Written by Adam Othman at The Motley Fool Canada

Dividend-growth stocks can be powerful tools for investors who want to build sustainable wealth. The income that dividend stocks offer makes them attractive holdings, but there is more to it than just the quarterly income. Many dividend stocks also increase their payouts each year, helping investors earn passive income that can keep pace with inflation.

Businesses with strong cash flows, solid fundamentals, disciplined management, and resilient business models can be some of the top dividend stocks you can own. This past April, several high-quality Canadian stocks demonstrated this strength by increasing dividends. Here are my top picks from those TSX dividend stocks that can be attractive long-term holdings.

Brookfield Corp.

Brookfield Corp. (TSX:BN) is a $141.88 billion market-cap company that engages in managing public and private investment products and services for institutional and retail clients. Through its subsidiaries, it provides investors with exposure to virtually every segment of the global economy. As one of the leading investment firms worldwide, it focuses on real assets like renewable energy, real estate, infrastructure, and private equity.

The company’s strategy has been successful over the decades, and its dividend growth alone exhibits that. The company recently hiked its quarterly dividend by 16.7%, extending its dividend-growth streak to over a decade. As of this writing, Brookfield stock trades for $63.42 per share and pays US$0.07 per share each quarter, translating to a 0.60% dividend yield. While the payout might seem meagre, it’s the dividend-growth streak that makes it an attractive investment to consider.

Thomson Reuters

Thomson Reuters (TSX:TRI) is a $55.75 billion market-cap multinational conglomerate headquartered in Toronto. The company is famous for providing news and information for professional markets. The company has been a global provider of specialized information for decades. It has recently started foraying into more software and AI-powered solutions that help professionals across various industries.

The demand for data-driven insights keeps growing, making businesses like Thomson Reuters increasingly crucial for the economy. As of this writing, the stock trades for $125.86 per share. It recently increased its payout by 10%, indicating the management’s confidence in its long-term earnings potential.

The stock pays its investors US$0.8911 per share each quarter, translating to a 2.83% annualized dividend yield.

CCL Industries

CCL Industries (TSX:CCL.B) is another dividend-growth stock to keep on your investment radar. The $14.47 billion market cap American-Canadian company describes itself as the world’s largest label maker. The company manufactures and sells packaging and packaging-related products through various business segments.

With over 200 production facilities worldwide, it produces specialty packaging that clients worldwide rely on for their packaging needs. The company serves large global clients across the electronics, healthcare, and consumer packaging markets. Backed by solid demand and a resilient business model, it also boasts an over 20-year dividend-growth streak.

As of this writing, the stock trades for $83.71 per share and pays investors $0.36 per share, translating to an annualized 1.72% dividend yield.

Foolish takeaway

Dividend hikes are often a sign, telling investors that the business they are investing in has a management confident in its operations and financial strength. Companies like Brookfield, Thomson Reuters, and CCL Industries increased payouts recently, exhibiting the same strength as dependable dividend-growth stocks.

For investors building income-focused self-directed investment portfolios, these three TSX stocks can be excellent foundational holdings to consider.

The post 3 Top-Tier Canadian Stocks That Just Bumped Up Dividends Again appeared first on The Motley Fool Canada.

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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool recommends CCL Industries and Thomson Reuters. The Motley Fool has a disclosure policy.

2026

Written by Jitendra Parashar at The Motley Fool Canada

Many new investors consider Canadian energy stocks to be highly unpredictable because commodity prices can swing sharply and global uncertainty can rattle markets, which could make the shares of energy producers highly volatile. But beneath all that volatility, some oil and gas companies continue to strengthen their businesses and set themselves up for long-term growth.

One Canadian energy firm that appears to be doing exactly that is Freehold Royalties (TSX:FRU). While it may not be one of the most popular energy stocks on the Toronto Stock Exchange, the company has consistently improved its operations, expanded its royalty portfolio, and continued rewarding shareholders with reliable monthly income. In this article, I’ll explain why this Canadian energy stock could be positioning itself for a very strong year ahead. Let’s take a closer look.

Freehold Royalties stock

Headquartered in Calgary, Freehold Royalties manages a large portfolio of oil and natural gas royalty lands in Canada and the United States. Unlike traditional producers, Freehold earns royalty income from production activity on its lands without directly funding large drilling operations itself. That business model helps it keep costs lower while still providing exposure to energy prices and production growth.

At the time of writing, FRU stock traded at $17.41 per share with a market cap of $2.9 billion. Over the last year, the stock has surged by nearly 54% due mainly to its improving financial performance. The company also offers a monthly dividend, with an annualized yield of about 6% at the current market price.

Record production and stronger cash flow

Despite global economic concerns, Freehold’s latest full-year results highlighted why investors have become increasingly optimistic about its future. Its total production for the year reached a record 16,294 barrels of oil equivalent per day, up 9% year over year (YoY). A major contributor to that production growth was its U.S. operations, where Freehold’s production climbed 33% from a year ago, helped by acquisitions completed in late 2024 and continued development across its U.S. portfolio.

At the same time, the company’s heavy oil production in Canada rose 13% YoY, helping it offset weaker Canadian natural gas drilling activity. Last year, Freehold’s liquids weighting also improved to 66% in 2025 from 64% in 2024, which is important because crude oil and natural gas liquids accounted for 90% of its total revenue during the year.

Leasing activity and balance sheet strength

In recent years, Freehold’s leasing activity has also remained strong. The company entered into 91 new leases in Canada and 25 new leases in the United States during 2025. Together, bonus and leasing revenue contributed $8 million to its financials, up sharply from $3 million in the previous year.

More importantly, its balance sheet also appears healthy. The company returned $177 million to shareholders through monthly dividends last year while maintaining a dividend payout ratio of 75%. Meanwhile, its long-term debt declined by $18 million to $283 million.

That relatively conservative debt level gives Freehold additional flexibility to continue investing in growth opportunities while still supporting shareholder payouts.

Why this stock could be positioned for a big year

Notably, Freehold’s management expects production to average between 15,500 and 16,300 barrels of oil equivalent per day in 2026. That guidance reflects some near-term pressure from lower drilling activity in late 2025, weaker Canadian natural gas pricing, and weather-related downtime in the southern United States. However, management also expects production to moderate in the first half of 2026 before returning to growth in the second half.

Freehold is also continuing to add to its royalty portfolio, as it acquired $38 million of additional crude oil-focused royalty interests in the Permian Basin and Canada last year. These assets are still in the early stages of development and could support future drilling inventory over time.

Given these solid fundamentals, I wouldn’t be surprised if Freehold Royalties stock outperforms the broader market by a big margin in 2026 and beyond.

The post 1 Canadian Energy Stock Quietly Positioning for a Big Year appeared first on The Motley Fool Canada.

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• 5 Top Motley Fool Stocks to Buy in December
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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.

2026

Written by Christopher Liew, CFA at The Motley Fool Canada

In today’s environment, earning additional income is not only a nice-to-have but a necessity. The Bank of Canada warns that geopolitical volatility could drive prices higher. To boost purchasing power, Canadians can use the Tax-Free Savings Account (TFSA) to generate income with no tax. 

If you’re investing in dividend stocks, the capital requirement varies depending on the yield. As of 2026, the $7,000 annual contribution limit has raised the cumulative TFSA contribution room to $109,000 for those eligible since 2009. Thus, earning $500/month within the tax-sheltered account is realistic for many Canadians.

A $100,000 TFSA stock portfolio with an average yield of 6% will produce the desired result. However, if a lump-sum investment upfront isn’t possible, you can hit the target over time through consistent contributions. By maximizing your annual limit each year and reinvesting dividends, you harness the power of compounding. It would take 11 years, more or less, to achieve the milestone.

Stable foundation

Ideally, a TFSA “monthly income” powerhouse strategy consists of two or more high-yield stocks with reliable dividend payment histories to mitigate risks. Freehold Royalties (TSX:FRU) can serve as the core holding, providing a stable foundation through its business model.

The $2.9 billion royalty company is not an oil producer or driller, but rather a “landlord” in the energy sector. Freehold collects royalties from over 380 industry operators in North America, including Exxon Mobil and Canadian Natural Resources Limited. It owns sizeable oil and natural gas properties in Canada and the United States.

Performance-wise, FRU has been steady thus far in 2026, benefiting from recent oil price shocks. At $17.90 per share, the year-to-date gain is 20.3%, while the dividend yield is 6.07%. Regarding dividend track record, the oil and natural gas royalty company hasn’t missed a monthly payout since May 1998.

Financial resilience is a salient feature of the royalty model. In 2025, royalty and other revenue increased 1.3% year over year to $313.5 million amid weaker commodity prices. Nevertheless, Freehold delivered record annual production of 16,294 barrels of oil equivalent per day (boe/d).

Given its lower-risk, high-margin business, particularly its “zero” capital costs, management is confident Freehold can generate meaningful cash flows and sustain its dividends.      

Income accelerator

A suitable complement to Freehold Royalties is Plaza Retail (TSX:PLZ.UN). This $489 million REIT acts as an income accelerator, with its 6.32% dividend offer and $4.44 share price. The monthly distributions have been consistent since January 2022.

According to its president and CEO, Jason Parravano, 2025 was an important transition year for Plaza Retail. He noted the steady operating fundamentals and a portfolio positioned around non-discretionary retail.

In the 12 months ending December 2025, net operating income (NOI) and total comprehensive income increased 2.7% and 96.2% year over year to $77 million and $55.9 million. Demand for retail space was healthy, as evidenced by the 97.6% committed occupancy at year-end.

“From an operations standpoint, the portfolio continued to demonstrate resilience,” Paravano added. National retailers account for 91.1% of gross rents, and nearly 54% of revenue comes from essential needs retail.

Tax-exempt income

Earning $500 a month is an achievable and practical objective in today’s market. The TFSA and investments in reliable monthly-income stocks make the no-tax scenario possible.

The post Use a TFSA to Earn $500 a Month With No Tax 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 recommends Canadian Natural Resources and Freehold Royalties. The Motley Fool has a disclosure policy.

2026

Written by Jitendra Parashar at The Motley Fool Canada

If you keep on chasing whatever stock is soaring at the moment, you might miss out on great investing opportunities for the long term. More often than not, long-term wealth is built by buying high-quality companies during periods of temporary weakness and then holding them patiently for years. Such stocks become even more attractive when they also pay reliable dividends along the way.

In this article, I’ll highlight one magnificent TSX dividend stock that long-term investors may want to consider buying and holding for decades.

Brookfield Asset Management stock

When it comes to building wealth over the long run, stocks tied to real assets and global investment trends usually have an edge — and Brookfield Asset Management (TSX:BAM) fits right into that category. It’s one of the largest alternative asset managers in the world, focusing on investing client capital into real assets and essential service businesses across sectors such as renewable power, infrastructure, real estate, private equity, and credit.

As of May 5, BAM stock settled at $66.03 per share with a market capitalization of about $108 billion. Although the stock currently trades nearly 25% below its 52-week high, it has gained nearly 7% so far in the second quarter, showing signs of recovery despite broader market volatility. In addition to its long-term growth potential, Brookfield currently offers investors a quarterly dividend, with an annualized yield of around 4.2%.

What makes BAM stock even more attractive is the quality and diversification of its business model. The company invests in assets that tend to remain important regardless of economic cycles. Infrastructure, renewable energy, and essential real estate assets continue generating demand over time, which helps provide Brookfield with durable long-term cash flow opportunities.

Stronger investment income and valuation gains

Brookfield Asset Management posted record financial performance in 2025, driven by strong fundraising activity, capital deployment, and asset monetization.

In the fourth quarter alone, BAM raised a record US$35 billion of capital, bringing total 2025 fundraising to US$112 billion. Its fee-bearing capital grew 12% year over year (YoY) to US$603 billion.

Similarly, the company’s fee-related earnings — a key profitability metric for asset managers — rose 22% YoY in 2025 to a record US$3 billion, while its distributable earnings increased 14% from a year ago to US$2.7 billion.

Encouraged by these strong results, Brookfield Asset Management also raised its quarterly dividend by 15% to US$0.5025 per share, reflecting management’s confidence in future cash flow growth.

This TSX dividend stock could benefit from these trends

Notably, governments and corporations worldwide are investing heavily in infrastructure modernization, energy transition projects, private credit markets, and artificial intelligence (AI) infrastructure. BAM appears well-positioned to capitalize on these opportunities given its global scale and deep operational expertise.

For example, the company recently launched a US$100 billion global AI infrastructure program focused on developing the physical infrastructure needed to support AI growth, including data centres, power generation, and compute infrastructure.

At the same time, BAM’s balance sheet and liquidity position also remain solid. At the end of 2025, the company had US$134 billion of uncalled fund commitments and US$3 billion of corporate liquidity, giving it great flexibility to pursue new investments and strategic acquisitions. Given these fundamentals, Brookfield Asset Management could be a great TSX dividend stock that rewards patience for decades, especially for investors willing to think beyond near-term market noise.

The post 1 Magnificent TSX Dividend Stock Down 25% to Buy and Hold for Decades appeared first on The Motley Fool Canada.

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

2026

Written by Robin Brown at The Motley Fool Canada

If you love dividends, TSX stocks are a great place to look. In Canada, you can find stocks in a wide mix of industries, sectors, and geographies. If I wanted passive dividend income that could last a decade (or more), here is a five-stock portfolio I would happily own today.

AltaGas: A long-term dividend-growth story

AltaGas (TSX:ALA) has a market cap of $16 billion and a dividend yield of 2.6%. It might not be the largest yield. However, the company has substantial growth opportunities that should ensure years of dividend growth ahead.

AltaGas operates a regulated utility in the U.S. and a diversified midstream business in Western Canada. The utility is growing its rate base by a high single-digit rate. The midstream business is enjoying strong pricing and growing volume demand for Canadian energy exports to Asia.

This is a de-risked, high-quality infrastructure business you can tuck away for attractive total returns in the years ahead.

Dream Industrial REIT: An elevated yield

If you just want an elevated dividend yield, Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) is an attractive option. It has a market cap of $3.9 billion and a distribution yield of 5%.

Dream owns and manages 343 multi-tenanted industrial properties across Canada, Europe, and the United States. It has solid 95.7% occupancy and attractive embedded rental rate growth on lease turnover/renewal.

This stock also happens to be cheap and trades at a discount to other industrial peers. If you just want a nice, safe dividend and modest capital appreciation, it’s a good stock to hold.

Exchange Income: A growth story with income

If you are looking for a little more growth and a monthly dividend, Exchange Income Corporation (TSX:EIF) is an interesting stock. It has a market cap of $5.7 billion and a dividend yield of 2.77%.

It is a diversified provider of essential air services, aerospace/defence components, and industrial solutions (like environmental mats, telecom infrastructure, and windows). The key to many of its businesses is how essential its products/services are to the customers it serves.

Exchange has grown its dividend for 18 out of the past 20 years. This stock offers a diversified business, attractive growth/investment opportunities, and a rising monthly dividend.

Canadian Natural: A dividend-growth legend

Canadian Natural Resources (TSX:CNQ) is a Canadian dividend legend you don’t want to miss. It has a market cap of $136 billion and a yield of 3.86%.

Canadian Natural is Canada’s largest energy producer and one of its largest companies. With oil prices elevated, this company is likely chugging out serious cash flow.

With a very modest balance sheet, it is primed to keep growing its dividend and maybe even deliver special dividends to shareholders. Canadian Natural has a 26-year history of growing its dividend. It’s a great decade-long bet ahead.

Canadian Pacific: A top blue-chip stock

Speaking of legends, Canadian Pacific Kansas City (TSX:CP) is one of Canada’s longest enduring railroads and companies. It has a market cap of $100 billion and a yield of 0.88%.

Certainly, it has the smallest dividend in the mix. Last year, it raised its dividend by 20%. This year, it increased its dividend by 17.5%. Likewise, it has been buying back stock aggressively (4% last year and potentially 5% this year).

The company is only now starting to unlock the benefits of its nationwide railroad system. It still has a long journey of growth ahead. This blue-chip stock has lasted for decades and will likely last for decades to come.

The post 5 TSX Dividend Stocks to Hold for the Next Decade 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 Canadian Natural Resources, Canadian Pacific Kansas City, and Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2026

Written by Sneha Nahata at The Motley Fool Canada

Investors seeking instant income could consider top Canadian dividend stocks with a history of durable payouts. The stocks are supported by fundamentally strong businesses with resilient earnings. Moreover, they maintain a sustainable payout ratio.

With this background, here are five Canadian stocks I’d buy if I wanted instant income.

TC Energy

TC Energy (TSX:TRP) is a top Canadian dividend stock for instant income. It raised its dividend for 26 straight years, supported by an extensive energy network that connects supply basins to key markets and generates stable cash flow.

Its earnings are largely protected by regulated operations and long-term contracts, reducing exposure to commodity price swings and ensuring reliable revenue.

Looking ahead, TC Energy expects to grow its dividend by 3%–5% annually. With solid business fundamentals, expanding LNG exports, rising electrification, and higher energy demand, especially from data centres, the company is well-positioned to deliver consistent earnings and deliver continued dividend growth.

Fortis

Fortis (TSX:FTS) stock offers stress-free instant income. The utility company has raised its dividend for 52 consecutive years, supported by its rate-regulated assets, which limit exposure to commodity price swings and economic cycles. This results in stable, predictable earnings, supporting steady payouts.

The expanding rate base and steady earnings growth position Fortis to continue growing its dividend year after year.

Fortis’s $28.8 billion capital plan is expected to expand the rate base and improve its bottom line. By 2030, Fortis expects its consolidated rate base to reach about $58 billion, supporting projected dividend growth of 4%–6% annually.

Further, rising electricity demand strengthens the company’s prospects, making Fortis a dependable choice for investors seeking immediate income.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is another reliable dividend stock for instant income. The Canadian financial services giant has paid dividends since July 1833 and has grown its dividends at an annual rate of 5% over the past decade. Moreover, it yields over 4.2%.

Management targets a conservative payout ratio of 40% to 50%, which provides a balance between rewarding shareholders and preserving capital for future growth.

The bank’s future payouts are supported by its diversified revenue base, which will drive earnings. Growth in loans and deposits, combined with lower funding costs, is expected to support profitability. In addition, steady credit performance, a strong balance sheet, and operating efficiency should help cushion earnings and support future dividend payments.

Canadian National Railway

Canadian National Railway (TSX:CNR), which operates as one of the largest rail networks in North America, is another solid dividend payer. It has raised its dividend for 30 consecutive years, reflecting the resilience of its business and its ability to grow earnings even during unfavourable situations.

Its extensive rail network and the essential nature of its business provide a durable competitive advantage and help generate steady growth across different economic cycles. Also, high barriers to entry give it the pricing power while maintaining healthy profit margins. This structure enables it to provide reliable cash flow to support consistent dividend payments.

Going ahead, Canadian National’s focus on operational efficiency and profitable growth will continue to drive its dividend. With freight volumes expected to recover gradually and productivity improvements ongoing, Canadian National Railway is well-positioned to continue growing its dividend.

Brookfield Renewable Partners

Brookfield Renewable Partners (TSX:BEP.UN) is another top stock for instant income. It runs a large, diversified clean energy portfolio that includes hydro, solar, wind, and energy storage assets.

Its long-term power contracts provide stable, predictable cash flow, supporting reliable dividend payouts. Since 2011, the company has increased its distribution by at least 5% annually. Moreover, it is well-positioned to sustain its dividend-growth streak.

Brookfield is also expanding its development pipeline and refining its capital-recycling strategy to drive growth. With electricity demand rising and continued investment in clean energy, the company is well-positioned to grow and deliver steady returns.

The post 5 Canadian Stocks I’d Buy If I Wanted Instant Income 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, Brookfield Renewable Partners, Canadian National Railway, and Fortis. The Motley Fool has a disclosure policy.

2026

Written by Amy Legate-Wolfe at The Motley Fool Canada

Soft growth doesn’t mean investors need to hide in cash. It usually means they need companies with demand that can hold up even when households and businesses get more careful. The best stocks in that kind of market often serve essential needs, benefit from long-term trends, or offer steady income while investors wait for confidence to return. Therefore, investors don’t need a roaring economy to make sense, but durable demand, strong pricing power, and enough financial strength to keep moving forward.

CCO

Cameco (TSX:CCO) is one of Canada’s biggest uranium stories, and it fits because nuclear power has moved from a niche idea to a global energy priority. The company produces uranium and provides nuclear fuel services, while its stake in Westinghouse gives it exposure to the wider nuclear reactor supply chain. Over the last year, the main story was simple: countries kept looking for reliable, low-carbon base load power, and uranium stayed central to that conversation. Cameco stock also entered 2026 with a stronger balance sheet, ending 2025 with $1.2 billion in cash and short-term investments against $1 billion in total debt.

For 2025, revenue rose 11% to $3.48 billion, while net earnings jumped to $590 million from $172 million. Diluted earnings per share (EPS) climbed to $1.35 from $0.39, and adjusted earnings per share reached $1.44. That growth helps explain why investors keep chasing the stock, but valuation brings the risk. Cameco stock recently traded at a market cap near $70 billion and a trailing price-to-earnings (P/E) ratio above 120. So this isn’t a cheap stock. Still, if growth stays soft, long-term energy security spending could keep nuclear demand strong, and Cameco stock remains one of the clearest Canadian ways to play it.

CRRX

CareRx (TSX:CRRX) provides pharmacy services to seniors living in long-term care, retirement homes, assisted living facilities, and other congregate care settings. That gives it steady, recurring demand tied to aging demographics rather than consumer confidence. Over the last year, CareRx added more beds, improved operations, and started paying a dividend.

In 2025, revenue rose to $370.2 million from $366.7 million, while fourth-quarter revenue climbed to $96.1 million from $92.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $32.9 million for the year, and net income reached $26.1 million, compared with a loss in 2024. CareRx also declared a $0.02-per-share quarterly dividend for the first quarter of 2026. Valuation looks more grounded than many growth names, with a market cap near $232 million, a P/E ratio around nine, and a dividend yield near 2.2%. The risk is scale. Smaller companies can feel bumps harder, and CareRx still needs steady execution. But in a soft-growth market, healthcare demand gives it a useful cushion.

REI

RioCan (TSX:REI.UN) is another stock that could hold up if growth stays sluggish. The real estate investment trust (REIT) owns retail-focused properties, many anchored by grocery, pharmacy, necessity, and service-based tenants. That makes it less exposed to the weakest parts of discretionary spending. Over the last year, RioCan also leaned into strong leasing demand, unit buybacks, and balance-sheet improvement. Retail real estate has quietly regained appeal because quality space in good locations remains hard to replace.

In 2025, RioCan reported diluted funds from operations (FFO) of $1.87 per unit, up from $1.78 in 2024. Commercial same-property net operating income grew 3.6%, retail committed occupancy sat at 98.5%, and the funds from operations payout ratio was 61.6%. RioCan also guided for 2026 core FFO per unit of $1.60 to $1.62. With a recent yield of around 5.4%, it offers meaningful income while investors wait for rate cuts or better growth. The main risks are interest costs, debt, and any pullback in tenant demand. Even so, its necessity-based portfolio gives it a sturdy base.

Bottom line

Cameco stock, CareRx, and RioCan all offer different ways to handle a softer economy. Cameco stock gives investors long-term nuclear growth. CareRx brings healthcare demand and improves profitability. RioCan adds monthly real estate income from necessity-focused retail. None is risk-free, but each has a clear reason to work even if the economy keeps crawling instead of sprinting.

The post 3 Canadian Stocks That Could Outperform if Growth Stays Soft 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 Cameco. The Motley Fool has a disclosure policy.

2026

Written by Christopher Liew, CFA at The Motley Fool Canada

Are you scouting the market to see where you can best utilize your 2026 Tax-Free Savings Account (TFSA) annual limit? The TSX’s energy sector continues to outperform, although a sharp correction in oil prices is possible once the war in Iran ends. A safer alternative worth buying with $7,000 is a defensive stock in the Utilities sector.

Brookfield Renewable Partners (TSX:BEP.UN) will help you forget the FOMO (fear of missing out) feeling on energy gains. The premier utility stock continues to beat the broader market thus far in 2026. At $46.95 per share, the year-to-date gain is 28% compared to the TSX’s 7% return.

Furthermore, the dividend yield is an enticing 4.7%. A $7,000 investment today will generate $81.37 in tax-free income every quarter ($325.50 annually). Further price appreciation is a welcome bonus.

Strong start to 2026

Brookfield Renewable delivered robust financial results in Q1 2026, particularly a significant increase in funds from operations (FFO). In the three months ending March 31, 2026, FFO increased 19% year-over-year to a record US$375 million. Available liquidity at the quarter’s end was over US$4.7 billion.

According to its CEO, Connor Teskey, growing energy demand is occurring alongside a renewed focus on energy security. “In an environment with strong demand for low-cost, quick-to-market, and increasingly locally sourced energy, we are well positioned to deliver sustainable long-term cash flow growth for our investors,” he added.

Tesky credits Brookfield’s diverse global fleet and contracted, inflation-linked cash flows, as well as recent acquisitions, for the strong quarterly results. The financial strength can sustain dividend payments and support the annual dividend growth guidance of 5% to 9%.

On March 25, 2006, Brookfield, along with La Caisse, a Canadian public pension fund manager, entered a definitive agreement to acquire Boralex. The renewable energy producer will operate as an independent private company after the transaction closes in Q4 2026.

Massive development pipeline

Brookfield’s development pipeline, both projects under construction and in advanced development (80 gigawatts), has reached a massive scale (total 200 gigawatts). The new capacity coming online over the next several years provides visibility into future cash flows.

During the earnings call, Patrick Taylor, Managing Partner and Chief Financial Officer of Brookfield’s Energy Group, said, “We remain focused on delivering 12% to 15% long-term total returns for our investors, supported by our strong operating platform, disciplined capital allocation and our growing capital recycling program.”

Big Tech deal

In November 2025, Brookfield Renewable Partners signed a historic partnership with Microsoft. The deal involving 10.5 gigawatts of new renewable energy capacity to power the tech giant’s AI data centres is a growth catalyst for BEP.UN this year.

The $13.5 billion renewable energy company deal has ventured into the digital economy, which offers long-term growth. A broader agreement was signed beforehand covering a hydroelectric facility.

Business is as strong as ever

TFSA investors can take a cue from Teskey, who assured that the operating fundamentals and the business’s organic growth profile are as strong as they’ve ever been. Clearly, Brookfield Renewable Partners is the top Canadian stock to buy right now.

The post TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000 appeared first on The Motley Fool Canada.

More reading

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy.

2026

Written by Brian Paradza, CFA at The Motley Fool Canada

Some stock market investment decisions keep you up at night. This isn’t one of them.

If I could pick just one exchange-traded fund (ETF) to anchor my portfolio for the next three decades, without second-guessing myself, it would be the iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV). Here’s why this low-cost, passively managed, monthly-income producing index fund has earned my conviction as a core holding in a retirement portfolio.

Best Canadian ETF to buy

The iShares Core MSCI Canadian Quality Dividend Index ETF is one of my best ETFs to buy for long-term holding. It’s $5 billion portfolio hunts for the best dividend stocks on the TSX. Its underlying index, the MSCI Canada High Dividend Yield 10% Security Capped Index, rigorously screens stocks for high quality dividend stocks using criteria such as return on equity, earnings stability, and debt-to-equity ratios that portray strong balance sheets. Only about 21 Canadian blue-chips make the cut, and they’re among the fittest dividend payers in Canada.

That quality-first approach has been rewarded. Since its launch in June 2017, the XDIV has delivered an annualized total return of roughly 13.6% to reward investors with a 210% total gain on investment. For a portfolio that collects dividends along the way, a double-digit compound annual growth rate is exceptional.

A $10,000 investment in the XDIV ETF at inception in 2017 could have grown to more than $30,000, with dividend reinvestment.

XDIV Total Return Price data by YCharts

A significantly low management expense ratio (MER) of $0.11% (or $1.10 per annum per every $1,000 invested) means investors get to keep most of the investment returns generated by the portfolio. They won’t lose much value to ETF management fees and expenses.

On top of hefty capital gains potential, investors in the XDIV ETF receive a dividend every single month. The most recent monthly dividend should yield a respectable 3.4% annually.

Where could future growth come from?

Skeptics might say past performance doesn’t guarantee future returns, and they’d be right. But the ETF’s design makes tomorrow’s growth potential equally plausible. Its concentrated holdings sit at the intersection of Canadian economic resilience and global demand. These include top-tier banks with fortress balance sheets, pipelines that form the backbone of North American energy, and utility giants that earn regulated, predictable economic returns through economic cycles.

If interest rates drift lower over the next cycle, yield-oriented assets should enjoy a valuation tailwind. Meanwhile, these large-cap, wide-moat companies keep growing their earnings and free cash flow.

Most noteworthy, the XDIV ETF’s passive rebalancing means investors won’t have to guess which pipeline or bank will win. Investors simply own the strongest TSX dividend stocks at all times.

A monthly income ETF you can depend on

The XDIV ETF pays a monthly dividend that yields about 3.4%. The yield appears better than the iShares Core S&P/TSX Capped Composite Index ETF‘s 2%, giving investors a meaningful bump in immediate cash flow. But what excites me more is the growth potential in those monthly payouts.

The monthly dividend ETF’s underlying holdings are stocks that have raised dividends through thick and thin. Since 2017, the ETF’s monthly distribution has climbed from roughly $0.07 per share to around $0.12 today. That’s an income raise almost every year, without investors lifting a finger. For a retiree or an income-focused TFSA, that growing monthly cheque feels like pure gold.

Why the XDIV ETF may be a best buy in any core portfolio

The iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV) can form the core of any portfolio, and it is eligible for registered investment accounts.

For a young investor building long-term wealth inside a TFSA, the monthly distributions turbocharge compounding, and the quality screen offers growth without speculative risk.

For a retiree, the growing income stream helps outpace inflation while the low MER keeps withdrawal values high. Even inside an RRSP, where foreign withholding taxes don’t apply, the sheer dependability of the holdings makes it a one-decision portfolio anchor.

Once the core is all set, it’s time to find the high conviction growth and income stocks that fit one’s investment objectives.

The post The #1 Index Fund I’d Hold in My Portfolio Forever — No Hesitation appeared first on The Motley Fool Canada.

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• 3 Canadian Companies Powering the AI Revolution

Fool contributor Brian Paradza 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

Written by Joey Frenette at The Motley Fool Canada

Canadian retirees have quite the tightrope to walk as they seek to balance out growth potential, passive income (in the form of dividends, interest, distributions, and all the sort), as well as safety (lower volatility and defence against economic downturns). Of course, every individual retiree is going to have a different risk tolerance, income needs, and appetite for growth.

In any case, there is one common trait that I think every investor should seek to maximize at all costs: value. Whenever you can pay a dollar to get a dollar and change, investors should look to act. But, of course, it can be tough to tell what’s actual value and what’s a trap disguised as value.

In my view, it’s better to go for a modestly-discounted stock that’s out of favour than to go for the steepest markdowns, especially if you can’t fully grasp why a company is down and what more it’ll take to spark some kind of turnaround. Bottom-fishing isn’t easy, and if you don’t have an appetite for turbulence, perhaps prioritizing quality and reasonable prices could be the winning move over the long term.

Without further ado, here’s one safety stock that I think is defensive with a nice, growing dividend, an underrated longer-term growth profile, and a valuation that’s still not all too outlandish.

CN Rail stock looks cheap

Enter shares of CN Rail (TSX:CNR), which have been chopping around quite a bit this year, with steep surges and equally vicious drawdowns. Indeed, the stock is starting to get far choppier than the market in 2026. But despite the wild swings, I do view the name as a great comeback play with one of the most durable dividends out there (currently yielding 2.4%). I don’t know about you, but I’d rather get a 2.4% yield with a good shot of averaging dividend growth in the high single-digits (or even low double-digits in good times) over prolonged periods.

Of course, CN Rail is rolling through a rather harsh climate, and dividend growth might not be as generous as it used to be. Still, I think the rail icon is one of the steadier and more boring ways to build wealth over the decades. What’s most enticing is that the rail firm has one of the widest physical economic moats out there, one that AI cannot replicate!

Compared to a utility, you’re getting less yield (at least on average), a higher beta, and far more sensitivity to the state of the economy. Indeed, if we are headed for an AI-induced economic downturn, CNR stock is going to be a rougher ride. But I think it’ll all be worth it for the long-term dividend growth potential and the really depressed price of admission.

The company may be going through some rough times, but with a 19.3 times forward price-to-earnings (P/E), you’re paying a very fair price for a company with pricing power and the ability to bounce back once the economy picks up speed.

Bottom line

You can’t have a booming economy without CN Rail. And with encouraging volumes in the latest quarter, perhaps it’s time to board before the firm becomes more of an optimal operator while headwinds finally look to dissipate. CNR stock might be too choppy for some retirees, but for those who want a good price on a long-time dividend grower while the multiple is reasonable, I’d say it’s a great time to nibble.

The post A Reasonably Priced Safety Stock That Canadian Retirees Might Want to Know About appeared first on The Motley Fool Canada.

More reading

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

Fool contributor Joey Frenette has positions in Canadian National Railway. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

2026