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Yahoo
13 hours ago
- Business
- Yahoo
4 Top Canadian Stocks I'd Buy for Dividends and Capital Growth
Written by Robin Brown at The Motley Fool Canada Canada is well known for its plentiful array of dividend stocks. Canadians get a dividend tax credit when they collect dividend income from Canadian stocks. As a result, dividends are more tax-advantaged in Canada than in other countries. While dividends are a tangible cash return, there is no point collecting them if your capital investment is destroyed. That is why I prefer to avoid dividend stocks with high yields (stocks with yields over 7–8%). You might collect some near-term elevated income, but you are at risk of that income getting cut and the stock seriously declining. It is better to earn a modest dividend and also enjoy capital returns. If you are looking for Canadian stocks that pay dividends and could grow capital as well, here are four to look at now. Dollarama (TSX:DOL) only yields 0.22% today. While that is pretty minuscule, the reason it is so small is because the stock has significantly outperformed the dividend growth in the stock. Dollarama's stock is up 311% (32% compounded annually) over the past five years. Its dividend has only grown by a 13% compounded annual growth rate (CAGR) (though that is extremely respectable). This Canadian stock has executed its growth strategy exceptionally. While its growth in Canada is expected to moderate, its Latin America joint venture and recent Australia acquisition could provide room for long-term growth. Dollarama is a pricey stock, but it has proven its worth over time. Another Canadian stock for income and growth is Intact Financial (TSX:IFC). It has a 1.7% yield today. IFC stock has increased its dividend for 20 consecutive years. Over the past 10 years, it has increased its dividend by a 10% CAGR. Intact has delivered strong stock performance. This Canadian stock is up 136% in the past five years. Intact has acquired its way to become the leading auto, home, and business insurance provider in Canada. Intact has growing divisions in specialty insurance. It is also expanding in the U.K. For a solid business with continued levers for growth, Intact is a great income and growth stock. AltaGas (TSX:ALA) is more of a traditional boring dividend stock. It operates a gas utility business in the U.S. and a gas midstream business in Western Canada. While these are not the most exciting businesses, the company has executed a turnaround strategy that has delivered excellent returns. Its stock is up 149% in the past five years. AltaGas gets a stable income stream from its utility. That utility is delivering sector-leading growth. Its midstream business is growing from strong Asian demand for Canadian energy products. AltaGas yields 3.25%. It has been growing its dividend over the past few years by a 5–7% annual rate (that should continue ahead). Secure Waste Infrastructure (TSX:SES) is not a dividend-growth story like the above stocks. However, it is a share buyback story. Last year, it bought back 20% of its stock. This year, it is set to buy back 5–6% of its stock. Secure stock yields 2.6% today. That is despite its stock rising 762% over the past five years. Secure continues to look attractive. SES stock trades at a significant discount to other waste providers, despite a more attractive growth profile. It is a great stock for income, value, and capital growth ahead. The post 4 Top Canadian Stocks I'd Buy for Dividends and Capital Growth 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 Robin Brown has positions in Secure Waste Infrastructure. The Motley Fool recommends Intact Financial and Secure Waste Infrastructure. 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
15 hours ago
- Business
- Yahoo
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
Yahoo
15 hours 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
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Why Alphabet (GOOG) Is a Top Stock Pick for 2025
Explore the exciting world of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of May 12, 2025. The video was published on Jun. 19, 2025. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anand Chokkavelu, CFA has positions in Alphabet. Jose Najarro has positions in Alphabet. Travis Hoium has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
Globe and Mail
a day ago
- Business
- Globe and Mail
C3.ai: Could the Stock Really 10x by 2027?
(NYSE: AI) and its recent developments, including a substantial contract with the Air Force and renewed partnerships, have positioned it as a notable player in the enterprise AI sector. Despite past financial challenges, these strategic moves may signal a potential turnaround. Investors should consider the implications of these developments on future trajectory. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » *Stock prices used were the market prices of June 17, 2025. The video was published on June 18, 2025. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Rick Orford has no position in any of the stocks mentioned. The Motley Fool recommends The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
