing loan portfolio were the main reasons to buy goeasy.

However, goeasy lost this very reason as structural issues came into the limelight. The lender’s reported NCO rate was artificially deflated. As a rule, a lender should assign loans whose payments are delayed by 90, 120, or 180 days as charge-offs. goeasy tweaked the definition and accounting policies.

goeasy used tools like a partial payment of the monthly installment, extension, and rewriting of loans to delay delinquency. When a loan is rewritten, overdue interest is waived off, and the loan begins from scratch. This resetting of delinquency status allowed delinquent people to remain non-delinquent. This credit risk came all at once in the fourth quarter of 2025 and increased goeasy’s net charge-off rate to 23.8% from 9.2% in the previous quarter. Its chief executive officer and chief financial officer exited, and the stock crashed.

Is this dip a buying opportunity?

goeasy is now in firefighting mode, cleaning up the mess and preserving liquidity. The problem is structural, and it will take a lot more than just absorbing the credit risk to revive goeasy’s business. There could be a goodwill impairment, as investors will take time to regain confidence. The lender will need new management, policy-level changes, and tighter underwriting criteria, which could affect its portfolio growth in the medium term.

goeasy stock can destroy your portfolio. Invest in it only if your investing game is buying troubled companies.

Other stocks that could significantly pull down your portfolio

Timbercreek Financial (TSX:TF) is a short-term mortgage lender that gives loans to commercial real estate investment trusts. More than 66% of its loan portfolio is from repeat customers. It has so far been transparent about loans that moved to Stage 2 and Stage 3. The lender even increased its expected credit losses from $16.1 million in 2024 to $17.9 million in 2025, resulting in a net loss of $1.1 million.

A loss-making company cannot keep paying dividends for long. I won’t be surprised if Timbercreek pauses dividends. So far, dividend payments are going as usual. Avoid buying this stock, as it could lose 50% in value if there is a dividend pause. The one thing going well for Timbercreek is that there is no change in the management. Weak fundamentals but sticky management is keeping the stock afloat.

Freehold Royalties (TSX:FRU) is another stock to stay cautious about due to its recent management changes. It removed the chief operating officer position in November 2025, as it has no operational risks. It buys land and leases it to oil companies to extract oil. However, its chief financial officer is also exiting, and the company will search for a replacement.

It could be an early sign of structural weakness, like that of goeasy, or just streamlining of operations. Before the risk becomes visible in the fundamentals, one could sell the stock while it still trades closer to its 52-week high.

Preserving your portfolio

If you have high exposure to risky stocks, you could consider selling them and instead buy Topicus.com and Descartes Systems. They have strong management and resilient fundamentals.

The post 2 Canadian Stocks That Could Utterly Destroy a $100,000 Portfolio appeared first on The Motley Fool Canada.

The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Descartes Systems Group and Freehold Royalties. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

2026

Most of the time, especially when it comes to advice for Canadians nearing retirement, I focus on discussing the best Canadian stocks to own. However, the market is vast and not every publicly-traded company can be a good investment, based on your investment goals. An investment strategy that works for one investor might not be the best for another to achieve their goals.

Just as there are stocks that are too attractively priced to ignore, there are plenty that you should avoid allocating any money to right now. A solid retirement plan requires carefully considering where to bet your money to fund a comfortable retirement. Today, I will discuss two TSX stocks that you might be better off avoiding right now.

Allied Properties REIT

Real Estate Investment Trusts (REITs) are aplenty on the TSX and offer investors the chance to generate monthly returns like a landlord without the cash outlay or hassle that comes with being one. These trusts own and operate a portfolio of properties, generating cash from leases or rent. In turn, these trusts distribute cash monthly to investors based on the amount of units or shares they own in the trust.

Typically, REITs are safe bets, but Allied Properties REIT (TSX:AP.UN) is one that I would not recommend owning right now. There are several other Canadian REITs that can be better investments. Allied Properties is a REIT that has been paying investors their dividends at unsustainable payout ratios for a while. With a 5-year average dividend yield of 8.3% and an almost 400% payout ratio, the REIT might enact a suspension or dividend cut at any time. It might be better to avoid investing in it if you seek reliable monthly passive income.

Timbercreek Financial

Timbercreek Financial Corp. (TSX:TF) is a $566.9 million market capitalization TSX dividend stock boasting high-yielding dividends. As of this writing, the stock trades for $6.85 per share and pays $0.0575 per share each quarter, translating to a tempting annualized 10.1% dividend yield. Canadians nearing retirement might find its dividends attractive for boosting the passive income in their portfolios, but it might be a dividend trap.

The leading non-bank commercial real estate lender provides short-duration and structured financing solutions to commercial real estate investors. However, the market has not been doing too great of late, and that shows in its performance. The release of its fourth-quarter earnings for Fiscal 2025 showed that its mortgage portfolio has increased, alongside its expected credit loss amid the current market environment.

The credit risk is quite high, especially considering the broader economic landscape. For investors seeking reliable returns, it might not be worth the 10% dividend yield to take on such risk.

Foolish takeaway

Stock market investing is inherently risky, but some investments are riskier than others. Depending on your financial goals, the ideal assets to buy and hold in your self-directed portfolio can differ. If you are a retiree or someone nearing retirement, these two stocks might be better avoided.

The post 2 Stocks That Canadian Retirees May Want to Think Twice About Owning appeared first on The Motley Fool Canada.

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

2026

When rates stay higher for longer, investors need dividend stocks with more than a juicy yield. The best picks usually sell services people keep using in any economy, carry steady cash flow, and have enough pricing power to offset higher borrowing costs. A big yield can look tempting, but it can flash a warning sign if the payout eats too much cash. So the sweet spot sits with companies tied to everyday needs.

SGR

Slate Grocery REIT (TSX:SGR.UN) owns grocery-anchored real estate across major U.S. markets. Plazas where supermarkets pull in steady traffic, then smaller tenants benefit from that flow. That setup looks useful when rates stay high, since grocery trips don’t disappear just because borrowing costs pinch household budgets. Over the last year, Slate Grocery stock kept leaning into that defensive base. In 2025, it completed 1.7 million square feet of leasing, with renewals signed at 14.9% above expiring rents and new deals at 34.9% above comparable in-place rent. Occupancy sat at 94.4% at year-end, which shows the portfolio still had solid demand.

The earnings picture looks steady, though not perfect. In the fourth quarter, rental revenue rose 2.9% to US$54.6 million, while net operating income (NOI) rose 1.7% to US$42.2 million. Funds from operations (FFO) came in at US$0.25 per unit, flat from the year before. Adjusted FFO fell to US$0.19 per unit, and the AFFO payout ratio reached 110.8%.

That’s the risk investors need to respect. Still, the stock’s roughly 7.4% yield at writing gives investors plenty of income while they wait. If management keeps lifting rents and managing debt carefully, Slate Grocery stock could work as a higher-income pick in a stubborn-rate world.

EXE

Meanwhile, Extendicare (TSX:EXE) owns and operates long-term care homes, retirement living, home health care, and management services. That ties it to an aging population rather than the normal economic cycle. Over the last year, Extendicare also gained attention for growth, not just dividends. The company raised its monthly dividend by 5% to $0.0441 per share, which was a nice signal after a strong 2025. The yield sits closer to 1.75%, so this isn’t the biggest payer on the list. But it offers a better blend of growth and income.

Its latest numbers explain why the stock climbed. Fourth-quarter revenue rose 18% year over year to about $462 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 36.4% to $45.6 million, while AFFO per share rose 6% to $0.337. The payout ratio sat near 42% for the quarter, which leaves more breathing room than many higher-yield stocks.

The valuation looks richer now, with the stock trading around 27 times trailing earnings and about 25 times forward earnings. That’s the main risk as investors pay up for quality and growth. But with demand for senior care still rising, Extendicare fits well for those who want a dividend stock with a stronger growth engine.

ACO

ATCO (TSX:ACO.X) operates across utilities, energy infrastructure, structures, logistics, and related services. Its regulated utility exposure gives it a steadier earnings base, while its broader energy and infrastructure businesses add growth potential. In a tougher rate environment, investors often look back to utilities as people still need power and gas. ATCO also benefits from long-term infrastructure spending, energy security needs, and electrification.

The numbers look dependable. ATCO reported 2025 adjusted earnings of $518 million, or $4.61 per share. The stock recently traded around 14 times forward earnings. Its dividend yield sits close to 3%, which won’t knock anyone’s socks off, but it looks far more sustainable than many ultra-high yields. The risk comes from regulation, project costs, and interest rates that can still pressure capital-heavy businesses. Yet ATCO’s long dividend history and essential-service mix make it a strong fit for investors who want income without chasing drama.

Bottom line

Higher rates can make dividend investing trickier, but they don’t make it less useful. In fact, put $7,000 in each and the dividends look pretty useful indeed.

Together, they show three different ways to collect dividends while waiting for rates to finally cool.

The post 3 Dividend Stocks to Buy if Rates Stay Higher for Longer 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 Slate Grocery REIT. The Motley Fool has a disclosure policy.

2026

For beginners, the best forever Canadian stocks are usually the ones that do not need a dramatic story to keep working. A good starting point is a business with a simple model, steady cash flow, solid management, and a reason to stay relevant for years. Basically, beginners should focus less on excitement and more on businesses they can actually understand and hold through the boring parts.

LB

Laurentian Bank (TSX:LB) is smaller than Canada’s biggest banks, but that is part of the appeal for beginners looking for a turnaround with income. Over the last year, it rolled out a new plan to simplify the business and focus on specialty commercial banking and stronger core niches.

In first-quarter 2026 results, revenue rose to $251.6 million from $249.6 million, while adjusted diluted earnings per share (EPS) came in at $0.65. The Canadian stock still looks inexpensive compared with larger peers, though the risk is that restructuring charges and the strategic shift could keep results a little lumpy.

CIGI

Colliers (TSX:CIGI) is a global real estate and professional services company, with operations across brokerage, outsourcing, engineering, and investment management. That mix helped it keep growing even in a messy property market.

In 2025, revenue climbed 15% to $5.56 billion, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 14% to $732.5 million, and adjusted EPS increased 14% to $6.58. The business also completed a $550 million private note placement in March, giving it more flexibility for growth. It is not the cheapest name on the list, but the long-term model still looks beginner-friendly.

NOA

North American Construction Group (TSX:NOA) gives beginners a way to own a tougher, more cyclical business without diving straight into a miner or oil producer. It provides heavy equipment and mining services, mostly tied to resource projects in Canada, Australia, and beyond.

In 2025, revenue rose to $1.28 billion from $1.17 billion, while net income came in at $33.8 million, and free cash flow improved to $61.2 million. Management also pointed to a 2026 backlog of $3.9 billion and guided for adjusted EBITDA of $380 million to $420 million. This one carries more economic sensitivity than the others, but the long-term contract base gives it a sturdier feel than many beginners might expect.

TVK

TerraVest (TSX:TVK) is probably the least familiar name here, but it has built a very nice habit of growing through acquisitions and then squeezing more out of what it buys. The Canadian stock makes and services equipment tied to energy, transportation, heating, and industrial markets.

In fiscal 2025, sales jumped 50% to $1.37 billion, net income rose 34% to $98.4 million, and adjusted EBITDA increased 40% to $264.6 million. Then in the first quarter of fiscal 2026, net income rose another 16% and adjusted EBITDA jumped 39%. It also raised its dividend by 14% in December. The risk is that aggressive dealmaking can backfire, but so far, TerraVest has looked like a disciplined compounder.

WFG

West Fraser (TSX:WFG) is a major wood products company, so it gives beginners exposure to housing and renovation demand with a business that has been through many up and down cycles. The latest results were messy on the surface, with 2025 sales of US$5.46 billion and a loss of US$937 million, but that included large restructuring and impairment charges.

Adjusted EBITDA was still positive at US$56 million for the year, and the Canadian stock kept a strong balance sheet with cash and short-term investments above US$1 billion. This is not the smoothest forever stock, but patient investors often do well when they buy quality cyclicals and let time do the heavy lifting.

Bottom line

For beginners, forever Canadian stocks don’t need to be perfect. They just need to be understandable, durable, and worth sticking with when the market gets moody. Laurentian offers a turnaround and income angle; Colliers brings global compound growth; North American Construction adds contract-backed industrial exposure; TerraVest offers an acquisitive growth story; and West Fraser gives patient investors a cyclical heavyweight. Overall, it’s a pretty well-rounded place to start.

The post 5 Canadian Stocks Beginners Can Buy and Hold Forever 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 Colliers International Group. The Motley Fool recommends TerraVest Industries and West Fraser Timber. The Motley Fool has a disclosure policy.

2026

Trade tensions can make investing feel like grocery shopping during a storm. Prices move fast, confidence drops, and investors start asking which companies can still hold steady. Tariffs can lift input costs, border delays can pinch supply chains, or a weaker consumer can hurt demand. So, in that kind of market, I’d rather look at businesses tied to everyday needs.

Food fits. People may delay a new couch or vacation, but they still eat dinner.

MFI

That’s why Maple Leaf Foods (TSX:MFI) looks interesting right now. Maple Leaf stock is one of Canada’s best-known food companies, with brands such as Maple Leaf, Schneiders, Mina, Greenfield Natural Meat, and Lightlife. It sells prepared meats, poultry, plant protein products, and other packaged foods across Canada and beyond. In a choppy trade environment, boring can look pretty beautiful.

The biggest recent change came from its pork spinoff. In October 2025, Maple Leaf stock completed the separation of its pork operations into Canada Packers, which now trades separately on the TSX under CPKR. That move simplified Maple Leaf stock into a more focused prepared-foods company. It also removed some commodity pork volatility from the main business, while Maple Leaf stock kept a connection through its remaining stake and supply arrangements. For investors, that creates a cleaner story.

Into earnings

The latest earnings also gave Maple Leaf stock a stronger case. In the fourth quarter of 2025, Maple Leaf reported revenue of $991.2 million, up 8.1% from $917.1 million the year before. Adjusted operating earnings rose to $67.2 million from $52.8 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $117.3 million, up from $108.3 million. Furthermore, adjusted earnings per share (EPS) hit $0.32, compared with $0.18 a year earlier. That’s a solid finish to a year when many consumers still watched every dollar.

The full-year numbers looked even better. Sales reached $3.9 billion in 2025, up 7.7% from $3.6 billion. Adjusted EBITDA climbed 21% to $476 million, and the adjusted EBITDA margin improved to 12.2% from 10.8%. Adjusted EPS rose to $1.09 from just $0.15. Net debt also fell to 2.1 times trailing adjusted EBITDA, down from 2.7 times a year earlier. Recently, Maple Leaf stock carried a market cap near $3.6 billion and a trailing price-to-earnings (P/E) ratio of 84. Don’t let that fool you. It looks low because of a one-time gain tied to the pork disposal, so the forward multiple near 18 gives a more realistic read.

Future focus

Looking ahead, Maple Leaf stock fits as it sits in a defensive category with room to improve margins. A more focused prepared-foods company can spend more energy on brands, pricing, plant efficiency, and cash flow. If trade tensions lift costs, Maple Leaf stock won’t escape the pressure. Still, branded food companies often have more pricing power than purely cyclical businesses. That gives it a better chance to protect profits than companies tied to big-ticket spending.

There’s also a quiet income angle here. Maple Leaf’s dividend yield recently sat around the 3% range, providing investors some return while they wait for the new structure to prove itself. Even that can bring in ample income with a $7,000 investment.

The stock isn’t risk-free. Food inflation can hurt volumes. Consumers can trade down. The spinoff still needs time to fully realize its benefits. And if tariffs hit ingredients, packaging, logistics, or exports, margins could wobble. Still, the business looks much sturdier now than it did during its heavier investment period.

Bottom line

If trade tensions heat up again, I’d rather own a company selling familiar food brands than chase the most exciting name on the TSX. Maple Leaf stock has a clearer business, better earnings momentum, a cleaner balance sheet, and a defensive product base. It won’t shoot the lights out overnight. But in a market where investors may soon want stability with some upside, MFI looks like a Canadian stock worth buying before the next trade scare arrives.

The post 1 Canadian Stock I’d Buy Before Trade Tensions Heat Up Again 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

As the TSX Index continues marching towards new heights, new investors might have to take a step back and consider what’s still a great deal. Of course, there’s nothing wrong with buying shares of a company while it’s making new highs, especially if the valuation metrics still aren’t absurd and the tailwinds are really starting to mount. For the most part, the TSX Index’s run is driven by some real tailwinds that might just help Canadian stocks follow up on 2025 with another impressive performance.

While time will tell if the year’s gains will top last year’s, the first quarter and a half seems to be painting a pretty picture, with many of the top financial and energy names continuing their rallies as though the page never did turn on the year. With oil prices rocketing higher again, suddenly Canada’s energy names became a must-have hedge.

Dirt-cheap dividends are still out there

To make the value proposition better, such names still seem cheap, with huge yields and big cash flows up ahead. In any case, it’s hard for value investors to justify buying high with the intent of selling higher. Personally, I think buying high and just hanging on for the next few decades could be the smartest move. Consider all the dividends you’ll collect, and all the dividend raises you’ll get over such a timeframe!

For those looking for a dividend payer poised to make up for lost time, though, I think Nutrien (TSX:NTR) stands out as a sold-off play that’s still down as the rest of the market surges. At the time of this writing, shares of the fertilizer producer are down just shy of 10%, and the yield is around 3% again.

Of course, you had to think that the parabolic move experienced earlier in the year would be corrected swiftly. And now that NTR stock is ready to move on after the latest descent off 52-week highs, I do think the name has what it takes to continue impressing investors. Indeed, the war in Iran has introduced serious volatility to commodities.

Nutrien stock may still be underpriced, given the Iran war

And given a lot of agricultural commodities move through the Strait of Hormuz, there’s a global fertilizer shock in addition to an energy shock to think about. Either way, Nutrien is a very impressive operator with efficient production and a steady retail business that can still enjoy margin gains from here.

Of course, higher fertilizer prices might lead to demand destruction at some point down the line. For now, though, I think higher prices and an uptick in demand are hard to ignore as the next steps with the conflict in the Middle East play out.

While there’s no shortage of geopolitical variables (from the war in Iran to tariffs), I still think Nutrien is a great long-term hold. Analysts over at Bank of America recently praised the “best-in-class operator” and noted that shares are going for around “pre-conflict levels.”

Indeed, after that latest dip, I think investors should take another careful look at Nutrien, especially now that some are expecting the Middle East crisis to resolve sooner rather than later. Given the risks, there might be asymmetric upside to be had in a name that’s going for just 14.8 times forward price-to-earnings (P/E).

The post One Canadian Dividend Stock That’s Down 10% — and Worth Holding for the Very Long Term appeared first on The Motley Fool Canada.

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

2026

The U.S. market is full of great long-term options, many of which long-term Canadian investors are well aware of. But there is one top-performing U.S. stock that Canadians should be considering for their portfolios.

This is a stock boasting strong customer loyalty that has persisted across different market cycles and continued to grow. In fact, this top-performing U.S. stock stands out as one of the strongest businesses on the continent with a fiercely loyal membership base.

That stock to consider is Costco (NASDAQ:COST)

Why Costco stands out as a top‑performing U.S. stock

Despite being a U.S.-based retail titan, Costco is well-known to Canadian shoppers and investors alike. The company provides a membership-based paywall to access its retail warehouses, where bulk goods and sheer variety overwhelm value-seeking shoppers.

For Costco, the goal is simple. Provide lower-cost items in bulk and passive membership renewals that lead to high-margin revenue streams. That model has enabled the retailer to expand its operations internationally across multiple countries.

That appeal, and more importantly, growth is important. In recent years, Costco has shown that it can continue to expand, grow sales and expand its membership income despite market challenges. In short, the retailer continues to deliver steady performance. That consistency persisted even when shoppers felt increased pressure in their wallets as a result of market volatility.

One of the key features of that appeal is Costco’s ability to keep prices low while maintaining strong traffic levels. The sheer scale of Costco’s operations allows it to negotiate favourable terms with suppliers, and its limited‑selection approach keeps operations streamlined.

Those efficiencies translate into consistent earnings growth that helps Costco perform well across different economic environments.

In its most recent second quarter of fiscal 2026, Costco reported net sales of US$68.2 billion, a solid 9.1% increase over the same period last year. This demonstrates that the retailer continues to capture consumer spending even in a tighter economic environment.

The impressive numbers led Costco to also hike its dividend by 13% in the most recent quarter. That being said, prospective investors should see Costco as a growth-first pick, which is reflected in its tiny 0.6% yield.

Investors should note that Costco is also known to provide occasional special dividends to investors.

Why Canadian investors benefit from owning Costco

For Canadian investors, adding Costco to a portfolio offers several advantages.

First, Costco provides exposure to the strength of the U.S. consumer market and, by extension, several other international markets. Not only is the U.S. market larger and more diversified than Canada’s, but the field of Canadian retailers that have global exposure is tiny at best.

Speaking of Canadian retailers, Costco’s global exposure also provides investors with a way to invest in a retailer that can offset some of the risk in being tied solely to the Canadian market. Costco’s commitment to and growth in Canada further bolsters that portfolio.

Next, there’s currency exposure, which can work in favour of Canadian investors. As a top-performing U.S. stock, Costco reports in U.S. dollars. Over longer periods, the greenback has appreciated relative to the loonie. As a result, should that trend continue, Canadian investors can expect to see enhanced returns from holding U.S. equities.

Finally, there’s the defensive appeal of Costco. The retailer’s focus on essential goods, competitive pricing, and fierce membership loyalty helps it perform well during economic slowdowns.

For Canadians seeking a dependable long‑term holding, Costco is a top-performing U.S. stock that offers growth, stability, and cross‑border diversification.

In short, it’s a stock that’s hard to ignore.

Will you buy this top‑performing U.S. stock?

Costco is a compelling, top-performing U.S. stock for Canadian investors to consider. Across the loyal member base, strong sales and growing international footprint, Costco offers plenty of long-term upside.

Throw in Costco’s growing dividend and occasional special payouts, and Canadian investors have a compelling long-term growth investment option to consider.

Costco, in my opinion, is a great add-on to any larger well-diversified portfolio.

The post A Top‑Performing U.S. Stock That Canadian Investors Really Should Own appeared first on The Motley Fool Canada.

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

2026

Building long-term wealth doesn’t require thousands of dollars upfront. In fact, starting with just $250 — and investing it wisely — can set powerful compounding in motion. The key is choosing resilient, dividend-paying companies that not only provide income today but also grow that income over time. Here are three top Canadian dividend stocks that are worth considering right now.

Reliable income from defensive businesses

A great place to start is with stability. Fortis (TSX:FTS) is a regulated utility known for its highly predictable earnings and recession-resistant business model. Utilities provide essential services, which means demand remains steady even when the economy is gloomy.

Fortis has increased its dividend for more than 50 consecutive years, making it one of the most reliable income stocks in Canada. With a dividend yield of about 3.3% and a sustainable payout ratio, it offers both security and steady growth. While the stock appears fairly valued today, long-term investors can begin building a position and add more shares during market pullbacks.

Another defensive business is Empire (TSX:EMP.A). As the parent company of grocery banners like Sobeys and FreshCo, Empire operates in a sector that Canadians rely on daily. This makes its earnings remarkably resilient, even during downturns.

Empire has raised its dividend for roughly 30 years, supported by consistent earnings growth and a conservative payout ratio. Although its yield of about 1.9% is modest, its long-term dividend growth rate — over 8% annually in the past two decades — makes it a compelling choice for investors focused on growing income over time. With shares trading at a discount of over 10% to analyst targets, this is a stock worth accumulating, especially on dips.

Growth and income in one package

For investors seeking both income and long-term capital appreciation, Brookfield Asset Management (TSX:BAM) is a top-tier choice. The company manages a vast portfolio of real assets, including infrastructure, renewable energy, real estate, and private equity — sectors known for generating stable cash flows.

BAM’s asset-light business model drives strong fee-related earnings, which in turn support a rapidly growing dividend. As global demand for infrastructure and clean energy continues to grow, BAM is positioned to benefit significantly. This growth tailwind enhances its ability to deliver rising income to shareholders.

With a dividend yield of approximately 4.3% and shares trading at a meaningful discount of about 16% to the analyst consensus price target, Brookfield Asset Management offers a rare combination of value, income, and growth potential. It’s an excellent addition for any starter dividend portfolio.

Make your $250 work smarter

Even with just $250, you can begin building a diversified dividend portfolio by purchasing fractional shares or focusing on one high-quality name to start. The important step is getting invested early and staying invested. These three companies combine resilience, dividend growth, and long-term upside — exactly what small investors need to succeed.

Investor takeaway

Starting small doesn’t limit your investing potential — when paired with discipline and smart stock selection, it can do wonders through compounding over time. Fortis and Empire provide dependable, defensive income streams, while Brookfield Asset Management adds higher growth and income potential. Together with regular and smart investing, they can form a solid foundation for turning an initial $250 into a wealth-building machine over time.

The post The Smartest Dividend Stocks to Buy With $250 Right Now appeared first on The Motley Fool Canada.

Fool contributor Kay Ng has positions in Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management and Fortis. The Motley Fool has a disclosure policy.

2026

The Tax-Free Savings Account (TFSA) encourages saving and investing. However, a cap exists to manage the long-term tax revenue costs for the government. Nevertheless, despite these strict limitations, more than 350 Canadians have reached millionaire status or have seven-figure TFSA balances.

The feat is remarkable, if not enviable. These millionaires did not pull a rabbit out of a hat; instead, they share five common habits. Any investor can be on the path to becoming the next TFSA millionaire by adopting these same core principles.  

1. Long-term vision

Successful TFSA investors begin with a clear focus on long-term wealth accumulation rather than a get-rich-quick mentality. They are prepared to exercise patience and hold income or growth stocks for the long haul. The strategy lessens the impact of market fluctuations.

2. Maximize annual limits consistently

No prospective TFSA millionaire will leave contribution room on the table in a given year. The annual limit, regardless of amount, fuels the wealth-generating engine. Unused contribution room is a missed opportunity for tax-free compounding.

3. Don’t store cash

The TFSA is not an ordinary savings account, and treating it as one by storing cash is a big mistake. Don’t allow inflation to diminish your purchasing power over time. The journey to $1 million requires using the contribution to invest in income-producing assets, most notably, high-quality stocks.

4. Strategic asset allocation

TFSA millionaires implement both income and growth investing to align with the million-dollar goal. For 2026 and beyond, the ideal combo is Emera (TSX:EMA) and Hammond Power Solutions (TSX:HPS.A). The former provides recurring dividends for reinvesting, while the latter brings massive capital growth. You have a balanced power portfolio.

Emera is a high-yield, defensive investment. The $21.6 billion energy and services company operates regulated electric and natural gas utilities in Canada, the Caribbean, and primarily in Florida in the United States. At $70.36 per share, this top-tier utility stock pays a 4.1% dividend.

EMA raised dividends for 19 consecutive years. The $20 billion, five-year capital investment plan (2026-2030) supports utility modernization and growth in Florida and Nova Scotia, as well as the forecast rate base growth of 7% to 8%. The company adjusted its future annual dividend growth rate to 1%–2%.  

Hammond Power Solutions can generate significant tax-free returns in a TFSA. This high-growth industrial is a back-to-back TSX30 winner, the flagship program for the 30 top-performing Canadian stocks. HPS.A ranked 1st and 3rd in 2024 and 2025, respectively. At $268.59 per share, the total three-year return is plus-647.4%, representing a 95.5% compound annual growth rate (CAGR).

The $3 billion producer of dry-type transformers and power-quality products will play a critical role in data centre buildout and AI grid expansion. Adrian Thomas, CEO of Hammond, said the company can support customers across electrification and digital infrastructure markets as they continue to scale.

5. Keep CRA at arm’s length

Follow two key rules while you’re building wealth. Future TFSA millionaires must work within the limits and not over-contribute. Don’t trade like a business, as it raises red flags with the Canada Revenue Agency (CRA). The taxman will impose tax penalties for both infractions.

Different mindset

What sets TFSA millionaires apart? Their mindset has always been that of a strategic investor, not a simple saver. Combined with these habits, a $1 million TFSA is not just a dream.

The post 5 Habits That TFSA Millionaires Have in Common appeared first on The Motley Fool Canada.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

2026

The steady utility stocks aren’t just a great way to place defence anymore. Undoubtedly, their dependable dividends, predictable earnings growth profiles, and lower degree of volatility have made some of the Canadian utility names the go-to bond proxies for when markets get really choppy. Indeed, if you’ve got a defensive part of your portfolio, odds are it’d be that much better with a steady utility player at its core.

From Fortis (TSX:FTS) to Canadian Utilities, it can literally pay growing dividends to stick with the boring, but stable names. More recently, though, the utility players have become that much more interesting, thanks in part to their role in modernizing the grid for the AI age.

Of course, the top utility stocks are more of the behind-the-scenes beneficiaries from the AI revolution. And while more data centre deals get inked, I do think that the broader utility scene could go from boring, dependable, and steady to growthy, and even a bit exciting.

With wonderful hard assets and very long track records of dividend raises each and every year, I think there’s more to the utility stocks than just a way to batten down the hatches. Arguably, a name like Fortis might make sense to own, even if you’re not looking to defend against the next big bear market.

Fortis stock is more than just reliable; it’s a steady grower

As various AI innovators on the cutting edge look to invest considerable sums in GPU while consuming an obscene amount of energy, there are ways further downstream to play such a spending boom. After a nearly 9% year-to-date gain, shares of FTS are really starting to heat up.

With runway to grow south of the border (think ITC Holdings) and a 4–6% annual dividend growth forecast that’s pretty much a lock until the end of 2030, perhaps FTS stock could be the play that does well, regardless of what the next major move is for markets.

What’s most striking about Fortis is that it’s growing at a very respectable rate for such a defensive stock. Indeed, there’s quite a bit of earnings visibility over the next three to four years. With 7% in annualized growth as a baseline and the potential for some AI-driven surprises, I do view the slight premium on shares as more than worth paying.

The premium price tag is well-earned

Of course, it’s not all too often you see a steady dividend payer like Fortis going for more than 20 times trailing price-to-earnings. Today, the name goes for just shy of 23 times trailing P/E, which is undoubtedly on the higher end, while the dividend yield, now at 3.3%, is on the lower end. Still, with several good quarters under its belt and significant momentum going into its coming quarterly reveal, I’d not be afraid to add to a position after the latest 3–4% dip.

Sure, it’s hardly a correction, and expectations have only grown higher in recent months, but for investors who want predictability, near-guaranteed annual dividend raises, and the ability to compound wealth steadily through the decades, perhaps Fortis is a far more exciting play than some of the riskier, higher-multiple tech stocks that have a better seat at the AI revolution.

At the end of the day, energy transmission needs to be ready to go as next-generation AI data centres steadily come online in the coming years. It may be a boring business, but the excitement can’t happen without it.

The post Why This Boring, Reliable Utilities Stock Is Starting to Look Very Profitable appeared first on The Motley Fool Canada.

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

2026