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2 Canadian Stocks to Buy and Hold for Life
2 Canadian Stocks to Buy and Hold for Life

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time19-07-2025

  • Business
  • Yahoo

2 Canadian Stocks to Buy and Hold for Life

Written by Sneha Nahata at The Motley Fool Canada If you're looking to build a resilient, long-term portfolio, focus on high-quality Canadian stocks that offer solid growth and can outperform the broader market. Diversification plays a crucial role here as it spreads your risk across sectors and companies, making your holdings more stable over time. Furthermore, pairing this strategy with a Tax-Free Savings Account (TFSA) can amplify your real returns. Since capital gains and dividend income earned within a TFSA are not taxed, this account structure allows your investments to grow unhindered by the usual drag of taxation, which is an especially powerful advantage when compounded over years or even decades. Against this background, here are two Canadian stocks to buy and hold for life. They have solid fundamentals and significant long-term tailwinds. Brookfield Asset Management Brookfield Asset Management (TSX:BAM) is a compelling Canadian stock to buy and hold for life. The alternative asset management company's cash flows are supported by fee-related earnings. Moreover, approximately 95% of its fee-related revenues are derived from long-term or perpetual capital, providing a reliable stream of income that supports consistent distributable earnings. Its investment portfolio includes infrastructure, real estate, power generation, and critical service businesses. These sectors are essential to everyday economic activity and are largely shielded from global trade volatility. Because these assets tend to serve local demand, they are less vulnerable to geopolitical shocks such as tariffs or supply chain disruptions. Many of these assets also benefit from inflation-linked revenue streams, enabling Brookfield to pass rising costs through to end users, preserving margins even in inflationary environments. Brookfield's early investments in sectors now experiencing massive tailwinds, such as renewable energy, data centres, semiconductor manufacturing, and nuclear power, provide a solid base for future earnings growth. These industries are seeing rapid capital inflows, which will drive Brookfield's fee-related earnings and its share price. It continues to deliver solid financials with Q1 fee-bearing capital climbing to $549 billion, representing a 20% year-over-year increase. This expansion drove a 26% increase in fee-related earnings and boosted distributable earnings by 20%. Looking ahead, Brookfield aims to double its business in the medium term and expand the fee-bearing capital to $1 trillion. Furthermore, its business remains capital-light, and the company targets a dividend payout ratio of 90% or higher. In short, Brookfield offers solid long-term growth and income potential. Loblaw Loblaw (TSX:L) is another solid stock to buy and hold for life. Canada's leading food and pharmacy retailer offers stability, solid growth, and income. Despite economic uncertainty, Loblaw has continued to deliver, with its stock already up approximately 16% year-to-date. Over the past five years, Loblaw stock grew at a compound annual growth rate (CAGR) of more than 27%, translating to an impressive total capital gain of about 237%. These gains are driven by its high-quality, defensive business model, which thrives across various market conditions. Loblaw focuses on value, convenience, and an improved customer experience, which drives traffic regardless of economic situations. Its discount banners, No Frills and Maxi, are rapidly expanding and resonating well with budget-conscious shoppers across Canada. As the company expands its national footprint in 2025, its top-line growth is expected to remain solid. Further, its strong push into private-label products, competitive pricing, and a broad product selection all contribute to its growing base of loyal shoppers. The company is also investing in modernizing its supply chain and implementing automation to boost efficiency and lower costs. These moves will support stronger margins over time. Meanwhile, its omnichannel strategy and popular loyalty program give it an edge in capturing consumer data and driving smarter, more effective promotions. Its reliable earnings, expanding store network, and consistent performance in any economic environment make Loblaw one of the most compelling long-term investments. The post 2 Canadian Stocks to Buy and Hold for Life appeared first on The Motley Fool Canada. 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 Sneha Nahata 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

What Are the Best Canadian Stocks to Hold for the Long Term
What Are the Best Canadian Stocks to Hold for the Long Term

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time19-07-2025

  • Business
  • Yahoo

What Are the Best Canadian Stocks to Hold for the Long Term

Written by Sneha Nahata at The Motley Fool Canada Investing in the best Canadian stocks can help you build a strong portfolio and generate significant wealth over time. However, it is essential to spread investments across different sectors to reduce risk, add stability, and help maximize returns. Considering this, let's explore two such stocks that have delivered steady returns even amid volatility and have significant long-term tailwinds, making them worth holding for the long term. Dollarama stock Dollarama (TSX:DOL) is one of the best Canadian stocks for generating steady long-term returns. This discount retail chain has consistently performed well in all market conditions, outpacing the broader market, thanks to its recession-resistant model and value-focused strategy. By offering a wide range of everyday items and seasonal goods at low fixed prices, Dollarama consistently attracts strong consumer demand. Moreover, its focus on geographic expansion strengthens its reach and drives sales. Its new store openings also enhance its footprint and continue to attract more shoppers, boosting its financial performance. For instance, Dollarama reported an 8.2% year-over-year increase in sales, with same-store sales rising 4.9% in the most recent quarter (Q1 FY26). More customer visits and higher average transaction sizes drove this growth. Besides its impressive financials, Dollarama has consistently rewarded its shareholders with higher cash dividends. Since 2011, the Canadian dollar store chain has raised its dividend distributions 14 times. Thanks to its consistent financial performance and higher dividend payouts, Dollarama stock has already surged 35.4% this year. Furthermore, it has generated nearly 293% in capital gains over the past five years, growing at an above-average compound annual growth rate (CAGR) of 31.5%. Looking ahead, the discount retailer's resilient business model, value pricing strategy, wide product range, and cost-efficient operations will continue to drive its earnings, supporting a higher dividend payout and stock price. Furthermore, its strong supply chain and partnerships with third-party online delivery platforms will support its growth momentum. Hydro One stock Hydro One (TSX:H) is another high-quality Canadian stock that offers a solid combination of stability, income, and growth. Its regulated electricity transmission and distribution operations remain immune to the risks associated with power generation and commodity price swings, which enable it to deliver steady earnings and predictable cash flows, in turn, resulting in higher returns. Despite its conservative operations, shares of this utility company have grown at a CAGR of 15.5% over the last five years, delivering capital gains of 105.6%. Besides outperforming the TSX with its growth, Hydro One has consistently increased its dividend, enhancing its shareholder value, thanks to its low-risk and predictable earnings. The company currently distributes a quarterly dividend of $ 0.33 per share, with a yield of approximately 2.8%. Moreover, H stock has raised its dividend at a 5% CAGR over the past eight years. With its expanding rate base, Hydro One is well-positioned to offer both income and growth. Its rate base is projected to grow at a 6% CAGR through 2027, which is expected to drive annual earnings growth of 6–8% and continued dividend increases of about 6%. Further, the hydro producer's robust balance sheet and strong internally generated cash flows will support future growth. Furthermore, tailwinds from growing electricity demand, driven by data centre expansion and population growth, will likely drive its financials and share price. The post What Are the Best Canadian Stocks to Hold for the Long Term appeared first on The Motley Fool Canada. 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 Sneha Nahata 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

6% Dividend Yield? I'm Buying and Holding This TSX Stock for Decades
6% Dividend Yield? I'm Buying and Holding This TSX Stock for Decades

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time18-07-2025

  • Business
  • Yahoo

6% Dividend Yield? I'm Buying and Holding This TSX Stock for Decades

Written by Sneha Nahata at The Motley Fool Canada Investors seeking a reliable dividend yield may consider top dividend-paying companies that generate resilient cash flows and offer sustainable payouts. Notably, companies with diversified revenue streams, a growing earnings base, and a long history of dividend growth are reliable ones to buy and hold for the decades. One such TSX stock is energy infrastructure provider Enbridge (TSX:ENB), which currently has a yield of over 6%. Moreover, it has a track record of paying and increasing its dividend, as well as weathering every market crash over the past three decades. Its diversified business model and solid fundamentals position it well to continue to return significant cash to its shareholders for decades, making it a reliable bet for income-focused investors. Enbridge's dividend growth and high yield Enbridge currently offers a quarterly dividend of $0.943 per share, which translates to a per-year dividend of $3.77 per share, resulting in a high yield of over 6% at recent prices. Thanks to its high-quality earnings, growing distributable cash flows (DCF), and a sustainable payout, Enbridge has uninterruptedly paid and increased its dividend for decades. For instance, Enbridge has paid dividends for over 70 years and has consistently increased its annual distributions for the last three decades. Enbridge's dividends have risen at a compound annual growth rate (CAGR) of 9% in the last 30 years. The company's sustained dividend growth reflects its operational stability and financial discipline. Catalysts supporting Enbridge's dividend growth Enbridge is a leading energy transportation and distribution company, and its operations are relatively insulated from fluctuations in commodity prices. Its extensive network of pipelines and infrastructure assets links major supply areas to critical demand centres. These strategically located assets are expected to witness high utilization, driving Enbridge's earnings and distributable cash flow (DCF), which will support future payouts. Moreover, the assets of this large-cap company are supported by long-term contracts, a regulated cost-of-service framework, and power-purchase agreements that ensure steady earnings across commodity and economic cycles. Enbridge is investing in high-quality growth opportunities across both the traditional and renewable energy spaces. Moreover, its strong portfolio of late-stage development projects and a secured capital growth backlog of $28 billion augur well for growth. Furthermore, its recent strategic acquisitions and operational improvements are expected to enhance its financial performance and dividend payouts. The company is reducing debt and prioritizing lower-risk, lower-cost projects and utility-style businesses that generate stable earnings and will support dividend increases. Enbridge maintains a sustainable payout ratio, targeting 60% to 70% of its DCF. This means that a healthy portion of earnings is reinvested in the business to fund growth while still leaving a substantial amount to reward shareholders. Thanks to its resilient business model, disciplined capital deployment, and inflation-protected earnings, Enbridge is well-positioned to grow its dividend in the coming years. The company's management is optimistic and expects its earnings and DCF to grow by mid-single digits over the next few years. This growth will enable Enbridge to continue increasing its dividend in line with its DCF per share. The post 6% Dividend Yield? I'm Buying and Holding This TSX Stock for Decades appeared first on The Motley Fool Canada. 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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio

3 No-Brainer Growth Stocks to Buy Now With $500
3 No-Brainer Growth Stocks to Buy Now With $500

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time17-07-2025

  • Business
  • Yahoo

3 No-Brainer Growth Stocks to Buy Now With $500

Written by Sneha Nahata at The Motley Fool Canada Investing in growth stocks can help build significant wealth in the long term, primarily through substantial capital gains. Notably, several Canadian companies have been consistently delivering impressive revenue and earnings growth, which, in turn, has propelled their stock prices higher. Moreover, you don't need a large sum of money to get started. Even with a modest investment of around $500, you can begin building a portfolio of growth stocks that, over time, has the potential to generate outstanding returns. Against this background, here are three no-brainer growth stocks with solid fundamentals and significant growth potential. Bombardier stock Bombardier (TSX:BBD.B) is one of the top Canadian growth stocks to buy now. Its stock has appreciated approximately 70% over the past year, significantly outperforming the broader markets. Furthermore, it has delivered a massive return of 903.8% over the past five years, growing at a compound annual growth rate (CAGR) of 58.5%. While it has gained substantially in value, Bombardier's dominant positioning in the business jet sector and improving financial strength indicate the rally is far from over. The company is benefitting from the rising global demand for private and business aviation, which is translating into a robust performance. Its revenue rose 19% year over year to $1.5 billion in the first quarter (Q1), driven by increased jet deliveries and growth in its high-margin services division. Profitability followed suit, with earnings per share (EPS) soaring 69% year over year, reflecting operating leverage. Bombardier's order backlog remained solid at $14.2 billion as of March 31, 2025, pointing to healthy future growth. For the full year, the company expects revenues to exceed $9.25 billion, supported by higher deliveries, expanding defence and service businesses, and stronger pricing. Beyond growth, Bombardier is also deleveraging its balance sheet and boosting liquidity. At the same time, its strategic expansion into defence, services, and the pre-owned aircraft market is likely to enhance margins and provide resilience. Aritzia stock Aritzia (TSX:ATZ) is another attractive growth stock that can generate solid long-term gains. Thanks to its ability to consistently deliver solid top and bottom-line growth, Aritzia stock has grown at a CAGR of over 31% over the last five years, delivering overall capital gains of approximately 287%. This clothing company's focus on introducing new assortments, opening new boutiques across North America (primarily in the U.S.), and strengthening its e-commerce channel will accelerate its growth. Moreover, Aritzia's focus on improving its inventory position, full-price selling, reducing warehousing costs, and enhancing supply chain efficiency positions it well to generate solid earnings, which will likely drive its stock price. Aritzia's leadership is forecasting strong growth, with revenue expected to rise at a CAGR of 15% to 17% through fiscal 2027. Moreover, the company is also working to improve operational efficiency, which is expected to drive its earnings. Together, these factors could give Aritzia's stock meaningful upside in the years to come. TerraVest Industries stock Investors seeking a high-growth stock could consider TerraVest Industries (TSX:TVK). This diversified industrial manufacturer operates in multiple high-growth markets and consistently delivers solid financial results. Moreover, its focus on strategic acquisitions of market-leading businesses has accelerated its growth, leading to a significant rally in its stock. TerraVest stock has delivered a stellar 121.8% gain in one year. Furthermore, it has increased by approximately 1,030% over the past five years. Despite the impressive rally, TerraVest stock has more room to run. The company continues to benefit from the solid performance of its core operations, while recent acquisitions are expected to boost its financial results and unlock new growth avenues. TerraVest is also investing in expanding its product offerings and improving manufacturing efficiency. This will enhance its profitability. Its healthy balance sheet and a newly secured credit facility position the company well to pursue further acquisitions, maintain its growth momentum, and deliver long-term value to shareholders. The post 3 No-Brainer Growth Stocks to Buy Now With $500 appeared first on The Motley Fool Canada. 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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends TerraVest Industries. 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

Transform Your TFSA Into a Cash Generating Machine With $14,000
Transform Your TFSA Into a Cash Generating Machine With $14,000

Yahoo

time15-07-2025

  • Business
  • Yahoo

Transform Your TFSA Into a Cash Generating Machine With $14,000

Written by Sneha Nahata at The Motley Fool Canada By investing $14,000 in high-quality dividend stocks within your Tax-Free Savings Account (TFSA), you can turn it into a reliable source of tax-free income. Add TSX stocks offering high and sustainable yields, which will enhance your portfolio's income potential over time. Against this background, let's look at three reliable dividend stocks that could effectively turn your TFSA into a cash-generating machine with $14,000. Enbridge (TSX:ENB) is one of the most reliable TSX stocks that can turn your TFSA portfolio into a cash-creating machine. Its resilient payouts in all market conditions, solid dividend growth history, high yield, and visibility over future distributions make it a must-have income stock. With a diversified business model, long-term contracts, and low-risk commercial arrangements, it consistently generates strong distributable cash flow (DCF) that drives its dividend. Notably, Enbridge has a history of dividend payments spanning seven decades and has grown its dividend at a compound annual growth rate (CAGR) of 9% for 30 years. Moreover, it offers a yield of about 6.2%. Enbridge's diverse income streams, vast pipeline network, and inflation-protected assets shield it from commodity price swings, adding stability. Its strategic investment in renewables and regulated utilities positions it favourably to capitalize on evolving energy demands while strengthening its earnings base and cash flows. Further, its strategic acquisitions and high asset utilization will likely position the company to deliver consistent income and sustainable dividend growth for long-term investors. Given the resilience of its business, Enbridge forecasts mid-single-digit earnings and DCF growth over the long term. This will enable Enbridge to grow its dividend in line with its DCF per share. Telus (TSX:T) is another attractive high-yield income stock with a solid dividend payment and growth history. The leading wireless service provider has distributed about $21 billion in dividends since 2004. Moreover, through its multi-year dividend-growth program, it increased its dividend 27 times since 2011. Its growing earnings base supports its payouts. Despite heightened competitive activity and macro headwinds, Telus is generating solid earnings, led by its focus on margin-accretive customer growth and cost reduction. Moreover, Telus's investments in network infrastructure and compelling bundled offerings enable it to increase its customer base and lower churn. Currently, it offers a high yield of 7.4%. Looking ahead, Telus is focusing on lowering its cost to serve and improving its average revenue and margins per user. This will drive its earnings and future payouts. Moreover, Telus has plans to increase its dividends in the future and targets mid to high-single-digit dividend growth for 2025. SmartCentres REIT (TSX: is a top TSX stock offering monthly payouts. The REIT's high-quality real estate portfolio generates solid same-property net operating income (NOI), supporting its monthly distributions. It pays a monthly dividend of $0.154, reflecting a compelling yield of about 7.2%. SmartCentres' high-quality tenant base, increasing leasing activity, high occupancy, strong tenant retention, and strength in its core retail portfolio position it well to deliver solid NOI, supporting its future payouts. The REIT's focus on enhancing the appeal of its properties through the addition of new services will drive foot traffic and its cash flow. Moreover, its premium properties continue to deliver strong growth. Furthermore, SmartCentres' focus on diversifying its operations through a mixed-use portfolio and its large landbank position it well to deliver solid NOI, which will support its future distributions. Enbridge, Telus, and SmartCentres are dependable stocks that can transform your TFSA portfolio into a cash-creating machine. The table below illustrates that investing $14,000 equally in these three stocks can help you earn about $963.92/year. Company Recent Price Number of Shares Dividend Total Payouts Frequency Enbridge $60.97 76 $0.943 $71.67 Quarterly Telus $22.56 206 $0.416 $85.70 Quarterly Smartcentres REIT $25.69 181 $0.154 $27.87 Monthly The post Transform Your TFSA Into a Cash Generating Machine With $14,000 appeared first on The Motley Fool Canada. Before you buy stock in Enbridge, 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 Enbridge 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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge, SmartCentres Real Estate Investment Trust, and TELUS. 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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