Bank of Canada hiked interest rates in expectation of inflation rising to 3.5% by the end of 2026 as companies push higher energy costs to consumers. Just as a software update is mandatory to keep your system secure from malware, a portfolio update is necessary to keep your portfolio protected from inflation and downside risks.

Just as a software update does not affect your work files and data, a portfolio update keeps your long-term investments unaffected. What changes is a new investment, a new stock to fill the gap that inflation poses. This portfolio update will require a $4,000 investment in a dividend stock yielding 6.3%.

Why buy this 6.3% yielder?

The dividend stock is Freehold Royalties (TSX: FRU). Unlike other 6% yielding dividend stocks that have lower financial flexibility due to significant debt on the balance sheet, Freehold Royalties is at a sweet spot. It has relatively no operating risk and lower financial risk. Moreover, it is in an uptrend when energy prices rise.

Freehold buys oil wells and leases them to oil companies like ConocoPhillips to extract oil. These companies pay a lease and a royalty, which is calculated as a percentage of oil produced multiplied by the realized price. The realized price depends on the WTI price, which is affected by global demand and supply. In the third quarter, oil prices surged past $100 as escalating tensions in the Middle East reached Saudi Arabia after the Houthi attack.

Freehold stock has dipped 3.6% on Monday, November 2, ahead of U.S. mid-term elections. However, these elections are unlikely to ease tensions with Iran. Unless the US-Iran war shows signs of slowing or ending, oil prices will remain elevated. The high energy prices an average individual pays will go into the wallets of oil and gas companies.

In all this, Freehold has no operational risk of extracting or refining oil or abandoning the wells. All the cost is borne by oil companies. Freehold is collecting royalties and using the funds to reduce debt, pay monthly dividends, and acquire new oil fields.

As long as WTI remains above US$60/barrel, Freehold can keep paying the current monthly dividend of $0.09 per share, which converts to $1.08 in a year. The dividend payout ratio hovers between 57% and 87% depending on the price realized. The fourth quarter of 2025 was the weakest for oil stocks. Freehold realized WTI of $59.14, which increased its payout ratio to 87%. Unless the Iran war eases, oil prices may not reach the December 2025 low.

Why invest $4,000 in the 6.3% yield?

Freehold pays dividends on the 16th of every month. The recent dip has created an opportunity to buy 235 shares for $4,000 and start collecting $21.15 a month from December 16 onwards.

The 6% yield can help you fill the purchasing power gap from the 3.5% inflation. However, make sure you invest through a Tax-Free Savings Account (TFSA), or you will have to pay dividend tax on it.

Now is the time to buy, as the company will release its third-quarter earnings on November 10, which could push the stock price up.

The post I’d Buy This 6.3% Yielder With My Next $4,000  appeared first on The Motley Fool Canada.

More reading

• What $10,000 in Freehold Royalties Could Add to Your Income Over a Year
• A 6.1% Dividend Stock Paying Cash Every Month
• $15,000 in a TFSA: 2 Stocks I’d Buy for Meaningful Monthly Cash Flow
• Here’s Why I Love Freehold Royalties (and Its Generous 6.1% Dividend Yield)
• This TSX Royalty Stock Pays Its Monthly Dividend Today: The Payout Math Behind It

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.

Oil prices have surged as geopolitical tensions in the Middle East are keeping investors on edge. And if you’ve been following Canadian energy stocks lately, you’ve probably noticed how quickly changing oil prices can influence sentiment toward the sector. Suncor Energy (TSX: SU), which is scheduled to report its third-quarter results on Tuesday, November 3, is one energy stock I’m watching closely as its share price has already doubled over the last year.

So, is Suncor heading for another blockbuster earnings announcement? Not necessarily.

Investors should remember that the latest rally in crude prices could be temporary, so its effect on Suncor’s third-quarter results might not significantly affect its long-term growth outlook. That’s why, beyond the recent oil price surge, I’d be more interested in looking at how Suncor’s underlying business performed during the quarter and whether its financial fundamentals remain strong.

Let me explain what I’ll be watching when Suncor reports earnings on Tuesday and why Canadian energy investors should look beyond the latest profit figures.

What has supported the recent rally in Suncor stock

In short, Suncor mainly focuses on operating oil sands, offshore assets, refineries, and Petro-Canada stations. Its shares currently trade close to $111 per share, giving it a $131 billion market cap and a 2.2% annualized dividend yield.

Suncor stock has gained 15% over the past month alone and 100% over the last year, leaving it just slightly below its all-time high. Record refining activity, stronger cash generation and rising buybacks have supported that rally.

What Suncor’s last quarter revealed

In the second quarter, Suncor’s adjusted operating earnings surged 336% year-over-year (YoY) to $3.8 billion, mainly due to higher prices realized on upstream production and stronger refining margins. As a result, its net earnings rose 229% YoY to $3.7 billion, while adjusted funds from operations jumped 98% to $5.3 billion. Better cash generation and lower capital spending also helped free funds flow more than quadruple to a record $3.38 per share.

During the quarter, the company’s refineries were a major bright spot. Its refinery throughput rose 6% YoY to a second-quarter record of 470,600 barrels per day, while refined product sales climbed about 9%. Fewer maintenance activities backed refining volumes, and record jet fuel sales helped lift product sales.

However, Suncor’s upstream production fell nearly 6% YoY in the June quarter, mainly because of a planned turnaround at Firebag. That makes production recovery especially important to Tuesday’s earnings.

What Suncor investors should watch on Tuesday

With Suncor stock near its record high, you may want more than another strong profit number. A rebound in upstream volumes would be reassuring, especially if refining operations maintain their momentum. But I’ll also watch how much cash the business generates and what management says about shareholder returns.

Notably, Suncor returned nearly $1.8 billion through dividends and repurchases in the second quarter. And it recently raised monthly share buybacks to $750 million beginning in October, up from $500 million.

Interestingly, Suncor is also aiming to increase its normalized free funds flow by $2 billion and lower its West Texas Intermediate oil price breakeven by US$5 per barrel by 2028. These efforts could help the company generate stronger cash flow, especially if oil prices remain high, although refining margins and operating costs will also play an important role.

Tuesday’s results will cover July through September, but the recent rally in crude prices could make Suncor’s outlook just as important as its quarterly numbers. That’s why I would definitely pay attention to management’s comments on production trends, refining margins, and expected cash generation in the coming quarters. These are some of the key factors I’ll be watching to assess whether Suncor stock could sustain its recent momentum.

The post Suncor Reports Tuesday: What Canadian Energy Investors Should Watch as Oil Hits a 1-Month High appeared first on The Motley Fool Canada.

More reading

• Best TSX Dividend Stocks to Buy as Energy Prices Stay Hot
• Is Suncor Still a Buy After a Blowout Quarter, or Is It too Reliant on High Oil Prices?
• Could More Rate Hikes Be Coming? What Macklem’s Comments Could Mean for Canadian Investors
• How to Read a Payout Ratio in 60 Seconds
• Strait of Hormuz Tensions Keep Oil Prices Elevated: 3 Canadian Energy Stocks to Watch

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.

There is a big difference between a stock under pressure and a dividend under pressure. While the two can happen at the same time, they don’t always. A company can face slower growth, weaker earnings, and a falling share price while still having enough cash and financial flexibility to keep paying shareholders.

In this article, I’ll highlight one Canadian dividend stock that has taken a hit in the market but still appears to have solid support behind its payout.

Why Enghouse stock deserves a closer look

Enghouse Systems (TSX: ENGH) is a good example of why a beaten-down share price doesn’t automatically mean the dividend is headed for trouble.

This Markham-based company provides enterprise software for contact centres, video communications, telecommunications networks, public safety, transit, and healthcare. At the time of writing, Enghouse stock traded around $18 per share with a market cap of $984 million. Its shares are down about 13% over the last year. At today’s price, that pullback has pushed the annualized dividend yield to 6.8%.

This decline in ENGH stock has mainly been triggered by recent weakness in its business results. Last quarter, the company pointed to customer turnover and variability in software licence and hardware demand while navigating an uncertain economic environment. Even so, its recurring revenue remains a large part of the business.

Recent results show some pressure

In the third quarter of its fiscal year 2026 (ended in July), the company’s revenue fell 6.4% year-over-year (YoY) to $117.6 million. While its software-as-a-service (SaaS) and maintenance revenue declined 6.9% YoY, they still represented 69.5% of total revenue.

Enghouse’s net profit for the quarter dropped 10.5% YoY to $15.4 million. Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) slipped 4.5%. On the brighter side, its adjusted EBITDA margin improved to 26.2% from 25.7% a year ago.

As the company continues to focus on cost control, its operating expenses excluding special charges fell 8.4% YoY.

Why the dividend still looks supported

For a stock yielding 6.8%, it’s important to see whether the business has enough financial flexibility to keep rewarding shareholders.

Enghouse ended July with about $267.8 million in cash, cash equivalents, and short-term investments, with no external debt. In the latest quarter, the business generated $22.5 million in operating cash flow and paid $16.9 million in dividends.

More importantly, during the first nine months of fiscal 2026, operating cash flow reached $74.8 million, compared with $49.6 million in dividends paid.

Beyond its strong operating cash flow, Enghouse continues to pursue acquisitions while investing in innovation and cost improvements. Its acquisition strategy focuses mainly on smaller software businesses with recurring revenue, mission-critical products, and high barriers to entry.

Clearly, Enghouse isn’t without risk, as revenue and earnings are moving lower. However, its cash generation ability, debt-free balance sheet, recurring revenue base, and rising dividend give the payout much-needed support. For investors willing to wait for its growth to stabilize, this beaten-down dividend stock could be an attractive income opportunity at today’s price.

The post This Dividend Stock Is Down 13% in the Past Year, but the Payout Looks Safe appeared first on The Motley Fool Canada.

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• 2 Canadian Stocks I’d Buy and Hold in My TFSA for the Long Run
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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enghouse Systems. The Motley Fool has a disclosure policy.

Canadian banks can be great long-term holdings, but there is a point where owning too many of them may start to work against you. If several stocks in your portfolio depend on the same interest-rate trends, credit conditions, and economic growth, they could all come under pressure at the same time. That is why portfolio diversification matters. The goal isn’t to avoid bank stocks, but to add businesses that generate earnings in different ways. Utilities, agriculture, infrastructure, and other sectors can help diversify risk while keeping a portfolio focused on strong Canadian companies.

In this article, I’ll highlight two top TSX stocks that could help you diversify beyond the big banks without giving up dividends or long-term growth potential.

Hydro One stock

If you like investing in banks because of their defensive business model, Hydro One (TSX: H) could be an interesting stock to watch.

This Toronto-based company is Ontario’s largest electricity transmission and distribution provider. Following a rally over the past three weeks, Hydro One stock currently trades around $55 per share with a market cap of $33.1 billion. At that price, it also offers a 2.6% annualized dividend yield.

The company’s revenue rose about 11% year-over-year (YoY) in the second quarter to $2.3 billion. This drove its net profit up by 13% YoY to $370 million. Higher Ontario Energy Board-approved rates and stronger peak electricity demand supported the improvement.

Beyond its latest results, Hydro One continues to invest heavily in Ontario’s electricity network. The company has filed applications for several major transmission projects, including the roughly $1.9 billion Northeast Power Line and the $1.2 billion Longwood to Lakeshore Transmission Line.

Overall, Hydro One’s essential electricity infrastructure, ongoing capital investment, and dividends give investors a different set of earnings drivers. If you have a portfolio heavy on Canadian banks, all these factors make Hydro One an attractive diversification option for the long run.

Nutrien stock

For investors looking to diversify even further, Nutrien (TSX: NTR) could give exposure to global agriculture and fertilizer markets.

In short, this Saskatoon-based company supplies crop nutrients and agricultural products through its Retail, Potash, Nitrogen, and Phosphate businesses. After climbing nearly 12% so far in 2026, NTR stock currently trades at $97 per share with a market cap of $46.2 billion and a 3.2% annualized dividend yield.

Nutrien’s latest results show why investors have been growing confidence in the stock. Its second-quarter sales inched up 4% YoY to US$10.8 billion, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 2% to US$2.43 billion. Higher global fertilizer benchmark prices helped, but lower fertilizer volumes and increased sulfur costs weighed on the quarter.

Nevertheless, Nutrien’s net earnings in the first half of the year rose 9% YoY to US$1.36 billion, while adjusted EBITDA climbed 6% to US$3.5 billion.

Moreover, the company is advancing mine automation, reliability improvements, portfolio optimization, and non-core asset sales as it works to strengthen free cash flow. These efforts could accelerate its growth further in the years to come.

For investors with heavy exposure to Canadian banks, Nutrien could provide a very different source of growth tied to food production and global crop input demand.

The post How to Diversify Your Portfolio Beyond Canadian Banks 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 Nutrien. The Motley Fool has a disclosure policy.

A Tax-Free Savings Account (TFSA) doesn’t need to be packed with risky growth stocks to become useful in retirement. In fact, a quieter portfolio can sometimes do a better job. Companies tied to everyday spending and essential infrastructure often keep producing cash even when the market gets noisy. If those businesses also pay dividends, investors can reinvest the income for years and let compounding do its magical work.

Over time, this approach could turn even a small starting balance into something much more meaningful. Then, when retirement arrives, your portfolio can shift from building wealth to helping fund regular expenses.

Let’s look at two Canadian dividend stocks that could help a $20,000 TFSA grow into a much bigger retirement fund.

Invest in Empire stock

For a retirement-focused TFSA holding built around everyday demand, Empire (TSX: EMP.A) is worth considering. This Stellarton-based company owns Sobeys and operates grocery banners across Canada. Empire stock currently trades around $50 per share, giving it a $6.3 billion market cap and a 1.9% annualized dividend yield. The stock has climbed 30% in the past five years.

In the first quarter of its fiscal year 2027 (ended in July), Empire’s sales rose 2.6% year-over-year (YoY) to about $8.5 billion. Its food sales climbed 1.7% to roughly $7.9 billion, helped by positive growth across the business, especially its Full-Service and Discount banners. In addition, higher fuel prices drove its fuel sales higher by 18.4% from a year ago.

More importantly, the company’s operating income last quarter jumped 7.6% YoY with the help of higher sales, stronger gross profit, and lower selling and administrative expenses.

Empire is also investing for future growth as it plans about $850 million in fiscal 2027 capital spending while expanding FreshCo, renovating stores, and adding new locations. For a retirement-focused TFSA, that mix of essential demand, earnings growth, and a reliable dividend gives Empire stock long-term appeal.

Buy Some Brookfield Infrastructure stock

For investors seeking dependable income inside a TFSA, Brookfield Infrastructure Partners (TSX: BIP.UN) could also deliver a steady path to retirement growth. This company owns utilities, transport, midstream, and data infrastructure across global markets.

After climbing nearly 10% year to date, BIP.UN currently trades around $52 per unit, with a $41.4 billion market cap and a 4.9% annualized distribution yield.

Brookfield Infrastructure’s funds from operations (FFO) surged 10% YoY in the second quarter to US$702 million. Its data segment delivered a 36% increase in FFO to US$154 million, while the partnership’s midstream FFO climbed 17%.

That growth was mainly driven by inflation-linked rate increases, stronger volumes and utilization, and more than US$1.5 billion of newly commissioned capital projects.

The company’s artificial intelligence (AI) infrastructure pipeline could also accelerate its growth in the years to come. Interestingly, Brookfield Infrastructure is involved in a planned Kentucky data centre campus designed for more than 1.2 gigawatts of compute capacity and a proposed 200-megawatt project in South Korea.

These growth efforts, coupled with Brookfield Infrastructure’s current income and infrastructure-backed cash flows, make it an attractive TFSA stock for investors building toward retirement.

The post How a $20,000 TFSA Could Fund Your Retirement 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 Infrastructure Partners. The Motley Fool has a disclosure policy.

When the market is rallying, I sometimes find myself wondering whether I’m missing something by not buying the stocks everyone seems too excited about. Many investors know that feeling, especially when growth stocks keep moving higher, and market headlines focus on stocks delivering massive returns.

But when it comes to Tax-Free Savings Account (TFSA) investing, I’d rather think about what I’d be comfortable owning for years instead of what might jump next week or next month. Personally, I like businesses that could keep generating cash whether their share prices are moving up, down, or just going sideways. And if they pay decent dividends along the way, that’s even better.

In this article, I’ll talk about a Canadian dividend stock and tell you why it’s one I’d recommend considering for long-term TFSA passive income.

A top Canadian dividend stock for TFSA passive income

If your goal is to turn this year’s TFSA contribution into a steady stream of long-term passive income, Brookfield Infrastructure Partners (TSX: BIP.UN) would be one of my top picks.

This Bermuda-headquartered company owns and operates essential infrastructure assets across major global markets, including the United States, Europe, and Asia Pacific. Its diversified operations mainly focus on utilities, transportation, midstream energy infrastructure, and data infrastructure.

After gaining about 7% over the last year, Brookfield Infrastructure stock currently trades at $51.46 per share with a market cap of $23.6 billion. At this market price, it offers an attractive annualized dividend yield of 4.9%, with distributions made every quarter.

What’s even more interesting is that this TFSA-friendly dividend stock has also delivered impressive long-term capital appreciation as it has surged 74% over the last three years.

Why Brookfield’s business makes it a great TFSA income stock

While Brookfield Infrastructure’s recent share-price gains and attractive yield may catch investors’ attention, its real appeal for a TFSA lies in the businesses that could sustain passive income for years to come.

That strength comes partly from its mix of regulated and contracted infrastructure operations. Electricity and gas networks, ports, railroads, and pipelines support everyday economic activity, while data centres and fibre networks connect businesses. Having revenue streams across these areas gives Brookfield more than one way to generate cash, even when demand or economic conditions change in any single market.

Recent financial growth supports its payouts

In the second quarter, Brookfield Infrastructure’s revenue rose about 19% year-over-year (YoY) to US$6.5 billion. More importantly for income investors, its funds from operations (FFO), a measure of operating performance, climbed 10% YoY.

In the latest quarter, the company benefited from inflation-linked utility rates, stronger transport and midstream volumes, and over US$1.5 billion in newly commissioned projects. Its data segment’s FFO also jumped 36% YoY to US$154 million, helped by an acquired U.S. fibre network and data centre development activity.

More growth could strengthen TFSA income

Brookfield Infrastructure recently expanded its Bloom Energy power framework from US$5 billion to US$25 billion in potential capital spending, while advancing artificial intelligence (AI) infrastructure opportunities in Kentucky and South Korea. It also generated nearly US$1.2 billion from asset sales so far in 2026 to help fund new investments.

That combination of rising FFO, a higher distribution, and new infrastructure opportunities is why I’d consider this stock for TFSA passive income. While putting an entire contribution into one stock does carry risk, Brookfield Infrastructure offers an appealing balance of current income and potential long-term growth, making it worth considering.

The post A 4.9% Passive-Income Stock I’d Put My Whole TFSA Contribution Into appeared first on The Motley Fool Canada.

More reading

• Higher Rates Are Back: Can Brookfield Infrastructure Keep Growing Its Payout?
• How a $20,000 TFSA Could Fund Your Retirement
• A Perfect TFSA Stock: A 5.1% Yield With Constant Paycheques
• I’d Own Brookfield Infrastructure for its 36% Jump in Data-Segment Cash Flow
• Brookfield Infrastructure is on My Shortlist After its 10% FFO Gain

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

Since childhood, most of us have been taught that earning money requires putting in time and effort. Most of us grow up understanding that money comes from work, whether through childhood chores, a part-time job, or a full-time career.

But as you start building savings, there’s another possibility worth exploring. Instead of relying entirely on your own time to earn extra income, you can gradually put some of your money to work. This is where dividend investing can change the way you think about earning money. Certain Canadian stocks regularly reward their investors by sharing a portion of their profits with shareholders, allowing investors to receive cash without taking on another job. And you don’t necessarily need thousands of dollars to get started.

In this article, I’ll highlight two affordable Canadian dividend stocks that could help you build an extra income stream even with a small investment.

Rogers Sugar stock

If you only have a small amount available to start earning dividend income, Rogers Sugar (TSX: RSI) offers an accessible entry point at just $6.53 per share.

Based in Vancouver, Rogers refines and sells sugar and maple products. Its shares have gained 6% over the last year, giving it a market cap of about $837 million. At the current price, RSI stock offers an attractive 5.5% annualized dividend yield.

In the first nine months of its fiscal year 2026 (ended in June), Rogers’ adjusted EBITDA rose nearly 9% YoY to $120.7 million, backed mainly by stronger sugar-segment performance. Its trailing 12-month free cash flow also improved by $2.2 million to $90 million, an important factor for dividend investors.

Meanwhile, Rogers is advancing its LEAP expansion project, which is expected to add roughly 100,000 metric tonnes of sugar-refining capacity in the first half of 2027. This additional capacity could strengthen future earnings and cash flow, although project financing costs are expected to rise.

With its shares trading below $7 and yielding 5.5%, Rogers could be a practical starting point for Canadians seeking extra dividend income and long-term growth potential.

Peyto stock

If you’d rather have that extra income arriving every month, Peyto Exploration & Development (TSX: PEY) offers a 5.7% yield with 12 payouts a year.

The Calgary-based firm produces natural gas and natural gas liquids in Alberta. After climbing 25% over the last year, PEY stock trades at $25.41 per share with a market cap of $5.2 billion.

In the second quarter, its production grew 10% YoY to 145,320 barrels of oil equivalent per day, supported mainly by its drilling program. Its natural gas hedges and sales into markets beyond Alberta also helped offset weaker local gas prices.

Combined with lower controllable costs, these efforts boosted Peyto’s funds from operations by 19% YoY in the latest quarter. As a result, its adjusted net profit jumped 24% YoY, while quarterly free funds flow reached $140.6 million. That allowed the company to distribute $71.8 million in dividends and reduce net debt by $72.4 million during the quarter.

Meanwhile, Peyto is also investing in new wells and has signed a 10-year natural gas supply agreement with Centrica, starting in 2029. Its hedging program has already secured nearly $590 million in revenue for 2027, offering additional protection against volatile gas prices. Overall, with monthly dividends, growing production, and strong cash generation, Peyto offers another great way to build a regular income stream without a large upfront investment.

The post Low-Cost Ways to Earn Extra Income in Canada appeared first on The Motley Fool Canada.

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• A Monthly Paying TSX Stock With a 5.6% Dividend Yield

ool 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.

While there are many easy ways to start building passive income, I think dividend investing is one of the most satisfying. That’s because it allows you to earn regular cash payments simply by owning shares of established businesses. I find that even more appealing because even small but consistent dividend payments can add up over time, especially when you reinvest them to buy more shares.

But picking the dividend stocks is where I’d be a little selective. I wouldn’t rush to buy whichever Canadian stocks happen to offer the biggest dividend yields. Instead, I’d prefer to own a business that’s growing its earnings and has enough financial strength to keep rewarding investors over time.

In this article, I’ll share two such Canadian dividend stocks I’d consider for building passive income without sacrificing long-term growth potential.

Scotiabank stock

If I wanted quarterly passive income backed by a growing business, Bank of Nova Scotia (TSX: BNS), Scotiabank, would be high on my list after another strong stretch of earnings growth. This Toronto-based banking giant offers a wide range of financial services across Canada and international markets, including personal banking, wealth management, and investment banking.

After rallying by 44% over the last year, BNS stock currently trades at $132.27 per share with a market cap of $160.6 billion. Despite this impressive rally, it still offers a 3.4% annualized dividend yield with quarterly payouts.

Scotiabank’s improving business performance has been another reason I’d consider buying this stock now. In the third quarter of its fiscal year 2026 (ended in July), the bank’s total revenue rose 11% year-over-year (YoY) to $10.5 billion with the help of higher net interest income and non-interest income. More importantly, its quarterly net income climbed nearly 17% YoY to $3 billion, while adjusted earnings per share jumped 21% to $2.28.

On top of these strong results, Scotiabank continues to prioritize shareholder returns. In the first nine months of fiscal 2026, it returned $6.3 billion to investors through dividends and share buybacks.

With its improving profitability, diversified operations, and focus on rewarding shareholders, I believe Scotiabank remains an attractive Canadian dividend stock for investors seeking reliable passive income over the long term.

Great-West Lifeco stock

Another Canadian financial stock worth considering for long-term passive income is Great-West Lifeco (TSX: GWO). Headquartered in Winnipeg, this financial services company operates across Canada, the United States, and Europe, offering insurance, retirement, and wealth management solutions.

GWO stock has also been on an impressive run, gaining 56% over the last year to currently trade at $92.71 per share. With a market cap of $82.6 billion, it offers a 2.9% annualized dividend yield and distributes its payouts quarterly.

While the company is yet to release its third-quarter results, its net earnings in the second quarter climbed 16% YoY to $1 billion, while its base earnings rose nearly 11% due mainly to continued strength in its retirement and wealth management businesses.

In June, its Empower subsidiary announced a US$340 million deal to acquire Milliman’s retirement plan and benefits administration business. This acquisition is expected to strengthen Empower’s retirement platform by adding nearly US$130 billion in client assets and 1.5 million participants at closing.

Given its strong earnings momentum, solid capital position, and expanding retirement operations, Great-West could be another excellent dividend stock to buy now for building a growing passive income stream over time.

The post The Best Canadian Dividend Stocks if You Want Passive Income appeared first on The Motley Fool Canada.

More reading

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• Is Your GIC Still Worth It? How the Rate Hike Might Change the Math for Savers
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• Enbridge Is Solid, But the Bank of Scotia Has More Upside: Here’s Why I’d Buy It First
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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.

The third-quarter corporate earnings season has already kicked off, and I know how tempting it can be to buy a stock just before the company reports its results. You look at the recent business trends, convince yourself that earnings should be strong, and imagine the share price jumping the next morning. Sometimes, that’s exactly what happens.

Other times, a company reports perfectly respectable numbers and its stock falls anyway. That’s definitely a frustrating thing about earnings season, as you’re not just trying to predict how the business performed, but also how investors will react.

In this article, I’ll share how I approach pre-earnings investing and why Hydro One (TSX: H) and Keyera (TSX: KEY) are two Canadian stocks I’d rather consider for the long term.

Hydro One stock

With Hydro One set to announce its third-quarter 2026 results on November 10, this dependable Canadian utility stock could be worth considering before earnings, especially if you prefer a relatively stable business over short-term market movements. The Toronto-based firm operates Ontario’s largest electricity transmission and distribution network.

After rising nearly 4% over the last year, Hydro One stock currently trades at $54.56 per share with a market cap of $32.7 billion. It also offers a 2.6% dividend yield.

While its stock hasn’t seen much appreciation of late, the company’s improving financial performance and continued investments in electricity infrastructure make it an appealing long-term investment.

In the second quarter, Hydro One’s revenue rose 11.4% year-over-year (YoY), driven mainly by higher electricity rates approved by the Ontario Energy Board and increased peak demand. Similarly, its quarterly net profit climbed 13% YoY to $370 million.

Beyond these encouraging results, Hydro One continues to expand its electricity infrastructure to support Ontario’s growing power needs. These investments could support Hydro One’s earnings growth over the coming years, although rising financing costs remain a concern.

Given its solid business fundamentals and focus on infrastructure expansion, this dependable utility stock could be worth buying now for investors seeking steady long-term growth and dividend income rather than quick profits from earnings surprises.

Keyera stock

Keyera, which is expected to announce its third-quarter 2026 earnings on November 10, is another Canadian stock worth considering before its results, especially for investors seeking stronger growth potential and willing to accept higher earnings volatility.

This Calgary-headquartered energy infrastructure firm provides natural gas gathering, processing, transportation, storage, and marketing services. KEY stock has surged 28% over the last year to currently trade at $54.49 per share with a market cap of $16 billion. At this price, it offers an attractive 4.1% dividend yield.

The stock’s impressive rally comes as Keyera continues to strengthen its business through strategic acquisitions and infrastructure expansion. In the June quarter, Keyera’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% YoY, while its net profit more than doubled to $308 million, backed by recent acquisitions and strong demand for its services.

Moreover, Keyera remains focused on expanding its fee-based operations. Following its recent acquisitions, the company now expects its fee-based adjusted EBITDA per share to grow at an annualized rate of 16% to 18% between 2025 and 2027.

With its expanding infrastructure network and promising growth outlook, Keyera could be a rewarding investment for patient investors who can tolerate near-term volatility, even if its upcoming earnings trigger temporary share price swings.

Are these stocks a buy before their earnings releases?

Ultimately, buying stocks before earnings doesn’t have to mean betting on the next quarterly results. By focusing on fundamentally strong businesses like Hydro One and Keyera, long-term investors can look beyond temporary market swings and concentrate on building wealth over time.

That’s why I’d rather use the period before earnings to identify quality businesses that I would be comfortable owning for years, regardless of what happens to their share prices immediately after the announcement.

The post Should You Buy Stocks Before They Report Earnings? What Long-Term Investors Should Know appeared first on The Motley Fool Canada.

More reading

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• How to Diversify Your Portfolio Beyond Canadian Banks
• Side Income Ideas for Canadians That Fit Around a Full-Time Job
• Hydro One Wants to Spend $37 Billion: What It Means for Its Dividend
• Turning 60 in 2027? Taking CPP Early Shrinks Your Cheque 36%

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

One of the most reliable ways to generate passive income, in my opinion, is to own shares in businesses that people continue relying on regardless of how the economy is doing. Think about your electricity bill for a moment. You might cut back on restaurant visits or postpone a big purchase when money gets tight, but keeping the lights on isn’t really optional. That’s what makes utility companies really attractive to me.

In this article, I’ll share my top Canadian dividend stock pick for passive income and explain why I’d consider holding it for years.

A top Canadian dividend stock to buy and hold

The stock I’m talking about here is Capital Power (TSX: CPX), which you can consider buying and holding for decades. This Edmonton-based electricity producer operates a diversified portfolio of natural gas, renewable energy, and battery storage facilities. With roughly 12 gigawatts of generation capacity across 35 facilities in North America, Capital Power is well-positioned to benefit from growing electricity demand.

CPX stock has gained 7% so far in 2026, currently trading at $62.64 per share with a market cap of $9.8 billion. At that price, it offers a solid 4.5% annualized dividend yield.

While its recent share price performance has been mixed, the company’s improving financial performance and expansion plans make it an attractive passive-income stock to consider right now.

Improving earnings and cash flow

One reason I like Capital Power for passive income is its ability to generate strong operating cash flow, which helps support regular dividend payments.

In the second quarter, the company’s revenue and other income surged nearly 68% year-over-year (YoY) to $740 million. This increase was mainly driven by contributions from its Hummel Station and Rolling Hills facilities, acquired in June 2025, along with favourable changes in the value of commodity contracts and emission credits.

Similarly, Capital Power’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 9% YoY to $351 million, supported by its acquired facilities. Higher outage costs in its U.S. operations and corporate expenses partly offset these gains.

More importantly, its quarterly net operating cash flow jumped nearly 50% YoY to $214 million. Capital Power’s adjusted funds from operations (AFFO) also climbed nearly 40% to $328 million.

Meanwhile, the company’s quarterly net loss narrowed to $43 million from $131 million a year ago, reflecting stronger operating performance and favourable valuation changes.

Growth opportunities support its dividend appeal

Besides its improving operating performance, Capital Power’s focus on securing long-term electricity supply agreements makes its future growth prospects even more interesting.

In July, the company signed an energy supply agreement with Meta Platforms (NASDAQ: META) to provide 250 megawatts of electricity and capacity for a data centre in Alberta. This agreement extends beyond 10 years, with electricity demand from the project expected to begin in the second half of 2028.

Capital Power is also expanding its renewable energy operations. These developments could strengthen the company’s future cash flow generation and support its ability to reward shareholders over time.

Why I’d buy it for passive income

In July 2026, it raised its annual common-share dividend by 2%, marking its 13th consecutive year of dividend increases. Although its recent net losses and investment requirements deserve attention, Capital Power’s expanding generation portfolio, improving operating cash flow, and long-term electricity contracts make its growth outlook attractive.

Given these positive factors and its 4.5% dividend yield, I believe CPX stock could be an excellent investment for earning dependable quarterly passive income while benefiting from potential long-term capital appreciation.

The post The Best Canadian Dividend Stock for Passive Income: My 1 Pick and Why appeared first on The Motley Fool Canada.

More reading

• How I’d Structure a $25,000 TFSA for Steady Income, Stock by Stock
• Reinvesting Dividends: How to Speed Up Your Income Growth
• What a Dividend Portfolio Could Pay You in 5, 10 and 20 Years
• Data Centres Need Power, but Higher Rates Change the Math: I’d Watch This TSX Stock

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power and Meta Platforms. The Motley Fool has a disclosure policy.