Not all stocks are a buy on the dip. Early signs are visible in frequent management changes. Thus, many investors sell shares on senior management’s exit, particularly in small companies where the business depends on the owner.

Two Canadian stocks that could destroy your portfolio

goeasy (TSX:GSY) stock has already destroyed the portfolio of those who invested in it. The stock has lost 83% in value since September 2025, when short-seller Jehoshaphat Research highlighted major accounting discrepancies. Most of its findings came true in the fourth-quarter earnings.

The world has changed for goeasy as the key reason for buying this stock has vanished. goeasy is in the business of lending to subprime customers. They charge a higher interest rate ranging between 9.9% and 35%. This interest rate is attractive only when net charge-off (NCO) rates are low.

For a long time, goeasy maintained an NCO rate of 9.2%, which means 9.2% of its total loan portfolio is not recoverable. For a subprime lender, this is a good number as credit risk is maintained. Contained credit risk and a growing loan portfolio were the main reasons to buy goeasy.

However, goeasy lost this very reason as structural issues came into the limelight. The lender’s reported NCO rate was artificially deflated. As a rule, a lender should assign loans whose payments are delayed by 90, 120, or 180 days as charge-offs. goeasy tweaked the definition and accounting policies.

goeasy used tools like a partial payment of the monthly installment, extension, and rewriting of loans to delay delinquency. When a loan is rewritten, overdue interest is waived off, and the loan begins from scratch. This resetting of delinquency status allowed delinquent people to remain non-delinquent. This credit risk came all at once in the fourth quarter of 2025 and increased goeasy’s net charge-off rate to 23.8% from 9.2% in the previous quarter. Its chief executive officer and chief financial officer exited, and the stock crashed.

Is this dip a buying opportunity?

goeasy is now in firefighting mode, cleaning up the mess and preserving liquidity. The problem is structural, and it will take a lot more than just absorbing the credit risk to revive goeasy’s business. There could be a goodwill impairment, as investors will take time to regain confidence. The lender will need new management, policy-level changes, and tighter underwriting criteria, which could affect its portfolio growth in the medium term.

goeasy stock can destroy your portfolio. Invest in it only if your investing game is buying troubled companies.

Other stocks that could significantly pull down your portfolio

Timbercreek Financial (TSX:TF) is a short-term mortgage lender that gives loans to commercial real estate investment trusts. More than 66% of its loan portfolio is from repeat customers. It has so far been transparent about loans that moved to Stage 2 and Stage 3. The lender even increased its expected credit losses from $16.1 million in 2024 to $17.9 million in 2025, resulting in a net loss of $1.1 million.

A loss-making company cannot keep paying dividends for long. I won’t be surprised if Timbercreek pauses dividends. So far, dividend payments are going as usual. Avoid buying this stock, as it could lose 50% in value if there is a dividend pause. The one thing going well for Timbercreek is that there is no change in the management. Weak fundamentals but sticky management is keeping the stock afloat.

Freehold Royalties (TSX:FRU) is another stock to stay cautious about due to its recent management changes. It removed the chief operating officer position in November 2025, as it has no operational risks. It buys land and leases it to oil companies to extract oil. However, its chief financial officer is also exiting, and the company will search for a replacement.

It could be an early sign of structural weakness, like that of goeasy, or just streamlining of operations. Before the risk becomes visible in the fundamentals, one could sell the stock while it still trades closer to its 52-week high.

Preserving your portfolio

If you have high exposure to risky stocks, you could consider selling them and instead buy Topicus.com and Descartes Systems. They have strong management and resilient fundamentals.

The post 2 Canadian Stocks That Could Utterly Destroy a $100,000 Portfolio appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Descartes Systems Group and Freehold Royalties. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

Retirement is often associated with a Registered Retirement Savings Plan (RRSP). However, a Tax-Free Savings Plan (TFSA) is an ideal savings tool if you want your retirement to be less taxable. The TFSA allows you to withdraw any amount tax-free, which means even if you withdraw $40,000 (if you have that amount in a TFSA), you don’t have to report it as taxable income. This helps you earn the maximum Old Age Security (OAS) pension and avoid OAS clawback due to taxable income being above the specified threshold.

The benefits of a TFSA when you retire

The beauty of a TFSA is that there is no expiry date, like with an RRSP (it closes at age 71, and your entire balance is taxable). For those who don’t plan to retire, a TFSA is an ideal option. Another good aspect of a TFSA is that all investment income – interest, dividends, or capital gains – can grow tax-free.

So, if you rebalance or reinvest within the TFSA, no tax is triggered. This benefit can save you thousands of dollars in taxes. Here’s how.

Suppose you invested $10,000 in Shopify (TSX:SHOP) in the 2022 tech stock meltdown at $40.50 per share. You would own 245 shares, which are now worth $40,900, a capital gain of $30,900. You decide to rebalance by selling shares worth your gains and reinvesting that amount in SmartCentres REIT. In a normal account, 50% of your capital gain, which is $15,450, will be taxable. If you are in a 20.5% tax bracket, you pay $3,167 ($15,450 x 20.5%) tax on rebalancing. This is free in the TFSA.

From the tax savings alone, you can buy 112 shares of SmartCentres REIT at $28.23 per unit and earn $207.70 in annual dividends. Every penny saved is a dividend earned.

Why is a TFSA better than an RRSP for certain retirement needs

While it is established that a TFSA gives many tax benefits after retirement, an RRSP gives tax benefits before retirement. It is more of a tax planning account, as RRSP contributions are deducted from taxable income. When you retire, your RRSP has to be shifted to a Registered Retirement Income Fund (RRIF) to avoid being taxed on the entire RRSP balance. The RRIF determines a minimum withdrawal amount, and you can withdraw above it. These withdrawals are taxable.

In the above case, Shopify increased the amount fourfold, which more than offsets the tax savings from the same amount invested in an RRSP in the same stock. Suppose you are in the 26% tax bracket, you will save $2,600 in taxes on the $10,000 investment. The five-year return is $40,900, which, if you want to withdraw, will incur $10,270 in taxes. If you withdraw from an RRSP, you will also have to re-contribute that amount in 15 years.

Depending on your current taxes and retirement goals, you can allocate funds between a TFSA and RRSP. In either case, make sure to first max out TFSA contributions before investing in an RRSP. High-growth stocks could earn you tax-free investment earnings that can pay for the tax saved from an RRSP.

The TFSA balance you’ll probably need to retire well in Canada

Considering the benefits the TFSA offers, you are better off making the most of it. Coming to the question of how much TFSA balance you need to retire. There is a 4% withdrawal rule, which says you should withdraw 4% of your retirement savings annually. So, if you want $70,000 annually, $20,000 could come from OAS and Canada Pension Plan payouts.

For a $50,000 annual payment, you need a $1.25 million TFSA balance, as 4% of $1.25 million is $50,000. Maxing out on TFSA contributions and investing in stocks that can give a minimum of 10% annual return can help you achieve this goal in 20 years. However, the amount needed will increase in 20 years. You can review your TFSA balance and requirements annually and revise your investments. Ballard Power Systems and Celestica are some ideal stocks for your TFSA.

The post The TFSA Balance You’ll Probably Need to Retire Well in Canada 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 positions in and recommends Shopify. The Motley Fool has a disclosure policy.

Are you skimming through the best investing options to invest in today? Then, check out Celestica (TSX:CLS), a tech stock that beat Nvidia’s stock price rally while riding the artificial intelligence (AI) wave. Celestica has jumped 5,320% in the last five years, dwarfing Nvidia’s rally of 1,264%. Now you may be wondering if it is wise to invest in the stock at its all-time high.

Why I’d most want to buy this tech stock today

Celestica is currently undergoing a business turnaround. It started by offering electronics manufacturing solutions for communications, enterprises, data centres, health, industrial, aerospace, and defence. However, the 5G revolution and the AI data centre revolution changed customers’ needs, and Celestica adapted to them. It now not only manufactures switching, routing, optical, wireless, and data centre products, but also helps with product designing, testing, licensing, and launch. It even provides after-market services.

This complete package has helped Celestica secure hyperscaler customers like Google. And once you are in the inner circle, other clients follow. Celestica onboarded a third hyperscaler client in April, which pushed the stock up 65%.

I am still bullish on the stock because I expect it to mirror the 2025 momentum. It fell 50% between February and 2025 when US tariffs first kicked in. It then picked up momentum, surging 400% by October 2025. Celestica probably had a hyperscaler customer by then, as its Connectivity Solutions revenue jumped 75–80% year-over-year in the second to fourth quarter of 2025.

Its Connectivity & Cloud Solutions (CCS) segment has been the key growth driver, now accounting for 75% of the company’s revenue. CCS revenue growth rate has slowed from triple-digit to double-digit, but there are no signs of stopping.

In 2026, the stock dipped 22% in December and remained tepid amidst rising geopolitical tensions. The stock picked up momentum in March as it secured new clients.      

What excites me is its first-quarter 2026 revenue outlook for the Enterprise segment, where it expects revenue growth in the high teens. This reflects the hyperscaler-level growth for Celestica. And this revenue guidance is before it onboarded the third hyperscaler client. The new client will reflect in the CCS revenue for the remainder of 2026. I am expecting revenue growth to return to triple digits.

Celestica’s expansion plans

The confidence is further strengthened with Celestica’s expansion plans. It is investing $1 billion to build a new high-performance systems (HPS) design centre in Taiwan and Texas, and new manufacturing lines in Mexico and Japan. Once these manufacturing lines come online, revenue could grow further.

Celestica is expanding its operations beyond Canada. That explains the 5,000% rally. Its valuations of 44 times forward price-to-earnings ratio and 3.7 times price-to-sales ratio are the highest in two years. But so is the revenue growth. The year 2026 could see a jump in the Enterprise segment.

Celestica has many growth levers up its sleeves. The Advanced Technology Solutions segment has noticed tepid growth due to a dip in capital investment. Any uptick in momentum in any of the verticals could support growth.

Investor takeaway

Celestica is a long-term growth stock that is currently in its hypergrowth stage. It still has time for growth to normalize. The management is firing all cylinders in expanding its capability to cater to the growing needs of its larger clients. You can still catch the rally before it stabilizes.

The post The Tech Stock I’d Most Want to Buy If I Were Investing Today 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 Alphabet, Celestica, and Nvidia. The Motley Fool has a disclosure policy.

As the Canadian stock market moves deeper into the second quarter of 2026, the main focus for many dividend income seekers remains on TSX dividend stocks with respectable, reliable, sometimes juicy, but resilient recurring payouts supported by stable cash flows and disciplined capital allocations. Whether you are building a long-term retirement portfolio or simply looking to bolster your monthly passive income stream, the challenge is in finding dividend yields supported by structural growth.

Here are three TSX dividend stocks that offer a compelling mix of value and passive income potential right now.

Nexus Industrial REIT

Nexus Industrial Real Estate Investment Trust (TSX:NXR.UN) stands out as a high-conviction play in the industrial real estate sector right now. An investment in the Canadian REIT today locks in a 7.9% distribution yield that may double one’s capital in just 9.1 years, according to the Rule of 72.

Beyond the current yield, the REIT’s key fundamentals are strengthening in 2026. The trust recently secured a credit rating upgrade and closed a $500 million unsecured debt issue at favourable rates to repay high-interest bank debt. The rating upgrade lowers the REIT’s cost of capital.

Most importantly, Nexus Industrial REIT’s payout has seen improved health recently. The REIT’s Adjusted Funds from Operations (AFFO) payout ratio, which peaked at 111.7% in 2024, improved to 103.2% in 2025. With management targeting a sub-100% payout for 2026, this monthly distribution is looking increasingly secure.

Rent escalations, lower debt financing costs, and sustained high portfolio occupancy rates should support, sustain and improve the distribution’s coverage going forward. Investor confidence in the high-yield monthly distribution is increasing.

Whitecap Resources

Fast-growing Canadian energy stock Whitecap Resources (TSX:WCP) is a monthly dividend payer that I could add more of today, regardless of its near 90% rally, as it underwent a massive transformation during the past 12 months to become a $19 billion powerhouse following its merger with Veren in May 2025. Now the fifth-largest Canadian crude oil and natural gas producer, Whitecap is targeting a 22% growth in annual production to 372,500 barrels of oil equivalent per day (boe/d). If oil prices average US$80 for the year, the company could generate over $4 billion in cash flow for 2026.

Whitecap stock’s monthly dividend still yields a juicy 4.8%. The energy stock’s payout should be well covered as free cash flow grows with higher production volumes, cost synergies with Veren, and higher oil prices. Management may deleverage the balance sheet by lowering net debt from the $3.4 billion seen at the start of the year, while share repurchases may complement shareholder returns.

Insiders have been heavy buyers, with 18 buy transactions totalling 159,228 shares in the last six months, showing their confidence in the monthly dividend stock’s future revenue, earnings, and cash flow growth potential.

Capital Power Corp.

A utility could be a good buy for a dividend growth portfolio, too. For defensive investors, power generation giant Capital Power Corp. (TSX:CPX) offers regulated stability and a track record of revenue and cash flow reliability. This North American utility giant operates 35 facilities producing roughly 12 gigawatts of power that is sold through regulated long-term contracts.

In its first-quarter (Q1 2026) report released today (April 29), Capital Power reported revenue of $1.2 billion, a 21.9% year-over-year increase. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) grew 10% while cash flow from operations surged by 48.6% year over year. While adjusted funds from operations (AFFO) dipped 29% due to a tripling of sustaining capital expenditures, the first quarter dividend remained healthy with a 70% AFFO payout rate.

The utility is a dividend growth stock that has raised its quarterly payout for 12 consecutive years, including a 6% hike in July 2025. With a current yield of 4.1% and a five-year average annual growth rate of 6.2%, Capital Power stock’s dividend remains a premier choice for passive income and dividend growth.

3 TSX dividend stocks I’d buy now

In summary, here’s my list of the three Canadian dividend stocks I’d buy today, and why I would do so.

These three dividend stocks provide wide sector diversity, an immediate yield boost from a REIT, exposure to Whitecap’s aggressive growth strategy, and reliable, regulated cash flow growth from Capital Power.

The post 3 Dividend Stocks I’d Consider Adding More of This Very Moment 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, Nexus Industrial REIT, and Whitecap Resources. The Motley Fool has a disclosure policy.

The moment is now. The global wars have hit a reset on the supply chain. The world has undergone significant changes in energy, finance, and technology over the last five years. At this moment, dividend stocks bring stability and opportunity. Here are five dividend stocks that are at their most exciting time, and there is a reason to own them.

The high-yield dividend stock

A 9.9% dividend yield? Such a high yield will push away the risk-averse, but wait till you see the reason. This stock is Telus Corporation (TSX:T), a telco that has sustained its dividend despite taking a hit on profits because of a rule change. The price war changed the world for telcos, but Telus adopted it and expanded in other areas, never letting revenue fall.

Today, the company is struggling with the significant debt it took on to build the 5G infrastructure. It is offloading assets, consolidating businesses, cutting costs, and lowering capital expenditure to reduce its debt to 3 times its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It paused dividend growth until it repairs its balance sheet. Fears of a dividend cut have pulled Telus stock down.

Even if it cuts dividends, the yield will reduce to 5–6% at a $16.85 stock price. This is still good, as the uncertainty will be over and the stock price will increase. And if there is no cut, a 9.9% yield is the most exciting thing in the dividend landscape.

The dividend growth stock

A high yield is good at present, but high dividend growth is good in the long term. Manulife Financial (TSX:MFC) has been growing its dividend by 10% annually in 12 out of the last 13 years. The insurance company has expanded its product portfolio across wealth and asset management services in North America and Europe. It is now expanding in fast-growing Asian economies. It even partnered with Mahindra & Mahindra to enter India. All this has helped it grow its revenue and profits significantly and pass on the benefit to shareholders.

Despite the high dividend growth, the dividend payout ratio is 42%, within its target range of 35–45%.

The above two stocks offer a dividend reinvestment plan (DRIP) that can help you accelerate compounding.

The opportunistic stock

An opportunistic buy is possible even in dividend stocks as the management shares windfall free cash flow (FCF) with shareholders through a special dividend. Lundin Gold (TSX:LUG) stock has dipped 20% near $95, creating a buying opportunity as gold prices stabilize.

This is generally not a stock for dividends, and the 4.6% yield is not assured as the dividend amount depends on FCF left after paying US$300 million annually in fixed dividends. When gold prices rise, Lundin has an all-in-sustaining cost (AISC) of US$1,170 per oz in 2026, and gold is trading above $4,500. This significant difference helps increase Lundin’s FCF and, therefore, performance dividends. Its fixed quarterly dividend is $0.20, but it paid $2.75 dividend per share in 2025 after adding performance dividends.

Lundin has increased its quarterly fixed dividend to $0.30 and has declared $1.15 in the first quarter of 2026. This hints that the opportunistic performance dividends are still up for grabs.

The resilient dividend stock

Enbridge (TSX:ENB) has a 30-year history of growing dividends. While the above dividends are exciting, Enbridge’s low-risk business model brings stability in difficult times. It is an all-weather stock you can bank upon for quarterly payouts, as it maintains a payout ratio in the 65–75% range.

The all-in-one stock

Canadian Natural Resources (TSX:CNQ) has all four qualities of high yield, dividend growth, resilience, and special dividends. Its low-maintenance, high-output oil sands reserves give it a low breakeven price of mid-US$40/barrel.

The company keeps acquiring new reserves in the upcycle and accelerates debt repayment with the output generated from those reserves. Maintaining net debt at US$13 billion keeps it financially stable and dividends growing. This helped Canadian Natural Resources grow dividends at an average annual rate of 20% in the last 21 years. During the downturn, its dividend growth slows to 2% and in an upturn accelerates to as much as 50%.

The Iran war has increased oil prices, putting CNQ’s dividends at an exciting point.

The post The 5 Dividend Stocks I’d Be Most Excited to Own at This Moment  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, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

Four TFSA stocks to generate passive income

When building a passive income pool, the first thing to consider is building diverse cash streams. Each stream should be independent of another, which means choose your stocks across different sectors. Even within sectors, their income should give assured dividends in an economic crisis.

Growing passive income

Power Corporation of Canada (TSX:POW) can give you strong dividend growth in a growing economy and when facing rising risks. It holds life insurance and wealth management companies that earn cash from premiums and management fees. When risks increase, more people buy insurance, and the company enjoys high premiums. When investment opportunities are ripe, more people invest in mutual funds, earning higher management fees on a larger asset portfolio.

POW stock is in its upcycle, growing 47% year-to-date to $75. It has also grown its dividend by 9% to $2.67 per share. However, Power Corporation of Canada is vulnerable to economic crisis. The 2008 Financial Crisis affected all financial companies. Power Corporation showed resilience by sustaining its dividend and pausing dividend growth from 2009 to 2014. Evidently, you can rely on it for a steady income.

Monthly passive income

SmartCentres REIT (TSX:SRU.UN) is a good option for monthly payouts. Its diversified property portfolio, – comprising open-door retail stores, residential, commercial, industrial, and storage facilities at city intersections – gives it stability in an economic crisis. The REIT has even thrived in a housing crisis with recurring cash flow from its largest tenant, Walmart.

Although its 89.2% dividend payout ratio and high debt on the balance sheet kept the REIT’s unit price stressed for two years, it is now recovering as housing unit sales unlock liquidity. This has seen the unit price recover and reach near its 52-week high of $28.30. The REIT is still a buy for its 6.5% yield.

Balancing risky passive income streams

Telus Corporation (TSX:T) has a pretty high yield of 9.9% as its stock price nosedived over fears of a dividend cut. While there is risk, a dividend cut will ease out anxiety and give investors a clean slate to start with. A $1 billion savings that a dividend cut could unlock can help Telus accelerate debt repayment and increase the stock price. However, a cut is the last option if other means of reducing debt don’t give the desired results. For the time being, Telus has paused dividend growth.

Balancing the risk of Telus is the assured dividend of TC Energy (TSX:TRP). The stock is in an upcycle, surging 18% year to date. TC Energy’s Coastal GasLink Pipeline collects gas from other connecting pipelines in Alberta and transmits it to LNG Canada, an export facility. It will be the key beneficiary of liquified natural gas exports to Europe and other countries. The toll money will keep dividends flowing in.

How $20,000 could generate $1,200 in passive income

A $5,000 investment in each of the above stocks at the current trading price can buy you income-generating shares. Adding up the monthly and quarterly dividend payouts, you can get $1,238 in annual passive income. Since Power Corporation of Canada and TC Energy grow their dividends annually, your passive income could adjust to inflation.

The post How Putting $20,000 in These 4 TFSA Stocks Could Generate $1,200 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 SmartCentres Real Estate Investment Trust, TELUS, and Walmart. The Motley Fool has a disclosure policy.

Canadian energy stocks, artificial intelligence (AI) stocks, and any other growth stocks have already reached their peak valuations. It might get you thinking, or rather overthinking, if you should buy these stocks at their peak. Companies that are already growing can give you immediate returns, but for risk-averse overthinkers, they will always be risky investments. If you have $3,000 and want to invest in high-potential growth stocks without overthinking, be ready to buy and forget for at least five years.

2 high-potential growth stocks worth buying without overthinking it

The potential growth comes from companies investing in the future whose growth cycle has not yet begun or is in early stages. Such companies also come with risks of failure in a crisis. Nevertheless, the rewards are worth the risk as they trade at cheap valuations.

The potential growth of Ballard Power

Ballard Power Systems (TSX:BLDP) stock jumped 75% after releasing its 2025 earnings on March 10. And if you think the stock has already rallied, look at its growth potential. Ballard Power Systems has been working on hydrogen fuel cell technology for decades. After several trials and errors, the technology became workable and is now heading towards being commercially feasible.

One major reason hydrogen cars have not yet hit the roads is the high cost of ownership and the refuelling infrastructure. Ballard has been working with several European and North American companies to run commercial vehicles on hydrogen. Buses and rail have been the revenue generators so far.

Even with orders in the pipeline, project feasibility was not assured. Ballard has reduced these instances over the years and reported its first-ever gross margin in 2025.

The company has even hired professional management — a new CEO and COO — and tasked them to improve fundamentals and turn the company’s cash flows positive by 2027. This fundamental reset could give some earnings and sales to compare prices with. Right now, the best valuation for Ballard is price-to-book value, which is at 1.7 times

If hydrogen fuel adoption picks up, especially in an energy crisis, Ballard stock could give triple-digit growth in five years. It also carries a risk of a slow uptick in technology, as was the case with the Internet of Things. Even when technology is good and commercials are attractive, widespread adoption is not guaranteed, which brings risk and prevents tech companies from taking on debt.

Topicus.com stock

Topicus.com (TSXV:TOI) stock lost 53% of its value when the parent company’s founder resigned. Moreover, fears of AI replacing software maintenance jobs left almost all enterprise software companies in the red. Many software companies joined hands with AI-first companies, exploring ways to fit AI. Such companies are struggling to justify the AI cost. The other type is AI-first companies, like Claude and OpenAI. They are built on AI, and their key product is AI. They are offering agentic AI services to enhance human productivity.

Topicus.com acquires software companies that work on mission-critical applications and thrive on the maintenance cash flow. It is observing how AI is changing the landscape and is open to exploring opportunities where there are returns. While the AI risk exists, the market seems to have discounted the stock too much.

Topicus.com reported a 53% decrease in net income in 2025 because it used the equity method of accounting for the stake it bought in publicly traded Asseco Poland. In this method, Topicus.com updated the value of its share holdings in Asseco every quarter. However, this method doesn’t align with Topicus.com’s business model, which is more focused on free cash flow.

The 2026 earnings report could see a remarkable recovery as it ends the equity method of accounting and continues to realize the cash flows from Asseco. The steep decline in share price has made the forward price-to-earnings (P/E) multiple of 22.5 times attractive. It is the lowest in two years. When earnings per share are corrected in 2026, the stock price could surge to adjust to the P/E multiple.

The post Have $3,000 to Invest? 2 High-Potential Growth Stocks Worth Buying Without Overthinking It appeared first on The Motley Fool Canada.

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• A Year Later: 3 Canadian Stocks I Still Want in My TFSA

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

The choice between investing in traditional and renewable energy stocks often feels like a clash of eras for Canadian investors. On one side, you have the reliable oil sands heavyweights that have powered growth and income-oriented portfolios for decades. On the other side, the green energy giants are riding a new wave of global energy transition that promises explosive capital gains.

The debate between “old world” energy and the “new world” of renewables stock investments often boils down to a heavyweight match between oil king Canadian Natural Resources (TSX:CNQ) and green energy giant Brookfield Renewable Partners (TSX:BEP.UN).

If you’re looking for the better energy stock to buy right now, the first four months of 2026 have already dropped some hints. CNQ stock has delivered a 31% year-to-date total return, narrowly beating Brookfield Renewable stock’s respectable 27.5%. But as every seasoned investor knows, past performance is just a rearview mirror image.

Here is how these two titans stack up for the rest of 2026.

Canadian Natural Resources: An energy stock to buy for growing cash flow

Canadian Natural Resources has long been the gold standard for operational excellence in the oil-sands patch. CNQ stock is literally a cash flow machine, thanks to its vast portfolio of long-life and low-decline assets.

These assets allow the firm to maintain industry-leading breakeven points in the low to mid US$40 per barrel range. When West Texas Intermediate crude oil is hovering above the US$90 mark, as it has been lately amid tensions in the Middle East and the Strait of Hormuz, profit and cash flow margins for low-cost oil producers like Canadian Natural Resources are simply staggering.

Investment bank analysts, who initially expected oil prices to average between US$55 and US$77 for 2026, have since updated their price forecasts to include Morgan Stanley’s US$110 crude oil outlook for this quarter. Higher oil accelerates CNQ’s ability to extinguish debt and quickly return to a generous capital budgeting policy that returns 100% of free cash flow to investors through dividends and share repurchases.

CNQ’s liquidity and financial strength have translated into one of the most impressive dividend records in Canada. The dividend-growth stock announced its 26th consecutive year of dividend increases. The ever-growing CNQ quarterly dividend yields approximately 4.1% annually, making the energy stock a favourite dividend growth stock for income seekers who believe oil demand will remain resilient for years to come.

Brookfield Renewable Partners stock

Brookfield Renewable Partners stock is arguably the architect of the new energy world. The company has moved beyond being just a green utility and is now a critical infrastructure partner for the world’s largest tech companies as they embark on a massive, multi-billion-dollar artificial intelligence expansion drive in 2026.

Power-intensive AI data centres require 24/7, all-year-round firm power to run their data centres, and Brookfield’s global hydroelectric and nuclear fleet is perfectly positioned to provide it.

Through its equity investment stake in Westinghouse Electric (49% co-owned by Cameco), Brookfield Renewable Partners may earn growing dividends from Westinghouse if the US$80 billion deal with the U.S. government for small nuclear power plants executes as expected. This deal could potentially revalue Westinghouse at US$30 billion in an initial public offering. Brookfield and Cameco acquired Westinghouse for a combined US$8.2 billion in 2023, including working capital injections.

Other major green energy deals include a $10 billion framework deal with Microsoft for 10.5 gigawatts of new renewable energy capacity before 2030. This deal came live this year and was roughly eight times larger than any previous corporate power-purchase agreement signed before 2025.

With Brookfield Renewable’s development pipeline exceeding 200 gigawatts and a management team targeting 10% annual growth in funds from operations per unit, Brookfield Renewable stock offers a growth trajectory that most traditional utilities can’t match right now.

Dividend investors aren’t left behind. BEP.UN stock also pays a more generous 4.7% annual dividend yield, making it an attractive “green” income play.

So, which is the better energy stock to buy right now?

If you had to pick just one of the energy stocks for your retirement fund today, the decision would likely hinge on whether you value immediate cash flow (and therefore lean towards CNQ stock) or prefer long-term structural growth (which draws you towards BEP.UN stock). Both investment candidates make sense.

The post Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners appeared first on The Motley Fool Canada.

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• 1 Dividend Stock I’d Feel Confident Buying and Holding for a Decade
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Fool contributor Brian Paradza has positions in Cameco. The Motley Fool recommends Brookfield Renewable Partners, Cameco, Canadian Natural Resources, and Microsoft. The Motley Fool has a disclosure policy.

The Canada Revenue Agency (CRA) makes you contribute 5.95% of your income to the Canada Pension Plan (CPP) and then get a payout after age 65. There, you have no control over how much you can contribute, where, or how much payout you can get. Moreover, the payouts are taxable. Canada has some good passive-income stocks that you can add to your portfolio. Their monthly payouts are assured and relatively safer than growth stocks. One 6.5% monthly passive-income stock can help you take control of your payouts, and even make them tax-free if invested through a Tax-Free Savings Account (TFSA).

The 6.5% monthly passive-income stock

SmartCentres REIT (TSX:SRU.UN) is a good addition to your monthly passive income, given its 22-year history of paying regular dividends. It has even grown dividends in a few years, but its strength is in its payout stability and a 6.5% dividend yield, even when the real estate investment trust (REIT) has surged to its 52-week high. A 6.5% yield is an attractive payout in the current market environment.

A little over $3,000 investment can buy 105 units of the REIT at $28.4, which can give an annual dividend of $194. It converts to a monthly payout of $16.34. You can keep adding 100 units every year to this portfolio and convert the annual payout to a monthly payout in 13 years. Here’s how.

We assume the dividend per unit remains stable. However, it could increase based on the REIT’s performance.

Is SmartCentres REIT’s monthly passive income safe?

SmartCentres REIT is Canada’s largest retail REIT with a portfolio of 198 properties worth $12.1 billion.

Its portfolio comprises large open-format shopping centres with significant land holdings. Its core property is retail stores that are strategically located at key intersections across Canada. Its biggest tenant is Walmart, accounting for 23% of its rental income. SmartCentres is using the open space around its stores to build new stores, self-storage, residential, office, and industrial facilities. It is also building condos and townhomes, thereby converting shopping centres into city centres.

SmartCentres sells condos and townhomes for a profit and leases other properties. This complements its open-format stores by increasing the footfall. However, this strategy needs stringent financial discipline as construction delays or a slowdown in residential sales will add to the REIT’s cost. Thus, the status of the construction work of major projects could fluctuate the unit price.

The REIT has pre-sold around 93% of the 340 units being constructed in the ArtWalk condo Tower A in the Vaughan Metropolitan Centre. Such pre-sales help the REIT fund the projects.

This intensification concept helped SmartCentres grow its distributions by an average annual rate of 3% between 2015 and 2020, when the real estate market was booming. However, the pandemic affected most retail REITs and forced them to slash dividends. SmartCentres managed to keep dividends stable through strong financial discipline.

SmartCentres pays dividends from the adjusted funds from operations, which excludes all non-recurring items such as proceeds from the sale of condos and townhomes. The REIT has been improving its dividend-payout ratio from 91.7% in 2024 to 89.2% in 2025 by increasing net income from the same property.

Investor takeaway

SmartCentres’ financial discipline will help it stay resilient in weak macroeconomic conditions. At the same time, its robust project pipeline will help it increase its rental income and net asset value of properties in a strong economy.

The post This Monthly Passive-Income Stock Yields 6.5% — and I Keep Adding More  appeared first on The Motley Fool Canada.

More reading

• Today’s Perfect TFSA Stock: 6% Monthly Income
• 2 Canadian REITs That Look Worth Buying Right Now
• How a $10,000 Investment in This Dividend Stock Could Generate Over $54 a Month in Passive Income
• 3 High-Yield Dividend Stocks You Could Hold in 2026 Without Losing Sleep
• How Putting $20,000 in These 4 TFSA Stocks Could Generate $1,200 in Passive Income

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

The Canada Revenue Agency (CRA) updated your Tax-Free Savings Account (TFSA) contribution room with a $7,000 contribution limit for 2026 on January 1. This year is the year of energy stocks as Venezuela’s oil crisis and the Iran war have changed the energy supply dynamic from a supply glut to a supply crisis. Oil prices have once again touched US$90–US$100 a barrel.

According to a Reuters report, the UAE has exited the Organization of the Petroleum Exporting Countries (OPEC), a group created to limit oil output to stabilize oil prices. While it is not new for OPEC to see member countries exit, the timing is crucial. With the UAE free to produce more, it could increase competition for North America, which has no production limits.

The changing energy landscape has made Canadian energy stocks an attractive investment option.

Canadian energy stocks to consider for a TFSA

Canada has the fourth-largest proven oil sands reserves in the world. It mainly exports oil and natural gas to the United States. However, this landscape is changing. It is now diversifying and looking to export to China, India, and Europe. Canada is building an LNG export facility to strengthen its North Pacific route to supply liquified natural gas (LNG) to Asian trade partners.

The natural gas energy stock

Holding Canada’s largest oil sands reserves, Canadian Natural Resources (TSX:CNQ) will benefit from expanding export markets. It can produce more and sell more. The company has been aggressively buying more reserves, which increased its net debt to $18 billion in 2024. It accelerated its debt repayment, reducing its net debt to $16 billion in 2025. The target net debt is $13 billion, which it could achieve in 2026. CNQ stock can keep growing its dividends as it reduces debt and increases free cash flow.

Canadian Natural Resources has increased its production at the right time and could benefit from expanding export markets. Its stock has surged as much as 50% year-to-date on the back of higher oil and gas prices. The stock price could dip from $63 to $53 or below as oil prices cool. That is the opportunity to buy and enjoy a higher dividend yield of 5%.

The energy infrastructure stock

Enbridge (TSX:ENB) is an evergreen stock to buy and hold. The company is accelerating the expansion of its gas pipeline and transmission business, and the timing could not be more perfect. It now owns three gas utilities in the United States, where data centres are using natural gas-fired power plants to meet their power needs. Enbridge is exploring a $10 billion opportunity to provide direct natural gas connections to artificial intelligence (AI) data centres.

Enbridge is also building gas pipelines to tap into the North American liquefied natural gas (LNG) export opportunity. Its strong project execution, regular cash flows from aging pipelines, and financial discipline make it a resilient dividend stock. The company uses the cash flow to repay debt, fund new projects, and maintain old pipelines. Once new projects start giving regular cash, some of it is initially used to bring debt to comfortable levels.

Enbridge is on track to grow dividends by 5% from next year.

The power plant stock

The next link in the energy supply chain is power plants, and Capital Power (TSX:CPX) has been efficiently operating in this segment. It builds, acquires, and operates power plants. Capital Power increased its natural gas-fired power capacity by 2.2 gigawatts (GW) in 2025, which it plans to deploy to AI data centres.

It has 25 GW of projects in the pipeline, of which 16GW is from mergers and acquisitions. Building a natural gas-fired power plant from scratch takes five to seven years and costs US$2,500/kilowatt. Meanwhile, uprating an existing plant takes two years at most and costs US$1,000/kilowatt. Capital Power stock has jumped 15% in 2026 but is still 8% below its October 2025 high. The company has been regularly growing dividends for the last 12 years.

The above three energy stocks are buy-and-hold investments in a TFSA for their dividend growth from exports and AI data centre opportunities.

The post TFSA Contribution Season Has Arrived – Here Are 3 Canadian Energy Stocks to Consider appeared first on The Motley Fool Canada.

More reading

• 1 Dividend Stock I’d Feel Confident Buying and Holding for a Decade
• A Standout TFSA Stock With a 6 % Monthly Payout Worth Knowing About
• 3 TSX Stocks That Could Outperform the Broader Market in 2026
• Oil Above $110 and Rates on Hold: 3 Canadian Energy Stocks Built for Both
• Here’s Where Enbridge Stock Could Be Headed in the Next 3 Years

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Capital Power, and Enbridge. The Motley Fool has a disclosure policy.