Valued at a market cap of $8.5 billion, Canadian Tire (TSX:CTC.A) stock has trailed the broader markets in the past decade. Since May 2015, the TSX stock has returned just 17% to shareholders. If we adjust for dividend reinvestments, cumulative returns are closer to 59%.

Today, Canadian Tire stock trades 30% below its all-time highs and offers a tasty dividend yield of 4.7%. Let’s see if this TSX dividend stock should be on your watchlist right now.

Should you own this TSX dividend stock right now?

In 2024, Canadian Tire reported adjusted earnings of $12.62 per share, an increase of almost 13% year over year. Despite a challenging retail environment, CTC demonstrated an ability to control costs while promoting key categories.

The retailer reported modest growth in the fourth quarter (Q4), with retail and comparable sales excluding petroleum up more than 1% across banners. Revenue increased 1.3% to $4.1 billion after seven consecutive quarters of decline, driven by higher Canadian Tire retail shipments and growth at Helly Hansen and Mark’s.

Triangle Rewards continues to be a key growth driver, with loyalty members shopping more frequently and spending more than in 2023. Loyalty penetration reached 54% of sales in 2024, up 141 basis points from the previous year. After a strategic review, the company also finalized its decision to retain full ownership of Canadian Tire Financial Services.

Cost control remains impressive, with normalized retail operating expenses down $15 million in Q4. Supply chain modernization efforts in Calgary and Montreal delivered $20 million in savings during 2024. Corporate inventory dollars finished 5% below last year as Canadian Tire maintains disciplined inventory management while focusing on product assortment vitality.

Looking ahead, Canadian Tire faces uncertainty around potential U.S. tariffs, though management expressed cautious optimism about consumer trends. It is well-positioned with forward currency hedging for over 80% of its 2025 U.S. dollar requirements at rates below current spot prices, providing some margin cushion.

Is this TSX stock undervalued?

Analysts tracking Canadian Tire expect its sales to increase from $16.36 million in 2024 to $17 million in 2029, indicating a compounded annual growth rate of less than 1%. Comparatively, adjusted earnings per share are forecast to grow by 4% annually from $12.6 in 2024 to $15.4 in 2029.

Today, the TSX stock trades at a forward price-to-earnings multiple of 12 times, higher than its five-year average multiple of 11 times. If Canadian Tire stock is still priced at 11 times forward earnings, it will trade around $163 per share in early 2028, indicating an upside potential of 8% from current levels. Given consensus price targets, CTC stock trades at a 6% discount in May 2025.

A key near-term driver for CTC stock will be its Q1 earnings report. Bay Street expects it to report revenue of $3.55 billion in the March quarter with an adjusted earnings per share of $1.28. While revenue is forecast to grow by 0.9%, earnings might decline by 7% year over year.

I think Canadian Tire stock is unlikely to deliver outsized gains to shareholders over the next three years. However, it remains attractive to income-seeking investors as the stock offers a forward yield of almost 5%.

The post Where Will Canadian Tire Stock Be in 3 Years? appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Valued at a market cap of $69.7 billion, TC Energy (TSX:TRP) is among the largest companies in Canada. Since the start of 1995, the TSX stock has returned 450% to shareholders. However, if we adjust for dividend reinvestments, the cumulative returns are much closer to 2,400%.

Despite its stellar performance over the last three decades, the TSX dividend stock offers a tasty yield of 5.5% as of April 2025. Let’s see if you should own TC Energy stock for its 5.5% dividend yield right now.

Is the TSX dividend stock a good buy?

TC Energy is a diversified energy infrastructure company. It operates a vast network of natural gas pipelines, which transport natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, and other businesses.

In 2024, TC Energy reported a 6% increase in comparable EBITDA (earnings before interest, tax, depreciation, and amortization) from continuing operations, though quarterly comparable earnings of $1.1 billion were down 8% from the same period last year.

“2024 has been a year of significant achievement on milestones for TC Energy,” said Chief Executive Officer Francois Poirier on the earnings call. TC successfully completed the spinoff of its liquids business and expects its Southeast Gateway pipeline in Mexico to achieve commercial in-service in the second quarter (Q2) of 2025.

TC Energy forecasts EBITDA in 2025 to range between $10.7 billion and $10.9 billion, representing 8% year-over-year growth, with a three-year growth target of 5-7% through 2027.

The energy giant has significantly strengthened its balance sheet, reaching its debt-to-EBITDA target of 4.75 times. Its board declared a Q1 dividend of $0.85 per share, marking a 3.3% increase and its 25th consecutive year of dividend growth.

Looking ahead, TC Energy is positioning itself to capitalize on the surging demand for data centres. “Data centres are one component of our power demand opportunities,” said newly appointed executive vice president Tina Faraca. “Our vast footprint gives us access within 15 miles to 60% of the over 350 data centers that are under development.”

TC Energy reported about 10 gigawatts of requests to its business development team, with approximately $2 billion of potential opportunities across several systems, including Wisconsin, Ohio, Virginia, and Indiana.

Nuclear power also presents significant growth potential. “The Ontario IESO projects an approximately 69,000 megawatts shortfall in total installed capacity by year 2050,” Poirier noted, emphasizing that nuclear power will be essential to meeting Ontario’s demand.

What’s next for the TSX energy stock?

TC Energy maintains its capital expenditure guidance at $6-7 billion annually and expects to fill the majority of its remaining project capacity by the end of 2026 with lower-risk projects that deliver attractive build multiples of five to seven times.

Despite its massive size, TC Energy is expected to grow its free cash flow (FCF) from $1.06 billion in 2025 to $2.64 billion in 2029. In this period, its FCF margin is projected to expand from 7.1% to 13.8%.

TC’s improving profit margins should help it grow its dividends from $3.40 per share in 2025 to $3.79 per share, given consensus price targets.

Analysts tracking the TSX stock expect it to gain 5.6% over the next 12 months. If we adjust for dividends, cumulative returns could be closer to 11%.

The post Is TC Energy Stock a Buy for its 5.5% Dividend Yield? appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

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

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

Is this TSX stock a good buy right now?

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

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

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

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

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

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

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

What is the target price for the TSX dividend stock?

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

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

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

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

The post 1 Magnificent TSX Stock Down 30% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Chevron. The Motley Fool has a disclosure policy.