As geopolitical tensions and trade wars continue to take a toll on investor sentiment in 2026, I think BRP (TSX: DOO) is becoming increasingly difficult for bargain hunters to ignore. DOO stock has fallen 16% this year and now trades nearly 28% below its 52-week high as U.S.-Canada trade tensions hit the powersports manufacturer from multiple directions.

Tariffs on steel, aluminum, and copper have already squeezed profitability, while newer trade measures have prompted BRP to stop shipping its Canadian-made Can-Am Spyder and Canyon vehicles to the United States. However, that doesn’t completely downgrade its long-term growth outlook, in my opinion.

Let’s take a closer look at BRP’s ongoing financial growth trends and other key fundamentals to figure out whether the ongoing tariff tumble could be a buying opportunity for long-term investors.

BRP stock after the tariff shock

If you don’t know it already, headquartered in Valcourt, BRP makes powersports products under brands including Ski-Doo, Lynx, Sea-Doo, and Can-Am. Its operations also include Rotax engines as well as related parts, accessories, and apparel.

Currently, its stock trades at $81.21 per share, giving it a market cap of $3 billion and an annualised dividend yield of 1.2%. The shares have fallen 5.1% this month and 16% so far in 2026.

But this selloff comes while demand in an important part of BRP’s business has been improving. In the second quarter of its fiscal year 2027 (ended in July), the company’s revenue jumped about 19% year-over-year (YoY) to $2.2 billion. Higher off-road vehicle shipments and a favourable side-by-side vehicle mix were the main growth drivers in the latest quarter.

Its year-round products revenue performed even better, surging about 33% YoY to nearly $1.5 billion. Similarly, BRP’s North American powersports retail sales also edged up 1%, while it gained market share in off-road vehicles.

Tariffs are squeezing profits

Clearly, BRP’s ongoing sales trends are encouraging, but its profitability shows why the Canada-U.S. trade war might make investors worried.

The powersports manufacturer’s second-quarter gross profit fell 34% YoY to about $263 million, while gross margin dropped to 11.7% from 21.1%. BRP attributed much of that pressure to Section 232 tariffs on steel, aluminum, and copper imports into the United States. A supplier financial restructuring also reduced gross profit by $74.8 million.

As a result, the company’s normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) declined about 35% YoY to roughly $139 million. With this, it reported a net loss of about $137 million compared with a net profit of $57 million a year ago.

And trade pressures have intensified since those results. After new U.S. measures targeted additional Canadian recreational vehicles, BRP has decided to stop shipping its Canadian-made Can-Am Spyder and Can-Am Canyon three-wheeled vehicles to the U.S. market. That development adds another challenge for a business already dealing with tariff-related cost pressures.

Why the selloff could create an opportunity

Despite those risks, BRP’s broader performance gives investors reasons to keep this beaten-down stock on their radar. During the first six months of its fiscal year 2027, the company’s revenue climbed about 24% YoY to $4.6 billion, while normalized EBITDA rose 14% to $473 million.

On September 3, BRP raised its full-year normalized diluted earnings guidance to $4.00–$4.50 per share and projected revenue to $9.2–$9.5 billion. However, that outlook came before the latest escalation in trade tensions.

Even amid near-term tariff pressures, BRP is investing in its product pipeline. It plans major off-road product announcements every six months for the next four years as it works toward making Can-Am the leading off-road vehicle brand in North America.

That brings us back to whether BRP’s tariff tumble has created a buying opportunity. The stock is now nearly 28% below its 52-week high, even as BRP reports strong revenue growth, off-road market share gains, and much stronger cash generation.

While the latest trade restrictions could keep the shares volatile, for investors comfortable with that near-term uncertainty, the widening gap between BRP’s falling stock price and improving operating momentum makes this beaten-down TSX stock worth considering on the TSX today.

The post Ski-Doo’s BRP and the Tariff Tumble: Is This Beaten-Down Stock a Buying Opportunity? 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 BRP. The Motley Fool has a disclosure policy.

Enbridge (TSX: ENB) stock is a compelling Buy for patient, income-focused investors following a 17% pullback over the past three months that pushed its dividend yield up to 5.8%. While recent buyers may face painful paper losses, this sell-off may represent an attractive entry point for long-term passive income, rather than a structural red flag.

Enbridge’s recent drop has been a result of a sequence of compounding pressure points. Its second-quarter earnings report highlighted leverage rising to 5.1 times Debt-to-EBITDA (adjusted earnings before interest, tax, depreciation and amortization) in a marginally rising interest-rate environment. The market anticipates a debt-funded expansion, and Enbridge’s $3 billion equity offering capped off the decline.

Still backed by a 30-year dividend growth streak, a $41 billion capital projects backlog, and over 98% of EBITDA sourced from long-term or regulated contracts, existing investors in the dividend champion may comfortably Hold, while aggressive growth seekers should Sell.

Decoding ENB stock’s recent 17% pullback

Understanding why Enbridge stock fell requires looking past the headline-grabbing September equity raise. The downward momentum actually began weeks earlier, when Enbridge’s second-quarter financial results, released July 31, revealed that higher interest servicing costs were squeezing earnings margins.

Crucially, its leverage ratio ticked up to 5.1 times Debt-to-EBITDA, breaching the upper boundary of management’s 4.5 times to 5 times target ceiling. Although mismatches in currency translation rates are partly to blame for the leverage metric’s breach, rising leverage during a time when interest rates appear ready to start rising depresses bond proxies like ENB, as institutional investors grow wary of balance sheet strain.

Investor caution intensified in late August as rumours swirled around capital-intensive acquisitions. When Enbridge formally announced its US$2.6 billion purchase of Tallgrass Energy’s crude business alongside Permian gathering assets from Salt Creek Midstream, markets had already priced in the inevitable share dilution. The subsequent $3 billion bought-deal equity raise, priced at a discounted $66.85 per share, simply served as the final capstone that locked in the lower trading range on ENB stock.

Enbridge still an unshakeable cash flow generator

Despite its seemingly temporary balance sheet headwinds, Enbridge’s operational foundation remains rock-solid. Its operating income remains anchored by cost-of-service regulations or long-term take-or-pay contracts, insulating earnings and cash flow from commodity price volatility.

Recently acquired Tallgrass assets carry long-term contracts with investment-grade counterparties and will be accretive to Distributable Cash Flow per share in their first full year of ownership.

Following its massive expansion into U.S. natural gas utilities, Enbridge now operates as North America’s largest natural gas utility provider by volume. Combined with a $41 billion secured organic growth backlog, the company possesses clear long-term visibility to support its targeted 3% to 5% annual distributable cash flow growth.

New investors securing a well-covered 5.7% starting yield on this tollbooth monopoly during a temporary 17% drop could earn an expected annual total return of 7% to 10% over the next five years.

The capital gains reality

Enbridge stock generated more than 21% in capital gains between January and July 2026, but it has given up all the year-to-date gains.

Prospective buyers of ENB stock must lower their expectations regarding capital appreciation. Enbridge won’t be a fast-paced capital growth story. Rising debt-servicing costs and regular share issuances required to finance expansion mean that dividend growth has settled into modest annual increases of roughly 3%.

The dividend stock functions as a high-yielding, slow-moving utility bond proxy. Investors buying shares today won’t experience rapid share price acceleration, because ENB’s long-term investment case relies predominantly on collecting stable, inflation-beating dividend income while management integrates its newly acquired assets and builds a renewable energy portfolio.

Foolish bottom line: Buy, Sell, or Hold?

Enbridge stock is a foundational core holding for conservative Canadian income portfolios. Passive income seekers should view the 17% pullback as a prime buying opportunity to lock in a dependable 5.7% yield within a diversified portfolio.

Current shareholders may comfortably hold their positions, allowing quarterly dividend reinvestment to compound while management works leverage back toward its 4.5 times to 5 times target.

However, aggressive growth investors seeking index-outperforming capital gains should pass or sell ENB, as capital will remain tied up in a defensive, slow-growth holding.

The post Enbridge: My Honest ‘Buy, Sell or Hold’ Take on the Stock appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

Earlier this month, U.S. president Donald Trump moved to ban certain Canadian dairy products from entering the United States after Canada introduced new retaliatory tariffs on U.S. goods. The import ban is set to take effect on September 29 and includes multiple types of whey protein, while additional Canadian cheese products are also being brought under the 50% tariff net. That clearly sounds uncomfortable for a Canadian dairy giant like Saputo (TSX: SAP) and its investors, as the company has a major U.S. presence.

But should the latest phase of the Canada-U.S. trade war really make investors rush for the exits on Saputo stock?

Let me explain how I’d approach the new U.S. dairy restrictions as a shareholder and whether they change my long-term view of the company.

Saputo stock

Simply put, Saputo is one of the world’s largest dairy processors with operations spanning Canada, the United States, Australia, and Europe. Its products range from cheese and milk to cream, cultured dairy products, and dairy ingredients.

SAP stock currently trades at $40.05 per share with a market cap of roughly $16 billion. Although the stock has risen 21% over the last year, it has lost nearly 7% over the last six months. At today’s price, the company also offers an annualized dividend yield of 2.1%.

Recent weakness in SAP stock could mainly be attributed to the trade uncertainty around Canadian dairy. The White House first announced additional 50% tariffs on certain Canadian goods in July. Then, in September, the dispute escalated further as the United States moved to ban certain Canadian dairy products and expand tariffs to more dairy goods.

Still, you should avoid making your investment decision based only on the latest trade-war headlines, in my opinion. Let me explain why.

Strong earnings beneath the trade noise

Interestingly, Saputo’s improving operating and financial momentum is one of the biggest reasons long-term investors shouldn’t let the latest trade headlines alone drive their investment decisions.

In the first quarter of its fiscal year 2027 (ended June 2026), the company’s revenue rose 1.5% year over year (YoY) to about $4.4 billion. Higher dairy ingredient prices, stronger high-protein ingredient volumes, and selling price increases aimed at offsetting inflation all supported that improvement.

More importantly, Saputo’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter climbed 7.6% YoY to $427 million. Its adjusted EBITDA margin also improved to 9.7% from 9.1% a year ago.

What’s encouraging is that Saputo’s stronger profitability was not limited to one region, as all four of its operating sectors delivered higher adjusted EBITDA.

In the United States, the dairy firm’s adjusted EBITDA rose 5.8% to $181 million. Higher sales volumes, stronger demand for high-protein ingredients, and operational improvements helped offset inflationary pressure from labour, logistics, and packaging costs.

Why investors should keep the bigger picture in mind

Clearly, the latest dairy ban could create a real risk, but Saputo is also reshaping its business and building more financial flexibility, which could give it strength during a temporary phase of trade uncertainty.

Notably, the company continues to invest in automation, production capacity, network optimization, and high-protein dairy products. It also expects operating efficiencies to improve as recent capital investments scale across the business.

Meanwhile, Saputo has been refining its portfolio. In June, it sold an 80% interest in its Argentina dairy business. More recently, in August, Saputo agreed to sell its United Kingdom operations to Lactalis.

Those moves should give the Canadian dairy processor more room to fund organic growth projects, pursue strategic acquisitions, and return capital to shareholders while maintaining balance sheet strength.

Given these strong fundamentals, I wouldn’t treat the latest trade headline alone as a reason to abandon Saputo stock. In fact, its improving margins, diversified operations, stronger balance sheet, and investments in high-protein products continue to support its long-term investment appeal.

The post Trump Just Banned Canadian Dairy and Booze Imports: Here’s How Saputo Investors Should React 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Canadian dividend investing practically played on easy mode for over a decade. During the ultra-low interest rate era following the 2008 financial crisis, TSX passive income darlings got treated like high-yielding bond substitutes. You bought them, reinvested the dividends, and went about your life.

That cozy playbook is officially broken.

With 10-year treasury yields becoming more elevated in 2026 and generous financial houses offering 1-year guaranteed investment certificates (GICs) at rates up to 3.8% and 3-year terms at 4.3%, income seekers face a stark reality: Why take on significant equity risk for a 2% or 3% dividend yield when risk-free GICs pay noticeably more while guaranteeing your principal?

The counterargument, of course, is anchored on long-term dividend raises and capital growth prospects. Equities offer residual claims on growing cash flows and compounding earnings that static GICs simply can’t match. But market conditions shift, debt burdens balloon, and growth drivers stall. Yesterday’s ultimate dividend champions can quickly transform into today’s capital sinkholes.

Here is a fresh look at three legendary TSX dividend stocks to see if they still deserve a spot in your portfolio.

BCE stock: A high-yield dilemma

Canadian telecommunications giant BCE (TSX: BCE) has been a portfolio staple for decades, offering a respectable 5.7% yield. However, that yield comes in the wake of a historic 56% dividend slash in May 2025. The telecom sector has been a brutal place for total returns, with BCE stock delivering negative total returns over the last five years.

The company halted its ambitious home fibre program after regulatory rulings diluted future returns on capital, pivoted toward acquiring U.S.-based Ziply Fiber, and is reallocating resources into artificial intelligence (AI) data centres. While the dividend trim brought the free cash flow payout ratio back into a safer target range, lingering leverage and strategic uncertainty continue to drag on performance.

BCE looks like a deeply discounted turnaround play, but until leverage comes down, the risk of it remaining a growth-stagnant yield trap isn’t zero.

Enbridge stock: Is a 5.7% yield enough as capital gains stall?

Enbridge (TSX: ENB) stock stands as one of Canada’s most dependable income compounders with 30 consecutive years of dividend increases. After trading at eye-popping yields near 8% in 2023, share price appreciation has compressed its yield to a tighter 5.7%. That was good for early investors who got both a juicy yield and capital gains. But the dividend stock may no longer be as wonderful for new money buying the stock in September 2026.

Enbridge is on an aggressive, debt-heavy acquisitions-heavy growth trajectory. It recently announced US$3.2 billion in acquisitions in U.S. crude gathering assets while executing on a $41 billion organic growth pipeline. As acquired gas utility assets and new renewable energy assets increasingly dominate its revenue mix, Enbridge’s cash flow profile increasingly mirrors a regulated utility. Consequently, future dividend growth is settling into modest annual “adjustments” of around 3%.

Resultantly, Enbridge stock may morph into a slow-moving bond proxy. If predictable cash income is your sole objective, the 5.7% dividend yield should satisfy. But if you are counting on meaningful capital appreciation, prepare for a long, quiet wait.

Toronto-Dominion Bank (TD) stock

The Toronto-Dominion Bank (TSX: TD), or TD Bank stock, has staged a remarkable recovery from its lows following U.S. anti-money laundering (AML) regulatory penalties. The top Canadian bank stock’s formidable domestic franchise and robust capital buffer made that historic price weakness a classic entry point. However, following a massive 106% run-up from its troughs over the past three years, TD Bank stock’s yield has shrunk to just 2.7% for new buyers who buy the top Canadian bank stock at stretched valuations today.

Crucially, the U.S. asset cap remains in place, placing a structural ceiling on a growth driver within North America’s largest economy, while the domestic economy battles trade headwinds.

TD Dividend Yield data by YCharts

Meanwhile, TD stock’s forward price-to-earnings ratio has expanded from under 10 times in early 2025 to nearly 17 times today. New investors are paying a premium valuation for potentially capped earnings growth while receiving a lower yield than a standard bank GIC.

While TD stock remains a premier blue-chip financial sector stock to buy and hold, its stretched valuation suggests total returns could underperform rival income options over the next two to three years.

The post Are These Still the Best Dividend Stocks in Canada? appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

High-yield dividend stocks often come with a catch, but Firm Capital Property Trust (TSX: FCD.UN) is currently proving that a generous monthly payout can actually be backed by improving fundamentals. Its regular distributions yield an enticing 7.6% today as the Canadian real estate investment trust (REIT) shrugs off its share of market skepticism.

However, the diversified REIT’s latest earnings report delivered a crucial turning point: the trust’s Adjusted Funds From Operations (AFFO) payout ratio, a key measure of distribution safety, improved to a sustainable 98% during the second quarter of 2026, down significantly from 106% a year ago. Distribution coverage improved significantly.

Paired with a 7% year-over-year increase in Net Operating Income (NOI) to $10.2 million, Firm Capital is actively bolstering its distribution safety while transforming its real estate portfolio for long-term income growth. Tax-Free Savings Account (TFSA) investors seeking reliable passive income should take a closer look at this under-the-radar REIT.

Firm Capital Property Trust is growing its income base with defensive assets

Firm Capital Property Trust’s underlying strength lies in its diversified, recession-resilient retail, industrial, and residential real estate. Before closing a $218 million acquisition of manufactured home communities (MHCs) in July, the trust owned a well-balanced portfolio of 62 commercial properties, primarily grocery-anchored retail and flex-industrial assets, alongside multi-residential units and manufactured home communities (MHCs). Overall occupancy remains high at 94.4% for commercial properties, but its manufactured home communities are the real standout star, boasting a near-perfect 99.7% occupancy rate.

Recognizing the sticky demand and low capital expenditure requirements of MHCs, management is aggressively expanding this MHC segment to position Firm Capital as one of Canada’s leading single owners of manufactured housing communities. This strategic pivot adds high-margin, defensive rental cash flow to the balance sheet while organic growth continues to push rents higher – with industrial rent per square foot rising by 6% year-over-year during the second quarter.

The REIT’s balance sheet also remains on solid footing as management maintains a conservative 50% Debt-to-Gross Book Value ratio and recently closed $41.2 million in mortgage refinancings.

Furthermore, the trust trades at an attractive 15.5% discount to its Net Asset Value (NAV) of $8.06 per unit. Just as importantly, key insiders and management control approximately 10% of outstanding trust units, ensuring decision-makers have substantial skin in the game and remain tightly aligned with retail unitholders.

Your TFSA as the ultimate home for FCD.UN

While a 7.6% distribution paid out monthly sounds like a dream for income seekers, holding REITs in a non-registered taxable account, generally, can quickly turn into an accounting nightmare. REIT distributions are rarely treated as simple eligible dividends; instead, they are typically a variable mix of ordinary income, capital gains, and Return of Capital (RoC).

Because Return of Capital reduces your adjusted cost base (ACB) for tax calculation purposes, and the component varies from year to year, holding FCD.UN in a taxable account requires tedious manual bookkeeping every tax season to avoid miscalculating capital gains when you eventually sell.

By locating this high-yielding REIT inside your Tax-Free Savings Account, you eliminate the tax-tracking headache entirely.

A $10,000 investment in FCD.UN today would generate roughly $760 per year, or about $63.33 in passive income every single month, flowing straight into your account 100% tax-free. You can freely reinvest those distributions to compound your wealth or collect the cash without handing a single dime to the CRA.

Investor takeaway

With its AFFO payout ratio safely back below 100%, an expanding footprint in high-occupancy manufactured housing, and strong insider alignment, Firm Capital Property Trust offers a compelling blend of value and passive income safety for Canadian income investors. Locating the 7.6% monthly distribution payer inside a TFSA locks in tax-free income while keeping your tax season completely stress-free.

The post Looking for TFSA Income? This 7.6% Dividend Stock Should Snag Your Attention appeared first on The Motley Fool Canada.

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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.

Royal Bank of Canada (TSX: RY) stock offers investors more than just a 2.5% dividend yield. For giants like Royal Bank of Canada, or RBC, growth is slow and steady, not fast and volatile like that of small tech stocks. Significant exposure to Canadian and American personal banking, and diversification in capital markets, commercial banking, and wealth management services help it provide both dividends from interest income and capital appreciation from the performance of assets under management.

What else does RBC stock offer?

Capital appreciation

RBC’s biggest income generator is still personal banking, followed by fees from Capital Markets and Wealth Management. To give you a glimpse of the Capital Markets’ business, RBC was the only Canadian bank among the 21 banks involved in the SpaceX mega IPO.

IPOs, mergers and acquisitions, and companies raising equity and debt capital are driving growth in the Capital Markets segments. Even the wealth management business saw higher fee-based revenue as transaction activity increased and clients added new assets. This growth is visible in RBC’s share price, which has grown 63% since January 2025. During this time, the tariff war began, Canada’s infrastructure investment picked up, and artificial intelligence (AI) and energy stocks attracted investments in these sectors.

And it is not just RBC; other bank stocks also grew as central banks did not increase interest rates. However, this capital appreciation is cyclical. The RBC share price barely appreciated in 2022 and 2023 when both Canadian and United States interest rates peaked.

However, RBC stock is in a long-term growth trend, as its growth is tied to Canada’s economy. It is the best way to invest in Canada’s economic growth and a better option than an index fund because of its dividends.

RBC’s dividend growth drivers

Looking at the data from 2000 onwards, RBC has grown quarterly dividends in 24 out of the 26 years. The only time when dividend growth was paused was in 2009 and 2010, after the Global Financial Crisis shook the world’s banks and even led to the collapse of some too-big-to-fail banks. While RBC paused dividend growth then, it sustained the 2008 dividend per share.

The average dividend growth rate is 7% since the pandemic. Its third-quarter payout ratio is at a reasonable level of 69%. While the quarterly ratio is above its target range of 40–50%, the annual ratio normalizes closer to the target range.

Dividend reinvestment plan

If capital appreciation and dividend growth were not enough, the bank also offers a dividend reinvestment plan (DRIP). From May 24, 2024, until further notice, RBC will use dividends inside a DRIP to purchase common shares in the secondary market, with no discount from the average market price. This will ensure there is no equity dilution, giving it flexibility to grow dividends.

A DRIP is only beneficial when you invest through a registered account like a tax-free savings account (TFSA). Any investments made through a TFSA are exempt from dividend tax and capital gains tax, which helps you make the most of a DRIP.

How to invest in RBC

RBC is a stock to accumulate in small quantities. While buying at the peak is not recommended, long-term investors can still do a systematic purchase, say buying two or three shares every month. They can benefit from dollar-cost averaging.

An alternative is to invest a lump sum every year in March as that is a seasonally weak month for RBC. In addition to making annual contributions, consider opting for DRIP to compound your returns.

A $10,000 investment in January 2020 could have bought you 93 shares at $107.31 per share. This paid $399 in annual dividends. A seven-year DRIP compounding could increase the share count to around 113. When combined with dividend growth, it could increase annual dividends to $743 in 2026. The table below was compounded annually, but in reality, compounding will be quarterly.

The post I Looked Past the 2.5% Yield, and Here’s What Else RBC Stock Offers 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Natural gas pipeline giant TC Energy (TSX: TRP) stock has lost 14.4% of its market value over the past three months. This recent pullback from its 2026 52-week high can be best viewed as a healthy correction driven by profit-taking, U.S. interest rate fatigue, and increased market scrutiny over the Canadian natural gas stock’s multi-billion-dollar capital-expenditure program.

For income-oriented investors, this recent drop has nudged TC Energy stock’s dividend yield marginally up to nearly 4.2%. That presents an attractive entry point to initiate a position in a 75-year-old energy infrastructure titan which boasts 25 consecutive years of uninterrupted dividend increases. But is now the right time to buy the dip on this dividend titan?

TC Energy stock’s safe yield meets demand-driven growth

TC Energy stock remains a compelling core holding for income portfolios, backed by predictable contracted pipeline and regulated power-generation cash flows, disciplined capital recycling, and a powerful natural gas structural tailwind.

North America is experiencing a natural gas super-cycle fueled by two major catalysts: expanding liquefied natural gas (LNG) export capacity and rapid artificial intelligence (AI) data centre construction requiring reliable, gas-fired baseload power. And TC Energy is a well-positioned key player in the LNG value chain that stands to benefit materially.

High-grading its capital: TC Energy’s $560 million Mexico asset sale

A key pillar of management’s minimally dilutive growth strategy is portfolio optimization. TC Energy recently announced the sale of its 313-kilometer Guadalajara-Manzanillo Pipeline in Mexico for $560 million. Expected to close in the first half of 2027, the transaction sheds approximately 500 million cubic feet per day (MMcf/d) of natural gas transportation capacity.

This sale is a net positive for shareholders. It generates immediate liquidity to fund higher-return projects, strengthens the balance sheet, and supports management’s self-funded growth model without diluting equity. Even after the sale, TC Energy retains a lucrative 30-year operational footprint in Mexico, anchored by a 3,300-kilometer network moving nearly 8.7 billion cubic feet of natural gas per day.

Ready to capture the AI and LNG growth opportunities

TC Energy already transports over 30% of North America’s natural gas. Reinvesting proceeds from sales of mature assets into high-value infrastructure positions the energy stock ready to capture outsized market share in a structurally expanding LNG market.

Key growth channels include U.S. and Canadian LNG infrastructure as TC Energy extends feeder lines to connect expanding export facilities along the U.S. Gulf Coast and Western Canada (LNG Canada). Power grid interconnects are a new growth frontier as the company builds dedicated pipeline extensions to fuel gas-fired power plants directly serving new hyperscale data centres across Canada and the U.S.

TC Energy has sanctioned roughly $3 billion in new capital projects, has $7 billion pending approval, and estimates $20 billion in total development opportunities through 2034.

Time to buy?

TC Energy stock’s trailing price-to-earnings ratio of 24.0 sits above the industry average of 18.4 to make the dividend stock somewhat expensive. However, its enterprise value-to-free cash flow ratio of 37.4 aligns directly with North American industry peers, implying the stock remains fairly valued relative to its cash-generating capacity.

Growing LNG demand has rejuvenated TC Energy’s growth prospects. If management continues to successfully recycle capital, control balance sheet leverage, and execute on its $20 billion project pipeline without punitive equity dilution, current investors stand to benefit from compound capital gains alongside a safe, growing dividend.

The recent 14% drop in TC Energy stock is seemingly a clear buying opportunity for long-term income seekers.

The post TC Energy Stock Is Down 14%—Should You Buy the Dip? appeared first on The Motley Fool Canada.

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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.

Most Canadian dividend stocks will pay you four times a year. But let’s be honest: your bills don’t take a three-month break, and your passive income shouldn’t either. If you are looking for a reliable monthly dividend to add to your passive income portfolio, Canada’s real estate sector has established a three-decade track record of delivering. The longest standing monthly payer is RioCan Real Estate Investment Trust (TSX: REI.UN). As Canada’s oldest surviving REIT, RioCan has paid continuous monthly distributions since 1993, backed by a portfolio of 164 highly-occupied prime urban retail properties.

Today, RioCan REIT offers new investors a 5.6% annualized yield via a monthly payout of $0.10 per unit, which is supported by a safe 67.7% payout ratio and consecutive annual payout hikes since 2022. The retail REIT remains a premier cash-flow generator that keeps showing up, month after month, for income-seeking unitholders.

A 5.6% yield with growing upside

On September 15, RioCan REIT declared its latest monthly distribution of $0.10 per unit (payable October 7, to unitholders of record on September 30). That works out to a juicy 5.6% annualized yield.

Better yet, that yield could grow even bigger down the road as management sustains a re-established distribution growth policy. RioCan hasn’t missed a single monthly payout since 1993 and has raised its distribution every year since 2022.

RioCan’s strong operations backing a growing monthly paycheque

A high dividend yield is great, but only if the business behind it can sustainably support it. Fortunately, RioCan REIT’s underlying retail properties portfolio is firing on all cylinders in 2026. Net Operating Income (NOI) growth, supported by high occupancy rates, pricing power, and a sticky tenant book makes the retail REIT one of the best sources for reliable monthly passive income.

During the second quarter, diluted net income per unit grew 6.1% year over year, driven by fair value property gains and repurchases of issued units. Beyond the fair value gains lies a thriving real estate business.

In-place occupancy rose from 97.5% to 98.1% between July 2025 and June 2026, with committed occupancy increasing to 98.8%.  

RioCan renewed expiring leases at an impressive average leasing spread of 23.1% during the past quarter. Given that in-place rents still sit well below current market rates, RioCan REIT retains plenty of room to raise rents as leases roll over.

Most noteworthy, the trust maintains a tenant retention rate near 90%, Canadian businesses want to stay in its high-traffic urban centres.

Thanks to this leasing momentum, management upgraded its 2026 Same Property Net Operating Income (SP NOI) growth guidance from 3.5%–4% up to 4%–4.5% in August.

Should you buy RioCan REIT for its monthly payout?

RioCan REIT appeals as a monthly dividend stock to buy given its safe payout coverage and smart capital management.

The retail REIT’s distribution payout ratio sits at a comfortable 67.7% of its Funds From Operations (FFO) over the 12 months ending June 30, 2026, leaving a comfortable cash flow cushion.

Longtime investors will remember that RioCan cut its monthly payout by 33% in December 2020 (from $0.12 to $0.08 per unit) amid severe COVID-19 lockdown uncertainty. While tough at the time, that move was intended to save over $150 million annually. Management funneled excess cash into new developments, debt repayment, and ongoing unit buybacks – setting a safer foundation from which a reliable monthly dividend has sustainably grown since 2022.

Foolish takeaway

RioCan REIT’s payout is well-protected, yet the stock still trades at a bargain. Sitting at a trailing Price-to-FFO multiple of 12.1, RioCan units are noticeably cheaper compared to peers like Choice Properties REIT (14.0x) and CT REIT (12.3x).

If you want a juicy reliable monthly dividend that generates steady passive cash flow while offering some income upside, RioCan REIT could belong near the top of your buying list.

The post The Dividend That Keeps Showing Up, Month After Month appeared first on The Motley Fool Canada.

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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.

Most Canadian investors have never heard of Caribbean Utilities (TSX: CUP.U), but this Caribbean utility stock is a hidden gem quietly offering one of the most compelling passive income investment opportunities on the Toronto Stock Exchange. It shares a lot in common with mighty Fortis (TSX: FTS) stock, and following a fresh 5% dividend hike in 2026, Caribbean Utilities stock has achieved a dividend growth spree that elevates its status.

Caribbean Utilities boasts an uninterrupted dividend payout history stretching back to 2005 alongside five consecutive years of dividend increases this year. Backed by long-term operating licenses that can extend through 2048, this offshore power provider delivers steady, high-yielding passive income that could comfortably sustain income portfolios for decades.

CUP.U Dividend data by YCharts

The mini-Fortis stock trading under the radar

Valued at roughly US$620 million ($868 million), Caribbean Utilities stock flies under the radar largely due to its small-cap size. Income investors naturally flock to mega-cap utility titans like $38 billion Fortis, which celebrated its impressive 52nd consecutive annual dividend raise in 2026.

However, investors who already hold Fortis stock actually own a piece of this Caribbean operation, as Fortis maintains a controlling 59.5% majority stake in the utility stock. As a key offshore regulated subsidiary, Caribbean Utilities shares the conservative corporate structure, disciplined capital allocation, and steady management principles of Fortis, its parent company.

An island monopoly to buy for USD-backed passive income

The main reason Canadians rarely encounter Caribbean Utilities’ brands and services comes down to simple geography. The utility generates, transmits, and distributes electricity across Grand Cayman in the Cayman Islands, located roughly 2,500 kilometres away from the nearest Canadian shore.

Canadian investors will never see its service trucks in Toronto or Calgary, but its economic moat is every bit as dependable as a domestic Canadian utility stock.

Operating under a 100% regulated utility model, Caribbean Utilities avoids the pricing volatility of merchant power markets. Instead, its cash flows are predictable and derived from a regulatory target return on equity applied directly to its invested capital base.

Beyond operational stability, the stock offers a distinct currency advantage for Canadian investors building a reliable passive income stream.

The utility’s operating currency, the Cayman Islands Dollar, is pegged to the U.S. dollar, and Caribbean Utilities trades on the TSX in U.S. currency while paying out U.S. dollar-denominated dividends.

While Fortis stock generates over half its earnings in United States dollars but pays dividends in Canadian dollars, Caribbean Utilities stock provides direct exposure to U.S. dollar cash flows.

Should you buy the TSX utility stock for its top sector yield?

Caribbean Utilities stock truly shines for its above-average dividend yield, sustained raises for five consecutive years that could make it comparable to dividend-growth champions, and sustainable payout levels.

Given its dividend yield of 5.5%, the small utility stock offers the highest yield in the Canadian utility stock peer group. By comparison, Fortis stock yields around 3.4%, Canadian Utilities stock sits at 3.6%, Emera stock offers 4.3%, Capital Power stock yields 4.6%, Algonquin Power & Utilities stock pays 4.8%, while infrastructure giant Brookfield Infrastructure Partners stock’s dividend yields 5%.

Importantly, Caribbean Utilities stock’s market-beating passive income stream doesn’t come at the cost of operational strength. During the first half of 2026, Caribbean Utilities reported a 5% year-over-year increase in total operating revenues and a 17% surge in net earnings. The Fortis-related utility maintains its dividend payout ratio under 70%, leaving plenty of headroom to reinvest in grid modernization while safeguarding its growing quarterly payout.

Supported by a 20-year transmission and distribution license renewable through 2048 and a generation license valid through 2039, Caribbean Utilities stock appears as an attractive, low-profile, Fortis-related TSX utility stock to buy for long-term passive income.

The post Why This Canadian Utility Stock Could Be the Best Stock You Never Think About appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners, Capital Power, Emera, and Fortis. The Motley Fool has a disclosure policy.

Canada has some good, stable dividend stocks that can actually help you build a monthly paycheque that grows with inflation. These stocks are for retirees as well as those who plan to retire in the next 10 years. Depending on your needs, you can either compound dividends using a dividend reinvestment plan (DRIP) or take payouts now.

How to build a monthly paycheque portfolio

When we speak of monthly payouts, REITs are the first thing that come to mind. However, they do not grow their dividends as strongly as quarterly dividend stocks. You can construct your portfolio around two monthly payers and three quarterly payers, taking their dividend payment dates into account.

Consider pairing Cenovus Energy (TSX: CVE), Capital Power (TSX: CPX), and Sun Life Financial (TSX: SLF). Their dividend payment dates will ensure a monthly payout.

These three stocks diversify your sector exposure and give different risk exposure to economic situations.

Cenovus Energy

Cenovus Energy is a good stock to fight inflation fueled by oil prices. The company has revived post-pandemic as energy shocks drove up oil prices, helping it reduce debt and strengthen its balance sheet. It is focusing on reducing its net debt from $5.39 billion to $4.08 billion to ensure it can remain profitable and pay dividends even at US$45 WTI.

CVE stock aims to grow its dividend by 10% annually. However, I maintain a conservative estimate of 8% dividend growth for the next 10 years.

Capital Power

Capital Power builds, acquires, operates, and maintains power plants in Canada. It is focusing on upgrading natural gas-fired power plants, as they help increase capacity at a faster rate with a lower cost of US$1,000/kilowatt compared to US$2,500/kilowatt for power plants built from scratch. It has 25 GW of projects in the pipeline, of which 16GW is from mergers and acquisitions.

CPX stock has been paying dividends for the last 16 years and growing them over the last 12 years at an average annual rate of 6%. The increasing capital expenditure from pipeline projects could slow dividend growth in the coming years to 4%.

Sunlife Financial

Sunlife Financial gives you exposure to the global investment and insurance segment. It earns regular income from favourable insurance markets and higher fees for assets under management. The company is sensitive to financial market headwinds. It took a significant hit after the 2008 Global Financial Crisis and has recovered with financial stability. But even after the crisis, it paid dividends and paused growth until business recovered in 2014.

Two monthly dividend stocks

While quarterly dividends offer dividend growth, Slate Grocery REIT (TSX: SGR.UN) and CT REIT (TSX: CRT.UN) offer stable monthly payouts. Slate Grocery manages retail properties in the United States and enjoys high occupancy due to tenants like Kroger and Walmart. The exposure to grocers and essential services provides assured rent that helps it pay dividends. You can consider buying Slate Grocery REIT for its 8% dividend yield and the foreign exchange benefit: dividends are converted from US dollars to Canadian dollars.

As for CT REIT, it increases its dividend by 3% annually and will continue to do so due to its beneficial arrangement with Canadian Tire. The REIT saves on broker commissions and advertising as it primarily acquires and maintains property that Canadian Tire wants.

How to earn monthly payouts from the five stocks

A $15,000 investment in each of the five stocks can help you earn an average of $297.45 per month in dividends. Among the five stocks, three – CT REIT, Capital Power, and Sun Life Financial – offer a DRIP, which can help you compound dividend income if you do not want to take payouts now.

The post How to Build a Monthly Paycheque Portfolio With Only 5 Stocks appeared first on The Motley Fool Canada.

More reading

• How Much Do You Need Invested Before You Can Ease Up on Retirement Saving?
• How to Convert $10,000 Into a TFSA Money-Making Engine
• Your Future Self Is Counting On You to Buy This Canadian Dividend Stock Today
• The Dividend Yield That Makes GICs Look Embarrassing
• Where Will Cenovus Stock Be in the Next 3 Years?

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power, Kroger, Slate Grocery REIT, and Walmart. The Motley Fool has a disclosure policy.