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3 days ago
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Is Growth Investing Still a Thing in 2025? 3 Considerations for Canadian Investors
Written by Chris MacDonald at The Motley Fool Canada Different investors have different goals, and that makes writing broad-based pieces around investing themes difficult. Some investors are much more concerned with capital preservation than growth. Companies and assets that pay consistent and reasonable yields may be much more attractive to such investors than those that promise greater future growth. That said, one of the key elements of long-term investing in the markets is benefiting from the capital appreciation upside equities provide. Without this growth, one could argue there's no meaningful reason to own such equities. The good news for Canadian investors is that there's plenty of reason to believe the long-term growth trends we've seen play out will continue. Here are three considerations I think all investors should keep in mind, especially right now. Concerned about losing your job to an AI bot? Think that your industry could be at risk of disruption? There's good reason to think this way. Disruption is everywhere. And by most accounts, it's a trend that's only accelerating. For those who don't want to have their lives completely turned upside down by the next technological revolution (which is clearly underway), benefiting from the rise of AI and new technologies is possible by investing in the companies at the forefront of this revolution. In the Canadian stock market, there happen to be a number of top companies worth considering on this front. Finding companies that have the potential to not only grow alongside the market but also provide market-beating growth is really the name of the game for growth investors. On that front, investors have to scour the TSX for the best opportunities. That's because many of the top Canadian blue-chip stocks investors often opt for do resemble steady, consistent options. Many of the top Canadian stocks have rock-solid balance sheets and reasonable dividend yields, but these attributes can come alongside slower growth. Moving outside of the 'traditional' bucket of Canadian stocks investors are used to can be difficult. But there are a number of top companies that exhibit the ability to be economically resilient (as was the case during the most recent tariff slump), while also continuing to grow through uncertain times. Those are the sorts of stocks growth investors should be after. Valuation multiples, growth rates, and plenty of other variables investors typically rely on to model out what a given stock is worth at a point in time are typically always in flux. Trying to pin down what a company should be worth based on its historical performance can be tricky. Thus, I do think finding growth stocks with some semblance of stability is important. In this market that's continuing to shift in an ever-quicker fashion, finding the companies investors can sleep well on while owning them is important. When we look at growth stocks, this idea is one I think is worth doubling down on. The post Is Growth Investing Still a Thing in 2025? 3 Considerations for Canadian Investors appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald 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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4 days ago
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2 Canadian Blue-Chip Stocks to Buy Before it's Too Late
Written by Chris MacDonald at The Motley Fool Canada When some investors think of the Canadian stock market, energy and resource companies may be the first that come to mind. Canada does have a very resource-centric economy, and as such, this is the sector that often gets the closest look from international investors looking to diversify into TSX-traded stocks. That said, there are a number of other high-quality blue-chip stocks I think are worth considering. In my view, the following two names are among the best options for investors looking for solid total returns over the long haul. These are companies that not only provide solid growth upside over the long term, but are also among the top dividend stocks I've got my eye on right now. I continue to hammer the table on utility giant Fortis (TSX:FTS) as a great long-term investment for those looking for rock-solid total returns. Given the company's core business model of providing essentials to its core residential and commercial customer base (no one can go without lights and heat for very long), Fortis continues to earn very stable cash flows that it returns to investors over time. Aside from being a classic defensive stock for investor portfolios, Fortis also has the backing of some very strong fundamentals investors can rely on for continued revenue and earnings growth. With the company's earnings per share rising to $1.00 from $0.93 in the same quarter the year prior, and revenue also increasing by a similar amount, this is a company which should provide roughly 10% overall growth investors can rely on. Over time, Fortis has delivered dividend growth in the 6% range for long-term investors, with an impressive 50-year streak of consecutive dividend hikes. I'd expect that track record to continue, making Fortis's current dividend yield of 3.8% much more impressive on an absolute basis. Another top blue-chip Canadian stock I think can get overlooked relative to other premium names is Brookfield Asset Management (TSX:BAM). The company's business model is a bit more diverse than many TSX-listed stocks. With a portfolio of global alternative assets in a number of in-demand industries, Brookfield has benefited from the rather robust global growth trends we've seen play out since the Great Financial Crisis. Of course, there's always the potential that another recession will be headed our way, and that could impact the company's business. However, Brookfield's historically impressive stability and its broad asset base provide some cushion and diversification for investors seeking such attributes. With a current dividend yield of 3.2%, Brookfield is no slouch in this department either. And with a market capitalization of more than $90 billion and margins of 57% (up from 54% the year prior), this is a stock I think investors can buy and hold with confidence in this current market environment. The post 2 Canadian Blue-Chip Stocks to Buy Before it's Too Late appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
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4 days ago
- Business
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Tamarack Valley Energy: Buy, Sell, or Hold in July 2025?
Written by Chris MacDonald at The Motley Fool Canada Among the Canadian energy stocks I don't focus on enough, Tamarack Valley Energy (TSX:TVE) has to be up there on the list. This Canadian oil and gas producer has continued to produce strong results in recent years, with its Clearwater and Charlie Lake operations leading to strong overall production growth over time. As the chart above shows, it's been a wild ride higher for investors over the past five years. Indeed, over this time frame, shares of TVE stock have surged more than 450% at the time of writing. Now, the obvious question moving forward is whether this growth can continue. Let's dive into what Tamarack Valley does and why this stock looks attractive to investors right now, in my view. With any potential new investment, those looking to put capital to work should first assess a given company's underlying fundamentals. On this front, there does appear to be plenty of positives for investors to look at with Tamarack Valley Energy. The company produced strong Greene and earnings growth, with Tamarack Valley's earnings per share surging from a loss of $0.06 in the same quarter a year prior to $0.12 this past fiscal quarter. Additionally, in the first quarter, the company saw its revenue surge to $332 million from $272 million a year prior, as the company's free funds flow doubled on a year-over-year basis. Those are the kinds of numbers investors certainly want to see, particularly in a volatile energy price environment. With strong operational execution, cost discipline, and the success of the company's waterflood and drilling programs leading the way, there should be more positives in store for investors over the long term. There are a number of other fundamental factors I like when I look at Tamarack Valley's balance sheet and overall valuation. On the balance sheet front, the company's debt-to-equity ratio of just 37% is very reasonable, suggesting a prudent use of long-term debt. Additionally, the company has done well to reduce its overall debt burden over time, piling its free cash flow back into debt repayment while also paying investors a hefty dividend for their trouble. With a current dividend yield of 3.2%, Tamarack Valley is a sneaky dividend stock with plenty of growth upside. As the company continues to guide toward 65,000-67,000 barrels of oil equivalent per day in the year to come, there's plenty to like about the company's financial picture. That goes double for those who factor in continued margin improvements from cost reductions and enhanced wellhead realizations over time. The post Tamarack Valley Energy: Buy, Sell, or Hold in July 2025? appeared first on The Motley Fool Canada. Before you buy stock in Tamarack Valley Energy Ltd, 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 Tamarack Valley Energy Ltd 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Chris MacDonald 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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28-06-2025
- Business
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Should You Buy Pembina Pipeline While it's Below $60?
Written by Chris MacDonald at The Motley Fool Canada Pembina Pipeline (TSX:PPL) is among the top pipeline stocks I don't think gets enough love. There are reasons for this, with other prominent players in the energy infrastructure space generally taking up significant mind share for investors, and for good reason. That said, I think Pembina is an intriguing stock trading around 15% below the company's all-time high of roughly $60 per share. Let's dive into what to make of this stock at current levels and whether Pembina is worth adding as a long-term hold right now. Pembina is among the leading Canada-based pipeline companies providing extensive exposure to the energy sector in a much less volatile fashion than many energy producers. With a robust and integrated network of pipelines, export terminals and processing facilities, Pembina stands as a top option in this space for investors seeking defensive exposure in this market. That said, the company's fundamentals really stand out to me as a key reason why this is a stock that ought to be considered. In the company's first quarter, Pembina reported strong revenue and earnings growth, with top-line revenue rising a whopping 58%. The pipeline giant's earnings per share rose nearly 10% on this report, as Pembina's profitability and efficiency initiatives also flowed through to the bottom line. Yes, I would like to see more bottom-line growth from Pembina over time. But with this earnings surge, the company's dividend yield of 5.6% looks much more stable, and should position long-term investors well for whatever environment is ahead. Of course, I'm always on the lookout for stocks that have been unfairly beaten up. I don't think that's the case with Pembina at this juncture, considering the stock is pretty close to trading near its all-time high. That said, at this discount to Pembina's previous high, I can certainly see a strong case for why investors may want to consider this energy infrastructure play. In my books, Pembina is a top pipeline operator worth considering for those looking for more defensive dividend stocks in this environment. The post Should You Buy Pembina Pipeline While it's Below $60? appeared first on The Motley Fool Canada. Before you buy stock in Pembina Pipeline, 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 Pembina Pipeline 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
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22-06-2025
- Business
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Should You Buy Emera While it's Below $65?
Written by Chris MacDonald at The Motley Fool Canada A Canadian utility stock I don't discuss enough (but probably should), Emera (TSX:EMA) is a stock with a chart that most investors would certainly be okay with owning for a significant period of time. The utility giant has continued to see strong growth, as Emera continues to focus on expanding into new markets (most notably Florida), and capital flows continue to remain positive for the company, which was recently listed on the NYSE in May. The question moving forward is whether this is a utility stock that could be due for a new all-time high. With the company's previous high of around $65 per share now in range, the question is whether this stock is a buy (headed to new all-time highs) or if investors should take profits. Let's dive in. One of the things I like most about the utility sector is the sheer defensive nature of this sector. We all need electricity and heat, and Emera is a key player in this regard (and now that it's a dual-listed stock, investors from all over North America can buy). But in the case of Emera, I think the company's fundamentals really stand out as the key reason why this stock has rallied in the way it has. Aside from the company's durable and foundationally strong dividend yield of 4.7%, there's a lot to like about the company's capital investment plan. Emera is set to put $20 billion to work over the next four years, targeting grid modernization and infrastructure growth in key high-performing markets such as Florida. We'll have to see how Emera's earnings growth trajectory shifts over this time frame. But looking at the company's most recent results, it's clear that the company's management team is doing something right. With overall earnings per share growth expected to come in at the 5% to 7% range for the coming years (and regulated utility investments generally perceived to return around 8%), I think there's still upside with Emera at its current stock price. For long-term investors, this is a company I think is certainly worth considering. I think Emera is one of those stocks that's going to continue to demand a premium in today's market. The defensiveness this company provides, in addition to its robust yield (and solid payout ratio to boot), makes this a name I'd personally consider below the $65 level. I think new all-time highs are in order, but investors may need to be patient with this name. I'm going to keep this stock on my watch list and be patient. I think anything can happen in this market, and most investors would likely agree. But for those with a long-term investing time horizon, dollar cost averaging into such a name may make sense. Emera looks like a solid pick in this current market, and it's one I'd consider a contender for a top portfolio holding right now. The post Should You Buy Emera While it's Below $65? 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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy. 2025
