An efficient use of a Tax-Free Savings Account (TFSA) is to convert it into a cash-generating machine. This can help you make the most of tax-free withdrawals while providing an additional source of income. To ensure your cash-generating machine gives you maximum returns, invest in stocks with high dividend growth and high yield. Getting both in one stock is difficult, but you can diversify your investments, giving equal weightage to both.

Ideal TFSA stocks for cash generation

TFSA allows your investments to grow tax-free. It means your dividends and interest are exempt from tax, and so are capital gains tax if you sell shares.

TFSA stock for dividend and growth

Power Corporation of Canada (TSX:POW) is an ideal TFSA investment because of its high dividend-growth rate of 9%. The company has grown its annual dividends between 6% and 10% over the last 12 years. There was only one exception in 2021 when Power Corporation of Canada grew its dividend by 2.7%.

Power Corporation of Canada is a financial holding company that holds IGM Financial and Great West Lifeco and earns income from the dividends they pay. It passes on this dividend to its shareholders. The source of recurring income is insurance premiums and asset management charges. As a holding company, Power Corporation doesn’t have operational risks, but it is exposed to dividend decisions of the operating companies.

Power Corporation has been unlocking shareholder value by restructuring its portfolio, which also includes energy assets and alternative investments. It has recently established a $150 million Sagard AI Fund, which will invest in artificial intelligence companies. Its performance will help boost the share price. Meanwhile, insurance and asset management will drive dividends.

Despite 9% dividend growth, its dividend yield is 3.26% due to 14% share price growth in 2026 year-to-date. Hence, do not dismiss this stock because of the lower yield. It is giving both dividend and capital growth.

TFSA stock for high yield

SmartCentres REIT (TSX:SRU.UN) is a stock to buy in a TFSA for its 6.35% dividend yield. It managed to pay a higher yield because of consistent rental income from Walmart and Walmart-anchored stores. SmartCentres and Walmart’s partnership dates back to 1999, wherein the real estate investment trust agreed to develop shopping centres exclusively around Walmart stores. Now it is developing city centres around Walmart stores, which include office space, residences, and storage facilities.

Optimum use of its land, with every piece generating income from diversified sources, makes it an ideal dividend business to own. Add to this SmartCentres’s 21-year history of paying dividends without any dividend cuts.

A $10,000 investment can generate $481 in annual dividends

The two stocks above can provide you with cash throughout the year through monthly payouts and quarterly bonuses. The high-yield SmartCentres REIT gives monthly payouts. A $5,000 investment can buy 172 units of SmartCentres REIT and give $26.52 cash every month. A $5,000 investment in Power Corporation of Canada can buy 61 shares and give $40.72 cash every quarter.

When you total it up, a $10,000 investment can yield $481 in annual dividends. If Power Corporation of Canada keeps increasing its dividend by 6% on average, your dividend income can grow to $523.8 by 2030.

The post Transform Your TFSA Into a Cash-Generating Machine With $10,000 appeared first on The Motley Fool Canada.

More reading

• A 6.3% Dividend Yield: I’m Buying This TSX Stock and Holding for Decades
• Looking for a 5.2% Average Yield? These 3 TSX Stocks Are Worth a Look
• 2 High-Yield Dividend Stocks to Own for the Next 10 Years
• Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine
• How to Build a $50,000 TFSA That Throws Off Nearly Constant Income

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Walmart. The Motley Fool has a disclosure policy.

Dividend stocks are the strength of the Canadian stock market. Several businesses that have stood the test of time, withstood crisis, and expanded with robust debt management have emerged as dividend stalwarts. Most dividend stalwarts rode the bull rally after four years of a bear run, diluting their dividend yields. However, one TSX stock still has a dividend yield of over 6% and is a keeper.

The 6.3% dividend stock to hold for decades

Canada’s biggest strengths are its oil sands fields, energy exports to the United States, and real estate. The geopolitical environment and energy supply shock have pushed Canadian energy stocks to their new highs. However, the real estate sector is still in the recovery stage after the 2022 house price correction. At that time, all REITs posted a loss on the fair market value of properties, which reduced their unit price.

SmartCentres REIT (TSX:SRU.UN) was a great value stock then, as it traded at $22 per unit. The unit price has recovered to the average price of $29 and above. The moat of SmartCentres REIT is its agreement with Walmart in 1999 to build stores around Walmart and convert them into shopping centres. Since then, SmartCentres has increased its share of Walmart-anchored stores in the rental income. The next phase of growth began in 2016 with a mega intensification project to convert shopping centres to city centres.

SmartCentres first started building commercial properties and self-storage facilities. In 2019, it started building residential buildings, condos, and townhouses, which it builds and sells. The sales proceeds go into repaying debt. Its adjusted debt is 9.8 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It has $5.7 billion in debt against $5.2 billion in equity.

The debt is high, as most of it is used in development projects. Around 14% of SmartCentre’s property assets are in development. This presents risk, but also significant growth potential as the REIT sells condos and townhouses and rents stores, apartments, and offices. SmartCentres is managing this debt strategically by keeping sufficient money to pay the interest.

Investing in SmartCentres REIT

The significant amount of development projects not generating any income did stretch the REIT’s finances, but it paid dividends. Its payout ratio has now reduced to 86.4% of its adjusted funds from operations in the first quarter of 2026 as it delivers projects. This ratio will reduce, and the debt ratio will improve with every new project completion.

You could consider investing in the REIT and holding it for decades as the intensification project unfolds and brings in new and diversified sources of rental income.

SmartCentres is among the few REITs that have a 21-year dividend-paying history without a dividend cut. A key reason for this stability is its biggest tenant, Walmart. Be it a pandemic or Global Financial Crisis, people will keep buying from Walmart. Its stores are sticky, which means SmartCentres doesn’t have to restructure its property portfolio much. All these signs make this TSX stock a buy and hold for decades.

The post A 6.3% Dividend Yield: I’m Buying This TSX Stock and Holding for Decades appeared first on The Motley Fool Canada.

More reading

• Transform Your TFSA Into a Cash-Generating Machine With $10,000
• Looking for a 5.2% Average Yield? These 3 TSX Stocks Are Worth a Look
• 2 High-Yield Dividend Stocks to Own for the Next 10 Years
• Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine
• How to Build a $50,000 TFSA That Throws Off Nearly Constant Income

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Walmart. The Motley Fool has a disclosure policy.

A Tax-Free Savings Account (TFSA) is an account with many benefits, but these benefits demand compliance. Any tax benefits the Canada Revenue Agency (CRA) offers are conditional, based on requirements you must meet to avoid unwanted attention. That doesn’t mean you avoid TFSA altogether, as the benefits far outweigh the compliance.

Major red flags the CRA is watching for every TFSA holder

The single biggest compliance rule is to stay within contribution limits. The 2026 TFSA contribution limit is $7,000. If you turned 18 this year, you have a $7,000 contribution room, and from here onwards, it will keep accumulating depending on your contributions and withdrawals.

Most Canadians do not use a TFSA correctly. They treat it as a normal savings account where you can deposit any amount without worrying about a penalty. TFSA rules are different.

1.      Multiple TFSA accounts don’t increase your contribution room

John opened three TFSA accounts, thinking that would increase his contribution limit. However, the CRA determines your contribution room per individual and not on the number of accounts. John’s cumulative TFSA contribution limit for all three TFSA accounts is $7,000 in 2026.

2.      Withdrawals and redeposits count towards the contribution

The CRA reads TFSA transactions differently. Note: The TFSA contribution limit in 2025 was also $7,000.

Scenario 1: John deposited $6,000 in a TFSA in January 2025, withdrew $2,000 in April, and then redeposited $2,000 in June. John considers his TFSA balance to be $6,000 and thinks he has complied with the contribution limit. That is a mistake.

The way the CRA sees the transaction, deposits were made of $6,000 in January and $2,000 in June. John’s total TFSA contribution as of December 31, 2025 = $8,000. This breaches the $7,000 limit and exposes the $1,000 surplus to a 1% tax per month until John withdraws the surplus or has any unused contributions accumulated.

What happened to the $2,000 withdrawal?

This amount is added to John’s TFSA contribution room on January 1, 2026, increasing his contribution room to $9,000 ($7,000 + $2,000). TFSA contribution room is updated only on January 1. Every new deposit counts towards the contribution used. Be careful with the transaction.

A simple way to understand your TFSA contribution is to write it the way shown in the table. Do not rely on the CRA website, as the contribution room might not be updated.

Scenario 2:

John has two TFSA accounts. He contributes $6,000 in the first account in January, withdraws $3,000 in April, and deposits it in the second TFSA account. Even though John just moved money between his TFSA accounts, the CRA will read the transaction as a $6,000 contribution in January and a $3,000 contribution in April. Total contribution in 2025 = $9,000.

If John wants to shift the money, he should ask the bank to make a direct transfer to another account. That way, there will be no withdrawal transaction.

3.      Non-residents cannot contribute to a TFSA

The CRA offers TFSA benefits only to Canadian residents. So if you are a non-resident for income tax purposes, you cannot contribute to the TFSA even if you have unused contribution room. Any contribution made as a non-resident will attract a 1% tax per month until it is withdrawn.

How to make the most of your TFSA

The best way to use a TFSA is to keep it simple. Open only one TFSA account, contribute once, and invest that money in long-term growth stocks. Do not withdraw or switch between accounts, complicating transactions.

A long-term growth stock to buy in a TFSA is Celestica (TSX:CLS). Celestica has had a growth spurt in the last three years and has now become a relevant player in the artificial intelligence (AI) supply chain. It is making Ethernet switches for data centres, while expanding beyond Canada into Taiwan, Japan, and America. The stock will see short-term dips, but it is a stock to hold for the long term as the electronics manufacturer moves to original design manufacturing and onboards new clients.

The post 3 Major Red Flags the CRA Is Watching for Every TFSA Holder appeared first on The Motley Fool Canada.

More reading

• 2 Canadian AI Stocks Poised for Significant Gains
• 1 Magnificent Canadian Tech Stock Down 13% to Buy and Hold for Decades
• Where to Invest Your $7,000 TFSA Contribution
• Celestica Just Ran: 2 Canadian Tech Stocks to Buy Next
• 2 Canadian Growth Stocks Supercharged to Surge in 2026

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

The Canada Revenue Agency (CRA) has set the 2026 Tax-Free Savings Account (TFSA) contribution limit at $7,000. It is not impossible to convert $7,000 into $150,000, but you need to invest in high-growth stocks for the long term. There are multiple ways to achieve this kind of return.

Investing your TFSA contribution in high-growth stocks

High-growth stocks can help you achieve such 20 time returns faster. Take the case studies of Bombardier and Celestica.

If you had invested the 2021 TFSA contribution limit of $6,000 in the turnaround stock Bombardier, your investment would be worth $72,541 today. That is halfway to the $150,000 target in just five years. Even Celestica stock converted a $7,000 TFSA contribution in January 2024 to $92,364 in a little over two years.

Identifying such stocks early and staying invested in them can help you make the most of a TFSA’s tax-free investment growth. It means you pay no capital gain tax on all the growth these stocks bring. It is too late to invest in Bombardier and Celestica for such 10 times growth. While they are a good investment, they can give you normalized growth.

Ballard Power Systems (TSX:BLDP) could be the next big growth stock as it commercializes its hydrogen fuel cell technology. The global energy crisis is a big motivation for countries to look for alternative energy sources for transportation. Hydrogen fuel cell technology can not only provide energy security but also reduce carbon emissions. Ballard stock has already surged 121% year to date, and there is more growth as the company targets to become profitable in the next few years.

Unlike past stock price rallies that were driven by government policies, this rally is driven by fundamentals. This makes the rally sustainable.

Regular rebalancing of the portfolio

Another effective way is to invest in seasonal and cyclical stocks with a predictable rally. For instance, seasonal stocks like Air Canada and Shopify have peak seasonal rallies in June and November, respectively. Consumers’ spending patterns of travelling in the summer and holiday shopping drive the stock price.

Air Canada stock is also range-bound, making it a buy at a price below $15 and sell at $20. Shopify, on the other hand, is a buy between March and May and a sell between November and February. This seasonal buying and selling can help you book a 30–50% profit. You can hold this profit to buy these stocks at the dip.

Maxing out on TFSA contributions

If rebalancing and high-growth stocks do not fit your risk-averse, passive investing strategy, consider maxing out your TFSA contributions. If you turned 18 in 2009, your TFSA has a cumulative contribution room of $109,000. If you maxed out on your annual TFSA contribution room every year, your invested amount would be $109,000, and even a mid-to-high single-digit portfolio return would have made a $150,000 TFSA balance a reality.

Most investors delay investing as they don’t know where to invest. At such times, a technology ETF like the iShares NASDAQ 100 Index ETF (CAD-Hedged) (TSX:XQQ) is worth considering. It is an evergreen investment; you need not think twice before investing. It replicates the Nasdaq 100 Index and rebalances quarterly, increasing exposure to well-performing stocks.

The XQQ ETF can give you exposure to all future tech trends from artificial intelligence to autonomous cars. It has investments throughout the supply chain from semiconductor companies to software solutions. You could consider investing $100–$200 every month in this ETF. Once returns start coming, it could fuel your interest in the stock market. By the time you learn about stocks, your money will keep working in the background, replicating the sector performance.

Final thoughts

The TFSA is one of the most lucrative instruments, combining tax planning, investment, and financial flexibility. Prioritize investing through a TFSA, as the time spent in the market can earn you better returns in a tax-efficient manner.

The post How to Turn the 2026 TFSA Contribution Into $150,000 or More  appeared first on The Motley Fool Canada.

More reading

• What Does the Average Canadian’s TFSA Look Like at 55?
• CRA: How to Use Your TFSA Contribution Limit in 2026
• 2 Supercharged Canadian Picks Set to Break Out in 2026
• This $8 Stock Could Be Your Ticket to Millionaire Status
• 4 Canadian Stocks Built to Reward Patient Investors in 2026 and Beyond

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Air Canada and Celestica. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

A lot is happening at Telus Corporation (TSX:T), which has shocked analysts and investors. Until February, Telus management was all about cutting costs, reducing debt to 3 times its Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), lowering capital expenditure, and increasing free cash flow. The management revealed a three-year plan to strengthen its balance sheet, and it all looked possible.

Telus’s shocking AI announcement

On May 19, 2026, Telus announced a plan to invest more than $66 billion over the next five years to expand its network and artificial intelligence (AI) infrastructure across Canada. Telus is partnering with the federal government to build a sovereign AI facility in Vancouver. A government backing and AI positioning does sound exciting, but it will only be fruitful if AI demand and pricing support the investment.

The timing of this investment poses a challenge to the new chief financial officer, Gopi Chande, who will take the helm from July 1, 2026. The telco is already struggling with the significant debt it took on to build 5G infrastructure, whose return on investment has been reduced with a regulatory change. Will the AI infrastructure investment put the 2028 target to achieve a 3 times leverage ratio on the back burner?

A $66 billion investment over five years converts to a whopping $13.2 billion investment per year. Telus is unlikely to fund this investment with debt when it has $26 billion in long-term debt on its balance sheet as of March 31, 2026. I am expecting a partnership with a deep-pocketed company that brings in the money, and Telus brings in AI capability.

What’s the deal with Telus’s dividend?

Telus has not yet specified how it will fund the AI investment. But a capital expenditure of this intensity is not possible when dividend costs are eating up 112% of its free cash flow. Telus offers a dividend reinvestment plan (DRIP) that dilutes its equity as every new treasury stock added through DRIP comes with a commitment for future dividend payments.

Many infrastructure companies, such as Enbridge, suspended their DRIP as their capital expenditure requirements increased. I will not rule out the possibility of Telus suspending its DRIP in the near future. The company might also announce a 40% dividend cut, as that could save it $1 billion annually.

Remember, dividends are paid from the money left after investing in expansion and debt servicing. If the management finds a better investment opportunity, it can cut dividends and focus on growth.

What has changed in dividend expectations?

Until May 19, Telus’s dividend path was clear: a 72% payout ratio after excluding DRIP, phase-out of the 2% DRIP discount by 2028, and a possible dividend cut if Telus cannot offload its non-core assets and repay some of its debt to achieve a 3 times leverage ratio.

Post May 19, Telus’s investment priorities seem to be shifting from repairing the balance sheet to expanding infrastructure. When BCE changed its course from telco to techno, it altered its dividend policy and long-term payout targets. It reduced its long-term dividend payout target from 65–75% of free cash flow to 40–55%. It cut its dividend by 56% and paused dividend growth. All this because BCE was investing in the US fibre network and AI enterprise solutions. Telus could follow BCE’s steps.

Is a 9.6% dividend yield attractive?

In light of current developments, Telus’s 9.6% dividend yield may no longer be the reason to buy this stock. However, investors looking for AI exposure and a share price rally in the medium to long term could consider investing in Telus.

The post What’s the Deal With Telus’s Dividend? appeared first on The Motley Fool Canada.

More reading

• 3 of the Best Canadian Stocks for a Buy and Hold in a TFSA
• The TFSA Balance You’ll Probably Need to Retire in Canada
• This Dividend Stock Has Fallen 55% — and I’d Still Back It as a Long-Term Hold
• Is Enbridge Stock Worth Buying at Its Current Price?
• Looking for a 5.2% Average Yield? These 3 TSX Stocks Are Worth a Look

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

TC Energy (TSX:TRP) has been an attractive dividend payer for many Canadians despite consistent issues with its Keystone oil pipeline. However, the company unlocked shareholder value when it spun off its oil pipeline business in October 2024. The share price rally that began in July 2024, when the spin-off was in the works, has now pushed TC Energy’s stock price to new highs, surging 86% to around $96.

While the share price surged drastically, dividends grew at a normal pace of 3% annually. This reduced the annual dividend yield from 7% in 2024 to 3.7% in 2026.

Here’s how many TC Energy shares you should own to get $1,020 in dividends

Had you invested in TC Energy back in 2024 when the stock was trading near the $50 per share range, 272 shares worth $14,300 could have earned you $1,020 in annual dividends. Today, for the same dividend, you will have to shell out $27,936 to buy 291 shares at $96.

Buying the dip brings value and helps lock in higher yields for a long time. There is no point buying an energy infrastructure stock at its all-time high. You will overpay for lower returns.

Other ways to earn $1,020 in dividends

If $1,020 in annual dividends is your financial goal, better stocks are trading on the TSX. For instance, Cogeco Communications (TSX:CCA) offers a 6% dividend yield. The entire telecom sector saw a downturn after a regulatory change triggered a price war. The regulatory change was in favor of Mobile Virtual Network Operators (MVNOs) like Cogeco that have an asset-light model. MVNO’s lease network infrastructure from Mobile Network Operators and earn revenue by providing good pricing, service quality, and network access.

This regulatory change increased price competition, which reduced revenue due to lower average revenue per user. However, Cogeco maintained a healthy 30% dividend payout ratio and grew its dividend per share by 7% in 2026.

Cogeco’s 6% dividend yield, 7% dividend growth, and a 30% payout ratio present a more lucrative dividend investment than TC Energy’s 3.7% yield, 3% dividend growth, and a 100% payout ratio.

If you want to earn an annual dividend of $1,020, you need to buy 258 shares of Cogeco, which will cost you $16,824.

Cogeco has grown dividends in 15 out of the last 16 years. The energy sector was a value dividend opportunity in 2021 and 2023 when energy stocks were trading at a discount and offering a dividend yield above 6%. Telecom stocks offer a similar value offering now, before artificial intelligence (AI) drives demand for communication and broadband.

Investor takeaway

Dividend stocks can stabilize your portfolio returns and offer higher passive income when purchased at a lower price. TC Energy is a good stock for its consistent dividends and dividend growth. However, now is not the time to buy the stock. When planning for a fixed cash flow, explore stocks with a higher yield, balanced risk, and inflation-adjusted dividend growth.

The post Here’s How Many Shares of TC Energy You Should Own to Get $1,020 in Dividends appeared first on The Motley Fool Canada.

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

If you want a regular cash flow that can adjust to inflation and sustain your purchasing power, look for a business that earns money in that manner. A recurring cash flow comes from dividend stocks. You need a business that has a moat and whose revenue is a monthly expense for others.

Broadband, utilities, rent, groceries, and gas are some of the necessities that eat up on your monthly cash flow. Thus, these companies make a perfect investment for cash flow planning. Those with manageable debt and financial flexibility can give you some of the best returns.

This 5% dividend stock is my go-to for cash flow planning

CT REIT (TSX:CRT.UN) is my go-to stock for cash flow planning for three reasons:

• It has had consistent monthly dividend payments for the last 13 years since its initial public offering (IPO).
• Its average annual dividend growth rate of 3%.
• The dividend reinvestment plan (DRIP) with monthly compounding.

The REIT has structured its returns for investors seeking regular cash flows, as its unit price doesn’t grow much. CT REIT manages to give such returns because its business model is designed in that manner. It acquires, develops, and manages real estate for its parent, Canadian Tire, in return for rent. It even receives upfront payment from the retailer for the development of stores. The monthly rent is transferred to unit holders after deducting operating expenses. CRT.UN pays 72–75% of its adjusted funds from operations as dividends.

The business model has lower risk than other REITs, as CT REIT doesn’t have to worry about the occupancy rate. More than 90% of its space is occupied before it begins development of the store. The only major risk for CT REIT is concentration risk. Its revenue is tied to Canadian Tire. If the parent company downsizes, the REIT will feel the impact.

However, CT REIT has limited its downside by keeping its debt within a manageable limit of 39% of the total assets.

How to efficiently invest in CT REIT

CT REIT offers a DRIP that allows you to buy more income-generating units from the dividend income. In Canada, dividends are taxed. But if you invest in CT REIT through a Tax-Free Savings Account (TFSA), you can avoid dividend tax. And if you opt for a DRIP, you can avoid brokerage fees, as DRIP shares are directly issued by the company without a broker.

CT REIT gives you additional DRIP shares worth 3% of the reinvested distributions. So, if you reinvested $100 worth of distribution, you get DRIP shares worth $103. This 3% bonus, plus monthly reinvestment and 3% annual dividend growth helps accelerate the effect of compounding. In fact, the CT REIT chief executive officer has announced 3.5% dividend growth to $0.982 per unit from July 2026.

A $10,000 investment in CT REIT can earn you $45 in monthly cash flow

If you invest $10,000 today, you can buy 555 units of CT REIT for around $18 per unit and get $545 in annual distributions or $45.40 in monthly distributions. Assuming the REIT maintains an $18 unit price throughout the year, you will get 2.6 DRIP shares in August on a distribution of $46.78, after adding a 3% bonus.

In a year, the DRIP can buy you almost 30 units for just staying invested and increase your monthly payout by $2.40. In 10 years, it will be more than 300 units, as the additional units will also earn distributions. Since a TFSA allows your money to grow tax-free and a DRIP removes brokerage costs, you get a higher amount.

The post This 5% Dividend Stock Is My Go-To for Cash Flow Planning appeared first on The Motley Fool Canada.

More reading

• Want Growth and Dividends From the Same Portfolio? These 2 Canadian Stocks Deliver Both
• TFSA: Invest $14,000 in This TSX Stock and Create $784 in Annual Passive Income
• What Does the Average Canadian’s TFSA Look Like at 55?
• The Ideal TFSA Stock: A 5.3% Yield Paying Constant Cash
• Use a TFSA to Make $800 in Monthly Tax-Free Income

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.

The March 2026 sell-off in the market sent the TSX60 Index down 7.7% and the Nasdaq down 8.6%. Gold stocks, financial stocks, grocery stocks, and technology stocks declined, while energy and real estate stocks rose. The U.S.-Iran war diluted the impact of the U.S. tariff repayment triggered by the Supreme Court ruling. While the market has recovered from the March dip, several stocks have not, creating a buying opportunity.

Three stocks to buy in the stock market sell-off

Before you jump into buying stocks at the dip, know why the stock has dipped. If the reason is the broader market sell-off, then it is a definite buy. But if the reason is a fundamental weakness of the company, avoid buying the dip. For instance, goeasy stock fell 74% in March 2026, and the reason was financial reporting mistakes, which were pointed out in a short seller report. Many of its loans were reclassified as bad, and the net charge-off rate spiked. Its dip had nothing to do with the sell-off.

Here are three stocks that have strong fundamentals, and share price dips are driven by a broader market sell-off.

Broadcom stock

Broadcom (NASDAQ:AVGO) has a strong balance sheet and earnings. In the semiconductor sector, most of the limelight is taken by those who make processors; after all, that’s where the computing power lies. Broadcom makes Ethernet Switches and other components for wired and wireless communications, enterprise storage, and industrial end markets.

Broadcom is the connecting link that joins the processors to each other and the power source in a technology infrastructure. Despite operating in a competitive space, Broadcom’s operating efficiency and faster growth through acquisition make it a leader in communication chips. Broadcom has also developed artificial intelligence (AI) accelerators that offer an alternative to Nvidia and Advanced Micro Devices’s graphics processing units in some workloads. This AI accelerator has made Broadcom a contender in the AI space. The communications infrastructure doesn’t need the top compute workload, but a scalable and reliable component.

Every technology upgrade will call for a denser network, creating demand for more Broadcom chips in every upgrade. The stock fell 15% in the March 2026 sell-off, creating a buy-the-dip opportunity. Those who missed the opportunity saw the stock recover to its previous high in less than a month. Broadcom’s secular growth remains intact. So the next time the stock falls, consider buying it without hesitation.

Descartes Systems

Descartes Systems (TSX:DSG) stock has been in a downtrend since 2025, when the trade war began. The supply chain management solutions provider benefits from higher trade volume. Since the global tariff war affected its catalyst, the stock has been sliding gradually. However, Descartes increased its revenue by focusing on domestic logistics and acquiring more technology providers. It has zero debt and has been accumulating more cash reserves for a downcycle. Descartes reduced expenses to sustain its profit margin. While the fundamentals remained intact, Descartes’s stock price fell, which led to a correction in the stock valuation.

Descartes has the tech and resources to facilitate a supply chain shift and ride the recovery rally. However, investors remain cautious about buying trade-related stocks given the geopolitical tensions and tariff uncertainties. Patient investors could consider buying this stock as it will recover in the next two to five years. However, it is difficult to forecast exactly when that recovery will begin.

Kinross Gold stock

Kinross Gold (TSX:K) is a buy-a-dip stock because of the growing attraction of investors towards gold. Gold prices have rallied 150% in the last two years amidst trade wars and energy shocks. All major economic crises from the 1980s oil crisis to the 2007 Financial Crisis drove demand for gold. Gold prices could reach a new high in the next three to five years as countries diversify oil supplies and look to buy oil in currencies other than the U.S. dollar.

Kinross Gold could benefit from a gold price rally. It can balance the risk and reward of your portfolio.

Investor takeaway

Most major crises last an average of three years before a partial recovery begins and five years before a full recovery. The next three years are crucial for rebalancing profitable stocks and holding recovery stocks.  

The post Stock Market Sell-Off: 3 Stocks I’m Still Buying Now appeared first on The Motley Fool Canada.

More reading

• Here Are the Average Canadian TFSA and RRSP Balances at Age 45
• The Average TFSA Balance for Canadians at 55
• How to Structure a TFSA With $14,000 for Lifelong Monthly Income 
• 5 Stocks to Hold for the Next Decade
• 1 Canadian Stock for Growth, 1 for Value, and 1 for Dividends — All Worth Buying Now

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Advanced Micro Devices, Broadcom, Descartes Systems Group, and Nvidia. The Motley Fool has a disclosure policy.

Artificial intelligence stocks, like NVIDIA, Broadcom, and Micron Technology, rallied to exorbitant levels, making their loyal investors millionaires. While these stocks still have growth potential, the journey to becoming a millionaire could take longer. In the meantime, an upcoming clean energy technology could increase your chances of becoming a millionaire once it picks up momentum.

This $8 stock could be your ticket to millionaire status

The biggest drawback of clean energy stocks is too much reliance on government policies and the lack of assured energy. Most renewable energy generation depends on weather conditions and may not be a reliable source 365 days a year. However, this clean energy tech could provide reliable energy and address the issue of energy security.

Ballard Power Systems (TSX:BLDP) has developed a proton exchange membrane (PEM) fuel cell power system and is now commercializing this technology. The hydrogen fuel cell powers commercial vehicles like buses, trucks, marine, rail, and stationary power. The company has hired professional management and tasked them to make it profitable.

Despite the promising returns, investors who saw the stock’s price rise in 2020 and 2021 and then fall in 2022–2024 remain cautious.

What happened in 2020?

At that time, Joe Biden, whose policies promoted clean energy, became the US President. When he won the US elections in November 2020, all renewable energy stocks skyrocketed. Ballard Power Systems’ stock jumped 143% between November 2020 and February 2021.

The expectations of order wins overvalued the stock. Too high expectations were baked in, and widespread adoption did not materialize. All clean energy stocks fell, with Ballard Power Systems’ stock falling 90% over the next three years.

Ballard Power Systems’ stock is rising once again as the US-Iran war is encouraging countries to diversify their energy sources beyond oil. The high oil price is a strong motivation to accelerate clean energy adoption as it makes the latter economically feasible.

Why is this $6 stock now trading above $8?

Recently, the stock climbed almost 30% between May 19 and 21, moving from $6 to $8 and still going up.

Behind the rally is a management shift. Let’s go back in time to November 2018, when Ballard signed the joint venture (JV) with China’s Weichai Power, wherein Weichai had a 51% controlling interest. The JV manufactured certain fuel cell products utilizing Ballard’s technology, and China held certain exclusive rights.

However, in 2024, Ballard reconsidered strategic options as the JV was underperforming due to policy and other challenges in China. Ballard impaired its equity interest in the JV for $4.6 million in the fourth quarter of 2025.

In May 2026, Weichai Power reduced its stake in Ballard Power Systems to about 10.3%. Weichai’s further stake reduction unlocked potential for Ballard, which was being pulled down by the JV’s underperformance.

When it comes to a company’s size, there are two ways a stock price can increase: one when the company expands, and one when it dissolves or spins off a loss-making business. TC Energy stock surged after it spun off its slowing oil pipeline business, which faced several project execution challenges. Bombardier’s stock surged after offloading its train manufacturing and other businesses.

The catalyst for millionaire status

This time, Ballard Power Systems’ stock is rising on the back of fundamentals. The US-Iran war has encouraged countries to diversify energy supplies. Transportation is the largest consumer of oil. If hydrogen fuel cells contribute to even 10% of the world’s transportation needs, it could make Ballard a millionaire maker.

The post This $8 Stock Could Be Your Ticket to Millionaire Status appeared first on The Motley Fool Canada.

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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

Long-term investing brings significant returns but also comes with risk. In the stock market, “long term” refers to five years or more. We are talking about a decade or two. 20 years is a long time during which many companies complete the entire business cycle from expansion to maturity to decline. How can you be sure to invest in dividend stocks for two decades?

Finding dividend stocks to hold for the next two decades

To identify long-term stocks, you have to look at the businesses and determine which goods or services will be relevant after 20 years. The most common answers you will get are energy and utility, real estate, banking, and agriculture.

You have energy companies and banks that are 80 to 100 years old and still running strong. They have seen wars and recessions. It is not that they are recession-proof. Many banks and utilities got acquired, dissolved, or liquidated. Thus, blindly investing in any banking or real estate stock is also not a good idea.

Within this sector, some of the safest bets are the market leaders or the ones with strong balance sheets. By that, we mean that the management is managing the company’s debt within its long-term target range. The next thing to look for is stable management. If the chief executive officer or financial officer leaves suddenly without a reason, be careful with that stock. Most companies that saw unexpected management changes lost their valuation, as their financial statements didn’t show the true picture.

Between September and December 2025, goeasy saw management changes, and in March 2026, it reported accounting mistakes. A similar scenario unfolded with Dye & Durham and Algonquin Power & Utilities.

Dividend stocks you will feel confident holding for two decades

I looked at the above parametres and found two stocks that have relevant low-risk businesses that can generate cash flows for decades to come.

Granite REIT

Granite REIT (TSX:GRT.UN) has 145 logistics, warehouse, and industrial properties in North America and Europe. The management keeps recycling capital, disposing of the low-income properties, and acquiring high-income ones. In the first quarter of 2026, it disposed of five properties that produced $3.5 million in revenue and acquired eight properties that produced $4.5 million in revenue. This active property management shows the management’s decision-making is in favour of enhancing value for shareholders.

Of the 145 properties, six are in the development stage. Granite’s largest tenant, Magna International, occupies 20% of the leasable area and contributes 27% to its revenue. The REIT’s second-largest tenant is Amazon, which occupies 4% of its leasable area and contributes 3.7% to its revenue.

Granite has been paying and growing dividends for the last 13 years. Over the years, it has strengthened its balance sheet compared to real estate peers. Its debt makes up for 33% of its investment assets, and earnings before interest, taxes, depreciation, and amortization (EBITDA) are five times its interest, which means it can easily pay interest. Its total debt is 7.1 times its EBITDA, which means the REIT could pay off its debt in seven years if it allocates all its operating profit to debt repayment. This ratio is lower than the peer average of 9.5 times.

A better financial discipline and conservative debt approach make Granite an ideal stock to hold for two decades. You know the management won’t take unnecessary risks and will prioritize stable and sustainable growth.

TC Energy stock

TC Energy (TSX:TRP) stock has spun off its liquid pipeline business, which was its growth bottleneck. The company’s Keystone pipeline faced several oil leak incidents and rejection for an expansion project. After the spin-off, it only has gas pipelines, and all are being constructed within budget and on time.

TC Energy managed to bring online $8.3 billion worth of projects 15% under budget in 2025. The year 2026 will see revenue flow in from these projects. As the energy sector transitions to cleaner energy, natural gas will replace oil in many areas, making gas pipelines relevant for the next two decades. TC Energy already has a 26-year dividend-growth history. It could continue growing dividends for another two decades.  

The post 2 Dividend Stocks I’d Feel Good About Holding for the Next 2 Decades appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Dye & Durham. The Motley Fool recommends Amazon, Granite Real Estate Investment Trust, and Magna International. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.