Latest news with #AmyLegate-Wolfe
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4 days ago
- Business
- Yahoo
TSX Today: Watch the Markets on June 24
Written by Amy Legate-Wolfe at The Motley Fool Canada Canadian investors have had a lot to digest lately, and June 24 is shaping up to be another important day. That's when we receive the latest Consumer Price Index (CPI) data for May. With inflation on everyone's mind, this number could set the tone for the TSX for the rest of the month, especially for dividend stocks like BCE (TSX:BCE). The April CPI came in at 1.7%, down from 2.3% in March, showing progress but also raising more questions. Core inflation, which strips out volatile items like food and energy, is still hovering around 3.1%. That's higher than the Bank of Canada's 2% target. So while rate cuts are still on the table, the central bank may be waiting for more proof that inflation is consistently cooling. That puts even more attention on the May CPI print coming out just before the market opens on Monday. All eyes will be on how Canadian stocks react, especially BCE. This telecom giant is widely owned for its dividend, which has come under pressure this year. Back in May, BCE surprised the market by announcing it would cut its annual dividend from $3.99 to $1.75. That's a big drop and the first cut in over a decade. Management said the move was necessary to pay down debt and strengthen its balance sheet. Investors didn't love the news, and the Canadian stock has been on shaky ground ever since. Still, BCE's fundamentals remain solid. In its first-quarter earnings released on May 8, BCE reported revenue of $5.9 billion, a slight dip of 1.3% year over year. But net earnings surged 49% to $683 million, thanks to cost-cutting and a few one-time gains. Earnings per share (EPS) rose to $0.68 from $0.44 in the same quarter last year. While revenue slipped, BCE is still profitable and generating solid cash flow. Its fibre network also continues to expand, now reaching over 7.8 million locations. That's part of a long-term growth strategy, and one that should support stable operations for years to come. BCE is also trimming costs and restructuring its workforce. The plan is to keep its leverage ratio in check and remain competitive even in a higher interest rate world. So, what does this mean for June 24? If CPI data comes in softer than expected, markets may rally on renewed hopes of rate cuts later this year. That would help dividend-paying stocks like BCE, which tend to struggle when rates are high. Lower inflation would ease pressure on household budgets and business costs, which could improve sentiment across the board. But if CPI surprises to the upside, BCE may stay under pressure. High inflation would mean the Bank of Canada might hold off on cutting rates once again, or even consider more hikes. That's not great news for heavily indebted companies or those that rely on stable income investors. BCE's yield is still high. At a share price of around $31, the forward dividend yield sits near 5.7%, even after the cut. But some income investors remain wary, especially since the dividend was once considered rock solid. Still, for long-term investors, this could be a turning point. The dividend cut may have reset expectations, but it also gives BCE room to grow again. By cutting its payout, it frees up capital to invest in its network and pay down debt. If the inflation data is favourable and rates start to trend lower, BCE could become more attractive again, especially to those who believe in its long-term plan. With economic data taking the spotlight and inflation still in focus, June 24 could mark a shift in sentiment. Keep an eye on CPI and watch how stocks like BCE respond. It may just be the beginning of a rebound, or a signal to wait a little longer before jumping in. Either way, this is one stock worth keeping close tabs on as Canada's economic picture continues to unfold. The post TSX Today: Watch the Markets on June 24 appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe 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. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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7 days ago
- Business
- Yahoo
Need $1,000 Each Month? How Much You Need to Invest in a TFSA
Written by Amy Legate-Wolfe at The Motley Fool Canada Many Canadians dream of earning $1,000 a month in passive income. For those using a Tax-Free Savings Account (TFSA), that dream is tax-free. But how much do you really need to invest to make it happen? The answer depends on which stocks you choose and how much they pay. Today, we'll look at three solid dividend-paying stocks on the TSX, and figure out how much you'd need to invest in each one to hit that $1,000 monthly goal. Goeasy (TSX:GSY) is a major player in non-prime consumer lending. It helps Canadians access credit when traditional banks say no. That includes personal loans and leasing furniture or appliances. It's been around for years and has a reputation for strong performance and rising dividends. In the first quarter of 2025, the lender posted revenue of $318 million, up 22% from the same time last year. Net income came in at $52.6 million, with earnings per share of $3.08. That's up from $2.73 in Q1 2024. The dividend stock currently trades around $155 and offers a dividend yield of 3.8%. The dividend stock has raised its dividend every year for almost a decade, and its payout ratio remains sustainable. If you're comfortable with a bit more risk for more growth, goeasy could be a strong pick. Then there's Exchange Income (TSX:EIF). It's a unique dividend stock with operations in aerospace and aviation services, as well as manufacturing. In Q1 2025, the acquisition-oriented company reported revenue of $668.3 million, up 11% year over year. However, net income dipped slightly to $9.6 million from $11.8 million in Q1 2024, mostly due to acquisition costs and some seasonal slowdowns. The dividend is paid monthly and currently yields about 4.6%. Exchange Income has a long track record of paying dividends and growing through smart acquisitions. It's not as high-growth as goeasy, but it's dependable. Finally, we have Transcontinental (TSX:TCL.A). This dividend stock used to be known for its printing business, but now it's more focused on packaging. In Q2 2025, it brought in $703 million in revenue and net earnings of $24.4 million. While print still brings in revenue, it's the packaging division that's helping the company evolve. An investment may appeal to conservative investors who prefer a lower-risk business model. The dividend has remained stable, though it hasn't shown the kind of rapid growth that goeasy offers. So how much do you really need? The short answer for a mix of the three is a total investment of $263,085 at writing. Overall, it depends on the stock. Exchange Income gets you there the fastest, while Transcontinental takes longer. Goeasy lands in the middle but offers more long-term upside. Here's how investors might want to break it down for the best passive income, earning just under $12,000 a year, at $11,563 or $963.55 each month. Company Price Dividend/yr Shares Invested Income/yr EIF $57.83 $2.64 3,500 $202,400 $9,240 TCL.A $21.16 $0.90 2,500 $52,900 $2,250 GSY $155.70 $1.46 50 $7,785 $73 Total $263,085 $11,563 Achieving a $1,000 monthly income in a TFSA isn't easy, but it's definitely possible with the right combination of high-yield stocks and a long-term mindset. Whether you focus on growth, stability, or a mix of both, knowing your numbers is the first step. Let your TFSA work smarter, not harder. The post Need $1,000 Each Month? How Much You Need to Invest in a TFSA appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Transcontinental. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
5 Canadian Dividend Stocks I'd Buy Now and Hold for the Next 20 Years
Written by Amy Legate-Wolfe at The Motley Fool Canada If you want to build wealth over time, dividend stocks are a simple but powerful tool. They put money in your pocket regularly, no matter what the market is doing. And when you reinvest those dividends, they start to generate income of their own. This snowball effect, known as compounding, can quietly grow your portfolio over decades. So, if you're thinking long term, like the next 20 years, it makes sense to look for dependable, dividend-paying stocks. So, let's look at the top five to pick right now. Freehold Royalties (TSX:FRU) is a great place to start. It earns income by collecting royalties on oil and gas production from lands it owns rather than operating wells itself. That keeps costs low and income steady. In the last 12 months, it brought in $326 million in revenue and $152 million in net income. It pays out $1.08 per share annually, giving it a strong yield of about 8.6% at current prices. That's a hefty income stream that can be reinvested or used elsewhere, and Freehold's model means it's well-positioned to keep paying over time. Peyto Exploration & Development (TSX:PEY) is another dividend payer in the energy space, but this one is more hands-on. It drills and produces natural gas, and it's known for doing so efficiently. Peyto's most recent quarter showed earnings of $114 million and funds from operations of $225 million. About $66 million of that went right back to shareholders through dividends. It's also growing earnings fast, with a five-year average annual earnings growth rate of nearly 35%. It's one of those rare names that combines income and growth potential. Headwater Exploration (TSX:HWX) rounds out this energy trio. Unlike some peers, it has a strong balance sheet and minimal debt. It's posted $541 million in revenue and $200 million in net income over the last year. Its latest quarterly earnings per share (EPS) came in at $0.21, right in line with expectations. It's currently paying a dividend of $0.10 per share quarterly, and with cash on hand exceeding $125 million, there's room to grow that over time. It's a smaller name but one with strong fundamentals and a track record of disciplined spending. Switching sectors, Laurentian Bank (TSX:LB) offers exposure to Canadian financials. It's not as large as the Big Five banks, but that also means it trades at a discount. It recently reported revenue of $226 million, slightly down from the prior year, but beat expectations with earnings per share of $0.88. Its price-to-earnings ratio sits below 10, and it pays an annual dividend of $2.08 per share, yielding roughly 6.1%. It's the kind of solid, income-producing stock that rewards patient investors. Finally, Brookfield Renewable Partners LP (TSX: adds a renewable energy angle. While it reported a net loss last quarter, it grew funds from operations by 15% and secured new power contracts for 4,500 gigawatt-hours annually. It also maintains a strong liquidity position with $4.5 billion in available capital. currently pays $1.48 per unit annually, with a yield of about 6.2%. If you believe the future is green, this is a name to consider for the long haul. Holding dividend stocks like these over 20 years is less about timing and more about consistency. You collect income. You reinvest. You watch your shares multiply over time. The ups and downs of the market matter less when the dividends keep flowing. Right now, in fact, you could earn a total of $985.92 each year! COMPANY RECENT PRICE SHARES DIVIDEND TOTAL ANNUAL PAYOUT FREQUENCY INVESTMENT TOTAL $12.49 160 $1.08 $172.80 Monthly $1,998.40 $18.31 109 $1.32 $143.88 Monthly $1,996.79 $6.53 306 $1.32 $403.92 Monthly $1,998.18 $30.13 66 $1.88 $124.08 Quarterly $1,987.58 $30.00 66 $2.14 $141.24 Quarterly $1,980.00 Whether it's royalties, gas production, banking, or renewable energy, these five companies are in sectors that matter. And each one has shown a commitment to rewarding shareholders. For anyone building a portfolio designed to last, this is a strong foundation to start with or add to. The post 5 Canadian Dividend Stocks I'd Buy Now and Hold for the Next 20 Years appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners, Freehold Royalties, and Laurentian Bank Of Canada. The Motley Fool has a disclosure policy. 2025
Yahoo
7 days ago
- Business
- Yahoo
1 Delicious Dividend Stock Down 24% to Buy and Hold Now
Written by Amy Legate-Wolfe at The Motley Fool Canada In a year marked by falling oil prices and market uncertainty, many investors are looking for safety first. It's not just about finding the highest dividend anymore. It's about finding the ones that can weather storms and keep paying. That's why dividend stock Vermilion (TSX:VET) deserves a closer look. It's down 24% from its 52-week high yet remains one of the more solid dividend options in the Canadian energy space. Vermilion isn't the biggest oil and gas producer in Canada, but it's one of the more diversified. It has assets not just in Alberta and Saskatchewan but also in Europe and Australia. This gives it access to premium-priced markets, particularly for natural gas, where prices in Europe tend to stay higher than in North America. That global footprint helps reduce the impact of local price swings and adds a layer of resilience. In its most recent earnings report for the first quarter of 2025, Vermilion posted revenue of $519.6 million. That was up from $457.2 million the previous year. The dividend stock returned to profitability after a weak end to 2024, reporting net income of $14.95 million. Earnings per share (EPS) came in at $0.10. While that missed analyst expectations, it reflected better production results and lower capital spending. More importantly, it showed that the business remains operationally sound even when oil prices dip. The dividend is what catches most investors' attention. Vermilion currently pays a quarterly dividend of $0.13 per share, or $0.52 annually.. For many income-focused investors, that's an appealing number, high enough to matter but not so high that it raises red flags. What makes it stand out is the sustainability behind it. In March, Vermilion raised its dividend from $0.12 to $0.13 per share. That decision didn't come lightly. The dividend stock has been focused on strengthening its balance sheet, including the sale of its U.S. assets in June for $120 million. Proceeds will be used to pay down debt. That adds flexibility and lowers risk heading into the rest of the year. Right now could, therefore, be the time to buy, as a $7,000 investment could bring in $347.88 annually! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT VET $10.45 669 $0.52 $347.88 Quarterly $6,989.05 Debt reduction has become a key theme for Vermilion, especially after years of volatility in the energy market. Its current debt-to-equity ratio is sitting at a reasonable level, and interest coverage has improved. That tells us the dividend stock has breathing room. In short, it can keep paying dividends without borrowing to do so. What sets Vermilion apart is its disciplined approach. It doesn't overpromise, and it hasn't chased overly aggressive production targets. Instead, it focuses on free cash flow and long-term shareholder returns. When oil prices go up, it benefits. But it doesn't crumble when they fall. That's rare in the energy sector. The dividend stock has traded in a wide range this year, from as low as $7.29 to as high as $16.29. Today, it's closer to the bottom than the top. That suggests there may be upside, particularly if oil prices stabilize or rise. Analysts covering the dividend stock have an average price target of around $13, giving the stock roughly 25% room to grow. While there are no guarantees, it shows that the market sees value in the name. Investing in energy stocks always comes with risks. Prices are cyclical, and Vermilion is not immune to that. But with a global asset base, a reasonable yield, and a proven commitment to shareholder returns, it offers a lot to like. For investors looking for a mix of value, income, and safety, it's a dividend stock worth considering. The post 1 Delicious Dividend Stock Down 24% to Buy and Hold Now appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Vermilion Energy. The Motley Fool has a disclosure policy. 2025
Yahoo
13-06-2025
- Business
- Yahoo
TD Bank vs. Royal Bank: How to Allocate $10,000 to Bank Stocks
Written by Amy Legate-Wolfe at The Motley Fool Canada It has been a tense few months for Canadians trying to get ahead. Inflation, cost of living, and fears of recession are all on the rise. If you're sitting on $10,000 and want to invest in something stable, Canadian bank stocks are a logical place to look. Especially those that have been paying dividends for decades like TD Bank (TSX:TD) and Royal Bank (TSX:RY). Both of these banks are heavyweights. Each have been paying dividends for more than 20 years. They've also managed to keep raising those payouts, even through market shocks like 2008 and 2020. That kind of consistency is hard to find. But if you're trying to choose between them, or wondering how to split your money, it's worth looking at what each has been doing lately. TD stock is up about 30% year to date as of writing. That's a big gain for a blue-chip name. The dividend stock reported strong results in its latest earnings report, with revenue of $15.1 billion and adjusted earnings per share of $2.02. It brought in $2.8 billion in net income, even as it dealt with compliance issues in its U.S. operations. TD also posted record revenue in Canadian banking, helped by higher margins and loan growth. Despite a few headwinds, it looks like the business is back on track. Royal Bank hasn't had the same kind of stock run-up this year, but it's still up over 6% year to date. Its most recent earnings were also strong. The bank reported $5.1 billion in net income and $3.54 in diluted earnings per share. Wealth management grew by 48%, and capital markets increased 24%. Royal Bank is known for being well-diversified, and this report proved it. Every part of the business pulled its weight. Both TD and Royal Bank yield just over 4%. Both have strong balance sheets and global reach. So where does that leave your $10,000? If it were me, I'd go with a 60/40 split. I'd put $6,000 into TD and $4,000 into Royal Bank. The reason? TD has more near-term momentum. Its Canadian operations are thriving, and it's rebounding quickly after a rough patch. There's more potential for capital gains in the short term, and the dividend is still generous. Royal Bank, on the other hand, is a steady force. It doesn't have the same pop right now, but it's reliable and strong across multiple divisions. In uncertain times, it offers comfort. Holding it also gives you a bit of insurance if market conditions shift and growth slows. Together, you'd be collecting over $400 a year in dividends, just for holding two of the safest stocks in Canada. And that income should grow steadily over time. COMPANY RECENT PRICE SHARES (rounded down) ANNUAL DIV/YR TOTAL PAYOUT FREQUENCY INVESTMENT TD $94.47 63 shares $4.20 $264.60 Quarterly $5,950.00 RY $165.91 24 shares $5.86 $140.64 Quarterly $3,981.84 TOTAL — — — $405.24 — $9,931.84 This isn't about chasing returns. It's about protecting your future. With recession fears rising and Canadians tightening their budgets, dependable dividend stocks can bring a sense of stability as investors face inflation fatigue, job security worries, and a sense that the cost of living keeps climbing. In such a landscape, owning TD and Royal Bank can be a quiet win. Of course, there are other strong banks out there. But these two are blue-chip, well-loved, and proven. If you've got $10,000 to invest and want to set it and forget it, this combo makes a lot of sense. The post TD Bank vs. Royal Bank: How to Allocate $10,000 to Bank Stocks appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe 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. 2025
