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21 hours ago
- Business
- Yahoo
2 Canadian Stocks That Could Turn $10,000 Into $100,000
Written by Amy Legate-Wolfe at The Motley Fool Canada When markets feel uncertain, the idea of turning $10,000 into $100,000 sounds almost too good to be true. But every so often, certain stocks line up the right mix of growth potential, industry momentum, and financial strength to make it a real possibility. On the TSX, two Canadian stocks that stand out right now are Celestica (TSX:CLS) and ATS (TSX:ATS). Each brings something different to the table, but both could have the power to deliver serious long-term gains. Celestica is a global leader in electronics manufacturing and supply chain solutions. It works across industries such as aerospace, healthcare, and industrial equipment. While it's not a flashy tech stock, it has quietly become one of the most impressive turnaround stories on the TSX. Its recent earnings beat expectations, and the Canadian stock even raised its 2025 guidance. That's helped fuel a strong rally, with the stock climbing more than 30% in a single month following the announcement. The Canadian stock's recent quarterly results showed a continued increase in margins and revenue. With a market cap of about $20.7 billion, it still has room to grow. Celestica is benefiting from strong demand in its advanced technology segment and re-shoring trends as companies look to move manufacturing out of more volatile regions. As businesses invest in local, secure, and highly automated production, Celestica stands to gain. Over time, the power of compounding takes over. If Celestica were to grow at an average annual rate of 25% over the next decade, a $10,000 investment today could realistically be worth more than $93,000. Add in a few more strong quarters or an acquisition, and you're suddenly knocking on the door of that six-figure mark. Then there's ATS. This is a Canadian stock rooted in automation. It builds factory solutions for the life sciences, battery assembly, food and beverage, and clean tech sectors. With global companies racing to automate production and scale sustainable technology, ATS is in the right place at the right time. But its recent earnings report reminded investors that growth doesn't always happen in a straight line. ATS reported revenue of $2.5 billion for fiscal 2025, down 17% from the previous year. It also posted a loss of $0.70 per share, compared to a profit of $0.49 per share a year ago. The decline hit the Canadian stock hard. But despite the dip in revenue and earnings, ATS continues to generate strong adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and maintains a solid backlog of future work. It's also worth considering the starting point. With a market cap around $4.1 billion, ATS still falls in the mid-cap range, leaving plenty of room for a multi-bagger move. If the Canadian stock returns to consistent double-digit revenue growth and improves margins, it could easily see its valuation rise dramatically over the next five to ten years. Of course, no Canadian stock is a sure thing. Celestica operates in a competitive space and depends on supply chain stability. ATS is exposed to cycles in capital investment and has work to do to regain investor trust. Yet both companies are backed by real demand, strong leadership, and smart positioning to benefit from key global trends. For investors with patience, a bit of risk tolerance, and a long-term mindset, these two Canadian stocks might just be the kind that can turn a $10,000 investment into something much bigger. It won't happen overnight, but with the right moves and a little market tailwind, the math makes sense. And in today's market, that kind of potential is worth a second look. The post 2 Canadian Stocks That Could Turn $10,000 Into $100,000 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 ATS Corp. The Motley Fool has a disclosure policy. 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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21 hours ago
- Business
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3 New Red Flags the CRA is Watching for Old Age Security Pensioners
Written by Amy Legate-Wolfe at The Motley Fool Canada For Canadian retirees, Old Age Security (OAS) can be a steady stream of support. But just because the money shows up in your account every month doesn't mean the Canada Revenue Agency (CRA) isn't paying attention. With financial pressures rising and more Canadians relying on government benefits, the CRA has sharpened its focus on how OAS income fits into the bigger tax picture. If you're collecting OAS, here are three new red flags the CRA is watching for, and a smart way to put that money to work without drawing unwanted attention. The first red flag is unreported income. While many retirees believe their OAS and Canada Pension Plan (CPP) are the only numbers that matter, that's often not the case. More seniors are working part-time or freelancing in retirement. Others might rent out a room in their home or sell crafts online. These side hustles, even small ones, can trigger CRA attention if they aren't declared. The agency cross-references income slips and financial accounts. If something doesn't line up, expect a follow-up. The second red flag is aggressive deductions or credits. Claiming large medical expenses, charitable donations, or home accessibility renovations isn't an issue if you have the receipts. But if the claims don't match your income or usual spending patterns, the CRA might take a closer look. This is especially true for seniors making multiple claims in one year or using unfamiliar tax advisors who promise big returns. If it looks too good to be true, it probably is, and the CRA knows it. The third red flag is crossing the OAS clawback threshold. For 2025, if your net income is more than $90,997, you'll start repaying part of your OAS. This recovery tax gets deducted monthly once you pass the limit. What's tricky is that many seniors don't realize investment gains, pensions, or even Registered Retirement Savings Plan (RRSP) withdrawals could push them over. The CRA calculates this clawback based on your total income, so it's important to know where you stand before tax season. While that all might sound intimidating, there's good news, too. If you don't need every dollar of your OAS for daily expenses, investing some of it can be a smart move. One strong choice for retirees looking for consistent income is Chartwell Retirement Residences (TSX: Chartwell operates senior living communities across Canada. If there's one industry built for long-term growth, it's housing for an aging population. Chartwell shares are currently trading around $18. The real estate investment trust (REIT) offers a dividend yield near 3.4%, with monthly payouts. That means you're getting cash flow every month, which pairs nicely with how OAS arrives in your account. It's a comfortable match for retirees looking to build a steady income stream that doesn't fluctuate wildly with the market. Over the past year, Chartwell has generated about $917 million in revenue and maintains a market cap just under $5 billion. The dividend stock also declared a $0.051 monthly distribution for May 2025, in line with previous months. While it's not the highest-yielding REIT out there, it makes up for it with consistency and a business model tailored to senior needs. Even small investments can add up. If you put aside $200 of your OAS each month and buy Chartwell shares, you'd start collecting dividends right away. Those dividends can be reinvested to buy more shares or withdrawn to cover lifestyle expenses. Over time, it creates a little income engine powered by real estate and demographic trends. In fact, if you invested your $8,732.04 OAS maximum payment, it could bring in almost $300 in annual income, or $24.65 monthly! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT $17.99 485 $0.61 $295.85 Monthly $8,715.15 And because Chartwell pays a stable monthly dividend and doesn't generate extreme capital gains, it's less likely to push you over the OAS income threshold. As long as your total income stays below the recovery limit and you declare everything properly, the CRA should have no issue with how you use your pension. All considered, Chartwell offers a way to turn some of your pension into something steady, dependable, and built for the long term. The post 3 New Red Flags the CRA is Watching for Old Age Security Pensioners 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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a day ago
- Business
- Yahoo
Where to Invest $5,000 in the TSX Today
Written by Amy Legate-Wolfe at The Motley Fool Canada Inflation may be cooling slightly, but most Canadians are still feeling the squeeze. The April 2025 Consumer Price Index (CPI) data showed consumer prices rose 2.7% year over year, down from 2.9% in March. While that's a step in the right direction, core inflation remains stubbornly above 3%. Everyday essentials like rent, transportation, and food continue to weigh heavily on household budgets. For investors, that kind of environment calls for steady, inflation-resistant income. And if you're looking to put $5,000 to work on the TSX today, Brookfield Infrastructure Partners (TSX: is one of the most attractive options. Brookfield Infrastructure owns and operates critical infrastructure assets across the globe. That includes everything from regulated utilities and gas pipelines to toll roads, rail networks, and data centres. These are the kinds of services people rely on, no matter what the economy is doing. And for investors, that means consistent revenue, strong pricing power, and built-in protection against inflation. In its most recent earnings report, Brookfield Infrastructure delivered strong results. For the first quarter of 2025, it posted US$646 million in funds from operations, or US$0.82 per unit. That marked a 5% increase from the same period last year. The results were driven by inflation-indexed growth in its utilities segment and recent project completions in both data and transport. While net income came in lower at US$125 million due to non-cash valuation changes, the core operating performance remained solid and dependable. The company's revenue streams are heavily indexed to inflation. That means when prices go up, Brookfield often gets to charge more, especially across its regulated utilities. That's a significant advantage in a high-cost environment. It also justifies the dividend stock's most recent move: increasing its quarterly distribution by 6%. That brings its annual payout to roughly US$1.72 per unit, which translates to a yield of about 4.6% at current prices. For Canadian investors, that means a $5,000 investment in Brookfield Infrastructure could yield around $180 per year in cash. With the unit price hovering around $45.53, you could purchase approximately 109 units. It's not just a decent return, it's one that tends to grow over time. The dividend stock has a history of raising distributions each year, and management has reaffirmed its commitment to long-term growth through continued capital investment. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL $45.53 109 $1.64 annual $178.76 Quarterly $4,963.77 That capital is being put to work right now. Brookfield is in the process of acquiring Colonial Enterprises, a large U.S. pipeline operator, for about US$9 billion. Once completed, this deal will significantly boost its midstream energy footprint. At the same time, it continues to sell off mature assets to recycle capital into new opportunities. In the first quarter alone, the dividend stock raised over US$1.4 billion through asset sales, strengthening its balance sheet and providing flexibility for future investments. Even with some debt on the books, Brookfield Infrastructure maintains investment-grade credit ratings and manages interest rate risk carefully. It refinances prudently and takes advantage of long-term, fixed-rate structures where possible. While infrastructure stocks can be sensitive to rising interest rates, Brookfield's cash flow reliability and inflation-linked contracts help offset those pressures. Of course, no dividend stock is without risk. Currency swings can affect reported earnings, and regulatory changes could impact future rate increases. But Brookfield's globally diversified portfolio and disciplined approach help manage those challenges effectively. It's also worth noting that many of its services, like energy transmission, transportation, and data, are not optional. That makes its income more durable than many consumer-facing businesses. If you're sitting on $5,000 and looking for where to invest in the TSX today, Brookfield Infrastructure is one of the most compelling options out there. It combines a strong, inflation-resistant business model with a rising dividend, ongoing growth initiatives, and solid long-term performance. In a market that's still full of uncertainty, this is the kind of dependable income generator that can anchor a portfolio for years to come. The post Where to Invest $5,000 in the TSX Today 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 Infrastructure Partners. The Motley Fool has a disclosure policy. 2025
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3 days ago
- Business
- Yahoo
Got $25,000? Turn it Into $250,000 of Tax-Free Income as the Loonie Rises
Written by Amy Legate-Wolfe at The Motley Fool Canada If you're sitting on $25,000 and wondering how to allocate it in a Tax-Free Savings Account (TFSA), it's worth thinking long term. In the right growth stock, that $25,000 could potentially become $250,000 with time and patience. One of the most promising options on the TSX today is Shopify (TSX:SHOP). While many investors think of Shopify as a U.S. stock, it's a Canadian tech heavyweight that offers exposure to global growth, e-commerce expansion, and even the effects of a rising Canadian dollar. Shopify has come a long way since its founding in Ottawa. It now powers millions of businesses worldwide, helping merchants sell online, in stores, and across platforms like Instagram. In its most recent earnings report for Q1 2025, Shopify reported revenue of US$2.4 billion, beating expectations of US$2.3 billion. The e-commerce platform also delivered earnings per share of US$0.20, beating forecasts of US$0.17. That kind of steady outperformance matters, especially in tech, where investors are quick to reward or punish based on quarterly numbers. What's more important is that Shopify is setting itself up for future growth. Management guided for mid-twenties percentage growth for the second quarter, which exceeds what analysts had expected. That's a sign the business is still expanding at a strong clip despite the tough macroeconomic environment. Shopify also continues to innovate in artificial intelligence (AI), introducing tools that help merchants build stores, manage inventory, and respond to customers more efficiently. These AI features are not just buzzwords; they're already being used to improve the customer and merchant experience, which in turn strengthens Shopify's ecosystem. Another major move was Shopify's decision to divest its logistics arm in 2023. That shift allowed the company to become more focused and streamlined. Instead of stretching itself thin managing warehouses and shipping, Shopify is back to doing what it does best: providing a platform for e-commerce. This move has improved margins and reduced capital expenditures, freeing up resources for innovation and growth. From an investor's perspective, the case for Shopify stock is compelling. The stock is not cheap by traditional metrics, but it rarely has been. What matters is that it continues to grow revenue, improve profitability, and expand into new verticals and markets. Analysts expect earnings per share (EPS) to grow by 11% in 2025 and 28% in 2026. That kind of forecast shows there's room for long-term gains, which is exactly what you want in a TFSA investment. Turning $25,000 into $250,000 isn't going to happen overnight. But at an average annual return of around 20%, it's possible in just under 15 years. Shopify stock delivered strong returns over the past decade, with early investors seeing incredible gains. While those early days are behind us, the future still looks bright. With its wide moat, global presence, and sticky customer base, Shopify stock is in a great position to continue rewarding shareholders. There's also a potential tailwind from the Canadian dollar. Because Shopify earns a large portion of its revenue in U.S. dollars, a rising loonie can make those earnings worth more in Canadian terms. For Canadian investors, that means holding Shopify in your TFSA could be a smart currency play. If the loonie strengthens, your returns in Canadian dollars could see a boost, especially if you're buying the Canadian listing on the TSX. Of course, all investments come with risk. Shopify is a growth stock, which means it can be volatile. There will be quarters when the company doesn't meet expectations, or when tech stocks fall out of favour. But if you're willing to hold on through the bumps, the long-term trajectory remains intact. Shopify is still growing. It's still beating expectations. And it's still expanding its capabilities with AI and international services. With $25,000 in a TFSA and a long-term outlook, Shopify could be one of the smartest ways to reach $250,000. It won't be easy, and it won't be fast. But with the right stock and enough time, it's entirely possible. Shopify stock offers the kind of growth story that makes it worth the wait. The post Got $25,000? Turn it Into $250,000 of Tax-Free Income as the Loonie Rises 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 positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
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4 days ago
- Automotive
- Yahoo
1 Undervalued TSX Stock Down 12% to Buy and Hold
Written by Amy Legate-Wolfe at The Motley Fool Canada Investors are always on the lookout for undervalued stocks on the TSX, especially during times of market uncertainty. These are companies that have fallen out of favour in the short term but still offer strong fundamentals, long-term growth, and dependable income. One such stock is Magna International (TSX:MG). It's down roughly 12% over the past year, yet it remains one of the most stable and promising manufacturing names on the Canadian market. For those looking to buy and hold, this could be a smart time to take a closer look. Magna is a global leader in automotive parts. It supplies components to nearly every major automaker, including systems for powertrains, seating, electronics, and body exteriors. As electric vehicles (EVs) gain more ground, Magna has made the shift to support EV development as well, keeping it aligned with industry trends. Its scale, global reach, and ability to adapt have helped it maintain a solid position even through the ups and downs of the auto market. In the first quarter of 2025, Magna reported a net income of US$146 million, which marked a strong rebound from earlier quarters impacted by labour disruptions and cost pressures. Revenue came in at US$10.97 billion, up from US$10.67 billion the year before. The dividend stock also raised its sales guidance for the year, reflecting optimism about order flows and production volume in the second half of 2025. What really makes Magna stand out right now is its valuation. It trades at a forward price-to-earnings (P/E) ratio of about 7.8 and a trailing P/E of 9.1. For context, many TSX-listed industrial stocks trade well above those levels. Investors often look at single-digit P/E ratios as a sign of undervaluation, especially when the underlying business remains profitable and forward-looking. Magna also trades at just 0.85 times book value and under seven times free cash flow, making it one of the more affordable large-cap manufacturing names in Canada. At the time of writing, the dividend stock trades around $52.66, down from the mid-$60s earlier in the year. That's a decline of nearly 12%, much of it linked to broader concerns about interest rates, supply chain issues, and tariff fears. However, the dividend stock hasn't fallen because of company-specific problems. It's still growing earnings, generating strong cash flow, and maintaining healthy relationships with automakers globally. Then there's the dividend. Magna currently pays $2.68 per share annually for a yield of just under 5%. The dividend stock increased its dividend for 12 straight years, showing a commitment to shareholders. The current payout ratio is around 47%, leaving room for continued increases if earnings improve. In a volatile market, a reliable dividend goes a long way in providing investors with income and stability while they wait for a rebound. Meanwhile, a $5,000 investment could bring in $251.92 per year! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT MG $52.66 94 $2.68 $251.92 Quarterly $4,951.96 Magna is also financially sound. It produced nearly $5 billion in operating cash flow over the last year and has about $2.15 billion in free cash flow. While it carries about $10.86 billion in debt, it maintains strong coverage ratios and continues to invest in future growth, including technologies supporting electric and autonomous vehicles. Because it operates globally, Magna is not overly reliant on one market. In fact, 46% of sales come from North America and 43% from Europe. This spread helps smooth out the effects of regional slowdowns or economic hiccups. With production expected to ramp up in the second half of the year and inflation pressures easing, the timing may be right for a longer-term recovery in the auto sector. In the end, Magna is a dividend stock that checks a lot of boxes. It's undervalued, down about 12% over the past year, and still paying out a strong dividend. It has global reach, reliable earnings, and the kind of financial discipline that gives investors confidence. For anyone looking to buy and hold a TSX stock with both income and growth potential, Magna International might just be the right fit. The post 1 Undervalued TSX Stock Down 12% to Buy and Hold 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 Magna International. The Motley Fool has a disclosure policy. 2025
