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7 days ago
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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
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7 days ago
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The Best Approach for Your $7,000 TFSA Contribution This Year
Written by Andrew Walker at The Motley Fool Canada Volatile market action has self-directed Tax Free Savings Account (TFSA) holders wondering which investments might be good to buy right now for a retirement portfolio focused on income and long-term total returns. The TFSA limit is $7,000 in 2025. This brings the cumulative maximum lifetime TFSA contribution space to $102,000 for anyone who has qualified since the creation of the TFSA in 2009. Interest, dividends, and capital gains earned inside the TFSA are all tax-free. This means the full value of the earnings can go straight into your pocket or reinvested. TFSA income is not counted toward the net-world income calculation used by the CRA to determine the Old Age Security (OAS) pension recovery tax, or OAS clawback, as it is otherwise known. That is important to consider for seniors who receive OAS and have high-income levels. Non-cashable Guaranteed Investment Certificate (GIC) rates are currently available in the 3% to 3.75% range, depending on the term and the financial institution. That's down from the 5% to 6% investors were able to get in late 2023 but is still comfortably above the current rate of inflation. Markets are at record highs, and tariffs threaten to trigger a global recession, so it makes sense to put some of the TFSA funds into GICs. Dividend stocks can provide better yields, but they come with capital risks. Share prices can slip below the purchase price, and dividends might get cut if a company gets into financial trouble. However, stocks that have good track records of increasing their dividends are worth considering, as each dividend hike raises the yield on the initial investment. Enbridge (TSX:ENB) is a good example of a reliable dividend-growth stock. The company raised its dividend in each of the past 30 years. The stock is up about 28% in the past year but has pulled back a bit from the 2025 highs. Investors who buy ENB at the current price can get a dividend yield of 6%. Enbridge grows through a combination of acquisitions and internal projects. The company spent US$14 billion in 2024 to buy three natural gas utilities. Revenue from these rate-regulated assets tends to be predictable and reliable. Other acquisitions in the past few years include an oil export terminal in Texas and renewable energy developer for wind and solar projects. In addition, Enbridge is a partner in the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia. Natural gas demand is expected to rise in the coming years as new gas-fired power generation facilities are built to provide electricity for AI data centres. Enbridge's gas transmission, storage, and utility assets put it in a good spot to benefit. On the development side, the $28 billion capital program will drive earnings and cash flow higher in the next few years. This should support steady dividend increases. Investors with some cash to put to work in a TFSA can quite easily build a diversified portfolio of GICs and dividend stocks to get an average yield of 4% to 5% today. The strategy reduces capital risk while boosting average returns and provides an opportunity to generate long-term capital gains. The post The Best Approach for Your $7,000 TFSA Contribution This Year 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 The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 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
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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
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7 days ago
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Should You Buy Royal Bank of Canada While it's Below $180?
Written by Jitendra Parashar at The Motley Fool Canada Royal Bank of Canada (TSX:RY) is well known as one of the most dependable stocks on the TSX. Over the last decade, it has delivered a 124% gain for shareholders, well ahead of the TSX Composite's 81% return. With that kind of track record, it's no surprise that many long-term investors consider RY stock a core holding. But in 2025, the stock has been moving sideways. While the TSX benchmark is up 7.6% year to date, Royal Bank is trading at $175.27 per share with a market cap of $247 billion, showing no major change so far this year. That lag might raise some questions, but it also opens the door to opportunity as its long-term fundamentals remain strong, and the dividend continues to offer reliable income. In this article, let's explore what is holding Royal Bank stock back this year and why it still might deserve a spot in your portfolio at current levels. Part of the recent declines in Royal Bank stock could be due to macro pressures as it has had to navigate through market volatility and economic uncertainty, including concerns around trade disruptions and tariffs. These factors contributed to a more cautious economic environment, which led to higher provisions for credit losses in recent quarters. Even though some of its segments, like personal and commercial banking, grew their revenues in the latest quarter (which ended in April 2025), those gains were partly offset by higher expenses, including staff-related costs and technology investments. So, while Royal Bank is still growing, the costs of doing business have risen in parallel lately, making investors cautious. That said, there's more to the story once you look at the actual numbers. For the quarter ended in April, Royal Bank's net income climbed by 11% YoY (year over year) to $4.39 billion. On an adjusted basis, that figure also rose 8% YoY to $4.53 billion. Notably, its personal banking division was one of the strongest segments last quarter, with net income rising 14% YoY with the help of higher loan and deposit volumes. The bank's wealth management also did well as it benefited from growing fee-based assets. Meanwhile, Royal Bank's recent HSBC Canada acquisition continued to add value across multiple segments, especially by boosting its pre-tax earnings. Interestingly, Royal Bank recently raised its quarterly dividend to $1.54 per share and announced plans to repurchase up to 35 million common shares. These moves show confidence in its own performance and a clear commitment to shareholder returns. The bank is also investing heavily in data, artificial intelligence (AI), and digital platforms to improve its services and attract more customers. In addition, it's expanding deeper into U.S. markets — unlocking access to global fee opportunities while maintaining its domestic dominance. While Royal Bank of Canada may not be racing higher this year, its strong financials, smart investments, and proven business model still make it a very reliable stock to buy at current levels. The post Should You Buy Royal Bank of Canada While it's Below $180? 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 HSBC Holdings is an advertising partner of Motley Fool Money. Fool contributor Jitendra Parashar 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
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7 days ago
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The AI Trade Is Back in Play: 2 Stocks to Buy for Summer Sizzle!
Written by Joey Frenette at The Motley Fool Canada The AI (artificial intelligence) trade is getting heated as we move towards the midpoint of the year, with the S&P 500 now just a good day or two away from completing its so-called V-shaped recovery from the brutal spring correction (nearly a bear market for the S&P 500 as the TSX Index held its own relatively well) worsened by Trump's sweeping tariff war with most of the world. If you're a tad jittery after the volatility experienced a few months ago, you're not alone. It's hard to justify buying the stock on strength as tariff talks continue to dominate the headlines. In any case, I think there are great value names that don't entail paying all too high a premium for long-term AI exposure. In this piece, we'll have a look at two great names for investors seeking growth at a reasonable price (GARP). As GARP clashes with the AI trade, I think the following names could be timely bets for the medium and long term. Apple (NASDAQ:AAPL) stock seems stuck in a bear market, with shares falling below the $200 level again following what can only be described as a less-than-exciting 2025 edition of WWDC (Worldwide Developers' Conference). I saw the whole thing, and it was lighter in the AI than expected. After facing criticism for overpromising with its Apple Intelligence, which may be an early flop depending on who you ask, I think it's no surprise that the latest WWDC was a bit lighter on the AI promises. Does that mean Apple is ready to step away from the AI race? Of course not! Rather, I think Apple's just underpromising so that it can overdeliver a year or two from now. Indeed, there's a high bar to pass for the next-level Siri to land. And it's not yet above the high bar set by Apple. Despite the less-exciting and relatively AI-light WWDC, I still consider Apple to be a top AI play that'll be worth the wait. For now, there's Liquid Glass technology to get excited about as Apple applies more polish to its model that it wants to get right, even if it means showing up even later to the AI party. After slipping more than 23% from its highs over AI jitters and underwhelming post-WWDC, I think it's time to start thinking about doing some buying. Indeed, the stock is down nearly 7% in the past year, with a forward price-to-earnings multiple of 25.1 times, which is way too low for a firm that's going slow and steady in this AI race. I think slow and steady may very well win the race. But, of course, time will tell. I've been pounding the table on Shopify (TSX:SHOP) and its AI potential for quite some time now (likely well over a year). And recently, I highlighted that some analysts covering the stock are starting to take notice. Indeed, Wall Street is catching on to the company's AI prowess. And with that, I believe, could accompany multiple expansion as the firm continues investing heavily in AI technologies to level up its product. Personally, I think Shopify is the most innovative tech firm in Canada and perhaps in the e-commerce scene. As such, investors may wish to watch the name to buy on any dips over the coming weeks and months. Shopify is the real deal. And to discount its AI powers, I think, would be a mistake. The post The AI Trade Is Back in Play: 2 Stocks to Buy for Summer Sizzle! 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 Joey Frenette has positions in Apple. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Apple. 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
