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Globe and Mail
24-06-2025
- Business
- Globe and Mail
Best Canadian Stock Picks
Top Canadian Stocks Agnico Eagle Mines (AEM:CA) Agnico Eagle Mines is rated a consensus 'Buy' by analysts, supported by robust fundamentals and favorable gold market conditions. The consensus 12-month price target averages around C$140, suggesting 10–15% upside from current levels. The company delivered record gold production, rising free cash flow, and strong shareholder returns in recent quarters, while maintaining a solid balance sheet with minimal debt. Despite trading at a premium valuation, AEM is backed by bullish technical signals and momentum, with analysts optimistic about continued earnings growth if gold prices remain strong. Brookfield Asset Management (BAM:CA) Brookfield Asset Management is rated a consensus 'Buy' by analysts, with a C$79 target forecast. The valuation is supported by strong financial performance and strategic growth initiatives. The company reported record fee-related earnings and significant fundraising success in recent quarters, boosting its fee-bearing capital to approximately $550 billion. BAM has expanded its presence in private credit and residential mortgage markets through acquisitions, enhancing its diversified asset base. While trading at a premium valuation with a P/E ratio around 40×, the stock's robust earnings growth and solid capital deployment position it well for continued long-term value creation. Constellation Software (CSU:CA) Constellation Software is rated a consensus 'Buy' from analysts, supported by strong revenue and earnings growth prospects driven by its successful acquisition strategy. The consensus 12-month price target averages around C$4,700, implying modest downside from current levels despite the stock trading at a high premium valuation. The company has demonstrated consistent cash flow generation and share compounding, though its elevated multiples reflect expectations for continued execution and integration success. While investors appreciate CSU's durable business model and growth potential, some caution remains due to the risks inherent in its acquisitive approach. Dollarama (DOL:CA) Dollarama Inc. is rated a 'Buy' by analysts, supported by strong financial performance and expansion plans. The consensus 12-month price target averages around C$191, suggesting modest downside from current levels. The company reported a 4.9% increase in comparable store sales and net earnings per share of C$0.98 for the quarter ending May 4, 2025, surpassing analyst expectations . Dollarama also reaffirmed its annual comparable sales expectations of a 3% to 4% rise . Analysts anticipate continued growth, with projected earnings per share of C$4.08 for FY2025 and C$4.51 for FY2026 . While the stock trades at a premium valuation, Dollarama's consistent performance and expansion initiatives contribute to its positive outlook Enbridge (ENB:CA) Enbridge Inc. is rated a 'Buy' by analysts, supported by strong financial performance and a robust dividend track record. The consensus 12-month price target averages around C$66, suggesting modest upside from current levels. In Q1 2025, Enbridge reported adjusted earnings per share of C$1.03, surpassing expectations, and achieved a record throughput of 3.2 million barrels per day on its Mainline system . The company also benefited from its recent acquisition of three utilities from Dominion Energy, which significantly increased its gas distribution earnings . Enbridge maintains a strong dividend yield of approximately 5.8%, with a 53-year history of dividend payments . Despite trading at a premium valuation, Enbridge's diversified infrastructure and regulated revenue streams position it well for continued growth and stability Fortis (FTS:CA) Fortis Inc. is a Canadian electric and gas utility company, rated as a 'Hold' by analysts. The consensus 12-month price target is C$66, suggesting it is fairly valued from current levels. In Q1 2025, Fortis reported earnings per share of C$0.97, slightly exceeding expectations, and reaffirmed its full-year EPS guidance of C$3.34 . The company offers a dividend yield of approximately 3.8%, with a history of annual increases over the past five decades . Fortis is executing a $26 billion capital program aimed at expanding its rate base from C$39 billion in 2024 to C$53 billion by 2029, supporting projected annual dividend growth of 4–6% . While the stock trades at a premium valuation, Fortis's diversified infrastructure and regulated revenue streams position it well for continued growth and stability. Hydro One (H:CA) Hydro One Limited is a leading Canadian electricity transmission and distribution company, rated a 'Buy' by analysts. The consensus 12-month price target is C$49, suggesting the stock is failry valued from current levels. In 2024, Hydro One reported revenues of C$8.5 billion, a 6.5% increase from the previous year, and net income of C$1.2 billion, reflecting steady growth. Earnings per share (EPS) rose to C$1.93, up from C$1.81 in 2023, supported by higher rates and effective cost management. The company maintains a dividend yield of approximately 2.5%, with a 64% payout ratio, indicating a balanced approach to returning value to shareholders while investing in infrastructure. Hydro One is actively expanding its grid with projects like the Chatham to Lakeshore and Wawa to Porcupine transmission lines, positioning itself for long-term growth amid Ontario's electrification efforts. While trading at a premium valuation, Hydro One's stable earnings, low beta (0.33), and strategic investments make it an attractive option for investors seeking reliable income and growth potential Manulife Financial (MFC:CA) Manulife Financial Corporation is rated a 'Hold' by analysts, supported by strong financial performance and growth prospects in Asia. The consensus 12-month price target averages around C$48, suggesting approximately 7–8% upside from current levels. In 2024, the company reported revenues of C$29.99 billion, a 10.08% increase from the previous year, and earnings of C$5.07 billion, a 5.71% increase. Core earnings exceeded C$7 billion for the first time, driven by significant new business activity and strategic portfolio reshaping through major reinsurance transactions. The company also announced a 10% increase in common share dividends and a new buyback program targeting up to 3% of outstanding shares. Manulife maintains a strong capital position with a leverage ratio of 23.9%, below its 25% target, and holds an 'A' rating from S&P Global. Analysts anticipate continued growth, with projected earnings per share of C$4.18 for FY2025 and C$4.57 for FY2026. While the stock trades at a premium valuation, Manulife's diversified operations and strategic initiatives position it well for sustained growth and stability Shopify Inc. (SHOP:CA) Shopify is rated a 'Buy' by analysts, driven by strong revenue growth and expanding e-commerce market share. The consensus 12-month price target averages around C$137, implying significant downside potential from current levels. In recent reports, Shopify posted a 25.8% increase in total revenue and a 50% year-over-year surge in gross merchandise volume, reflecting rapid merchant adoption and platform scalability. The company continues to invest in innovative tools and global expansion, reinforcing its leadership in online retail solutions. While competition and evolving consumer trends pose risks, Shopify's solid financial performance and growth strategy position it well for sustained long-term growth. Overall, analysts remain optimistic about Shopify's prospects amid the ongoing digital commerce boom. Teck Resources (TECK-B:CA) Teck Resources is rated a 'Buy' by analysts, supported by strong financial performance and growth prospects in copper and zinc production. The consensus 12-month price target averages around C$64, suggesting approximately 21% upside from current levels. In Q1 2025, Teck reported adjusted EBITDA of C$927 million, more than double the previous year, and net income of C$370 million, a significant turnaround from a loss in Q1 2024. Copper production increased by 7% to 106,100 tonnes, and zinc production exceeded guidance with 90,800 tonnes sold from the Red Dog mine. The company returned C$505 million to shareholders through share buybacks and maintains a strong balance sheet with C$10 billion in liquidity and a net cash position of C$764 million. Analysts highlight Teck's strategic focus on copper, positioning it well for long-term growth amid global demand for clean energy metals. However, challenges such as planned maintenance shutdowns and weather-related disruptions at the Quebrada Blanca mine may impact near-term production. Overall, Teck's robust fundamentals and strategic initiatives support a positive outlook for the stock.
Yahoo
20-06-2025
- 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
Globe and Mail
22-05-2025
- Business
- Globe and Mail
BMO's Belski says TSX outperformance has come to an end
Brian Belski, BMO Capital Markets' chief investment strategist, thinks the S&P/TSX Composite Index is no longer positioned to outperform stocks on Wall Street, a stance he has held over the past 12 months. In May of 2024, Belski contended that the Canadian benchmark's relative value to the S&P 500, as well as several expected key catalysts and contrarian indicators, would mean the TSX would outperform. That indeed panned out: the TSX has retuned more than 15% over the past year, compared to about 10% for the S&P 500. And those figures don't even account for the TSX's higher dividend payout relative to the U.S. benchmark. 'However, we believe Canadian stocks are now more likely to perform in line with their neighbour to the south over the next 12 months,' Mr. Belski said in a note Thursday morning. 'To be clear, we still believe Canada offers strong relative value, downside protection, and will continue to benefit from broadening equity performance. However, unfortunately we believe much of the 'catch-up' trade that we called for last year has likely played out," he said. Mr. Belski emphasized that he's not recommending investors underweight Canadian equities. 'Instead, it reflects the sharp outperformance of the TSX as relative valuations have started to normalize, growth profiles have converged, and foreign flows have rebounded from deeply depressed levels. With most of these tailwinds likely behind us, we believe it will be tough for Canada to exhibit the same level of outperformance over the next 12 months.' Mr. Belski has long maintained that the U.S. is in a 25-year secular bull market, and he's certainly not diverging from that view. That in itself would mean Canadian stocks, which largely follow the U.S. market, will perform well. But he now believes 'the US is likely to return to its role as the primary fundamental driver of growth and ultimately re-take the leadership mantle as trade noise and risks subside.' Mr. Belski said the spread between valuations of the TSX and the S&P 500, which BMO calculates using several measures such as price to earnings and price to book, has narrowed sharply over the last year - from a record spread of almost two standard deviations to under one standard deviation now. He expects Canada to continue to have a discount versus the U.S. going forward. Mr. Belski also said Canadian earnings growth trends have now fully normalized to be back in line with the S&P 500. And foreign investment flows have rebounded sharply, and no longer offer a contrarian signal.
Bloomberg
21-05-2025
- Business
- Bloomberg
Canadian Stocks Poised to Gain Further After Key Level Crossed
Investors and market-watchers expect Canadian stocks to gain further after a major stock benchmark rode a 10-day winning streak to close above a key threshold on Tuesday, for the first time. The S&P/TSX Composite Index ended Tuesday above 26,000, notching its third-straight record high on the back of its longest stretch of gains since 2021. The index edged lower in early Wednesday trading as stocks globally pared recent gains.
Yahoo
14-05-2025
- Business
- Yahoo
1 Magnificent Canadian Stock Down 29% to Buy and Hold Forever
Written by Amy Legate-Wolfe at The Motley Fool Canada Finding a Canadian stock you can buy, hold, and feel good about for years is never easy, especially when the market is full of noise. But every once in a while, a company shows up with steady growth, rising dividends, and a solid business model that makes it feel like a keeper. For Canadian investors looking for just that, goeasy (TSX:GSY) might be the hidden gem worth scooping up. It's one magnificent stock that has quietly built a reputation for strong returns, and right now, it's on sale. goeasy is a non-prime lender that helps Canadians access personal loans, retail financing, and lease-to-own products. While it doesn't operate in the same world as the big banks, that's actually the point. It serves borrowers who may not qualify for traditional loans, filling a crucial gap in the financial system. Its main divisions, easyfinancial and LendCare, offer everything from $500 emergency loans to financing for car repairs and furniture. And Canadians are lining up. Loan demand remains strong even with higher rates, and goeasy continues to see record originations. Despite this strength, goeasy's stock has taken a hit. As of writing, it trades around $146, down 29% from its 52-week high of $206.02. So, what gives? Like many lenders, goeasy has faced rising loan-loss provisions as consumers feel the pinch of higher borrowing costs. That's led to a short-term dip in earnings. In the Canadian stock's latest results for the first quarter (Q1) of 2025, revenue came in at $391.9 million, a year-over-year increase of 10.7%. However, adjusted earnings per share (EPS) were $3.53, down from $3.83 the year before, and were short of analyst expectations. Even so, the long-term picture remains bright. Loan originations in Q4 2024 reached a record $814 million, pushing the total loan book to $4.6 billion, up 26% year over year. That kind of growth doesn't happen by accident. The Canadian stock continued to build its customer base while improving efficiency. It's also been expanding its reach, including a stronger push into point-of-sale financing through LendCare, which partners with businesses across Canada to offer payment plans to customers. Dividends are another reason goeasy stands out. It has raised its dividend every year for nearly a decade, and in 2024, the Canadian stock hiked it by 25%, bringing the annual payout to $5.84 per share. That gives it a yield of roughly 3.7% at current prices. Not bad for a growth company. And this isn't a stretch-the-budget kind of dividend. goeasy's payout ratio remains conservative, with management signalling confidence in both earnings and cash flow. goeasy has also made headlines recently for a big leadership change. Dan Rees, a veteran from Scotiabank, is stepping in as CEO this month. He brings with him years of experience in Canadian banking, including retail and commercial segments, which should help guide goeasy through its next growth phase. Investors often get nervous around leadership changes, but this one feels like a win. Rees knows how to scale a financial business responsibly, and his arrival signals that goeasy is preparing for an even bigger future. Management has laid out an ambitious long-term plan. By 2027, goeasy expects its loan portfolio to grow to between $7.35 billion and $7.75 billion. That's more than 60% growth from current levels. It also plans to keep the total yield around 30%, thanks to product diversification and smart underwriting. Even if interest rates stay higher for longer, goeasy believes it can deliver consistent, profitable growth. So, is this stock worth buying and holding forever? If you're looking for a mix of growth, income, and staying power, it just might be. The Canadian stock is recession-resistant, thanks to strong demand from a specific customer base. The dividend keeps growing. And the company has room to scale both organically and through new partnerships. While the Canadian stock is down now, the fundamentals haven't changed. If anything, this dip offers an ideal entry point. The post 1 Magnificent Canadian Stock Down 29% to Buy and Hold Forever appeared first on The Motley Fool Canada. Before you buy stock in goeasy, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and goeasy wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 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
