In October 2024, TC Energy (TSX:TRP) completed the spin-off of its liquids pipelines business, creating South Bow (TSX:SOBO) as an independent, publicly traded entity. South Bow operates approximately 4,900 kilometres of crude oil pipeline infrastructure connecting Alberta supplies to key U.S. refining markets. Post-separation, TC Energy focuses exclusively on natural gas infrastructure, storage, power, and energy solutions.

South Bow’s spin-off from TC Energy creates a compelling investment proposition as a specialized liquids pipeline company operating a vast network of critical crude oil infrastructure, including the Keystone pipeline system. Moreover, South Bow plans to maintain sustainable dividends through stable cash flows while pursuing capital investments in its pipeline corridor to enhance operations and deliver resilient supply to high-demand North American markets.

The separation enables South Bow to pursue a focused strategy without competing for capital allocation with natural gas and power assets. As an independent entity, the company benefits from stable, contracted cash flows and projects steady 2-3% annual EBITDA (earnings before interest, tax, depreciation, and amortization) growth driven by organic expansion and planned corridor investments like the Blackrod Connection Project starting in 2026.

Despite an elevated leverage of 4.8-5.0 times net debt-to-EBITDA from the $7.9 billion debt assumption, South Bow plans systematic deleveraging over three years through disciplined capital allocation and EBITDA growth.

The company’s low-risk profile, underpinned by long-term contracts and essential infrastructure assets, should support its annual dividend of US$2 per share, translating to a forward yield of 8%.

South Bow’s strategic positioning capitalizes on favourable North American crude oil supply-demand fundamentals while offering operational agility and growth flexibility specific to the liquids sector.

How did South Bow stock perform in 2024?

In 2024, South Bow reported a normalized EBITDA of US$1.09 billion and a distributable cash flow of US$608 million. Given an annual dividend of US$2 per share, South Bow’s annual dividend expense totals roughly US$415 million, indicating a payout ratio of less than 70%.

South Bow stated that its performance was underpinned by highly contracted assets with minimal commodity exposure, providing stable cash flows for investors.

Looking ahead to 2025, South Bow expects normalized EBITDA of US$1.01 billion within a 3% range, supported by 90% contracted revenue arrangements. However, ongoing tariff uncertainty may create headwinds for uncommitted capacity volumes on the Keystone pipeline system, prompting management to reduce risk exposure in the Marketing segment.

CEO Bevin Wirzba emphasized South Bow’s disciplined approach to capital allocation while pursuing growth opportunities within existing corridors. The leverage ratio is expected to reach approximately 4.8 times by year-end as South Bow advances the Blackrod Connection project, with deleveraging beginning in 2026 when the project generates cash flow.

South Bow maintains a quarterly dividend of US$0.50 per share while targeting long-term leverage reduction to four times. Management remains optimistic about Western Canadian oil sands fundamentals despite near-term market volatility from trade policy uncertainty.

Is this TSX dividend stock undervalued?

Analysts tracking the TSX dividend stock expect adjusted earnings to expand from US$1.56 per share in 2025 to US$2.14 per share in 2029. Given consensus price targets, SOBO stock is forecast to gain 6% over the next 12 months. If we adjust for dividends, cumulative returns could be closer to 14%.

The post Is South Bow Stock a Buy for its 8% Dividend Yield? 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Valued at a market cap of $28 billion, BCE (TSX:BCE) is Canada’s largest communications company. It provides wireless, wireline, internet, streaming, and television services to residential, business, and wholesale customers.

Earlier this month, BCE made headlines with a dramatic 56% dividend cut, reducing quarterly payments from $0.9975 per share to $0.4375 per share. It was the telecom giant’s first dividend cut in 17 years. The decision reflected years of financial strain, with dividend-payout ratios exceeding 100% of free cash flow and reaching an unsustainable 125% in 2024.

The dividend cut addressed issues that included intense competition, regulatory uncertainty following recent CRTC (Canada Radio-Television and Telecom Commission) decisions, and inflationary headwinds that squeezed margins. Moreover, BCE’s high debt burden forced the company to prioritize balance sheet optimization and deleveraging over shareholder distributions.

Despite the dividend cut, the TSX tech stock rallied over 6% following the announcement. This indicates investors are optimistic about BCE’s focus on financial discipline and growth opportunities. The new dividend policy targets a sustainable 40-55% payout ratio and provides flexibility for debt reduction and strategic investments. Despite the dividend cut, BCE stock offers shareholders a tasty dividend yield of 5.8%.

BCE also announced a partnership with PSP Investments to create Network FiberCo. The partnership will target U.S. fibre expansion through the pending Ziply Fiber acquisition. Under this agreement, BCE will hold 49% of Network FiberCo while PSP Investments will contribute $1.5 billion for a 51% stake.

Network FiberCo will develop one million fibre passings in Ziply’s existing markets while targeting up to five million additional passings. This means that Ziply could reach eight million fibre locations. The ambitious expansion leverages non-recourse debt financing to optimize capital efficiency and enables BCE to gain traction in the underpenetrated U.S. broadband market.

Is the TSX dividend stock a good buy right now?

BCE CFO Curtis Millen detailed the telecommunications giant’s strategic priorities during a JPMorgan conference. In the closely watched event, Millen emphasized that BCE will focus on customer experience, network expansion, technology services growth, and digital media transformation following the company’s significant dividend cut and announcement of the U.S. fibre partnership.

The TSX dividend stock expects to lower its leverage ratio to 3.5 times by 2027 and three times by 2030, down from the current 3.8 level post-Ziply acquisition. This deleveraging path incorporates approximately $2 billion in annual cash savings from the dividend reduction, $1.5 billion in equity contributions to Network FiberCo distributed over time, and proceeds from targeted asset monetization of $7 billion in non-core assets.

The Network FiberCo joint venture with PSP Investments represents a capital-efficient approach to U.S. fibre expansion. It targets six million additional fibre passings over eight to 12 years at approximately $1,000 per passing. BCE will maintain 100% of retail customers while paying wholesale fees to the partnership for last-mile infrastructure.

BCE demonstrated pricing discipline in wireless operations despite softer subscriber growth, focusing on margin-accretive additions rather than market share gains. BCE achieved strong performance in fibre markets, reaching 45% penetration within three years of deployment. Further, Bell Media delivered robust growth with 36% earnings before interest, tax, depreciation, and amortization expansion driven by digital transformation initiatives.

Management expanded its cost savings program to $1.5 billion by 2028, leveraging automation and process simplification to enhance operational efficiency while improving customer experience across all business segments.

What is the target price for BCE stock?

Analysts expect the TSX stock to increase adjusted earnings per share from $3.04 in 2024 to $4.47 in 2029. Today, BCE stock trades at 11 times forward earnings. If it maintains a similar multiple, it will trade around $49 per share in early 2029, indicating an upside potential of 50% from current levels.

The post BCE Just Announced a Dividend Cut: Is This TSX Stock a Good Buy Right Now? appeared first on The Motley Fool Canada.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Investing in quality dividend stocks with a monthly payout allows you to begin a low-cost passive-income stream. In this article, I have identified one Canadian monthly dividend stock that offers you a stunning yield of 9%.

Valued at a market cap of $300 million, Pro Real Investment Trust (TSX:PRV.UN) is an industrial-focused real estate investment trust. It owns a portfolio of commercial properties located in strong secondary markets, primarily in Eastern and Central Canada. Moreover, it is largely focused on industrial properties, which offer investors exposure to this growing real estate sector.

In 2018, Pro REIT acquired Compass Commercial Realty, its property management arm. Compass delivers commercial property management and real estate services throughout Canada, including property management, sales, leasing, and project management. This integrated structure allows PROREIT to maintain tight operational control while maximizing property occupancy and minimizing costs.

Compass has an impressive track record with commercial property sales exceeding $425 million.

Is this TSX dividend stock a good buy right now?

Despite a challenging macro environment, Pro REIT delivered stable results in 2024, highlighting the resilience of its industrial-focused portfolio. The REIT made significant progress on its strategic goal of becoming a pure-play light industrial REIT, with industrial assets now accounting for 81% of base rent, up from 73% at the end of 2023. These moves bring the REIT closer to its medium-term target of 90%.

Pro REIT maintained a disciplined capital recycling approach, selling nine non-core properties for $71.2 million in 2024 and acquiring a 134,000-square-foot industrial property near Montreal’s Trudeau International Airport for $32.7 million. Pro REIT continued its divestments in 2025 with additional property sales, using proceeds primarily to reduce debt and fund strategic initiatives.

Despite owning eight fewer properties than at year-end 2023, the REIT maintained stable net operating income for both the fourth quarter and the full year. Same-store property NOI (net operating income) grew an impressive 7.7% for 2024, outpacing the 1.7% growth in 2023. Management anticipates mid- to high single-digit NOI growth in 2025 and 2026, supported by leasing momentum and substantial rental rate increases.

The REIT’s leasing performance remains a key strength, with 90.9% of gross leasable area maturing in 2024 renewed at an overall rental spread of 39.1%, including 50.5% for industrial properties.

What’s next for this Canada-based REIT?

Looking ahead, PROREIT has already secured renewals for 47% of 2025 expirations at a 32% rental spread and 45% of 2026 expirations at a 38% spread, an indicator of strong tenant demand.

Portfolio occupancy remained at 97.8% at year-end, with recent leasing activity addressing most transitional vacancies. The company has secured several industrial leases starting in 2025, including a 128,000-square-foot space with a new international tenant on a 15-year term with rent increases exceeding 30%.

From a financial perspective, Pro REIT reduced its total debt by $16.7 million to $498.6 million, maintaining its debt-to-gross book value ratio at approximately 50%. The REIT also improved its adjusted debt to annualized adjusted earnings before interest, tax, depreciation, and amortization ratio to 9.2 times from 9.6 times a year ago.

Despite a challenging interest rate environment, Pro REIT has effectively managed its exposure, limiting the increase in its weighted average interest rate to just 51 basis points over the past three years.

Management remains focused on sustainable growth and disciplined capital allocation. In 2025, it targets $30-60 million in additional property sales to advance its transition toward a pure-play industrial REIT while maintaining its monthly distribution of $0.0375 per unit.

The post This Canadian Monthly Dividend Stock Pays a Stunning 9% Yield 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Pipeline stocks, such as TC Energy (TSX:TRP) and Enbridge (TSX:ENB), offer investors a combination of income stability and growth potential. The two Canadian energy giants operate critical infrastructure that forms the backbone of North America’s energy system.

These pipeline networks safely deliver natural gas and liquid fuels that power homes, businesses, and the broader economy. What makes pipeline companies attractive investments is their fee-based business model, which generates consistent revenue regardless of fluctuations in commodity prices.

Enbridge stands out as a premier pipeline operator, controlling the world’s longest crude oil transportation system and moving 30% of North America’s oil production. It has demonstrated remarkable consistency with 30 consecutive annual dividend increases as of 2025. Its diversified assets include natural gas pipelines that carry 20% of U.S. consumption and a growing renewable energy portfolio focused on offshore wind.

Similarly, TC Energy’s extensive pipeline network delivers 25% of North America’s natural gas demand. It has raised its dividend for 25 consecutive years, supported by a substantial backlog of expansion projects.

Both companies combine defensive characteristics with growth potential. Their essential infrastructure generates reliable cash flows that support above-average dividend yields. So, let’s see why you should invest in these TSX dividend stocks right now.

Is Enbridge stock a good buy in 2025?

During its recent investor day presentation, Enbridge showcased its strategic positioning across four core businesses. Further, Enbridge emphasized its ability to capitalize on growing energy demand across all forms. CEO Greg Ebel highlighted a $50 billion opportunity that extends growth through the end of the decade.

The Liquids Pipelines segment announced $2 billion in Mainline reinvestments to optimize utilization and reliability. Management noted that Mainline continues to transport record volumes, reinforcing its critical role in North American energy infrastructure. The growing Permian business and expansion of the Ingleside export facility further strengthen Enbridge’s position in crude transport and exports.

Enbridge presented a $23 billion opportunity in Gas Transmission, driven by LNG (liquefied natural gas) exports, power generation, and data center growth. Enbridge highlighted its strategic connectivity to every LNG facility on the US Gulf Coast and its leading position in offshore gas infrastructure.

Gas Distribution stands to benefit from electrification trends with the potential for $3 billion in annual capital deployment through the decade. The business doubled its utility footprint with the acquisition of three U.S. utilities in 2024.

The Renewable Power segment continues to deliver double-digit growth with attractive returns from projects with blue-chip customers, including Toyota, Amazon, and AT&T.

CFO Patrick Murray emphasized the company’s ability to self-fund $9 billion to $10 billion annually while maintaining its investment-grade balance sheet. Management projects 5% average annual growth through 2030, supporting its 30-year track record of dividend increases while targeting double-digit total shareholder returns.

The bull case for the TSX dividend stock

TC Energy continues to solidify its status as a leading natural gas infrastructure provider following its strategic spinoff of the Liquids Pipelines business in October 2024. TC Energy now operates through two core businesses: Natural Gas Pipelines and Power and Energy Solutions.

With an extensive 93,700-kilometre (58,200-mile) network spanning Canada, the U.S., and Mexico, TC Energy safely transports almost a third of North America’s daily natural gas demand, connecting low-cost production basins to premium markets and LNG export facilities. This unrivalled geographical diversification positions it as the only natural gas infrastructure operator with critical assets in all three North American countries.

In 2024, TC Energy placed approximately $6.8 billion of projects into service, including natural gas pipeline capacity expansions and equity contributions to the now-completed Coastal GasLink pipeline, which establishes Canada’s first direct path to global LNG markets. It also invested $2.3 billion in maintenance capital and placed $300 million of modernization capital into service.

Looking ahead, TC Energy has secured a $25 billion capital program focused on commercially supported, long-life infrastructure assets backed by creditworthy counterparties and regulated business models.

The Foolish takeaway

Both Enbridge and TC Energy remain top investments for income seekers in 2025. At the time of writing, Enbridge offers a forward yield of 5.7%, while this figure for TC Energy stands at 5.4%.

The two energy heavyweights should maintain and even increase their payouts in the upcoming decade, enhancing the yield at cost over time. Given these factors, long-term Canadian investors should consider investing a total of $12,000, split equally between the pipeline giants.

The post Enbridge vs. TC Energy Stock: How I’d Split $12,000 Between Pipeline Dividend Giants appeared first on The Motley Fool Canada.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Aditya Raghunath has positions in Enbridge. The Motley Fool recommends Amazon and Enbridge. The Motley Fool has a disclosure policy.

Investing in fundamentally strong blue-chip stocks that are part of expanding addressable markets should help you deliver outsized gains over time. In this article, I have identified three Canadian blue-chip stocks you can buy right now with $30,000 and benefit from market-beating gains over the next decade. Let’s see why.

Is this blue-chip stock a good buy?

Valued at a market cap of US$118 billion, Brookfield Asset Management (TSX:BAM) is among the largest alternative asset managers in the world. The blue-chip TSX stock went public in late 2022 and is currently down 17% from all-time highs.

In the fourth quarter (Q4) of 2025, Brookfield Asset Management reported record fee-related earnings of US$677 million (US$0.42 per share), up 17% year over year, and distributable earnings of US$649 million (US$0.40 per share), up 11%. Its fee-bearing capital grew 18% to US$539 billion, driven by US$135 billion in fundraising in 2024.

Brookfield Asset Management is strategically positioned to capitalize on major investment themes, including digitalization, clean energy infrastructure, and private credit. BAM highlighted its significant opportunity in artificial intelligence (AI) and data centre infrastructure, exemplified by its recent €20 billion infrastructure investment program with France to support AI deployment.

In recognition of its strong growth outlook, BAM increased its dividend by 15% to an annualized rate of US$1.75 per share, currently offering a forward yield of 3.3%. Analysts also expect its dividend per share to increase to US$2.18 per share in 2027.

A blue-chip TSX insurance stock

Great-West Lifeco (TSX:GWO) is another blue-chip TSX stock that offers investors a yield of 4.2%. Earlier this month, the Canada-based insurance giant raised its long-term objectives, targeting a base RoE (return on equity) of +19% (up from 16%). It also introduced a new capital generation target of +80% of base earnings while it maintained its 8-10% base EPS (earnings per share) growth target and a dividend payout target ratio of roughly 50%.

Great-West highlighted its transformation over the past five years, focusing on four at-scale business segments. Each segment is targeting mid-single-digit or higher organic growth, with Empower projecting double-digit earnings increases as it expands from retirement into wealth management.

Great-West emphasized its capital-light business mix, with strong growth in retirement and wealth management expected to drive higher returns. Management also outlined $250-$300 million in post-tax transformation charges over 36 months to improve efficiency.

The insurance heavyweight highlighted its strong capital position and cash generation, providing flexibility for organic growth investments, dividend increases, and potential merger and acquisition opportunities, with a focus primarily on the U.S. retirement market.

Is this TSX stock a good buy?

The final blue-chip TSX stock on my list is WSP Global (TSX:WSP), which operates a professional services consulting firm. In the next five years, analysts expect its revenue to grow at a compound annual growth rate of 7.2%. Moreover, adjusted earnings are forecast to expand from $8.05 per share in 2024 to $12.44 per share in 2027.

In the last 10 years, WSP stock has traded at a forward price-to-earnings multiple of 23.2 times. So, if it can maintain a similar multiple, the stock will be priced at $288 per share in early 2027, above the current price of $242 per share.

Analysts remain bullish and expect the TSX stock to gain over 20% in the next 12 months.

The post How I’d Invest $30,000 in Canadian Blue-Chip Stocks to Build Serious Wealth 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 Brookfield Asset Management and WSP Global. The Motley Fool has a disclosure policy.

Investing in blue-chip dividend stocks, part of recession-resistant sectors, allows you to create a passive-income stream. As dividends are not guaranteed, it’s crucial to look beyond a company’s forward yield and analyze its fundamentals before making an investment decision.

TSX dividend stocks, such as Sun Life (TSX:SLF) and Manulife (TSX:MFC), are part of the insurance sector, which is fairly recession-resistant. Since March 2000, Sun Life stock has returned more than 1,280% to shareholders after adjusting for dividends. In this period, Manulife stock has returned 770%.

Despite these outsized gains, SLF and MFC offer you a dividend yield of 4.1%. So, let’s see which top TSX stock is a better buy right now.

Which TSX dividend stock should you own right now?

In the fourth quarter (Q4) of 2024, Manulife Financial and Sun Life Financial reported contrasting performances as the two Canadian life insurance giants navigate shifting market dynamics.

Growth trajectories

Manulife posted record underlying earnings of more than $7 billion for the first time, with Asia and Global Wealth & Asset Management now accounting for 70% of core earnings, a 10 percentage point increase from 2023. Its strategic pivot toward higher-growth businesses is paying dividends, with Asia earnings growing 17% year over year.

Sun Life reported more modest growth with full-year underlying net income of $3.9 billion, up 3% from the previous year. While Canada delivered record underlying earnings of $1.5 billion (up 6%), the U.S. business faced headwinds from its stop-loss insurance segment, where higher claim severity impacted quarterly results.

Asset management contrast

In asset management, the two insurers told different stories. Manulife’s Global WAM (wealth and asset management) business generated $13.3 billion in net inflows, while Sun Life’s MFS Investment Management continued to struggle with outflows, including US$20 billion in Q4 alone.

However, Sun Life’s SLC Management achieved a record capital raising of $10 billion in Q4, bringing its full-year total to $24 billion.

Capital deployment

Both insurers demonstrated financial strength with robust capital positions. Manulife’s LICAT (Life Insurance Capital Adequacy Test) ratio stood at 137%, while Sun Life’s was even stronger at 152%.

Manulife announced a 10% dividend increase and a new share-buyback program, which will cover up to 3% of the outstanding shares. It also highlighted $2.8 billion in capital release from strategic reinsurance transactions during 2024.

Sun Life similarly committed to continuing share buybacks under its existing program, with management indicating they expect to be “a strong buyer of our shares.”

Regional performance

Asia remains a key growth engine for the two insurers, with Manulife and Sun Life both reporting 17% year-over-year earnings growth in the region. However, Manulife took no impairment charges, while Sun Life recorded an impairment on bancassurance agreements in Vietnam due to challenging market conditions.

Investment outlook

Manulife appears to have more positive momentum heading into 2025, with its strategic reshaping toward higher-return, lower-risk businesses yielding results. Its core RoE (return on equity) expanded to 16.4%, with a clear path to its +18% target by 2027.

Sun Life maintains a slightly higher underlying return on equity (RoE) at 17.2% but faces more immediate challenges, particularly in its U.S. stop-loss business, where pricing increases of 14% plus an additional 2% are being implemented to address issues with claim severity.

Which TSX stock is a better buy right now?

Manulife currently presents the more compelling investment case. Its successful portfolio transformation, stronger earnings momentum, significant capital generation through strategic transactions, and clear upward trajectory in RoE provide multiple catalysts for share price appreciation.

While Sun Life maintains solid fundamentals with its diversified business model and strong capital position, the challenges in its U.S. stop-loss business and ongoing outflows in the MFS segment create near-term headwinds that may take several quarters to address fully.

The post Better TSX Dividend Stock to Own: Manulife or Sun Life? 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Canadian investors should aim to leverage the benefits associated with the Tax-Free Savings Account (TFSA) and create a low-cost passive-income stream in 2025.

Buying undervalued dividend stocks will help investors generate capital gains over time and a steady stream of passive income. As any returns earned in this popular registered account are exempt from Canada Revenue Agency taxes, you should consider holding quality dividend stocks in the TFSA.

In recent months, falling oil prices have lowered the valuations of energy stocks. However, the pullback has increased the dividend yield of several TSX stocks in April 2025. In this article, I have identified a high-dividend stock that offers a monthly payout and a yield of 9%. Let’s see why this TSX dividend stock should be part of your TFSA portfolio today.

Is this TSX dividend stock a good buy?

Valued at a market cap of $4.7 billion, Whitecap Resources (TSX:WCP) is an oil and gas company that develops petroleum and natural gas properties in Canada. Its principal properties are located in Alberta, British Columbia, and Saskatchewan.

Whitecap recently announced a transformative merger with Veren, creating an industry-leading light oil and condensate producer with a combined production of approximately 370,000 BoE/d (barrels of oil equivalent per day). The all-stock transaction, which values the combined entity at $15 billion, will position Whitecap as Canada’s seventh-largest oil and gas company in terms of production.

The merger, expected to close next month, will consolidate prolific assets in the unconventional Montney and Duvernay plays while expanding free cash flow generating capabilities in Saskatchewan, where there is significant asset overlap. The combined entity will control 1.5 million acres in the Alberta Montney and Duvernay, with a current production of 220,000 BoE per day from those assets.

“We are excited to merge two world-class assets under the Whitecap umbrella to create best-in-class technical, operating and financial teams with the objective of providing sustainable top-quartile returns to shareholders,” said Grant Fagerheim, Whitecap’s president and chief executive officer, who will lead the combined company.

Under the terms of the agreement, Veren shareholders will receive 1.05 common shares of Whitecap for every Veren share they hold. The transaction delivers a 10% accretion on funds flow per share and a 26% accretion on free fund flow per share, with over $200 million in cost synergies identified.

The companies have outlined $100 million in annual capital cost synergies, $75 million in operating cost synergies, and $30 million in corporate cost synergies expected to be realized within six to 12 months of closing.

A high dividend yield in 2025?

Whitecap reported strong first-quarter results, with production averaging 179,051 BoE/d (65% liquids), generating funds flow of $446.3 million ($0.76/share). Production exceeded internal forecasts by over 6,000 BoE/d due to strong new well performance and better-than-expected base production.

The pro forma company will have a fortress balance sheet with a debt-to-funds flow ratio of 0.9 times at closing, expected to improve to 0.8 times or better by year-end 2026. Based on $70 WTI (West Texas Intermediate), the combined entity is expected to generate approximately $3.8 billion in funds flow with $2.6 billion in capital expenditures, resulting in $1.2 billion of free funds flow.

Whitecap will continue its annual dividend of $0.73 per share, which yields 9%. Given its outstanding share count, Whitecap’s annual dividend expense is around $430 million, indicating a payout ratio of less than 40%.

Whitecap’s dividend payout ratio is sustainable, allowing it to allocate funds to lower debt levels and target inorganic growth. Analysts remain bullish and expect the TSX stock to gain over 55% in the next 12 months. If we include dividends, cumulative returns could be closer to 65%.

An investment of $7,000 in the TSX stock will help you purchase 873 company shares and earn more than $53 in monthly passive income. If WCP raises its dividends by 7% annually, your dividend payment will double over the next 10 years.

The post How I’d Turn the $7,000 TFSA Contribution Into Monthly Passive Income 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 Whitecap Resources. The Motley Fool has a disclosure policy.

The ongoing pullback in the equity markets allows Canadian investors with a long-term horizon to buy quality stocks at a lower multiple and benefit from outsized gains when sentiment recovers.

In this article, I have one such TSX stock that Canadian investors can buy with $1,000 right now. Let’s see why.

Is this Canadian stock a good buy today?

Valued at a market cap of $485 million, Dexterra Group (TSX:DXT) provides infrastructure support services across Canada. It has two primary business segments:

• Support Services (operation, maintenance, and hospitality solutions)
• Asset-Based Services (workforce accommodation, access solutions, and modular space rentals)

Dexterra serves diverse clients, including remote operations, governments, and natural resources sectors. The company has increased its sales from $477.8 million in 2020 to $1 billion in 2024.

In the last five years, the TSX stock has returned 377% to shareholders. After adjusting for dividend reinvestments, cumulative returns are closer to 520%. Despite these market-thumping gains, the Canadian stock also offers you a tasty dividend yield of 4.5%.

In 2024, Dexterra Group reported record revenue from continuing operations of $1 billion and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $107 million as it completes its transformation into a North American support services leader.

In recent years, Dexterra divested its Modular Solutions business and acquired CMI Management to streamline operations and provide investors with a clear strategic direction.

“We delivered a return on equity in 2024 of 13.3% from continuing operations and returned $30 million or about 40% of our free cash flow to shareholders through dividends and share buybacks,” said Chief Executive Officer Mark Becker during the earnings call.

In the fourth quarter (Q4), the Support Services segment posted 18% revenue growth and improved adjusted EBITDA margins to 8.8%, compared to 7% in the same period last year.

Asset-Based Services saw expected decreases in revenue compared to 2023 due to a return to normalized wildfire activity. Despite lower volumes, the segment maintained high equipment utilization rates above 90%.

Dexterra ended 2024 with a net debt of $68 million, indicating a debt-to-EBITDA ratio of 0.68 times. A low leverage ratio provides the company with financial flexibility for future acquisitions and share repurchases. Dexterra bought back 1.2 million shares for $8 million in 2024 and plans to remain opportunistic with buybacks in 2025.

Is the TSX stock undervalued?

Looking ahead, management expects 5-7% organic growth in Support Services and 2-5% growth in Asset-Based Services for 2025, with a target return on equity of 15%.

Dexterra is well-positioned to manage potential tariff impacts, as the majority of its materials are sourced domestically, and inflation adjustment mechanisms are built into its contracts.

Analysts tracking the TSX dividend stock expect it to grow EPS from $0.58 in 2024 to $0.85 in 2026. Priced at 9.1 times forward earnings, DXT stock is relatively cheap, given that it also pays shareholders an attractive annual dividend.

Analysts remain bullish on Dexterra stock and expect it to gain 39.4% over the next 12 months, given consensus price targets. If we include its dividends, cumulative returns could be closer to 43%.

The post The Smartest Canadian Stock to Buy With $1,000 Right Now 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 Dexterra Group. The Motley Fool has a disclosure policy.

Investing in quality monthly dividend stocks can help you easily start a low-cost passive-income stream. However, it’s essential to identify and invest in businesses that are positioned to generate cash flows across business cycles.

In this article, I have identified one such TSX dividend stock that pays cash every single month and offers you a dividend yield of 8.6%. Valued at a market cap of $821 million, Slate Grocery (TSX:SGR.UN) is an owner and operator of grocery-anchored real estate south of the border.

The real estate investment trust (REIT) owns over $2.4 billion of real estate infrastructure across major U.S. metro markets that communities rely on for their everyday needs. The REIT’s resilient grocery-anchored portfolio and strong credit tenants provide shareholders with durable cash flows and the potential for capital appreciation over the longer term.

Is the monthly TSX dividend stock a good buy right now?

Slate Grocery REIT, a grocery-anchored retail landlord, reported strong fourth-quarter (Q4) results that highlighted significant leasing momentum and solid operational performance in a market that continues to favour landlords.

It reported same-property net operating income (NOI) growth of 4.3% on a trailing 12-month basis, driven by robust leasing activity at double-digit rental spreads over the past seven consecutive quarters.

“Strong leasing activity at high rental spreads over the last several quarters continued to drive net operating income growth for the REIT,” said Blair Welch, chief executive officer, during the company’s earnings call. “The REIT completed close to three million square feet of total leasing throughout the year at double-digit rental spreads.”

New lease deals were completed at 28% above comparable average in-place rents, while non-option renewals were executed at more than 14% above expiring rents. Portfolio occupancy remained stable at 94.8%, with executives expecting their pipeline of new leasing opportunities to support a continued positive trend in occupancy in the coming quarters.

Slate Grocery explained that a constrained supply environment continues to work in their favour. For instance, retail construction completions in Q4 totalled four million square feet, the lowest quarterly total in more than a decade. This limited new supply is giving retail landlords significant pricing power.

“The constraints on new supply continue to limit the overall retail availability rate. The resulting competition for limited space and high demand for prime locations continue to give retail landlords pricing power,” Welch explained.

What’s next for this TSX dividend stock?

Executives noted that their average in-place rent of $12.65 per square foot remains well below the market average of $23.80, providing a significant runway for continued rent increases and NOI growth, even in a more challenging financing environment.

Slate Grocery successfully financed over $630 million of debt throughout the year at favourable terms, which management attributed to lender confidence in their business model despite broader market challenges in commercial real estate financing.

Looking ahead, the REIT expects transaction activity to increase in 2025, following a muted environment over the past two years. Connor O’Brien, managing director, noted that CBRE (Coldwell Banker Richard Ellis) is forecasting about $10 billion of open-air retail transactions this year.

Analysts remain bullish and expect the TSX stock to gain over 20% in the next 12 months. After adjusting for dividends, cumulative returns could be closer to 30%.

The post This 8.6% Dividend Stock Pays Cash Every Single Month 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 Slate Grocery REIT. The Motley Fool has a disclosure policy.

The trade war has driven oil prices lower in 2025 as investors worry about a possible global recession and slowing consumer demand. The decline in oil prices has also lowered the valuations of several blue-chip oil stocks, such as Canadian Natural Resources (TSX:CNQ), allowing you to buy the dip and benefit from outsized gains when market sentiment recovers.

CNQ stock is down 30% from all-time highs and currently offers you a tasty dividend yield of 5.4%. In the last 30 years, the TSX stock has returned 5,300% to shareholders. Moreover, if we adjust for dividend reinvestments, cumulative returns are closer to 9,760%.

So, a $1,000 investment in CNQ stock in January 1995 would be worth nearly $99,000 today, which shows the power of compounding. Let’s see why CNQ remains a top buy in April 2025.

Is this TSX stock a good buy right now?

Earlier this year, Canadian Natural Resources unveiled an ambitious 2025 budget, projecting production growth fueled by recent acquisitions and operational efficiencies across its diverse asset portfolio.

It announced a 2025 production guidance range of 1.510 million and 1.555 million BoE/d (barrels of oil equivalent per day), representing approximately 12% growth from 2024 levels. On a per-share basis, production growth is expected to be even stronger at 14% (at the midpoint estimate), reflecting the company’s ongoing share-repurchase program.

“We are in an enviable position with low maintenance capital and top-tier high-value opportunities to execute in the near term while setting up for the future,” said Scott Stauth, president of Canadian Natural, during the company’s budget conference call.

The $6 billion operating budget allocates approximately $3.2 billion to conventional exploration and production, while $2.185 billion is earmarked for the company’s long-life, low-decline thermal and oil sands mining and upgrading assets. It also plans to invest $90 million in carbon capture projects.

Canadian Natural highlighted that its acquisition of Chevron assets contributes approximately 120,000 BoE/d to production growth, with an additional 30,000 BoE/d expected from a pending acquisition slated for the first quarter.

CNQ’s low corporate decline rate of approximately 11% remains a key competitive advantage, requiring less maintenance capital to sustain production. Moreover, maintenance capital is estimated at $8-9 per BoE.

“Our unique asset base has low maintenance capital compared to a typical E&P company and facilitates maximizing free cash flow in 2025,” said Mark Stainthorpe, chief financial officer.

What is the target price for the TSX dividend stock?

Canadian Natural emphasized its balanced product mix, with approximately 47% of production consisting of high-value synthetic crude oil, light crude oil, and NGLs (natural gas liquids), followed by natural gas at 27% and heavy oil at 26%.

CNQ recently increased its quarterly dividend to $0.5625 per share, marking 25 consecutive years of dividend increases with a compound annual growth rate of 21% over that period.

Despite its massive size, CNQ is forecast to increase its adjusted earnings per share from $3.46 in 2024 to $7.60 in 2029. During this period, its dividend per share is projected to grow from $2.13 to $3 per share.

Analysts remain bullish on the TSX dividend stock and expect it to gain 29% over the next year, based on consensus price targets. If we include dividends, cumulative returns could be closer to 35%.

The post 1 Magnificent TSX Stock Down 30% to Buy and Hold Forever 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 and Chevron. The Motley Fool has a disclosure policy.