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The 8.97% Monthly Dividend That Beats Every GIC Rate
Written by Puja Tayal at The Motley Fool Canada The Bank of Canada has been slashing interest rates at a lightning speed, from 5% in April 2024 to 2.75% in April 2025. No more rate cuts are likely in the short term unless unemployment increases. Lower interest rates will slowly seep into the economy and reduce Guaranteed Investment Certificate (GIC) rates. The highest GIC rate you can get right now is 4% for a two-year tenure. When interest rates were rising, GIC was an attractive investment. However, it is time to switch to alternatives that can beat every GIC rate, and dividend stocks are a good option. A bank uses GIC to give loans to individuals and corporations with high credit scores. Timbercreek Financial (TSX:TF) uses the lending business model to give short-term mortgages to income-generating real estate investment trusts (REITs). The lender gives $0.69 in dividends per share per year from its distributable income. This distributable income is the cash flow left after deducting the effect of amortization, accretion, unrealized fair-value adjustments, expected credit loss, and unrealized gain or loss from total net income and comprehensive income. Timbercreek paid 92.8% of the distributable income in the first quarter. While the payout ratio has increased, it is sustainable as lending activity increases. Timbercreek Financial enjoyed high interest income in 2023 when interest rates were at 5%. However, such high borrowing costs slowed lending activity and pushed a few loans to Stage 3 recovery. Many REITs repaid loans and paused new developments until borrowing became affordable. The lender expected an uptick in new loans as interest rate cuts began in 2024, but it took a while as REITs waited for further rate cuts. If you invest $10,000 in a two-year GIC offering 4% interest compounding quarterly, you will get $10,828.57 on maturity. If you invest the same amount in Timbercreek Financial, you can buy 1,299 shares, which will pay a monthly dividend of $74.69. That converts to $896.31 per year and $1,792.62 over two years. Timbercreek Financial can pay you $964.05 more than GIC. The lender also gives you a dividend-reinvestment plan (DRIP) in which it will automatically buy more units of Timbercreek and compound your returns. However, this premium comes with a higher risk. Unlike GIC, where deposits up to $100,000 are insured by the Canada Deposit Insurance Corporation (CDIC), the $10,000 invested in Timbercreek Financial is subject to share price volatility. Timbercreek Financial has been paying regular monthly dividends for the last nine years and is showing no signs of warning of any dividend cuts. In the worst-case scenario, Timbercreek Financial may see a larger number of loans going into Stage 3 and may slash dividends by 30 or 40% to $0.4414. That will reduce the dividend yield to 5.37%, still above the GIC interest rate. The bigger risk could be a 20% decline in share price. If invested with caution, Timbercreek can be considered an alternative to a two-year GIC to earn higher income. You could diversify investments across GIC, Timbercreek Financial, and other stocks according to your risk appetite. The end objective of portfolio diversification is to mitigate risk and enhance returns. The post The 8.97% Monthly Dividend That Beats Every GIC Rate appeared first on The Motley Fool Canada. Before you put a single dollar into the stock market, we think you'll want to hear this. Our S&P/TSX market beating* Stock Advisor Canada team just released their Top Stocks for 2025 and Beyond that we believe could supercharge any portfolio. Want to see what made our list? Get started with Stock Advisor Canada today to receive all of our Top Stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more. 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 Puja Tayal 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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2 Top Artificial Intelligence Stocks to Buy This Summer
Written by Aditya Raghunath at The Motley Fool Canada Investing in mega trends such as artificial intelligence (AI) enables you to gain exposure to companies that are part of rapidly expanding addressable markets. In this article, I have identified two top AI stocks that Canadian investors should consider owning in July 2025. Valued at a market capitalization of US$74 billion, Snowflake (NYSE:SNOW) operates a cloud-agnostic data platform that enables organizations to consolidate, analyze, and share data across multiple cloud environments, while supporting AI and analytics workloads. Snowflake has demonstrated strong momentum, showcasing transformative product velocity and deepening AI integration across its platform. Snowflake delivered over 125 new product capabilities in the first quarter (Q1) of fiscal 2026, doubling the pace of innovation from the previous year while achieving 26% year-over-year growth in product revenue, which reached US$997 million. CEO Sridhar Ramaswamy emphasized Snowflake's evolution from a data warehouse provider to an AI-first enterprise platform. Over 5,200 accounts now utilize Cortex AI capabilities every week, with applications spanning clinical research, customer insights, and business automation. The platform's AI-ready data approach positions structured and unstructured data for immediate AI consumption, addressing a critical enterprise need. The company's cloud-agnostic positioning distinguishes it from hyperscaler competitors, who often promote proprietary solutions. New offerings, such as Snowflake Intelligence and enhanced Apache Iceberg integration, provide customers with flexibility while reducing concerns about vendor lock-in. Chief Revenue Officer Mike Gannon highlighted customer success stories, including contractors who improved bid processing from one every three days to 100 daily by utilizing AI-powered analytics. Snowflake is broadening its addressable market through specialized solutions for the government and automotive sectors. Its consumption-based model benefits from increased workload complexity and AI-driven use cases, with customers viewing data infrastructure as essential for business transformation rather than operational overhead. Snowflake is forecast to increase sales from US$3.62 billion in fiscal 2025 to US$10.1 billion in fiscal 2030. In this period, its free cash flow (FCF) is forecast to grow from US$844 million to US$4 billion. If the tech stock is priced at 40 times forward FCF, it could more than double over the next four years. Advanced Micro Devices (NASDAQ:AMD) designs and manufactures microprocessors, graphics processors, and related semiconductor technologies for data centres, PCs, gaming, and embedded systems worldwide. The semiconductor giant demonstrated strong momentum at its Advancing AI 2025 event, unveiling the MI350 Series accelerators and previewing the transformative MI400 Series for 2026. CEO Lisa Su emphasized AMD's position in the rapidly expanding AI market, with data center AI accelerator TAM expected to exceed $500 billion by 2028, driven primarily by inference workloads growing over 80% annually. AMD's MI355 flagship accelerator delivers a massive four times generational performance leap with industry-leading 288GB of memory, capable of running 520 billion parametre models on a single graphics processing unit. The chip provides up to 40% better cost per token than competitors, positioning AMD firmly in the inference market. Early customer deployments at xAI, Meta, Oracle, and Microsoft validate the platform's production readiness. Strategic partnerships with open-source frameworks, such as vLLM and SGLang, demonstrate competitive advantages over proprietary alternatives, enabling customers to achieve superior throughput on AMD hardware. With Q1 revenue up 36% to US$7.4 billion and data centre segment growth of 57%, AMD appears well-positioned to capitalize on the AI infrastructure buildout while maintaining its commitment to open, programmable computing architectures. AMD is forecast to increase sales from US$25.8 billion in 2024 to US$56 billion in 2029. In this period, its FCF is forecast to grow from US$2.41 billion to US$15.2 billion. If the tech stock is priced at 30 times forward FCF, it could gain close to 100% over the next four years. The post 2 Top Artificial Intelligence Stocks to Buy This Summer appeared first on The Motley Fool Canada. Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices 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 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Advanced Micro Devices, Meta Platforms, Microsoft, Oracle, and Snowflake. The Motley Fool has a disclosure policy. 2025
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5 Warning Signs Your GIS Payments Are at Risk
Written by Aditya Raghunath at The Motley Fool Canada The Guaranteed Income Supplement (GIS) provides financial support for low-income Canadian seniors. The maximum monthly GIS payment in the third quarter (Q3) of 2025 is $1,097.75 for single, divorced, or widowed seniors earning below $22,272 annually. Canadian couples who both receive Old Age Security (OAS) get up to $660.78 each month if the combined income is under $29,424. Notably, most recipients receive less than maximum amounts, as GIS is reduced by 50 cents for every dollar of other income received. It's crucial to note that certain situations can jeopardize your monthly GIS payout. Here are five critical warning signs to watch for: 1. Missing tax-filing deadlines: Failing to file your annual income tax return is the most common reason GIS payments are suspended. Even with minimal income, you must file taxes with the Canada Revenue Agency every year to maintain eligibility. 2. Exceeding income thresholds: GIS is income-tested, with strict annual limits. For 2025, single recipients face a $22,272 threshold, while couples have varying limits from $29,424 to $53,376. Additional government benefits like CERB (Canada Emergency Response Benefit) or employment insurance can temporarily push you over these limits. 3. Extended absence from Canada: Leaving Canada for more than six consecutive months automatically stops GIS payments, as the benefit requires Canadian residency with no international protection agreements. 4. Loss of Old Age Security: Since GIS eligibility depends on receiving OAS, any interruption to your OAS pension immediately affects your GIS payments. 5. Unreported marital status changes: Marriage, divorce, or spousal death impacts GIS calculations. Failing to notify Service Canada of these changes promptly can result in overpayments requiring repayment or sudden payment reductions. We can see that the monthly GIS payout may not be enough to cover your expenses. So, it's essential to supplement these payouts with other income streams. One low-cost strategy to create a passive-income stream is to invest in blue-chip dividend stocks such as Bank of Nova Scotia (TSX:BNS) that offers a yield of almost 6%. Bank of Nova Scotia reported fiscal Q2 adjusted earnings of $2.1 billion, or $1.52 per share, amid a challenging macroeconomic environment marked by trade tensions and tariff uncertainty. CEO Scott Thomson emphasized the bank's focus on controllable factors, including the strengthening of its balance sheet and disciplined capital allocation. Scotiabank announced a quarterly dividend of $1.10, up from $1.06 per share. BNS also launched a 20 million share buyback program, which showcases confidence in its capital generation capabilities. The Canadian big bank ended Q2 with a common equity tier-one ratio of 13.2%, up from 12.9% in Q1. The bank took a conservative approach to credit provisioning, building nearly $200 million in allowances this quarter for a cumulative $1.8 billion build since late 2022. This provision reflects management's cautious stance regarding potential tariff impacts on trade-sensitive sectors like automotive, agriculture, and manufacturing. Its Global Wealth Management delivered strong 17% earnings growth, while Global Banking and Markets generated fee income growth of 26% in underwriting and advisory services. Canadian Banking faced headwinds from deposit margin compression due to rate cuts, though the bank maintained strong mortgage renewal rates exceeding 90%. International Banking demonstrated the benefits of geographic diversification, with solid performance in Chile, Peru, and the Caribbean offsetting concerns in Mexico. The bank remains committed to its 5-7% earnings per share growth target for fiscal 2025, including the impact of recent provisions and KeyCorp contributions. Management maintains confidence in achieving a +14% return on equity over the medium term, supported by strategic investments in client primacy, operational efficiency improvements, and strong capital positioning to navigate ongoing uncertainty. A widening earnings base should support consistent dividend hikes, which will enhance the yield at cost. Analysts expect the TSX stock to raise its annual dividend from $4.32 per share in 2024 to $4.87 per share in 2029. The post 5 Warning Signs Your GIS Payments Are at Risk appeared first on The Motley Fool Canada. Before you buy stock in Bank of Nova Scotia, 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 Bank of Nova Scotia 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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia. 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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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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1 Magnificent Canadian Stock Down But Not Out to Buy Right Now
Written by Amy Legate-Wolfe at The Motley Fool Canada When markets take a dip, some of the best opportunities come from buying great businesses at lower prices. One Canadian stock that fits this description is Teck Resources (TSX:TECK.B). It's down by a notable percentage recently, but it offers strong long-term potential. It mines copper, zinc and formerly coal, key materials for the energy transition and global metal needs. If you're searching for one Canadian stock to buy and hold forever, Teck deserves a closer look. Teck is a diversified natural resources company based in Vancouver. According to its 2024 annual report, it posted revenue of $9.1 billion and delivered net income of $283 million. That shows it has scale. The metals it produces are essential in making everything from electric vehicles to infrastructure. With global demand for copper and zinc expected to rise, Teck stands to benefit over the long run. The most recent quarter worth considering is Q1 2025, which came out April 24, 2025. Teck reported adjusted earnings per share of $0.60. Revenue hit $2.3 billion, a 41.4% year-over-year increase from 1.6 billion. Operating profits were under pressure, but the bottom line surprised to the upside. That's a sign that Teck is managing costs and market fluctuations well. Caution is important here. Teck's trailing price-to-earnings ratio is high at about 75.3, and analysts expect earnings to fall before normalizing. Trading at that multiple does mean investors are paying for future growth. If that growth doesn't materialize, returns could lag. And let's not forget the environment. Teck has been fined for selenium and lead contamination in B.C., and pollution issues remain risks to reputation and cost . On the upside, Teck closed its steelmaking coal business sale in July 2024, focusing more on copper and zinc. That change aligns the Canadian stock with metals driving future power and tech infrastructure, especially copper. It means less exposure to fluctuating thermal coal prices and more to materials playing a role in cleaner energy. Teck also returns cash to shareholders. In fiscal 2024, it paid a dividend of $0.58 per share. That yield is modest, but combined with potential upside, it adds to returns. The Canadian stock also continues to invest in existing operations and new projects, including exploration and development in copper and zinc-rich regions. What truly makes Teck a hold-forever candidate is its long-term exposure to global trends. Copper and zinc demand is set to rise with green energy and infrastructure buildout. Teck has both the reserves and production capacity to meet that demand. And as it becomes a purer-play on these metals, its valuation narrative could shift to match peers in copper-focused mining. However, this isn't a risk-free strategy. Commodity prices can rise or fall sharply. Environmental regulation could tighten. And if demand for electric vehicles slows, demand may soften. That's why Teck's valuation should be watched carefully. This miner is probably better in a diversified portfolio than as your only holding. In a nutshell, Teck Resources offers a mix of assets tied to long-term demand, an improving earnings picture, and a valuation that reflects both its promise and its risks. If you believe in the metals transition and are willing to ride out commodity cycles, this could be the Canadian stock to own for the next decade, especially following its recent drop. Just don't ignore the risks or overpay. The opportunity is there, but like most things worth holding forever, it comes with a price, not just in dollars, but in patience and a clear-eyed view of the cycle ahead. The post 1 Magnificent Canadian Stock Down But Not Out to Buy Right Now appeared first on The Motley Fool Canada. Before you buy stock in Teck Resources, 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 Teck Resources 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 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
