The markets are volatile. Tech stocks are sliding, oil stocks are rising, and uncertainty around the Iran war has made investors jittery. Hence, investing in oil stocks is a gamble at the moment. In these volatile markets, non-energy Canadian dividend stocks can help you produce steady returns from your investments.

Finding a steady Canadian dividend stock in volatile markets

Several dividend-paying stocks slashed dividends or changed their dividend policy in the last five years. At such times, finding a steady dividend stock requires a keen look at the fundamentals.

Look for a dividend stock that meets the following criteria:

• A share price trading near its average price at the right valuation
• A dividend payout ratio not above 85%
• Earning steady profits and cash flows
• Manageable debt

One Canadian dividend stock that could help steady a volatile portfolio

One such stock is CT REIT (TSX:CRT.UN). The REIT is not directly affected by the geopolitical tensions that are keeping the markets volatile. In fact, its business model is shielded from the volatility thanks to the retail business model of its parent company, Canadian Tire (TSX:CTC.A).

Canadian Tire, in partnership with Suncor Energy, retails petroleum through Petro-Canada. The retailer also supplies auto parts, tires, auto accessories, batteries, and auto fluids. While this segment generates resilient revenue, it also caters to seasonality, selling sports and seasonal home essentials. In economic weakness, the demand for auto parts increases as customers stall their decision to buy new cars.

Canadian Tire’s True North strategy to expand and intensify stores benefits CT REIT. The REIT purchases, develops, and intensifies Canadian Tire stores, and saves on brokerage. The retailer pays rent to the REIT, which annually increases by 1.5%. The intensified store and new stores earn more rent.

Better dividend stock: Canadian Tire or CT REIT

If Canadian Tire has a resilient business model, then why not invest in that stock?

Canadian Tire stock has a 3.8% dividend yield, and it grows its dividend per share by 1.4% annually. CT REIT has a 5.5% yield and a 2.5–3% dividend growth rate. Moreover, CT REIT gives a monthly payout, which you can reinvest through a dividend reinvestment plan (DRIP). Even Canadian Tire has a DRIP, but the payout is quarterly, which means reinvestment also happens quarterly. CT REIT’s special arrangement with the retailer and its trust status make it the ideal dividend stock to buy.

If you invested $10,000 in both CT REIT and Canadian Tire, the former would pay you $175 more in annual dividends. This gap will only widen as the dividend growth of the REIT is better than that of the retailer.

Do CT REIT fundamentals meet the four requirements for a steady portfolio

It is established that CT REIT is a better dividend-paying stock. But does it have the fundamentals to keep your volatile portfolio steady?

• Right valuation: CT REIT is trading at $17.12, slightly below its net asset value (NAV) of $18.53 per unit. This hints that the valuation is right.
• Below a 75% dividend payout ratio: The REIT has kept its payout ratio below 75% since 2022. In 2025, its ratio was 73.5%, giving it ample flexibility to sustain its payout even in lean periods.
• Steady profits and cash flows: CT REIT has grown its funds from operations at a 3% compounded annual growth rate for the last 11 years.
• Manageable debt: The REIT has $3.1 billion in debt, of which 99.7% is unsecured. Debt makes up almost 40% of the fair market value of its property portfolio. It has enough cash to comfortably service its debt with its steady cash flow.

In summary, CT REIT has the balance sheet strength to give you stable dividends in volatile markets.

The post One Canadian Dividend Stock That Could Help Steady a Volatile Portfolio appeared first on The Motley Fool Canada.

More reading

• A 5.7%-Yielding TFSA Pick That Pays Consistent Cash
• How to Create Your Own Pension With Dividend Stocks
• 4 Canadian Stocks to Buy if You Want Instant Income
• Canadians: Here’s the TFSA Amount You Need to Retire, Plus 3 Stocks to Get There
• The Best Dividend Stocks to Buy and Hold Forever

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 way 2026 is shaping up, five Canadian stocks have come into the limelight. They are either receiving windfall gains from cyclical peaks or could see bottoming out. In either case, the momentum will be significant and news-driven.

Five Canadian stocks to watch in 2026

The five Canadian stocks I am talking about are at the center of geopolitical situations and holding strong. Their management is closely monitoring macroeconomic developments and is ready for both good and bad situations.

Descartes Systems

The first stock to add to your 2026 watchlist is supply chain management solutions provider Descartes Systems (TSX:DSG). The stock has been down since the tariff war began. The management knew that tough times were coming, so it slashed its workforce and focused on acquiring companies with its cash. These activities helped it grow revenue by 12% and net income by 14% in 2025.

Descartes is debt-free and has been growing its cash balance to withstand these times of trade uncertainty. While its Global Trade Intelligence and transportation management solutions continue to generate revenue, the stock will surge when trade recovers. You can buy the dip and hold it for the next five to seven years, waiting for that recovery period, when geopolitical situations stabilize.

Lundin Gold stock

In the meantime, you can buy Lundin Gold (TSX:LUG) stock as the gold price will rise amid growing uncertainty. The price of gold began falling when the Iran war began. The gold price falls when interest rates rise, and vice versa. Right now, central banks cannot cut interest rates as the energy shock is increasing inflation. But the gold price will rise when oil prices cool and central banks begin to cut interest rates and build gold reserves, which they spent on expensive trade.

Lundin Gold stock surged more than 17% in the first week of April as the US-Iran war paused for talks. It could fall again if the war escalates. That is the time to buy the stock as the gold price will surge in the latter half of the year.

Suncor Energy stock

Suncor Energy (TSX:SU) stock is at the center of the trade war as Canada’s largest integrated oil company. It exports most of its oil to the United States. The Canadian government’s push to export oil to China and India will benefit Suncor, as it will be able to produce more oil. The oil company is at its cyclical peak as the WTI price surged past US$100. It used the frequent oil shocks from several wars to earn windfall gains, reducing net debt to US$8 billion and lowering its breakeven point.

The stock is worth adding to your watchlist, but not a buy at the moment, as it trades near its all-time high. Its share price will correct when the oil price falls, creating a buying opportunity.

Aecon Group

Aecon Group (TSX:ARE) stock is worth adding to your watchlist and even buying at the dip in 2026. This construction company is a key beneficiary of Canada’s infrastructure push. It has secured orders to build nuclear plants and data centres. The $10.7 billion order backlog gives visibility into future revenue. Its share price will jump on new order wins and fall on project delays.

Overall, the stock could see growth in the next five years as it rides the Canadian infrastructure and artificial intelligence (AI) wave.

Bombardier stock

The fifth stock to add to your watchlist is Bombardier (TSX:BBD.B), as July 1 will see a sharp stock price momentum. That is the date when the United States-Mexico-Canada Agreement (USMCA) is up for renewal. Had the situation been different, the renewal would be routine. However, the US trade protectionism leaves the outcome of the free trade agreement uncertain.

Bombardier is a beneficiary of the USMCA, as most of its raw materials are traded between the three nations. If the trade agreement is maintained, Bombardier stock could rise. Otherwise, all eyes would be on the financial impact of tariffs on Bombardier. Thankfully, the management has strengthened its balance sheet by reducing net debt to 1.9 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization.

The post 5 Canadian Stocks to Watch as 2026 Really Gets Underway  appeared first on The Motley Fool Canada.

More reading

• Canada Is an Oil Exporter: Are You Investing Like One?
• Market Crash: 2 Stocks I’d Buy Without Hesitation
• 1 Canadian Energy Stock Set for Major Growth in 2026
• Your RRSP Balance Doesn’t Matter as Much as These 3 Things in Retirement
• The Top Canadian Stocks to Buy Right Away With $40,000

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

The Canada Revenue Agency (CRA) offers certain cash retirement benefits, such as Canada Pension (CPP) and Old Age Security (OAS), to help retirees meet their basic needs. These benefits are structured to cover your food, clothing, and utilities. If you are still living in a rented apartment or your medical bills are high, CPP and OAS won’t be enough to cover your expenses.

How much of expenses does CPP and OAS cover

The January 2026 average monthly CPP payout at age 65 was $925.35. The monthly OAS for the April to June 2026 period is $742.31 if your 2024 income is below $148,451.

Adding up the two benefits, a 65-year-old single Canadian can get $1,668.4 per month in retirement benefits.

You can look at your current expenditure and calculate the gap. Excluding rent, the gap between your expenses and CPP and OAS payouts could be in the range of $1,000–$1,500 per month.

How to bridge the $1,000 expense gap that CPP and OAS won’t cover  

Retiring can be scary when you don’t have the savings to fall back on. Calculating your future retirement needs can help you build a retirement pool sufficient to fill the gap left by OAS and CPP. Considering a $1,000 monthly passive income as your end goal and the 5.5-6% average annual dividend yield, you can come up with the amount that should be there in your retirement pool.

A $200,000 portfolio that pays 6% annual dividend can fill the gap. If you have that much balance in your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP), you can consider SmartCentres REIT (TSX:SRU.UN) and Enbridge (TSX:ENB).

Hypothetically speaking, if you invested $100,000 in each of the two stocks, you would come close to the target of $12,000 in annual passive income.

SmartCentres REIT

SmartCentres REIT is in the middle of a large intensification project, wherein it is looking to convert shopping centres into city centres. Thus, its debt is on the higher side. It is using that money to build mixed-use facilities, sell most of them, and increase the market value of its store. This way, it is making optimum use of the land in and around the retail store, especially the underused parking space. It repays debt by selling the apartments and offices. The rental income continues to come from retail stores.

SmartCentres biggest tenant is Walmart, accounting for 23% of its rental revenue. This percentage has reduced over the years as the REIT has been adding new stores and diversifying tenants. It can be a reliable passive income provider as it has passed the test of time and managed to withstand the worst of the crises without dividend cuts. SRU.UN has a 21-year dividend-paying history.

Enbridge

Enbridge is an evergreen passive income stock. However, now may not be a good time to invest a lump sum as the stock trades at its all-time high amidst the energy shock. You could add it to your watchlist and buy it when the stock falls to $60–$65. When the stock has a dividend yield of 6% and above, that is the ideal time to buy.

Enbridge is focusing on increasing its natural gas infrastructure and is on track to bring US$8 billion worth of pipeline projects online. The toll money from these projects will help the company to accelerate its dividend growth rate to 5% in 2027 from the current 3%. This growth will help beat inflation.

How to invest to generate your personal pension

Investing $200,000 in one go may not be a good option. Even a TFSA’s cumulative limit is $109,000. If you still have five years to retire, consider maxing out on your TFSA contribution room first, as RRSP withdrawals are taxable and can claw back OAS if all your taxable income adds up to the threshold. You can invest in some growth stocks like Shopify to grow your TFSA portfolio and keep rebalancing profits into dividend stocks.

The post How to Bridge the Gap When CPP and OAS Won’t Cover Your Expenses  appeared first on The Motley Fool Canada.

More reading

• My Top Canadian Dividend Stocks You’ll Want to Own Forever
• How to Build a $50,000 TFSA That Throws Off Nearly Constant Income
• A Year After the Rate Pivot – Here Are 2 Canadian Stocks I’d Still Buy Now
• A Practical Way to Use Your TFSA Contribution Room to Build Monthly Cash Flow
• 2 High-Yield Dividend Stocks Canadian Retirees May Want to Consider

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

When it comes to pensions, the Canada Pension Plan (CPP) serves as the benchmark, as every Canadian in the workforce gets CPP between the ages of 60 and 70. The Canada Revenue Agency (CRA) determines the CPP payout, and for 2026, the maximum payout is $1,507.65 per month. You can get the maximum CPP if you contributed the maximum amount for 39 years.

We took the maximum self-employment contribution for the last 39 years, as they contribute for both the employer and employee. The total contribution stood at $154,642 after including the 2026 contribution. If the monthly CPP payout is $1,507.65, it is 1% of the cumulative contribution of 39 years.

CPP vs. your own pension

With the CPP, you can’t determine the payout or say where to invest. The only thing you can determine is whether to collect the payout at age 60, 65, or 70. However, the payout is guaranteed, and you don’t need financial planning to get CPP, as the CRA has done it for you.

What if you want to take a career break for a year at age 45 and live off a pension? In such a scenario, having your own pension comes in handy. You are in full control of your pension, how much to invest, where to invest, and when to take a payout and when to stop. You can also make your pension tax-free by investing through a Tax-Free Savings Account (TFSA).

How to create your own pension with dividend stocks

If you want your own pension to match the CPP payout, your portfolio should pay 12% annually so that 1% of your investment can be paid every month. A 12% dividend yield is risky. But you can earn such a high yield in fundamentally strong stocks by compounding dividends.

CT REIT

The landlord of Canadian Tire, CT REIT (TSX:CRT.UN), offers a 5.76% annual yield paid out in 12 monthly installments. It is among the few real estate investment trusts (REITs) that offer a dividend-reinvestment plan (DRIP) and even grows dividends at an average growth rate of 3%. CT REIT manages to offer both DRIP and dividend growth because of its special arrangement with Canadian Tire. The REIT has the first right to buy, develop, and intensify a Canadian Tire store. Moreover, the rent grows by 1.5% annually. The increasing rent and addition of new stores help CT REIT earn higher cash flow, which it passes on to unitholders.

The REIT has a dividend-payout ratio of 73.5%, which shows it has ample financial flexibility to pay debt and grow dividends even in a weak economy.

Although CT REIT has a 5.73% yield, it can become 14% with DRIP, as the dividend amount is reinvested to buy more income-generating units. A $10,000 investment in 2014 would have bought 897 units, which would generate $582.96 in annual dividends with a 5.8% yield then. This dividend amount, when reinvested, accumulated 49 more units and, over the years, increased the dividend by around 150%. After 12 years of compounding through DRIP, your realized dividend yield on your $10,000 TFSA investment is 14.4%.

Capital Power

Capital Power (TSX:CPX) is another dividend stock that grows its dividend and started offering DRIP in 2023. Its source of cash flow is acquiring, developing, and maintaining power plants. Its key focus is now on building natural gas-fired power plants for artificial intelligence data centres and has a US$1 billion earnings before interest, taxes, depreciation, and amortization opportunity. The company aims to maintain a 2-4% dividend growth till 2030.

The DRIP, dividend growth, and current 4.25% dividend yield make Capital Power an ideal choice for a personal pension.

The post How to Create Your Own Pension With Dividend Stocks appeared first on The Motley Fool Canada.

More reading

• One Canadian Dividend Stock That Could Help Steady a Volatile Portfolio
• 3 Canadian Dividend Stocks Perfect for Retirees
• A 5.7%-Yielding TFSA Pick That Pays Consistent Cash
• 4 Canadian Stocks to Buy if You Want Instant Income
• Canadian Renewable Energy Stocks: Hype or Historic Opportunity?

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

The average Registered Retirement Savings Plan (RRSP) balance of Canadians over 65 is $756,497, as per 2023 data from Statistics Canada. Is this sufficient for retirement? Not exactly. But the RRSP is not the only source of income in retirement.

Remember, the Canada Revenue Agency (CRA) created RRSPs to encourage individuals to save for retirement by offering them the option to deduct contributions from taxable income.

When an RRSP matters the most

The RRSP matters the most when you have a high income, as it can help you save tax. You can contribute to an RRSP and keep carrying forward the unused contribution to use all the accumulated unused contribution in the years you earn significant taxable income.

When an RRSP doesn’t matter much

However, the RRSP balance doesn’t matter much after retirement, as withdrawals are taxable. Moreover, you cannot completely control RRSP withdrawals after retirement. An RRSP is active till age 71, after which you have to transfer to a Registered Retirement Income Fund (RRIF) to avoid getting taxed on your RRSP balance. The RRIF has a minimum withdrawal amount, which is determined by your age and RRIF balance, and is taxable income. You can withdraw more, but a withholding tax will apply.

Also, RRIF withdrawals can affect your Old Age Security (OAS) pension amount, which depends on your taxable income.

Overall, RRSPs are not quite tax-efficient after retirement.

Three things that matter more than an RRSP in retirement

TFSA

A better and more tax-efficient withdrawal option in retirement is the Tax-Free Savings Plan (TFSA). TFSA withdrawals are not included in taxable income, and you can continue contributing and withdrawing from a TFSA even after age 71. This account helps you invest even after you retire, while the RRSP doesn’t. So, if you see an opportunity whereby a $2,000 investment can grow to $3,000 in a year because of a cyclical upturn, you can invest in a TFSA, irrespective of your age.

At present, Lundin Gold and Shopify (TSX:SHOP) have such an opportunity. Shopify can give you a 50% upside this holiday season as it integrates artificial intelligence (AI) to help merchants sell more. Merchants opting for AI solutions will help Shopify earn more revenue from merchant solutions and tap new channels for optimizing the shopping experience. The stock has dipped in March because of seasonality, like every normal year, creating a buying opportunity. Retirees can allocate a small portion towards such growth stocks.

CPP

Another thing that matters the most after retirement is the CPP. The CRA determines the CPP payout depending on the best 39 years of your contributions, but you can choose when to start your payout. The ideal age is 65. If you take an early payout at 60, the amount will reduce by 7.2% per year, and if you postpone till 70, it will increase by 8.4% annually.

OAS

You made contributions for CPP, RRSP, and an employer pension. However, OAS is a benefit funded by the CRA, and you don’t want to miss it. OAS payments are significant and taxable. The monthly payment for the January to March 2026 period is $742.31, which you can get if your 2024 taxable income was less than $148,451. Any income beyond this threshold might trigger the OAS clawback.

Investor takeaway

Retirement planning is not just about having a high RRSP balance. You also have to consider post-retirement taxes and diversify the income streams that give you control over your payout. Combining an RRSP with a TFSA, CPP, and OAS ensures more control over payouts and a tax‑efficient retirement strategy.

The post Your RRSP Balance Doesn’t Matter as Much as These 3 Things in Retirement appeared first on The Motley Fool Canada.

More reading

• 5 Canadian Stocks to Watch as 2026 Really Gets Underway 
• Where to Invest Your $7,000 TFSA Contribution
• The Top Canadian Stocks to Buy Right Away With $40,000
• Invest $5,000 in This Dividend Stock for $145.75 in Passive Income
• 2 Cheap Tech Stocks to Buy Right Now

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

When you have a large sum at your disposal, the temptation to splurge increases. You end up buying things you don’t need. And if you are not splurging, you are parking the money in term deposits to make it available for use.

Investing in stocks

Many Canadians refrain from investing in stocks because of the risk that the invested amount may fall. Your $40,000 may become $35,000 or $30,000 in the short term. But this dip might be temporary because of market conditions. If you sell a fundamentally strong stock at the dip, you are making that loss permanent. The risk of staying away from cash for three to seven years is what makes many Canadians lose the opportunity to double their money.

Instead, you should stay invested if your reason to be bullish on the stock is still strong. Don’t let short-term volatility cloud your long-term returns.

Top Canadian stocks to buy with $40,000

If you have $40,000 to invest, here is a balanced investment strategy for growth during economic recovery, dividends in uncertainty, and a hedge in crisis. Having four stocks that react differently to a situation can mitigate downside risk and enhance returns through equity growth opportunities.

Growth stocks for uncertainty

Shopify (TSX:SHOP) and Topicus.com (TSXV:TOI) are two Canadian tech stocks worth investing a lump sum in. They are trading near their lows as economic uncertainty slows shopping and business activities.

Shopify stock has slipped 32% so far this year, and a 30–40% seasonal dip is perfectly normal for it. Going by the fourth quarter figures, the e-commerce giant is enjoying consistent double-digit growth in revenue and free cash flow. Its international expansion is delivering strong growth. It is now adopting artificial intelligence (AI) to enhance customer support and returns, optimize the website, and streamline marketing. The AI-driven revenue could boost its revenue growth in the years to come.

AI adoption, consistency in cash flows, profits, and revenue, and a share price dip make Shopify a buy right now. The stock could surge 50% on a holiday season rally and grow $10,000 to $15,000, with limited downside risk of 5–10%.

Topicus.com stock has slipped 52% since July 2025 due to a management change at the parent company, Constellation Software, and uncertainty around AI’s impact on software. Topicus.com acquires vertical-specific software companies in Europe. It reported a sharp dip in 2025 net income because it deducted the acquisition cost of a 9.9% stake in Asseco under the equity method to arrive at net income. Moreover, it impaired intangible assets of companies that didn’t meet their goals.

However, these expenses are one-off, and the revenue and profits accretive from Asseco’s acquisitions could help boost earnings in the coming months.

Dividend stocks for uncertainty

The market uncertainty and geopolitical tensions are driving demand for insurance. Power Corporation of Canada (TSX:POW) increased its dividend by 9% as its two largest holdings, Great-West Lifeco and IGM Financial. Power Corporation has a strong portfolio of financial companies, with the above two focused on dividend earnings and GBL and Power Sustainable focused on asset value growth.

Power Corporation stock has slipped 10% from its December 2025 high, creating an opportunity to buy the dip and lock in a 4% yield and dividend growth.

Lundin Gold

Another stock to buy in the current market environment is Lundin Gold (TSX:LUG). The gold miner’s share price fell 23% in March amidst the Iran war. Once the energy shock cools, the gold price could surge as central banks refill their depleted gold reserves. Lundin Gold has zero debt and a low all-in-sustaining cost (AISC) that makes it an attractive investment. The stock may not grow in a strong economy, but it will hedge your portfolio in a downturn.

So, any dip in other stocks will be slightly offset by an increase in Lundin Gold’s share price.

The post The Top Canadian Stocks to Buy Right Away With $40,000 appeared first on The Motley Fool Canada.

More reading

• 5 Canadian Stocks to Watch as 2026 Really Gets Underway 
• Where to Invest Your $7,000 TFSA Contribution
• Your RRSP Balance Doesn’t Matter as Much as These 3 Things in Retirement
• Invest $5,000 in This Dividend Stock for $145.75 in Passive Income
• 2 Cheap Tech Stocks to Buy Right Now

The Motley Fool has positions in and recommends Shopify and Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

The average retirement age in Canada is 65, but some prefer early retirement or a career break at age 45, making retirement planning challenging. The Registered Retirement Savings Plan (RRSP) cannot adapt to such changes, but a Tax-Free Savings Account (TFSA) can.

The average TFSA balance of Canadians in the 45–49 age group is $24,150, as per 2023 tax year data from Statistics Canada. The median RRSP balance for Canadians in the 45–54 age group is between $70,000 to $72,600. Is it right to invest more in an RRSP than TFSA, even when you have ample TFSA contribution room?

TFSA vs. RRSP: When you want to retire at age 45

There is a misconception that only RRSPs can be used for retirement. But in reality, the RRSP balance does not matter much after retirement.

The logic behind the RRSP is that you have a high tax liability during your work life and a lower tax liability in retirement, as you earn less. The RRSP allows you to deduct your contributions from your taxable income. But after you retire, you have to transfer the money into a Registered Retirement Income Fund (RRIF), which will give you a minimum withdrawal that will be taxable.

If you retire early at age 45 and want to withdraw passive income from an RRSP, it will be subject to withholding tax.

The TFSA gives that flexibility. You contribute your after-tax income to your TFSA. Once inside a TFSA, your investments can grow tax-free, and you can withdraw your TFSA balance as per your financial needs, with no minimum or maximum limit, and no taxes.

Understanding TFSA retirement

Let’s take a hypothetical situation. You invested $15,000 in Nvidia (NASDAQ:NVDA) in 2016 and left it to grow. Today, you open your TFSA and see that the amount has become $3.4 million. That’s more than enough for you to retire. You can simply move some of this amount to dividend stocks that pay monthly or quarterly dividends. A 6% yield on $1 million comes to $60,000 annually.

The TFSA is the only account that will make these capital gains and passive income tax-free. And your withdrawals will be added to your contribution room on January 1 of next year. No obligation, but an option to contribute more to a TFSA.

Had this same investment been made in an RRSP, the $60,000 dividend income would attract 30% withholding tax, and you would be under an obligation to recontribute that amount in an RRSP. Thus, the TFSA is a better choice if your financial goal is wealth creation and financial flexibility on your invested amount.

Understanding RRSP retirement

The RRSP has more benefits before retirement than after retirement. The Canada Revenue Agency (CRA) allows you to contribute 18% of your taxable income to an RRSP up to a maximum limit. Whatever you contribute, you can deduct from your taxable income. You can deduct it today or in a future year when your taxable income is high.

A smart investor may accumulate and carry forward RRSP contributions and claim the tax deduction when they realize a major gain from the sale of property or investment. It is a good tax planning tool.

But when it comes to retirement, RRSP withdrawals are taxable. It is simply deferring tax to a date when you withdraw the amount. Technically, you are also paying tax on your investment income. Suppose you invested $15,000 in Enbridge (TSX:ENB) in 2016 through an RRSP and got 316 shares. In 10 years, those shares paid cumulative dividends of $11,074, and their value increased to $24,237.

If you withdraw $16,000 at age 45, you will get $11,200 as your financial institution will withhold 30% tax, even if you fall under the 20.05% tax bracket. While the withholding tax will be adjusted to your tax liability, you have to recontribute that amount to the RRSP as per the schedule provided by the CRA.

RRSP withdrawals are not tax-efficient nor flexible, making dividend stocks a better investment option.

The post Here’s the Average TFSA and RRSP at Age 45 appeared first on The Motley Fool Canada.

More reading

• My Top Canadian Dividend Stocks You’ll Want to Own Forever
• How to Build a $50,000 TFSA That Throws Off Nearly Constant Income
• A Year After the Rate Pivot – Here Are 2 Canadian Stocks I’d Still Buy Now
• How to Bridge the Gap When CPP and OAS Won’t Cover Your Expenses 
• 2 High-Yield Dividend Stocks Canadian Retirees May Want to Consider

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

The Tax-Free Savings Account (TFSA) contribution limit is $7,000 for 2026. What is this $109,000 opportunity? The way TFSA works is you need to be a Canadian above 18 years of age and have a Social Insurance Number (SIN). If you met all three conditions in 2009, the TFSA contribution room has been accumulating for you. In the last 18 years, the total contribution room, including the $7,000 limit for 2026, is $109,000.

Something about the $109,000 TFSA opportunity

If you have been contributing to the TFSA, that amount is reduced from the $109,000 room. The ideal scenario would be you maxing out the TFSA every year. Even if you kept the cash as it is, you would have a $109,000 TFSA balance.

But given that the average TFSA balance of a 40-year-old Canadian is around $20,000, many people are not using this account to its fullest. When you check your TFSA contribution room on My CRA Account, you will be amazed to see the available contribution room because your previous year’s withdrawals are added to the contribution room the next year.

How do you stack up the TFSA opportunity?

If you have contribution room of over $100,000, it means you can invest that amount in a TFSA. Whatever your investment earns will be tax-free. A $109,000 investment in 6% dividend yield stock can earn you $6,540 passive income annually. If the same amount is invested in a portfolio of stocks that annually generate 10% returns, then a $10,900 tax-free capital gain would add to your TFSA balance.

However, these numbers are benchmarks. You don’t have to lose your night’s sleep over investing $109,000. You can gradually stack up your TFSA investments as you get extra cash, such as a bonus, proceeds from the sale of your old car, or maturity on an investment.

In fact, Statistics Canada data shows that Canadians, on average, contributed $10,520 in 2023, with those over 65 years of age contributing more than $13,000. In that year, the TFSA contribution limit was $6,500. Suppose you contribute $10,000-$14,000 annually, you can easily play catch-up to the unused contribution room.

Ideal TFSA strategies to stack up $109,000

The benefit of a TFSA is that all your investment income, be it from interest, dividends, or capital gains, is tax-free. It doesn’t add to your taxable income when you withdraw. That means you can still use Old Age Security pension and other benefits that depend on your income level. The right strategy for TFSA is the one that can triple your money in 10 years.

Rebalancing your TFSA portfolio

A wealth-generating strategy is to invest in two to three high-growth stocks, like Celestica and Constellation Software (TSX:CSU), at their dip and rebalance your portfolio annually. In rebalancing, you sell a portion of shares and book profits when the shares are at their high. The capital gain realized is reinvested in other stocks that are trading at their low or in dividend stocks, depending on your strategy.

For instance, let’s say you invested $5,000 in Celestica in March 2023, which has become $15,000. You can sell shares worth $7,000 and invest it in Constellation Software, which is trading near its multi-year low. This way, your Constellation shares are brought purely from profits. They have dipped more than 50% amidst artificial intelligence (AI) woes and a slowdown in software spending. However, it continues to report double-digit revenue and free cash flow growth.

The stock could surge when the market revives, or the company makes a game-changing acquisition or adopts AI in its software products. It reinvests the free cash flow to make new acquisitions, and this has helped it compound its portfolio value in the long term. Constellation could double your money in five years or even less if the recovery kicks in.

Compounding with a DRIP

Another strategy is to invest in a dividend-reinvestment plan (DRIP) of a dividend-growth stock like Telus Corporation or Manulife Financial. The dividends will accumulate more income-generating stocks, and dividend growth will give inflation-adjusted passive income. A 3% average dividend-growth rate can double your dividend income in 10 years.

The post The $109,000 TFSA Opportunity: How Do You Stack Up? 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 Celestica, Constellation Software, and TELUS. The Motley Fool has a disclosure policy.

Market volatility is often dismissible as noise, but for income-focused investors who augment portfolio dividend income with periodic stock sales, it can feel like a structural threat, especially when some dividend stocks cut payouts or substantially stumble. That’s why I want to own companies whose cash flows are decoupled from trade disruptions, rate shocks, and flash recessions. After a year, and a quarter that has tested every business’s resilience, Intact Financial (TSX:IFC) stock is one Canadian dividend stock that stands even taller and earns my trust.

Intact Financial stock: A business that doesn’t know recessions

The core reason I’d trust Intact Financial stock when markets get choppy is the nature of its revenue. As Canada’s largest property and casualty insurer, it covers homes, autos, and businesses – coverage that’s often a legal or contractual requirement. In a downturn, consumers may skip a vacation or delay a phone upgrade, but they can’t legally drive without auto insurance or maintain a mortgage without home insurance. That demand floor remains intact, regardless of economic weather.

Revenue and cash flow resilience helped IFC stock sustain dividend hikes during past recessions.

The interest rate shock absorber

If higher oil prices trigger a new wave of inflation, I wouldn’t be too worried. Intact Financial stock does something rare when interest rates rise. While highly leveraged REITs, utilities, and pipelines see borrowing costs soar, insurers hold a massive pool of premiums (the “float”) invested mostly in fixed income.

When interest rates rise, the yield Intact earns on its new bond purchases increases. While most companies scramble to cover higher interest expenses, Intact actually sees its internally managed investment income grow. This creates a natural hedge: the interest risk that “chops” the rest of the stock market often acts as a tailwind for Intact Financial stock’s bottom line.

That said, rising rates do create short-term mark-to-market losses on the bond book, but Intact Financial’s hold-to-maturity approach turns that noise into a footnote.

Operational excellence backed by recent earnings results

Trust in a dividend stock is earned through consistent execution. Intact Financial stock consistently delivers an industry-leading combined ratio – a measure of underwriting profitability. In 2025, it achieved 88.2%, a full four points better than the prior year. Anything under 100% represents underwriting profit before investment income, and Intact Financial’s data-driven pricing power allows it to adjust premiums quickly when claims costs rise. That discipline ensures earnings fund the dividend, not financial engineering.

Intact Financial had an unusual moment in early 2025: a modest revenue miss triggered a short-term dip. But that noise obscured the bigger picture. Full-year net operating income per share surged 33%, book value per share grew 16% to $107.35, its combined ratio improved, and return on equity (ROE) was strong at 18.4%.

IFC stock: A trustworthy dividend growth engine

In February 2026, Intact Financial raised its quarterly dividend by 11% , marking the 21st consecutive year of increases since its going public IPO in 2004. The current yield sits near 2.4%, but the most impactful story is the dividend’s 10% compound annual growth rate over the past decade. IFC stock’s earnings payout rate holds around 30%. Profits secure the dividend, leaving room for more growth.

IFC Dividend data by YCharts

More importantly, Intact has never cut its dividend – not during the 2008 Global Financial Crisis, the 2014 oil crash, or the 2020 COVID-19 pandemic. The dividend growth “ladder” keeps rising through choppy markets, pushing yields higher for early investors.

A balance sheet built for choppy markets

With a debt-to-total-capital ratio of just 16.5% at year-end 2025, well below the insurer’s 20% target, Intact Financial has ample dry powder. Management has gained $4–5 billion in acquisitions capacity without needing to raise equity. When stock markets turn sour, this financial fortress can become an opportunistic consolidator, turning volatility into a long-term growth catalyst.

The Foolish bottom line

Intact Financial stock proved in 2025 that even a modest revenue miss couldn’t derail its dividend growth or balance sheet strength. With a 21-year dividend-raising streak, a sub-20% debt ratio, and $4–5 billion in firepower, this Canadian dividend stock will do better than just survive choppy markets – it may use them to get stronger. Intact Financial stock is an intact financial fortress worth holding onto for growing dividends.

The post The Canadian Dividend Stock I’d Trust When Markets Get Choppy appeared first on The Motley Fool Canada.

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

Opportunity is not just in growth but also in dividends. Mining stocks rarely attract dividend seekers due to commodity price volatility. Yet when commodity cycles peak, dividends flow in. One such commodity is gold. Last year, Lundin Gold (TSX:LUG) distributed a total of $2.75 in dividends per share, of which the fixed dividend was only $0.60, and the performance-based variable dividend was $2.15.

Had you invested $5,000 in Lundin Gold at the start of 2025, when it was trading at $31, a $5,000 investment would have provided $442 in annual dividend income and 300% in capital appreciation. That $5,000 would now be worth $15,690.

Should you invest $5,000 in this stock for dividends?

Lundin Gold stock has rallied alongside the gold price rally. Today gold is trading around US$4,400–USS$4,600. While the gold price has slipped drastically after the Iran war, it will likely increase as oil prices stabilize and global central banks rush to fill their gold reserves depleted in the energy shock.

The 15% gold price correction from US$5,200 to US$4,400 in March has created a buying opportunity as Lundin Gold’s share has dipped 26%. When the gold price rises, the stock will also surge. Rising gold prices could mean higher dividend payouts in 2026.

Understanding Lundin Gold’s dividend policy

Like all gold miners, Lundin Gold allocates capital to exploration and sustaining the mine. Lundin Gold used the gold price surge to become debt-free in 2024. Now it has one of the lowest all-in-sustaining costs (AISC).

As per its dividend policy, it allocates US$300 million for its $0.60 fixed dividend. After paying the fixed dividend, the company distributes at least 50% of the remaining normalized free cash flow (FCF) as variable dividends. With low cost and capital expenditure, a higher gold price will convert to more FCF, which in turn will result in higher payouts. In 2025, it earned $926 million in FCF.

The year 2026 started on a higher gold price of US$5,000-plus, increasing the probability of higher dividends. Lundin Gold assumed an average gold price of $4,000 per oz. for 2026. It expects to produce 475,000 to 525,000 oz of gold at an AISC of $1,110 and $1,170 per oz in 2026.

In 2025, it sold 503,330 oz at an average realized price of $3,594. Even if the miner sustains its existing production and the gold price remains above $4,000 in 2026, Lundin Gold could distribute $2.75 in annual dividends.

Invest $5,000 in this dividend stock for $145.75 in passive income

If you invest $5,000 today, you can get 53 shares of Lundin Gold that could pay $145.75 in passive income in 2026. While the amount represents just 2.9% yield, it is the stock price rally that can help you catch the momentum. As the stock price grows, you could sell a few shares and buy stable dividend-paying stocks like Enbridge. Because when the gold price rises, the stock price of other sectors dependent on economic growth falls.

The gains from Lundin Gold can help you buy more shares of Enbridge and lock in a yield of over 6%. Now may not be a good time to buy energy stocks, as they could fall sharply once the oil price reaches a certain limit where consumption takes a hit.

Investor takeaway

Lundin Gold offers a unique blend of growth and dividend income. Its low costs, debt‑free balance sheet, and variable dividend policy make it a compelling choice for investors seeking opportunistic buys. While volatility in gold prices remains, the potential for higher dividends in 2026 is strong.

The post Invest $5,000 in This Dividend Stock for $145.75 in Passive Income 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 Enbridge. The Motley Fool has a disclosure policy.