Written by Christopher Liew, CFA at The Motley Fool Canada

The stable mix of energy, basic materials, and financial stocks, notably the Big Banks, keeps the TSX afloat amid elevated volatility. While technology is the worst performer among six primary sectors in the red, select tech names are defying the trend and flashing millionaire-maker potential.

Firan Technology Group (TSX:FTG) and Evertz Technologies Limited (TSX:ET) are strong buys given the robust cash flow and income-generating power of their respective businesses. Moreover, both tech stocks display remarkable resilience, delivering market-beating returns thus far in 2026 that appeal to both growth-focused and income-oriented investors.

Capital compounder

Firan Technology has rewarded shareholders with enormous capital gains (+616.5% total return) over the last three years. To illustrate, a $142,730 investment on April 10, 2023, would be worth $1,000,013.35 today. At $22.14 per share, current investors are already up 91.7% year-to-date.

The $523.6 million aerospace and defence technology powerhouse manufactures high-reliability printed circuit boards (PCBs) and advanced avionic subsystems. This specialized niche in the world’s most demanding platforms fueled FTG’s parabolic growth.

Two operating units, FTG Circuits and FTG Aerospace, contribute to revenues. In Q1 fiscal 2026 (three months ended February 28, 2025), total revenue and adjusted net earnings increased 10.3% and 7.4% year-over-year to $47.3 million and $3.5 million, respectively. Free cash flow during the quarter reached $4.9 million.

According to its President and CEO, Brad Bourne, the business continues to grow organically due to the strong demand across the Aerospace and Defence markets and growing geopolitical tensions.

Firan has production sites in Canada, the U.S., and China. The opening of an Aerospace facility soon in Hyderabad, India will help reduce exposure to U.S. tariff risks. Management believes the latest quarterly results demonstrate a strong foundation for future growth.

Dominant industry position

Burlington-based Evertz Technologies develops software and hardware products and services for the broadcast and film industry. The $1.2 billion company competes with legacy equipment makers and cloud-native media platforms. However, it has garnered approximately 16% to 19% of the global professional video networking market share.

Evertz invested heavily in research and development to become the leading supplier to the broadcast industry, as well as to government and military communications sectors. Today, it maintains a dominant position in both Software Defined Video Networking (SDVN) and Radio Frequency (RF) technologies, the critical pillars of today’s digital environment.

The company is at the forefront of the media industry’s transition toward IP (SDVN), remote production, and cloud technologies. Evertz Microsystems created evertz.io, a cloud-based technology and multi-tenant Software as a Service (SaaS) platform to provide on-demand, pay-as-you-go video services for broadcasters, content owners, and creators.

Performance-wise, this tech stock is up nearly 20% year-to-date, outperforming the TSX’s tech superstar Shopify (-24.8%). At $16.38 per share, the trailing one-year price return is 93.2%. Very few growth-oriented companies pay dividends. Evertz is a rare gem. Its high-margin software revenue supports the 5% dividend and quarterly payouts.

Evertz began paying dividends in 2006 and has never missed a payment since, including five special dividend payments over the last 10 years.

Path to $1 million

The successful, aggressive growth of Firan Technology and Evertz Technologies brought stability to income. Both tech stocks are top picks for investors building a seven-figure portfolio.

The post 2 Technology Stocks With the Kind of Potential That Could Make Millionaires appeared first on The Motley Fool Canada.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool has a disclosure policy.

2026

Written by Aditya Raghunath at The Motley Fool Canada

Three years from now, Enbridge (TSX:ENB) stock should be worth more than it is today, and it should be paying you a bigger dividend along the way. This prediction is backed by 31 years of execution and one of the most defensible business models in North American energy.

Here’s why.

Enbridge reports record results in 2025

Enbridge wrapped up 2025 with record EBITDA (earnings before interest, tax, depreciation, and amortization) and distributable cash flow (DCF) per share.

According to Chief Financial Officer Pat Murray, it marked the 20th consecutive year that Enbridge met or exceeded its annual financial guidance.

That kind of consistency is rare. Most energy companies are at the mercy of commodity prices. Enbridge is different.

• About 98% of its cash flow comes from regulated or long-term contracted sources, which means it continues to generate predictable income whether oil and gas prices are climbing or crashing.
• The mainline, Enbridge’s flagship crude oil pipeline system, transported an average of 3.1 million barrels per day in 2025.
• It was apportioned (meaning demand exceeded capacity) for all but three of the last 12 months of the year.
• In fact, it was still running at double-digit apportionment levels in January and February of 2026.

That’s a pipeline whereon customers are lining up to ship more than it can handle right now.

A $39 billion backlog will fuel the dividend

CEO Greg Ebel told investors on the Q4 call that Enbridge’s secured growth backlog has now grown 35% since the company’s Investor Day in March 2025. It currently stands at $39 billion and extends through 2033. Put simply: Enbridge already knows where a significant chunk of its future earnings is coming from.

The pipeline giant also expects to reach a final investment decision on another $10 billion to $20 billion in new projects over the next 24 months. Those projects span all four of its business units: liquids pipelines, gas transmission, gas utilities and storage, and renewable power.

Gas transmission is the standout right now.

• Enbridge is advancing more than 50 potential data centre opportunities that could require up to 10 billion cubic feet of natural gas per day.
• The company recently sanctioned the Bay Runner pipeline extension, upsized the Eiger Express pipeline from 2.5 to 3.7 billion cubic feet per day, and is expanding storage capacity across its network.
• All of this supports Ebel’s stated target of 5% annual growth through the end of the decade.

To put that in plain math: if Enbridge hits 5% annual growth for three straight years, the stock’s underlying cash flow, and by extension its dividend, should be meaningfully higher by 2029.

Enbridge raised its dividend again in December 2025, extending its streak to 31 consecutive years of increases. The compound annual growth rate on that dividend since the streak began is a number most companies can only dream about.

Over the next five years, Enbridge expects to pay out $40 billion to $45 billion in total dividends to shareholders. The company’s dividend payout sits squarely within its 60%–70% DCF target range, suggesting there is room to continue growing it.

The balance sheet is also in good shape. Debt-to-EBITDA sits at 4.8 times, within the company’s target range of 4.5 to 5 times, and the investment-grade credit profile remains intact.

For income investors, Enbridge offers something genuinely rare: a large, growing dividend backed by one of North America’s most essential pieces of infrastructure.

The TSX dividend stock moves about 30% of all crude oil produced in North America and roughly 20% of all natural gas consumed in the United States, according to company data.

Three years from now, Enbridge stock should be higher, its dividend should be bigger, and its backlog should be even further along. For patient investors, that’s a compelling case.

The post Where Will Enbridge Stock Be in 3 Years? appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

2026

Written by Puja Tayal at The Motley Fool Canada

The market has not been forgiving to companies that couldn’t produce high revenue growth. Non-energy infrastructure stocks, from railways to telecom, have been declining for a long time because of their high capital demand and slowing revenue. These sectors resorted to cost-cutting and efficiency improvement to improve their profits, making value investors think whether the market was too quick to write them off.

Write-offs occur when investors sell their shares as they see no recovery.

The railway stock that the market wrote off

Canadian National Railway (TSX:CRN) shares have dipped 25% since March 2024 as its freight volumes fell. In 2024, labour disputes, port strikes, and severe weather conditions affected freight volumes, and in  2025, US tariffs on petroleum products, steel, aluminum, and lumber.

The escalating trade tensions tested investors’ patience and even forced Canadian National Railway to scrap its medium-term growth outlook. Canadian National Railway shifted focus to improving efficiency with tighter costs, increased asset utilization, and improved locomotive productivity. It offset lower freight volumes from metals and forest products with higher volumes of agriculture and intermodal transport.

The outcome was 1% revenue growth and 8% earnings per share growth in 2025. It has increased its 2026 dividends by 3% and sits at a comfortable dividend payout ratio of 66% of free cash flow. Canadian National Railway expects flat revenue for 2026.

It has potential to grow in the long term as the government is looking to diversify its export markets by building new ports, airports, and railway infrastructure. This transition will increase freight volumes in the medium term and drive recovery for patient investors in Canadian National Railway. Until then, they can be assured of receiving a $3.66 dividend per share.

The telecom stock that the market wrote off

Like Canadian National Railway, the market also wrote off the telecom sector, Telus International (TSX:T) in particular. While BCE stock surged 20% since its dividend cut in May 2025, Telus stock fell 25%. Most recently, Telus stock dipped as much as 9.8% in April over fears of a possible dividend cut. A month before the telco paused dividend growth on December 3, 2025, the stock fell by over 12%. If the dividend cut fears materialise, the write-off could help the stock bottom out. Telus could probably mimic BCE’s recovery rally after a dividend cut.

Let’s face it, Telus’s 110% dividend payout ratio after including the dividend reinvestment plan (DRIP) hasn’t been helping its balance sheet. The company plans to fix its balance sheet by reducing net debt to 3 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and increasing free cash flow by an average annual rate of 10%. Even with this strategy, the dividend payout ratio (including DRIP) will reach 100% by 2027.

The market write-off of Telus over fears of dividend cuts could be an opportunity for value investors to jump in for a share price recovery in the medium term, as in the case of BCE.

Investor takeaway

The market write-offs of the above two stocks have pulled the share price to an attractive valuation. While the above companies face fundamental weaknesses, their economic moat of size and vast infrastructure is not easy to replicate. When the dust settles, Canadian National Railway will emerge more efficient, and Telus will be leaner and more financially flexible.

The post Why the Market May Be too Quick to Write Off These Railway and Telecom Stocks appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway and TELUS. The Motley Fool has a disclosure policy.

2026

Written by Robin Brown at The Motley Fool Canada

When you are hunting for dividend stocks, you want to find something that lasts. The best kind of dividend stocks are those you can buy, tuck away, and enjoy a rising stream of income over time.

The worst kind of dividend stocks are those that pay a dividend that they can’t afford. The market is pretty good at sniffing out unsustainable dividends. It usually means a major decline in the stock price, an elevated yield, and then, eventually, a dividend cut.

That is why dividend quality is far more important than quantity. I’d far rather accept a smaller dividend yield that is regularly growing because the broader business is steadily growing. Here’s two dividend stocks that you can buy, tuck away, and feel good about holding over the coming five years.

A top energy infrastructure stock

The first feel-good dividend stock is AltaGas (TSX:ALA). After a 127% gain in the past five years, AltaGas’s dividend yield has compressed. It only yields 2.7% today. However, the company has gone through an incredible transformation in that timeframe.

The natural gas producer has sold off non-core businesses and focused on its expertise, natural gas. It has deleveraged to where its balance sheet is in strong condition today.

Over 55% of its business comes from a quality regulated natural gas utility in the United States. This segment has ample room to grow its rate base through asset modernization, optimization, and expansion.

The midstream business has substantial levers for growth. Demand for safe, reliable Canadian propane and butane is rising in Asia. AltaGas is expanding its export capacity and becoming a substantial provider to these regions. Demand should only increase given the recent conflicts in the Middle East.

Today, 86% of AltaGas income is from contracted sources. It has a target of 90% contracted income in the future. It has a very modest 50–60% earnings payout ratio target.

AltaGas’ dividend has grown by a 6% compounded annual growth rate (CAGR). Its dividend has grown as its earnings per share has increased. ALA targets a 5-7% CAGR all the way to 2030.

This might not be the most exciting stock. However, it is one company that has a pretty good chance to deliver attractive high single-digit total returns in the years ahead.

A top utility stock with a top dividend record

Another stock I wouldn’t hesitate holding for the coming five years is Fortis (TSX:FTS). This is the ultimate stock to hold in times of uncertainty. Given rising geopolitical tensions, there is likely to be no shortage of uncertainty in the coming five years.

In times of uncertainty, investors seem to flock to Fortis. That is why it is likely up 11% this year. Its yield has compressed to 3.2%.

Fortis has a very impressive portfolio of regulated transmission and distribution utilities in North America. Its operations are diversified and provide a rounded mix of stable returns year after year.

The company can promise a 7% compounded annual rate base growth for the coming five years. Investors are very likely to see that achieved. FTS does what it promises.

Fortis has increased its dividend for 52 consecutive years. It continues to believe that dividend can grow by 4–6% per year. For a low-risk stock with a decent growth profile, Fortis is one of the best to hold for the long term.

The post 2 Dividend Stocks I’d Buy Today and Feel Good Holding for at Least 5 Years appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

2026

Written by Sneha Nahata at The Motley Fool Canada

Many Canadian stocks pay dividends and offer compelling yields. However, only a few have the goods to back up their payouts. Notably, these Canadian dividend stocks are dependable investments, backed by fundamentally strong businesses, with resilient earnings bases and sustainable payouts to cover their distributions.

In addition, these companies have a solid record of returning cash to shareholders. Years of uninterrupted dividend payments signal their ability to navigate changing market conditions.

Against this backdrop, here are two Canadian dividend stocks yielding over 4% that appear to have the goods to back it up.

Canadian dividend stock #1: Enbridge

Enbridge (TSX:ENB) is a compelling Canadian dividend stock offering a yield of over 5% with strong financials to support future payouts. The energy infrastructure company has been paying dividends for more than 70 years and has consistently increased its distributions annually since 1995.

Enbridge has maintained and increased its dividend through multiple commodity price cycles and broader economic downturns, reflecting its ability to generate stable cash flows even in challenging environments. This consistency reflects the durability of its operations and disciplined capital allocation.

It benefits from a low-risk, diversified portfolio of energy infrastructure assets that helps mitigate earnings volatility. A significant portion of its EBITDA is derived from regulated operations and long-term take-or-pay contracts, which reduce exposure to commodity price fluctuations. These arrangements also provide a predictable revenue stream, with many contracts incorporating inflation protection, further supporting the stability of distributable cash flow.

Enbridge’s extensive network of pipelines and related infrastructure assets strengthens its long-term outlook. By connecting key supply basins with major demand centres across North America, Enbridge ensures high asset utilization while positioning itself to benefit from sustained energy demand.

Looking ahead, Enbridge targets distributing dividends of between $40 billion and $45 billion over the next five years, supported by continued growth in regulated and contracted cash flows. Moreover, it maintains a sustainable payout ratio of 60% to 70% of DCF.

Overall, Enbridge is a reliable dividend stock with strong underlying fundamentals to support its dividend payouts.

Canadian dividend stock #2: Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is another reliable dividend stock with the potential to sustain its payouts over time. The Canadian financial services giant has paid dividends since July 1833 and has maintained uninterrupted distributions since then. Over the past decade, its dividend has grown at an annual rate of 5%, reflecting stable underlying earnings expansion. Moreover, it yields 4.4%.

Management continues to maintain a disciplined approach to capital allocation, targeting a conservative payout ratio of 40% to 50%. This level is considered sustainable over the long term and provides a balance between rewarding shareholders and preserving capital for future growth.

The bank’s diversified revenue base supports its earnings stability and dividend payouts. Growth in loans and deposits, combined with lower funding costs, is expected to support income generation. In addition, expanding fee-based revenue streams, along with strength in underwriting and advisory businesses, are likely to contribute positively to overall performance.

Ongoing momentum in revenue, steady credit performance, a strong balance sheet, and continued operating efficiency should help cushion earnings through economic cycles and support the bank’s ability to maintain and grow its dividend over time.

The post 2 Canadian Dividend Stocks Yielding 4% That Appear to Have the Goods to Back It Up appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata 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

Written by Amy Legate-Wolfe at The Motley Fool Canada

A safe dividend stock usually has a few simple things working in its favour. It needs a business that keeps bringing in cash even when the economy gets messy, a payout ratio that leaves room for error, and a balance sheet that does not look stretched. A long dividend history helps too, but the real test is whether the company can still cover its payout when growth cools. That is where this dividend stock starts to get interesting.

TCL.A

Transcontinental (TSX:TCL.A) is no longer just the old-school printing name some investors remember. After selling its packaging business, it is now focused on retail services and printing, along with educational publishing. That makes it a more streamlined company, but also a more focused one. In March 2026, it closed the packaging sale to ProAmpac for cash proceeds of $2.1 billion, a huge shift that gives it a very different shape going forward.

That sale was the biggest piece of news over the last year, but it was not the only one. In fiscal 2025, Transcontinental also completed three acquisitions tied to its in-store marketing activities, showing management still wants growth even as it reshapes the business. Then in March 2026, it announced Sam Bendavid would become chief executive officer in April, another sign that the dividend stock is entering a new chapter rather than simply shrinking itself.

Safer dividend stocks do not need exciting stories. They need workable ones. Transcontinental now looks a bit simpler, a bit less leveraged, and more focused on businesses where it thinks it can defend margins and keep generating cash. Management has already said the packaging sale should reduce net indebtedness significantly in 2026, and that is exactly the kind of boring update income investors should like.

Into earnings

Now to the numbers. For fiscal 2025, Transcontinental reported revenue of $2.7 billion, operating earnings of $264.1 million, and net earnings attributable to shareholders of $171 million, or $2.04 per share. Adjusted net earnings came in at $217.2 million, or $2.59 per share. Adjusted operating earnings before depreciation and amortization were $466.2 million. Those are solid results for a dividend stock with a market cap of roughly $2 billion, especially since adjusted earnings per share rose 10.7% year over year.

The latest quarter was softer, which is worth noting. In the first quarter of fiscal 2026, revenue from continuing operations rose 2.3% to $263.5 million, but adjusted operating earnings before depreciation and amortization fell 17.9% to $33.1 million. Adjusted net earnings from continuing operations slipped to $6.7 million, or $0.08 per share. That is not thrilling. Still, management said it expects fiscal 2026 adjusted operating earnings before depreciation and amortization from continuing operations to stay roughly in line with fiscal 2025, even after a challenging start to the year.

Valuation helps the case. The shares recently traded around $23, with a trailing price-to-earnings ratio near 11.7 and a payout ratio around 45%. That combination is a big part of why this dividend looks safer than it seems. Investors are not paying a premium multiple, and the dividend does not appear stretched based on trailing earnings. Add in the expected deleveraging after the packaging sale, and the margin for error looks better than many higher-yield names on the TSX. The risk, of course, is that printing and retail marketing are not exactly high-growth markets, so Transcontinental still needs to execute well. But in the meantime, investors can grab a dividend stock with a solid 3.9% dishing out plenty of income with a $7,000 investment.

Bottom line

Transcontinental is not the kind of dividend stock that wins by dazzling anyone. It wins by looking steadier than the market first assumes. The business is changing, debt should come down, the valuation is reasonable, and the dividend still looks covered. That does not make it perfect, but it does make this 3.9% yielder look a lot safer than its quiet reputation might suggest.

The post A 3.9% Dividend Stock That Looks Safer Than It Seems appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Transcontinental. The Motley Fool has a disclosure policy.

2026

Written by Aditya Raghunath at The Motley Fool Canada

If you’re looking for one Canadian stock to own as oil prices surge, Canadian Natural Resources (TSX:CNQ) is the answer, and the numbers make a pretty convincing case.

• The Middle East conflict has rattled global energy markets in recent weeks.
• Oil prices have climbed sharply, and investor sentiment around energy stocks is swinging wildly.
• That kind of volatility can create opportunity, especially for investors willing to hold quality energy names through the short-term noise.

CNQ is a long-term compounder dressed up as an oil company. Let me explain.

A strong performance in 2025

The 2025 fiscal year was, in the words of CNQ President Scott Stauth on the company’s Q4 earnings call, “the best operational year in the company’s long history.”

• CNQ posted record annual production of 1,571,000 barrels of oil equivalent per day (BoE/d) last year, up 15% from 2024.
• Total liquids production hit approximately 1,146,000 barrels per day, a 14% increase.
• Natural gas production reached a record 2.5 billion cubic feet per day, rising 19% year-over-year.

CNQ did all of this while cutting costs. Primary heavy oil operating costs fell 8% in 2025. Oil Sands mining and upgrading costs came in at just US$22.66 per barrel, an industry-leading figure.

The fourth quarter was even stronger. CNQ hit record quarterly production of approximately 1,659,000 BoE/d, with Oil Sands mining and upgrading running at 105% utilization.

Adjusted funds flow for the full year totaled $15.5 billion, or $7.39 per share. The balance sheet looks solid too, with debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) at 0.9 times as of year-end.

Given an annualized dividend of $2.50 per share, CNQ’s payout ratio is well covered at roughly 30%.

CNQ offers an unmatched dividend record

The CNQ board just approved a 6.4% increase to the quarterly dividend. That marks 2026 as the 26th consecutive year of dividend increases, a compound annual growth rate of 20% over that period,

And it gets better. CNQ has also updated its free cash flow allocation policy. Under the new terms, when net debt falls below $16 billion, the company will direct 75% of free cash flow back to shareholders.

When net debt reaches $13 billion, that rises to 100%. At year-end 2025, net debt was approximately $16 billion, meaning CNQ is essentially at the threshold for that higher payout level right now.

CNQ’s reserve base is another pillar of this story. Total proved reserves stand at 15.9 billion BoE, with a reserve life index of 31 years.

Around 73% of those reserves are long-life or zero-decline assets. For investors, that means predictable production and cash flows for decades.

What makes CNQ stock attractive

Oil is political. And right now, geopolitics are pointing upward for prices.

As Stauth noted on the earnings call, developments in the Middle East have already tightened heavy crude differentials by about $1.50 to $1.60 compared to just a month ago.

Venezuelan barrels that briefly pressured the market have been partially offset by supply disruptions elsewhere.

For CNQ, which sells approximately 256,000 barrels per day into diversified markets, including the U.S. Gulf Coast and Western Canada, higher oil prices mean fatter margins on an already low-cost structure.

The key insight here is that CNQ doesn’t need $100 oil to thrive. Its cost discipline means it generates real cash flow across a wide range of price environments. Higher prices are just icing on the cake.

Investing in oil stocks purely on short-term price moves is a losing game. But buying a company like CNQ, with record production, 26 years of dividend growth, industry-leading costs, and a 31-year reserve life, and holding it for years is a very different proposition.

The post This Canadian Stock Could Rule Them All in 2026 appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

2026

Written by Robin Brown at The Motley Fool Canada

Young Canadians are lucky to have both the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP) to help tax efficiently build wealth.

The TFSA and RRSP provide tax-efficient compounding, but in different ways

The TFSA is completely tax-free. No income earned in the account is liable for tax, nor is any withdrawal from the account.

The RRSP is effectively tax-free as well. However, it is a little more complicated. You get a tax deduction when you contribute to the RRSP. Inside the account any income earned is tax-free.

However, when you withdraw, your withdrawal is treated like income at your highest marginal tax rate. When you combine the tax deduction and the future tax liability, you end up close to tax-free; it just is a little bit more complicated.

You just have to plan a little bit more when you are using the RRSP. You want to withdraw in retirement when your income and tax rate are less to fully maximize the benefit.

Your 20s is the perfect time to start thinking about investing in a TFSA or RRSP

A perfect time to start thinking about using these accounts is in your 20s and 30s. You have decades to invest and grow your wealth. By investing tax-free, you can increase your annual investment income by as much as 20% (because you pay no tax).

Given its flexibility, the TFSA account is by far more attractive to young Canadians in their 20s. The average fair market value for Canadians between 25-29 is $13,149. That is not a bad start. It shows that young adults are thinking about building a nest egg and they are doing it tax-free.

The RRSP is likely less appealing to 25-year-old Canadians. They are still reaching peak income years, so the tax deduction benefit is less helpful during this time. That is likely why Canadians under the age of 35 only have an average RRSP balance of approximately $15,000.

Even though the RRSP might not be the right fit right now, it is a useful tax deduction tool for when you are hitting peak income years. The point is both the TFSA and the RRSP will be helpful on your wealth journey.

Pick smart stocks like WSP for your registered accounts

Picking wise investments is another important element to building wealth. In both these registered accounts, you want stocks that can compound solid returns over long periods of time.

WSP Global (TSX:WSP) is a perfect stock for a registered account. Even though its stock is down in 12% this year, it has a great long-term record of returns. In fact, over the past 10 years, this stock is up 478% (a 20% compounded annual growth rate).

WSP has grown to become one of the largest engineering and advisory firms in the world. Smart acquisitions have been key to expand its area of expertise and geographic footprint. Today, it has substantial operations on almost every continent.

WSP benefits from favourable long-term tailwinds like electrification, climate change, urbanization, infrastructure renewal, and data centre/artificial intelligence build out.

All these trends require massive investments that require engineering, planning, construction implementation, and management. As a multi-faceted leader, it can take greater share of these projects over time.  

The Foolish takeaway

Stocks like WSP are perfect additions for TFSA or an RRSP. They have a great track record of returns and have strong prospects for the future. By combining wise tax planning and smart investing, you can see your wealth drastically grow over long periods of time.

The post What the Typical 25-Year-Old Canadian Has Saved in a TFSA and RRSP appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in WSP Global. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

2026

Written by Daniel Da Costa at The Motley Fool Canada

For years, Canadian telecom stocks were some of the easiest investments you could make in your TFSA.

They operated in essential industries, had massive barriers to entry, and most importantly, they generated reliable cash flow that supported steady and growing dividends.

In fact, the industry was widely considered one of the best places to find high-quality stocks to buy and hold for the long haul.

However, that hasn’t been the case lately. Over the last few years, the major Canadian telecom stocks, especially BCE (TSX:BCE) and Telus (TSX:T), have come under significant pressure, and their stock prices reflect that.

So now, instead of being obvious long-term holds, investors are starting to ask a different question. Are these telecom stocks actually good opportunities today, and more importantly, if you’re buying one for your TFSA, which one actually makes more sense?

Why telecom stocks are in a tough spot right now

The biggest issue facing telecom companies today actually has nothing to do with their operations. People still need wireless, internet, and data every single day. And as technology continues to increase, we actually need it more than ever.

The real problem BCE and Telus have been facing lately is what it’s costing these companies to stay competitive. Over the last several years, telecoms have been forced into a massive spending cycle, investing heavily in 5G networks and fibre infrastructure at the same time. And that spending wasn’t optional; it was necessary just to keep up.

At the same time, inflation pushed up the cost of building that infrastructure, and rising interest rates made it more expensive to carry the debt required to fund it.

So even though these companies have still been generating tonnes of recurring revenue, a lot of their cash flow was being tied up in capital spending and higher interest costs.

And with free cash flow being used to fund the dividend, any sustained pressure on that free cash flow is where the concern about the sustainability of the dividends starts to show up.

Which stock actually makes more sense for your TFSA?

Right now, one of the biggest differences between the two, which also largely explains the massive difference in yields the two stocks offer, is that BCE already made the tough decision last year to trim its dividend.

And while trimming a dividend is never ideal, it allows companies to reset expectations and bring their payout ratios back to a more sustainable level.

That matters for long-term TFSA investors because now, instead of constantly worrying about whether the dividend is at risk, investors can start focusing on BCE’s business stabilizing, recovering, and continuing to grow over time.

The yield is still solid, currently sitting at roughly 5.3%, but more importantly, it’s sustainable and should support renewed dividend growth in the coming years as BCE continues to grow and strengthen its balance sheet.

So, if you’re looking for a more stable telecom investment today, BCE is clearly the safer option.

Telus, on the other hand, is in a very different position. The yield is significantly higher, sitting at roughly 10.3%, which is why it has been getting so much attention lately.

However, that yield is also a massive red flag. Because when a stock is yielding 10% or more, it’s usually not some significant opportunity. It’s because the market expects something to change.

In this case, the dividend hasn’t been cut, but growth has already been paused, and the payout is sitting at a level that looks difficult to sustain over the long term, especially with Telus’s elevated debt levels.

Plus, on top of the financial concerns about the dividend, with a new CEO stepping in this summer, there’s always the possibility that management decides to reset things early and bring the dividend down to a more sustainable level.

That doesn’t mean it will happen, but it’s a risk that the market is pricing in.

So, while Telus might look compelling for its 10.3% dividend yield at first glance, in the current environment, it comes with significantly more risk. And in a TFSA, where every dollar you contribute is so valuable, stability matters more than chasing the highest yields.

The post BCE vs. Telus: Which Telecom Belongs in Your TFSA? appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in BCE. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

2026

Written by Daniel Da Costa at The Motley Fool Canada

When it comes to dividend investing, one of the biggest mistakes investors consistently make is focusing too much on the current yield the stock offers.

That’s understandable because on the surface, it’s easy to think that the higher the yield, the better the investment.

But in many cases, unless the dividend is extremely high, the yield actually tells you very little about the quality of a business.

So, although some of the highest-yielding stocks can actually be the riskiest, especially if that dividend isn’t sustainable, when you’re trying to figure out what actually makes a “good” dividend stock, there are more important factors to consider.

Because investing in dividend stocks is not just about how much income you’re getting today, it’s about how reliable that income is, whether it can continue to grow over time, and how quickly it can grow over time.

That’s why some of the best dividend stocks are usually some of the least exciting businesses, and often some of the most predictable.

That’s why if you’re looking for high-quality, reliable dividend payers, infrastructure stocks are some of the best. These are businesses that operate essential assets like pipelines, utilities, and rail networks, which the economy depends on every single day.

Furthermore, not only do they provide essential services, but they also generate steady cash flow, have massive barriers to entry, and in many cases, can even increase their revenue alongside inflation.

And when you combine that with disciplined payout ratios and consistent long-term growth, that’s what really makes a dividend stock “good.”

A high-yield infrastructure stock built for reliable dividend income

If you’re looking for a reliable dividend stock to buy and hold for years with confidence, one of the best examples in Canada is Enbridge (TSX:ENB).

Enbridge is a massive $164 billion company that operates one of the largest energy infrastructure networks in North America, transporting oil and natural gas across the continent.

And what makes that business so valuable is that it acts more like a toll road than a traditional energy company, getting paid for moving energy instead of producing it.

That means its cash flow is largely supported by long-term contracts, which makes it much more predictable than companies that are directly exposed to commodity prices.

On top of that, Enbridge is consistently retaining capital to expand its business over time, including increasing its exposure to utility-like operations, which further stabilizes its earnings. Furthermore, those consistent investments in growth are also what support Enbridge’s attractive dividend and consistent dividend growth.

So not only does it offer a sustainable dividend with a current yield of 5.2%, but it’s also increased its dividend every year for three straight decades.

That means every year you hold the stock, Enbridge pays you more. It also shows the resiliency of Enbridge’s business, having the ability to not only pay, but increase the dividend through many different financial environments, market pullbacks and recessions over the last 30 years.

So, while the yield is attractive, it’s the combination of reliable cash flow and disciplined management that really makes Enbridge one of the best dividend stocks in Canada.

A lower-yield stock with strong long-term growth potential

While Enbridge is a great option for investors looking for higher income today, Canadian National Railway (TSX:CNR) is a perfect example of why a lower yield can still be just as attractive over the long term.

Canadian National operates a massive rail network that connects key regions across North America, moving everything from commodities to consumer goods.

And like other infrastructure businesses, it benefits from a huge competitive advantage, because building a competing rail network would be incredibly expensive and nearly impossible from a regulatory standpoint.

That gives the company strong pricing power and allows it to generate consistent earnings over time. And that consistency is what drives its dividend.

So, while the yield is lower, currently sitting at roughly 2.4%, the company also has a long history of increasing its dividend, and retains even more capital than Enbridge, which helps create significant long-term growth potential and supports continued dividend increases for years to come.

So, at the end of the day, if you’re looking for a good dividend stock, it isn’t just about how much income you’re getting today; it’s also about how reliable that dividend is and how much it can increase over time.

The post What is Considered a Good Dividend Stock? 2 Infrastructure Stocks That Fit the Bill appeared first on The Motley Fool Canada.

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• 5 Top Motley Fool Stocks to Buy in December
• 3 Canadian Companies Powering the AI Revolution

Fool contributor Daniel Da Costa has positions in Enbridge. The Motley Fool recommends Canadian National Railway and Enbridge. The Motley Fool has a disclosure policy.

2026