The hype is back. BlackBerry stock jumped 297% between April 1 and June 30, 2026, followed by a sharp 38% dip in July. The reason to justify this rally? Many credit the fiscal first-quarter 2027 earnings released on June 25, 2026, which pushed the stock up 46% in four days. Was the growth of 26% in revenue and 144% in adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in a single quarter enough to justify the rally?

In my opinion, BlackBerry stock isn’t all that

Call it coincidence, but April and May saw new short-selling activities in Avis Budget Group and GoPro. Avis Budget Group stock surged 390% between April 1 and 21 and then fell 78% by May 8.

While the new meme stocks saw short sale activity in April and May, 2021 meme stocks such as GameStop, AMC Entertainment Holdings, and BlackBerry (TSX: BB) also saw a sharp upward momentum that prolonged till June before the big fall. Those who burnt money in the 2021 meme frenzy know that hype around these stocks isn’t all that.

Activity is returning in September, as BlackBerry’s second-quarter earnings released on September 24 revived momentum. While analysts and investors had reasons to rejoice, none of that justified 4 times share price growth in just 90 days from $4 to $18.

Possible reasons for BlackBerry’s 2026 rally

BlackBerry has been trying to turn the company around by focusing on its strength: QNX operating systems used in automotive, robotics, medical systems, industrial applications, and physical artificial intelligence (AI).

Reason #1: Alloy Core

BlackBerry has changed its approach. Instead of relying on global vehicle production to grow, it is increasing content per vehicle by adding Alloy Core to QNX, which will triple the average selling price per instance.

Is it a good enough reason for a 3 times jump in share price?

If Alloy Core adds to the QNX backlog, it will take a long time to materialize into revenue, with no assurance of when. BlackBerry pitches the QNX system to automakers and other device makers. They approve the design and use QNX in their devices in return for a royalty fee per device. However, BlackBerry recognizes QNX revenue when production takes place.

Thusly, BlackBerry’s QNX revenue will continue to accumulate and be cyclical like automotive production.

Reason #2: Strong earnings and revised fiscal 2027 guidance

The 26% revenue growth in the first and second quarter is from the past QNX backlogs. A core reason for 144% adjusted EBITDA growth is an increase in licensing revenue. Licensing has a 90% net profit margin, but its revenue is one-off.

BlackBerry has revised its fiscal 2027 guidance, increasing its revenue from QNX and decreasing it in Security Communications due to delays in government contracts.

Instead of jumping into the rally and buying the stock above $12, I would rather wait to see if it can meet its guidance.

Reason #3: Beginning of BlackBerry’s turnaround

The turnaround has been long pending. The company offloaded Cylance cybersecurity and other non-profitable businesses to report profits. It is the first time that BlackBerry will report revenue growth after years of downsizing. But an 8.6x price-to-sales ratio has overvaluation written all over it.

The cliffhanger

BlackBerry’s turnaround story is currently a cliffhanger: while initial earnings growth shows signs of recovery, tariff wars and high inflation raise fears of a slowdown. Whether the growth stays or falls will be revealed in the next episode. If the stock rally was short-selling momentum, it will ease in the third and fourth rounds of a rally and dip.

The post Unpopular Opinion: BlackBerry Stock Isn’t All That appeared first on The Motley Fool Canada.

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

Canadian telecommunications giant BCE (TSX: BCE) has tested the patience of income investors. Down more than 60% from its five-year peak and falling roughly 12% in September 2026 alone, BCE stock has lost investors’ money for some time now. However, something could be shifting behind the recent capital losses veil to make a potential rebound possible, and the stock now offers an eye-catching 6.1% dividend yield for a juicy passive income stream. Could this be the time to buy the dip?

Why Canadian investors may buy BCE stock in October

Following May 2025’s painful 56% dividend cut, which reset BCE stock’s annual payout from $3.99 to $1.75 per share, many income seekers abandoned the stock. However, that capital allocation reset is helping to fundamentally repair the balance sheet. And the free cash flow payout ratio has gone down to a comfortable 43% to 48%, rendering the current 6.1% yield fully sustainable and well-covered by organic cash generation.

Operationally, clear signs of a bottom are surfacing. Second-quarter 2026 results revealed that postpaid mobile churn dropped to 1%, marking its lowest comparable level in three years as customer retention stabilized. Further, average revenue per user grew 0.7% year-over-year, as core subscription pricing remains resilient despite market noise today.

By curtailing low-margin domestic fibre builds following adverse regulatory wholesale access rulings, BCE is successfully redirecting capital into higher-return opportunities, including its acquisition of U.S.-based Ziply Fiber and its Bell AI Fabric initiative featuring a 300 MW data centre infrastructure footprint targeting Canadian sovereign AI workloads.

Ziply Fiber gave BCE a platform from which to expand with the U.S. market for growth, while artificial intelligence (AI) investments could generate high-margin cash flows.

The valuation also favours buyers entering the stock in October. BCE stock trades at approximately 11 times forward earnings and a forward enterprise-value-to-earnings before interest, taxes, depreciation and amortization (EV/EBITDA) multiple of 6.6 times, compared to trailing levels of 7.6 times and historical North American industry price-to-earnings (P/E) averages near 18 times to 20 times.

Given the heavy depreciation inherent in telecom networking, EV/EBITDA serves as a vital earnings and cash-flow valuation proxy, and current levels represent a historically depressed and undervalued entry point.

Why you may wish to stay away

Despite recent operational green shoots within BCE, cautious investors have valid reasons to remain hesitant right now. The primary headwind facing BCE is high potential for an extended national price competition. Quebecor continues its aggressive expansion of Freedom Mobile beyond traditional Quebec strongholds, and renewed discounting across wireless plans is a possibility. Price competition hurts margins and it is capping long-term revenue growth for the entire industry.

Additionally, corporate leverage remains elevated relative to historical norms. While net debt-to-EBITDA improved sequentially to 3.7 times in the second quarter, high debt levels leave the company sensitive to persistent elevated interest rates, which consume cash that could otherwise be earmarked for balance sheet deleveraging, accretive capital expenditures, or future dividend increases.

My verdict on BCE stock as an investment in October 2026

BCE stock is no longer the yield trap it was prior to its 2025 dividend adjustment. The painful reset successfully de-risked the cash flow payout, customer retention has reached a multi-year high, and valuation multiples reflect deeply pessimistic expectations.

While ongoing wireless price wars present real top-line headwinds, the stock’s discounted valuation and well-covered 6.1% yield provide a generous margin of safety. For contrarian income investors willing to endure near-term sector volatility, accumulating BCE stock in October offers a compelling blend of sustainable income and long-term turnaround potential.

The post Is BCE Still a Buy? Here’s My Verdict appeared first on The Motley Fool Canada.

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

Corby Spirit and Wine (TSX: CSW.A) stock fell 2.9% after US President Donald Trump dropped a 50% tariff bombshell on Canadian imports to the US in August. A 50% tariff on Canadian alcohol is as good as making it inaccessible to consumers. This tariff came in retaliation for the March 2025 movement of “Buy Canadian,” in which Canada literally pulled American-made spirits off its shelves to retaliate against Trump’s first tariff wave of 25%. At that time, the Liquor Control Board of Ontario (LCBO) said this move would continue until it’s “directed by the government to resume normal business.” After one and a half years, American spirits remain off the tables.

Where does Corby Spirit and Wine fit in the tariff war?

Corby Spirit and Wine is Canada’s largest spirits and wine company. It produces and distributes its own brands under the segment Case Goods and markets partner brands under the segment Commissions. Its partner brands include global leader Pernod Ricard, which owns a 46% stake in Corby.

Since more than 90% of Corby’s revenue comes from Canada, it was a key beneficiary of the “Buy Canadian” program. The exit of American-made spirits from Canadian shelves helped Corby cut competition effortlessly. It just had to fill those empty shelves with its wines and spirits and capture market share. The impact was visible in the first half of fiscal 2026, which ended December 2025, when its revenue grew 12%. Its domestic revenue jumped 13% and international revenue 38%, driven by expansion in Turkey and recovery in the US and UK markets.

Trump tariffs: 2025

In the March 2025 scenario, Canada took US alcohol off the shelves, but Canada was still exporting alcohol to the US. It was a win-win for Corby as both domestic and export sales surged. Corby’s stock jumped as much as 18.8% between February 7 and March 7, 2025.

Trump tariffs: September 2026

The 50% tariff on Canadian imports in September 2026 will sweep away the American market for Corby as consumers are more likely to switch to cheaper American options. Corby’s overall export market is 7% of its revenue, and the revenue from the United States is $2.7 million, just 1% of its fiscal 2026 revenue.

For the US market, Corby manufactures and ships spirits to third-party US distributors, which have a three-tier distribution system. This makes the pipeline lengthy. Corby could see a slight dip in export sales in the second quarter ending December 2026 as it realizes revenue when it ships the products. American consumers would still be able to buy Corby’s products at the same price until the retailer and wholesaler stock lasts.

Should you buy, sell, or hold Corby?

Trump’s tariffs sent Corby’s stock down 3.2%, extending its seasonal dip that began in August after the LCBO modernized its ordering system, which created a few onboarding delays. Trump tariffs are unlikely to materially impact Corby’s earnings, creating an opportunity to buy the dip as LCBO orders normalize.

I do not see any major roadblocks in Corby stock’s run-up to the next seasonal peak in July 2027. In fact, the company is expanding its share in the RTD segment and has increased its distribution channels to include grocery, convenience, and big-box stores.

Fiscal year 2026 has been the best year for organic growth. Fiscal 2024 revenue growth was driven by ABG and Nide brand acquisitions. A major concern for Corby is its high debt, which is keeping its stock range-bound.

How to place Corby in your portfolio?

Corby is a small-cap stock with limited trading volume. This makes it difficult to trade except when volumes pick up. You could consider buying the stock as a short-term opportunistic buy for its 6.7% dividend yield till American-made alcohol stays out of the market.

The post Is Corby Spirit and Wine Stock a Buy, Sell, or Hold After Trump’s Tariff Bombshell? 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 Corby Spirit and Wine. The Motley Fool has a disclosure policy.

Holding cash in a bank account feels comforting. It’s safe, liquid, insured, and risk-free on paper. However, leaving large sums of money sitting idle in high-interest savings accounts or money market funds carries a hidden cost that many Canadian investors overlook. With the Bank of Canada keeping its benchmark interest rate anchored at 2.25% while persistent inflation squeezes purchasing power, static cash is actively losing ground every single day. Inflation at 3% means your cash is losing purchasing power while everyday living expenses rise much faster.

To beat inflation and put your wealth to work, you need investment options that offer a respectable immediate yield alongside a growing payout stream and potential capital appreciation. Capital Power Corporation (TSX: CPX) is a blue-chip stock with all three desirable attributes.

Capital Power stock: A better store of value than cash?

Edmonton-based Capital Power is an independent power producer that transforms essential electricity generation into a relentless cash-generating asset for its long-term shareholders. The Canadian utility stock offers an attractive dividend yield of 4.6% to new investors buying shares today.

Compare that 4.6% payout to the non-promotional sub-three-percent yields found in standard high-interest savings accounts (HISA) across the Big Six Canadian banks and their digital offspring, and the income advantage is instantly clear.

Most noteworthy, Capital Power stock doesn’t just hand you a steady dividend check today; it regularly gives you an annual raise. Management recently marked its 13th consecutive year of annual dividend increases in July, a strong commitment to returning capital to shareholders through every phase of the economic cycle. CPX stock could raise your payouts every year, no matter what the Bank of Canada decides to do with benchmark rates.

A dependable quarterly payout

Behind Capital Power stock’s dividend dependability lies its defensive business model. The utility operates a well-diversified fleet of power generation facilities across North America, securing a vast majority of its revenue through long-term power purchase agreements. Its contracted cash flows shelter the utility from short-term electricity price swings, creating a stable financial foundation.

At the same time, Capital Power is tapping into major structural growth drivers, including the skyrocketing power demand required to run artificial intelligence infrastructure and data centres. Its milestone 250-megawatt agreement with tech giant Meta Platforms highlights how the Canadian utility is well regarded by big-money clients for critical power projects, securing a high-margin, long-term revenue line tied to the artificial intelligence (AI) boom.

Capital Power maintains a conservative dividend payout ratio well below fifty percent of its projected adjusted funds from operations. Management has breathing room to reinvest internally generated cash flow into clean energy expansion projects while keeping the dividend well-protected. The dividend stock generates more than enough operational cash flow to fund project pipelines and service its balance sheet without putting its quarterly payout at risk.

Capital Power quadruples investors’ capital

An investment in Capital Power stock 10 years ago could have widely outperformed cash and bonds. Beyond the dividend that has grown, a $10,000 investment in Capital Power stock 10 years ago could have more than quadrupled into a $45,600 position – up 356% in a decade. Capital gains (stock price gains) would have done the heavy lifting to increase the investment to more than $26,000, while growing dividends, fully reinvested, carried the rest of the growth burden.

CPX stock’s dividend has risen by 80.7% over the past 10 years.

CPX data by YCharts

Cash hoarding couldn’t offer better returns.

Investor takeaway

Holding an emergency fund in cash is essential for financial security, but letting long-term capital sit on the sidelines doing nothing is a missed wealth-building opportunity. Capital Power stock offers Canadian retail investors a blend of defensive utility stability, an attractive 4.6% yield, and a track record of dividend growth that keeps your income outpacing inflation. If you want your cash to stop lying around and start generating real returns, Capital Power stock deserves a top spot on your watch list as we enter the fourth quarter of 2026.

The post Your Cash Is Sitting There Doing Nothing: This Dividend Stock Won’t Let It 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 Capital Power and Meta Platforms. The Motley Fool has a disclosure policy.

On September 15, Prime Minister Mark Carney hosted Canada’s first Investment Summit, which attracted nearly $500 billion in new investment commitments to Canada. Pension funds, investment houses, and the Big Six banks committed billions of dollars in new capital. Canada Pension Plan (CPP) and Brookfield Asset Management (TSX: BAM) launched the $50 billion “Maple Fund” to invest in critical infrastructure and strategic industries across Canada.

What Is Brookfield’s new “Maple Fund?”

Retail investors cannot invest in the New Maple Fund like they can in a mutual fund. Then how will it raise capital? CPP will pour in $25 billion in capital and Brookfield another $25 billion. Brookfield, being an alternative asset manager, will raise the capital from institutions and high-net-worth individuals.

CPP already has the funds from the money it deducts from your taxable income. What it needs is attractive investment opportunities that can give regular long-term cash flow to pay pensions to aging Canadians.

Like CPP, several sovereign wealth funds, public and private pensions, insurance, and family offices/unions and corporates have huge investment capacity and have already exhausted their limits on traditional investments. Alternative asset managers like Brookfield bring their expertise in investing in energy, infrastructure, real estate, private equity, and credit. Brookfield deploys and manages capital for the long term and gives returns to its clients after deducting its fees.

Why should Canadian investors keep an eye on Brookfield’s Maple Fund?

The Maple Fund is not for individual investors for a good reason. The fund will invest in large and complex projects that need more than $5 billion in equity capital. Interestingly, among the large deals pitched at the Summit prospectus were the West Coast Oil Pipeline and the Ksi Lisims and Kino Aski LNG pipelines for which the government seeks private capital.

Now, Brookfield or CPP have not stated which projects they will invest in. However, investors should keep an eye on which projects they choose for the Maple Fund.

Oil and gas pipeline projects carry the risk of uncertainty around future demand, volatile oil and gas prices, and the economics of long-term oil infrastructure. Building oil and gas pipelines is expensive, and the toll they will have to charge to recover costs will significantly increase transportation costs. Plus, the environmental concerns and opposition from civil society could delay or cancel the projects. The Keystone XL Pipeline extension is a perfect example. The project was terminated after then-U.S. president Joe Biden revoked its cross-border permit.

Such complexities need expertise, deep pockets, patience, and risk-taking ability.

Should you buy Brookfield’s stock?

However, you can still get exposure to Maple Fund by buying shares of Brookfield Asset Management on the TSX. BAM shares started trading on the exchange in 2022 and offer an annual dividend yield of 4.4%. The stock price surged significantly between November 2023 and January 2025, but since then it has shown tepid returns due to trade war uncertainty. BAM could be a good investment if you are looking to diversify into alternative investments.

BAM’s business model is that of collecting management fees on more than $1 trillion in assets under management. The dividends could fluctuate, and capital appreciation may be cyclical. You could consider buying the stock in the current dip. However, be mindful of the projects it undertakes.

The post What Is Brookfield’s New “Maple Fund?” (And Why Canadian Investors Should Keep an Eye on it) 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 Brookfield Asset Management. The Motley Fool has a disclosure policy.

Building a dependable monthly passive income stream doesn’t require a fortune. A disciplined strategy focused on resilient, high-yielding dividend stocks could build a vibrant monthly dividend portfolio. Deploying small batches of capital into each of the standout Canadian income payers can help investors construct a steady monthly cash flow that acts as a financial buffer and compounding engine for decades.

Here’s why investing $1,000 in each of CT Real Estate Investment Trust (TSX: CRT.UN), Automotive Properties Real Estate Investment Trust (TSX: APR.UN) and Diversified Royalty Corp. (TSX: DIV) could create a formidable monthly dividend stream that could be a significant source of recurring passive income.

CT Real Estate Investment Trust

Retail real estate remains resilient in Canada, and CT REIT offers income investors a professionally managed portfolio with institutional-grade stability. The trust boasts a portfolio occupancy rate of 99.5%, anchored by its tight strategic partnership with former parent and retail giant Canadian Tire, which remains its majority equity shareholder.

CT REIT recently invested $76 million to add 232,300 square feet of gross leasable area (GLA), continuing to capitalize on growth opportunities from its parent brand. The REIT currently offers an attractive 5.8% annual distribution yield and holds a stellar track record of 13 consecutive years of annual payout raises.

Crucially, the payout is rock-solid. Its first-half 2026 adjusted funds from operations (AFFO) payout ratio stood at a comfortable 72.5%, improving from 72.9% in 2025, meaning its distribution is abundantly covered by recurring rental cash flows. Combined with a conservative debt ratio of 38.9%, CT REIT provides one of the safest monthly yields in the Canadian REIT sector.

Automotive Properties REIT

Automotive Properties REIT’s strategy to consolidate the fragmented car dealership real estate market across Canada and the U.S. is delivering exceptional results. During the second quarter, the REIT expanded net operating income (NOI) by 20.5% year-over-year while driving an 18.6% increase in adjusted funds from operations (AFFO).

On the back of these strong quarterly results, management raised its monthly distribution by 2% in August 2026, marking its second consecutive year of payout increases.

The monthly dividend stock currently offers a lucrative 7.3% annual yield. With its second-quarter AFFO payout ratio of 78.3%, the trust’s high-yielding monthly distribution remains safe while leaving ample retained cash flow to help organically fund future property acquisitions.

Diversified Royalty Corp

Diversified Royalty offers investors direct access to top-line revenue streams from top-tier franchisors and multi-location businesses, bypassing direct operational cost pressures. The monthly dividend payer pools royalties across several well-known North American brand streams, including Mr. Lube, Sutton, Nurse Next Door, Cheba Hut, and AIR MILES®.

DIV stock pays a monthly dividend of $0.02 per share ($0.29 annualized), offering a generous 6.8% dividend yield. Backed by stable royalty inflows and recent strategic portfolio additions, DIV provides investors with immediate cash flow from essential retail and service industries across North America.

How much could a $1,000 investment earn in monthly passive income?

A $1,000 investment in each of CT REIT, Automotive Properties REIT, and Diversified Royalty Corp could generate $16.68 every month or $200.15 in annual passive income from diversified sources, as shown below:

Foolish takeaway

An initial $3,000 investment spread evenly across CT REIT, Automotive Properties REIT, and Diversified Royalty Corp. can generate $16.68 every month, or $200.15 annually, translating to an average portfolio yield of about 6.7%. Holding these monthly-cash-generating heavyweights in a TFSA and reinvesting the monthly dividends can turn a modest initial investment into a growing passive income stream for decades.

The post Here’s What $1,000 in the Right Stocks Could Pay You Every Month appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Automotive Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Between persistent tariff wars, rate uncertainty, and mixed economic signals, the Canadian investing climate can feel weird right now. Rather than being driven by a booming local economy, Canada’s persistent 3% headline inflation looks propelled by external forces, including geopolitical oil supply shocks and trade conflicts, which threaten to push inflation beyond 3.2% by the fourth quarter. A cost-push inflation environment, whereby everyday costs stay high even if consumer demand feels sluggish, complicates decisions for investors trying to build robust portfolios that remain resilient in challenging times.

In times like these, a smart TFSA and RRSP investment approach may consider holding onto the resilient portfolio anchors – TSX dividend stocks whose cash flows and payouts are so predictable that market noise simply fades into the background. Fortis (TSX: FTS) stock is one ironclad dividend payer that consistently turns market chaos into a steadily rising stream of quarterly passive income. The Canadian utility stock deserves a prime spot on your buy list going into October.

Fortis stock: The champion with a 52-year dividend growth streak

When evaluating Canadian dividend stocks, past performance doesn’t guarantee future results — but 60 years of uninterrupted quarterly dividends, and five decades of relentless dividend raises say a lot about a TSX dividend champion’s business model. Fortis stock has established itself as the calm in the storm for dividend investors for decades now, and that label won’t fade with time but shine brighter.

Fortis, a $38.6 billion regulated electric and gas utility that traces its first public stock issuance back to 1949 when Newfoundland joined the Canadian Confederation, has paid regular dividends every year since going public in 1966, and increased its dividend payout every single year for 52 consecutive years, beginning in 1973.

FTS stock’s legendary dividend streak spans the stagflation of the 1970s, the dot-com bust, the 2008 Global Financial Crisis, and the 2020 global COVID-19 pandemic. No market storm or economic weirdness has ever rattled the dividend giant, and its investors kept receiving dividends as if the past five recessions in Canada never happened.

Should you buy FTS stock for the dividend?

Fortis appeals as a reliable, dependable and sustainable dividend stock to buy and hold in a long-term portfolio, however weird the broader economy may appear.

A new investment in Fortis stock today will earn a 3.4% yield during the first 12 months. The yield isn’t as flashy as some distressed 8% or higher payouts out there; I get that. But unlike high-yield traps that risk dividend cuts when economic trouble hits, Fortis’s well-covered payout looks set to ride any waves.

The yield could be marginally higher as management may raise quarterly dividends again in November. The utility’s current $28.8 billion five-year capital investment program may help sustain rate base growth and support a 4% to 6% annual dividend growth rate through 2030. Dividend growth may help protect your passive income stream’s purchasing power against Canadian inflation — as long as inflation rates remain below Fortis’s dividend growth rates.

And the payout appears secure.

A secure and sustainable dividend?

Could Fortis continue to pay dividends if Canadian economic risks worsen? Yes, it could. Fortis’s business operations stretch far beyond Canada into the United States and the Caribbean territories. The utility’s cash flow appears bulletproof, coming from a 99% regulated revenue base that insulates earnings and cash flow from commodity price swings and economic downturns.

Most noteworthy, Fortis maintains an adjusted payout ratio around 70% to 74% of earnings. The payout range leaves ample retained cash flow to reinvest into capital projects while comfortably supporting dividend increases.

Moreover, Fortis sits at the heart of the North American energy investment boom. It’s upgrading ageing transmission grids, connecting new power plants to an energy-intensive artificial intelligence (AI) economy, and powering new data centres and electric vehicle infrastructure over the next decade.

Investor takeaway

Trying to time volatile market turns can be a stressful game when the economy feels unpredictable. Fortis stock could be what any investment portfolio needs for defensiveness, stability, and a passive income stream that remains steady, calms nerves, and feeds income cravings, regardless of whatever happens to the North American economy.

Fortis stock is the financial calm in the middle of any storm for Canadian dividend investors seeking financial peace of mind.

The post Weird Economy? This Dividend Is the Calm in the Storm 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 Fortis. The Motley Fool has a disclosure policy.

When the Toronto Stock Exchange revealed its 2026 TSX30 ranking of top three-year growth performers on September 9, industrial heavyweight Hammond Power Solutions (TSX: HPS.A) stock secured a prime spot — at number 13 out of 30. Driven by an insatiable global appetite for power infrastructure that necessitated investments in additional factory capacity, Hammond Power’s revenue surge propelled the stock to an impressive 625% capital gain over the three-year measurement window to June 30, 2026.

The Canadian growth stock’s strong capital gains was enough to turn a $1,000 investment into $7,250 in just 36 months!

What propelled Hammond Power Solutions stock?

What transformed a traditional industrial manufacturer into a market-topping growth engine? The answer lies at the intersection of artificial intelligence (AI) data centres, electrical grid modernization, and global industrial electrification.

Hammond Power Solutions wasn’t a speculative tech startup when it began to soar. The business traces back to a century-old 1917 manufacturing stalwart. It produces dry-type power transformers, power quality products, and custom magnetics.

As tech giants rush to construct high-density AI server farms, standard power setups no longer cut it. Modern AI racks require custom transformers to handle massive electrical loads safely and efficiently. Data centre sales exceeded 30% of Hammond Power’s total revenue by the second quarter of 2026 (Q2 2026).

In Q2 2026, revenue surged 44.7% year over year to $324.8 million, led by a 73% increase in U.S. and Mexico shipments. Operating leverage kicked in cleanly: adjusted earnings per share (EPS) rose 60.5% to $2.76. Meanwhile, Hammond Power Solutions’s order backlog sits nearly 97% higher than a year ago, providing investors and management with multi-year revenue, earnings and cash flow visibility.

Can HPS.A stock keep rising?

Hammond Power stock has recently experienced a temporary correction as the market digests recent strategic moves, including capital investments, and acquisitions activity. Canadian sales, down 11.1% during the first half of 2026, softened as the local market experiences a general softness and increasing price competition.

The growing business is actively building out its global manufacturing footprint to stay ahead of structural demand. Gross margins have marginally expanded over the past 12 months as Hammond raised prices while growing demand enabled higher factory utilization.

Hammond closed a $365 million transformational acquisition of AEG Power Solutions in June, broadening its footprint across Europe and Asia while expanding its power electronics portfolio.

Hammond’s total addressable market (TAM) continues to expand as electrification demands extend beyond cloud computing into renewable energy integration and electric vehicle (EV) grid upgrades. Acquisitions expand this TAM, and they could be accretive — if integrated well.

Should you buy the dip?

Following a 22% pull-back from its all-time highs, HPS.A stock trades at a forward P/E of 29. Shares trade at a premium compared to legacy industrial peers, it remains reasonable given its potential to grow revenue at a 40% over the next two years. Earnings could surge as well.

However, growth oriented investors should keep a few downside risks in mind: input cost variability, capital expenditure cyclicality, and integration risks following a recent significant acquisition.

Price fluctuations in raw materials like copper and electrical steel can compress gross margins if price adjustments lag inflation. Any temporary pause or digestion phase in hyperscaler AI capex spending could decelerate short-term order momentum, and successfully integrating AEG Power Solutions across international markets will require disciplined operational execution.

Investor takeaway

Hammond Power Solutions stock continues to sit at the center of the grid modernization, the global energy transition and the AI hardware arms race. But I wouldn’t expect another 600% surge over the next three years as the law of large numbers creeps in to drag performance. That said, HPS.A stock remains a promising core holding for growth investors looking for tangible, real-economy exposure to the AI infrastructure boom.

The post Hammond Power Solutions Stock Rides the Grid Electrification Boom to a 625% Gain appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool has a disclosure policy.

Market volatility, rising inflation, and inflating debt have been stressing the real estate sector, with several REITs slashing dividends. A new name has entered the list, and this time it’s in the grocery sector. Slate Grocery REIT (TSX: SGR.UN) suspended monthly distributions as management works to improve financial and strategic flexibility. While there were signs of risk, as its dividend payout ratio was 113% of adjusted funds from operations (after adding leasing and improvement costs), a dividend pause came as a shock.

I was expecting a dividend cut as the REIT’s grocer tenants, Kroger and Walmart, brought credibility. However, Slate Grocery REIT’s debt and rising costs show that inflation and a weak balance sheet can even stress GIC-like rental income. This raises the question of which dividend stock you can trust for a second paycheque.

A dividend stock that could become your second paycheque

It is not a good strategy to invest all your money in one stock just because its yield or return is high. Not every high-return stock is safe. Consider diversifying your investments across sectors to ensure regular payouts.

One dividend stock you can count on for regular payouts is CT REIT (TSX:CR.UN). Unlike other REITs that slashed dividends because of a high payout ratio, CT REIT has been gradually reducing this ratio. It was 72.5% in the first half of 2026. What sets this REIT apart is that more than 90% of its rental income comes from Canadian Tire, its parent company.

Rising costs are not a concern for CT REIT as it does not pay brokerage or advertising expenses. Any new property it buys or intensifies is for the parent, which gives assurance of occupancy. Its direct leasing cost fell 4.1% year-over-year in the first half of 2026.

CT REIT has eliminated the two biggest risks of lower occupancy and higher expenses. As for debt, more than 90% is interest-only unsecured debenture debt, and even that debt is 38.9% of its total assets, compared with Slate Grocery’s 55%.

What to expect from CT REIT?

Firstly, CT REIT offers a monthly distribution from the rental income it receives from Canadian Tire. Secondly, it grows these distributions at an average rate of 3% every July. The higher dividend is funded by the 1.5% annual rent increase in Canadian Tire and the higher rent from the intensifications. And lastly, CT REIT offers a dividend reinvestment plan (DRIP) with a 3% bonus on the dividend amount reinvested. So, if you reinvest a $100 dividend, DRIP will add CT REIT units worth $103.

What to look for when investing in dividend stocks?

While CT REIT has robust fundamentals, it is exposed to concentration risk. With 90% dependency on Canadian Tire for rental income, CT REIT’s fate is tied to Canadian Tire’s financial stability. This very strength of having a powerful parent becomes an equally powerful risk.

If the parent company faces financial stress, it will pass it on to the REIT because of its high exposure. So far, Canadian Tire has a strong balance sheet and profits. It is also expanding stores under its True North strategy.

Slate Grocery REIT’s dividend suspension is an eye-opener that no stock is a buy-and-forget. You should review your portfolio stocks even if they gave good returns in the past. Review doesn’t mean looking at the stock price and the unrealized profit and loss that appears on a broker’s app. Look at the fundamentals of the company in which you have invested a substantial amount and are relying on its dividends as a second paycheque.

For dividend stocks, look at the dividend payout ratio as a percentage of adjusted funds from operations (AFFO), as that includes leasing and improvement costs. While these costs are not regular, they are real. If the property is an old construction, high improvement costs can eat into rental yields.

Investor takeaway

CT REIT is a strong dividend stock to invest. However, investors should periodically review its fundamentals to see if the REIT maintains this strength. Over the period, consider investing in dividend kings with different risk exposure, like Canadian Natural Resources and Royal Bank of Canada. Energy and banking sectors have different risks than the real estate market.

The post How This Dividend Stock Could Become Your Second Paycheque 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 Canadian Natural Resources, Kroger, Slate Grocery REIT, and Walmart. The Motley Fool has a disclosure policy.

Most people procrastinate on stock market investing because it carries the risk of losing money, while many invest based on a friend’s recommendation and lose money. The first stock experience shapes your risk profile. Instead of gambling with short-term returns based on market moods, consider investing in fundamentally strong stocks for the long term. If your first stock provides positive returns, it will encourage you to stay invested and adopt an investing habit rather than lose confidence in the stock market.

How to get started with buying stocks

To give you a broad picture, the stock market is where you buy a stock to participate in a company’s future growth, and growth takes time. An athlete winning a gold takes years of work and preparation. Either companies sponsor well-established athletes or those in whom they see potential. The established ones have a higher chance of winning a gold medal, whereas the emerging ones carry greater risk of losses but also have the potential for windfall gains if successful.

You can start with a well-established stock to build a core portfolio as you learn about the stock market. That way, your core portfolio can preserve returns and absorb risks.

To begin your stock market journey, you need a brokerage account for buying stocks.

Finding the correct stock on the broker app

Thousands of stocks trade on different stock exchanges. Thus, when we talk about a stock, you will see a few letters written in brackets stating the exchange on which the particular stock trades and the ticker under which it appears. You may see several options when you type a company’s name in the search bar of your broking app, but the exchange and ticker help you discover the same stock you have read about.

The stock exchange matters because if you buy a Canadian stock on the New York Stock Exchange or Nasdaq, you might be subject to cross-border taxes and forex risk. A dividend from Canadian stocks is exempt in a Tax-Free Savings Account (TFSA), but dividends from a US stock are taxable.

To avoid these complications, consider buying a Canadian stock on the TSX.

Choosing your first stock

Once you know the stock exchange and ticker symbol, the next step is to choose which stock to buy. For beginners, it is better to look around and think of the companies that you see in your everyday life. You have used their goods and services for years and can’t imagine a life without them. That indicates that these companies are well integrated into the economy, enjoy customer loyalty, and have an economic moat.

Once you finalize the company, look at their last two years of profits, revenue growth, and debt, as debt burden, competition, and regulatory changes can disrupt even the best companies.

Shopify (TSX: SHOP) is a good stock to buy now before the holiday season picks up, especially if you have delayed a few purchases for the Black Friday sale. Shopify enjoys strong sales growth of 25–30% annually. In fact, Shopify reported 34% year-over-year revenue growth in the second quarter of 2026, its highest second-quarter growth since 2021, when the pandemic boom created windfall gains.

Not only does it have strong revenue growth, but it has improved its operating margin to the mid-teens percentage. The company has no debt and ample cash reserves.

The stock is trading at a high valuation of 14 times sales per share and 59 times forward earnings per share. The best time to buy this stock is between March and June during its seasonal weakness. However, long-term investors can even buy now as the steady high growth rate will drive the stock up over the years.

And just like that … you’re buying your first stock.

The post And Just Like That … You’re Buying Your First Stock  appeared first on The Motley Fool Canada.

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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.