Latest news with #dividendStocks
Yahoo
08-07-2025
- Business
- Yahoo
1 Dividend Stock to Buy if the CRA Tightens TFSA Rules
Written by Amy Legate-Wolfe at The Motley Fool Canada If you're worried the Canada Revenue Agency (CRA) might tighten Tax-Free Savings Account (TFSA) rules, you're not alone. More Canadians are using their TFSAs to grow wealth, which has drawn attention from the taxman. If contribution caps get stricter or investment guidelines change, having a low-volatility, dividend-paying stock could offer peace of mind. In that case, I'd consider Metro (TSX:MRU) one of the best dividend stocks to buy. It may not be flashy, but it's a reliable way to generate steady, tax-free returns inside your TFSA. Metro is one of Canada's largest food and pharmaceutical retailers. It operates well-known banners like Metro, Super C, Food Basics, and the Jean Coutu pharmacy chain. The retailer has a strong presence in Quebec and Ontario, with over 950 food stores and more than 650 drugstores. That size and reach give it pricing power, brand recognition, and operational efficiency. It's not just selling groceries; it's selling daily essentials that people need no matter what's happening in the market. That reliability is backed up by solid numbers. Metro released its second-quarter fiscal 2025 earnings in late April. Revenue came in at $4.91 billion, up 5.5% from the same period in 2024. Net income reached $219.4 million, and earnings per share (EPS) landed at $1.02. While the dividend stock saw a slight dip in profit from the previous quarter, its margins remained healthy, and same-store sales growth was positive across both grocery and pharmacy segments. This shows Metro is managing inflation well, controlling costs, and passing through price increases when needed. What really makes Metro attractive for TFSA investors is its dividend. Right now, it pays $0.37 per share quarterly, which adds up to $1.48 annually. At a share price of about $106, that's a yield of roughly 1.4%. It's not the highest yield on the TSX, but it's extremely consistent. Even better, Metro has increased its dividend every year for the last 29 years! It has a payout ratio of just 32%, meaning it uses less than a third of its earnings to pay the dividend. That leaves room for reinvestment and future hikes. If the CRA changes the rules on how much you can contribute or the type of stocks allowed, Metro still fits comfortably. It's Canadian, stable, and doesn't involve high-risk trading strategies. You don't need to worry about being penalized for overactivity or speculative investments. Metro does the heavy lifting. You just collect the dividends, tax-free, while the stock grows steadily in value. The grocery and pharmacy retailer has also been modernizing. Metro has invested heavily in automation and e-commerce, including a new distribution centre in Terrebonne, Quebec. Online grocery orders are rising, and Metro is staying competitive with rivals. It's not just resting on its past success. It's adapting for the future while keeping its balance sheet strong. Analysts currently have a consensus rating of 'hold' on Metro, but that doesn't mean it's a poor investment. It means the dividend stock is fairly valued and expected to perform steadily. That's exactly what many TFSA investors want: predictable performance and a reliable return. You're not buying Metro to double your money overnight. You're buying it to grow your wealth consistently and safely. In uncertain times, the CRA's attention to TFSAs might increase. But that doesn't mean you need to avoid investing. It just means you need to invest smarter. Metro offers a safe harbour. It's a dependable business with a strong dividend, a solid financial foundation, and a long history of performance. And right now, even a $5,000 investment could bring in $69.50 each year! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT $105.44 47 $1.48 $69.56 Quarterly $4,955.68 If new rules limit how aggressive you can be in your TFSA, a stock like Metro helps you stay compliant without sacrificing long-term growth or income. That's why if the CRA tightens TFSA rules, I'd put Metro at the top of my buy list. It's not just a good grocery stock; it's a smart way to protect your TFSA. The post 1 Dividend Stock to Buy if the CRA Tightens TFSA Rules appeared first on The Motley Fool Canada. Before you buy stock in Metro, 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 Metro 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 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 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
Yahoo
05-07-2025
- Business
- Yahoo
AI stocks look 'eerily similar' to the dot-com craze, warns CIO overseeing $15 billion. Invest in this 'boring' corner of the market instead.
AI stocks resemble the dot-com stocks in the 1990s, warns investor Richard Bernstein. Since ChatGPT's launch, the S&P 500 and Nasdaq 100 have soared. Bernstein suggests dividend stocks, like utilities, for stable, compounding returns. The intoxicating buzz around artificial intelligence stocks over the last few years looks concerningly like the dot-com bubble, top investor Richard Bernstein warns. The CIO at $15 billion Richard Bernstein Advisors wrote in a June 30 post that the AI trade is starting to look rich, and that it may be time for investors to turn their attention toward a more "boring" corner of the market: dividend stocks. "Investors seem universally focused on 'AI' which seems eerily similar to the '.com' stocks of the Technology Bubble and the 'tronics' craze of the 1960s. Meanwhile, we see lots of attractive, admittedly boring, dividend-paying themes," Bernstein wrote. Since ChatGPT hit the market in November 2022, the S&P 500 and Nasdaq 100 have risen 54% and 90%, respectively. Valuations, by some measures, have surged back toward record highs, rivaling levels seen during the dot-com bubble and the 1929 peak. While Bernstein said he's not calling a top, trades eventually go the other way, and the best time to invest in something is when it's out of favor — not when a major rally has already occurred. "At the beginning of a bull market when momentum and beta strategies are by definition most rewarded, investors' fears leads them to emphasize dividends and lower-beta equities," he wrote. "In later-cycle periods when dividends and lower beta become more attractive, investors' confidence leads them to risk-taking and momentum investing." "We clearly are not at the beginning of a bull market and, as we've previously written, the profits cycle is starting to decelerate," he added. That's why dividend stocks could be ripe for appreciation, Bernstein said. He especially likes utilities stocks, which are known for issuing dividends. Dividends are payments that a company sends out to shareholders on a regular basis (usually quarterly), and they can be used by investors as income or reinvested in the stock. If reinvested, your position in the stock can compound. When considering compounding returns, dividend stocks actually hold their own against high-flying tech stocks, Bernstein said. "One of the easiest methods for building wealth has historically been the power of compounding dividends. Compounding dividends is boring as all get out, but it's been highly successful through time." "In fact, compounding dividend income has been so successful, that the Dow Jones Utilities Index's returns have been roughly neck-and-neck with NASDAQ returns since NASDAQ's inception in 1971!" Investors can gain broad exposure to dividend stocks through funds like the SPDR S&P Dividend ETF (SDY), Vanguard Dividend Appreciation ETF (VIG), and more. Read the original article on Business Insider 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
Yahoo
03-07-2025
- Business
- Yahoo
If I Could Buy Only 1 High-Yield Dividend Stock for Passive Income in July, This Would Be It
Realty Income is the quintessential dividend stock to buy for passive income. The REIT pays a very bankable monthly dividend. Its strong financial profile allows it to grow its portfolio and dividend payment. 10 stocks we like better than Realty Income › I'm on a mission to reach financial independence through passive income. Investing in high-yielding dividend stocks is a core piece of my strategy, so I tend to buy several dividend stocks each month as I have cash to invest. However, if I had to limit myself to just one high-yield dividend stock this July, Realty Income (NYSE: O) would be it. Here's why I think it's the quintessential income investment. Realty Income isn't like other real estate investment trusts (REITs). While the sector as a whole is an ideal spot for generating passive income, Realty Income really takes that concept to another level. The company's stated mission is "to invest in people and places to deliver dependable monthly dividends that increase over time." That's why Realty Income has become known as The Monthly Dividend Company. It has an impeccable record of paying dividends. Realty Income has declared 660 consecutive monthly dividends since its formation, and the REIT has raised its payment 131 times since its public market listing in 1994. It has also increased its dividend for 111 consecutive quarters and 30 straight years, and it's grown its dividend at a 4.2% compound annual rate during that period. The foundation of the REIT's dividend is its high-quality real estate portfolio. Realty Income owns 15,600 properties in retail, industrial, gaming, and other sectors across the U.S. and Europe, net leased to the world's leading companies. Net leases provide it with stable rental income because tenants cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance. The company owns properties leased to tenants in industries resilient to economic downturns and isolated from the pressures of e-commerce. These account for 91% of its total rent. Realty Income fortifies its foundation with a top-tier financial profile. It has one of the 10 highest credit ratings in the REIT sector, which provides it with low borrowing costs and significant financial flexibility. It also has a conservative dividend payout ratio of about 75% of its adjusted funds from operations (FFO). Realty Income's real estate portfolio produces highly resilient cash flows. Meanwhile, its strong financial profile gives it the flexibility to continue growing in any market environment. It has a remarkable history of delivering durable earnings growth. Its adjusted FFO per share has risen at a 5% annual rate over the past three decades. The REIT has had only one year when it didn't deliver positive adjusted FFO per share growth. That was in 2009, during the depth of the financial crisis. Realty Income is in an excellent position to continue growing. The REIT's conservative dividend payout ratio enables it to retain meaningful excess free cash flow, approaching $1 billion annually, and its elite balance sheet provides it with the capacity to grow. On top of that, the REIT is tapping into the massive private capital market by launching its U.S. Core Plus Fund. That strategy will provide it with additional capital to invest and management fee income. The company has a massive opportunity to continue expanding its portfolio. While it's the seventh largest global REIT with $59 billion of real estate in eight countries, that's only a tiny fraction of the global net lease market opportunity, which it estimates is $14 trillion across the U.S. and Europe. Realty Income has been steadily expanding its opportunity set by adding new investment verticals with additional properties such as gaming and data centers, new European countries, and credit investments. Given the size of the market opportunity, Realty Income can remain selective by closing only the best investment opportunities. Although it sourced $43 billion of deals last year, its investment volume of $3.9 billion represented 9% of its investment potential. Realty Income is an incredible dividend stock. The REIT pays a high-yielding monthly dividend of 5.5% that steadily grows and backs that payout with a top-notch portfolio and financial profile, providing investors with a bankable income stream. Realty Income's combination of payment frequency, yield, growth, and financial strength is why I would choose to buy its shares if I could purchase just one dividend stock this month. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Matt DiLallo has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. If I Could Buy Only 1 High-Yield Dividend Stock for Passive Income in July, This Would Be It was originally published by The Motley Fool
Globe and Mail
30-06-2025
- Business
- Globe and Mail
CGDV Is a Popular Dividend ETF for Passive Income. But Is It the Best?
The Capital Group Dividend Value ETF (NYSEMKT: CGDV) is one of the largest exchange-traded funds focused on dividend-paying stocks. The fund has nearly $17.7 billion in assets under management (AUM), ranking as the eighth largest fund dedicated to dividend investment. Its focus on dividends makes it a popular option for those seeking passive income. While CGDV is one of the largest and most popular dividend ETFs, that doesn't necessarily mean it's the best for passive income. Here's a closer look at the fund and how it compares with other top dividend ETFs. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A closer look at the Capital Group Dividend Value ETF The Capital Group Dividend Value ETF is an actively managed fund that seeks to invest in companies that produce above-average dividend income and can grow in value. It primarily invests in larger U.S. companies that pay dividends. However, the fund will invest up to 10% of its assets in larger companies outside the U.S. and some stocks that don't currently pay dividends but have the potential to pay them. CGDV currently has about 50 holdings, 90% of them U.S.-based, with 7% based outside the United States, and the remaining 3% consisting of cash. It has a reasonably diversified portfolio of dividend stocks by sector, led by technology stocks at 22%. Here's a snapshot of its top five holdings: Microsoft, 6.4% of the fund's holdings: While the technology giant has a rather low dividend yield at less than 1%, it was the largest dividend payer in the world last year, at nearly $23 billion. It has also increased its payment for 20 straight years, including by more than 10% last year. Broadcom, 5.6%: The semiconductor and software company has a dividend yield below 1%. It has increased its dividend for 14 straight years, including by 11% last year. RTX, 4.7%: The aerospace and defense contractor has a nearly 2% dividend yield. It has paid cash dividends every year since 1936 and raised its payment by 7.9% this year. British American Tobacco, 4.1%: The tobacco company has a dividend yield exceeding 6%. It has grown its dividend at a 5% compound annual rate over the past decade. GE Aerospace, 4.1%: The aerospace company has a roughly 0.5% dividend yield. It increased its dividend nearly 30% earlier this year. As those top holdings show, the fund holds a mix of higher-yielding dividend stocks and lower-yielding but faster-growing dividend payers. Over the past 12 months, CGDV has paid dividends equating to a 1.5% yield. That's above the S&P 500 's average of less than 1.5%. Is CGDV the best dividend ETF for passive income? The Capital Group Dividend Value ETF provides investors with an above-average dividend yield compared with the S&P 500, making it a better option than the broader market index for those seeking passive income. However, several other ETFs have higher dividend yields. For example, the iShares Core High Dividend ETF (NYSEMKT: HDV) has a 3.5% dividend yield based on its payments over the trailing 12 months. Meanwhile, the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) has a dividend yield of around 4.5%. iShares Core High Dividend ETF is a passively managed fund that tracks the performance of the Morningstar Dividend Yield Focus Index. That index screens for companies with attractive dividend yields and strong financial qualities. The fund holds 75 companies. Its top holdings all have well-above-average dividend yields, and most companies have solid records of increasing their dividend payments. SPDR Portfolio S&P High Dividend ETF is also a passively managed fund. It aims to track the S&P 500 High Dividend Index, which measures the performance of the top 80 high-dividend-yielding companies in the S&P 500. In addition to their higher yields, these funds also have lower costs. The actively managed Capital Group Dividend Value ETF has a 0.33% ETF expense ratio. That compares with 0.08% for the iShares Core High Dividend ETF and 0.07% for the SPDR Portfolio S&P High Dividend ETF. Put another way, every $10,000 invested in CGDV would cost $33 annually, compared with $8 for HDV and $7 for SPYD. CGDV's higher costs eat into the dividend income it would have paid to investors. A good dividend ETF, but not the best for passive income The Capital Group Dividend Value ETF is a solid fund for those seeking to invest in companies with above-average dividend yields and solid growth profiles. Those features could enable the fund to produce attractive total returns over the long term. However, it's not the best dividend ETF if your goal is generating passive income. It has a much lower yield and higher expense ratio than other top dividend ETFs, such as the iShares Core High Dividend ETF and the SPDR Portfolio S&P High Dividend Those ETFs are better options for those currently seeking to generate more passive income. Should you invest $1,000 in Capital Group Dividend Value ETF right now? Before you buy stock in Capital Group Dividend Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Capital Group Dividend Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Matt DiLallo has positions in Broadcom. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends British American Tobacco, Broadcom, GE Aerospace, and RTX and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2026 $40 calls on British American Tobacco, short January 2026 $40 puts on British American Tobacco, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
30-06-2025
- Business
- Yahoo
CGDV Is a Popular Dividend ETF for Passive Income. But Is It the Best?
The Capital Group Dividend Value ETF is the eighth-largest dividend-focused ETF. It invests in companies that pay above-average dividends and have solid growth profiles. It has a lower yield and higher ETF expense ratio than some other top dividend ETFs. 10 stocks we like better than Capital Group Dividend Value ETF › The Capital Group Dividend Value ETF (NYSEMKT: CGDV) is one of the largest exchange-traded funds focused on dividend-paying stocks. The fund has nearly $17.7 billion in assets under management (AUM), ranking as the eighth largest fund dedicated to dividend investment. Its focus on dividends makes it a popular option for those seeking passive income. While CGDV is one of the largest and most popular dividend ETFs, that doesn't necessarily mean it's the best for passive income. Here's a closer look at the fund and how it compares with other top dividend ETFs. The Capital Group Dividend Value ETF is an actively managed fund that seeks to invest in companies that produce above-average dividend income and can grow in value. It primarily invests in larger U.S. companies that pay dividends. However, the fund will invest up to 10% of its assets in larger companies outside the U.S. and some stocks that don't currently pay dividends but have the potential to pay them. CGDV currently has about 50 holdings, 90% of them U.S.-based, with 7% based outside the United States, and the remaining 3% consisting of cash. It has a reasonably diversified portfolio of dividend stocks by sector, led by technology stocks at 22%. Here's a snapshot of its top five holdings: Microsoft, 6.4% of the fund's holdings: While the technology giant has a rather low dividend yield at less than 1%, it was the largest dividend payer in the world last year, at nearly $23 billion. It has also increased its payment for 20 straight years, including by more than 10% last year. Broadcom, 5.6%: The semiconductor and software company has a dividend yield below 1%. It has increased its dividend for 14 straight years, including by 11% last year. RTX, 4.7%: The aerospace and defense contractor has a nearly 2% dividend yield. It has paid cash dividends every year since 1936 and raised its payment by 7.9% this year. British American Tobacco, 4.1%: The tobacco company has a dividend yield exceeding 6%. It has grown its dividend at a 5% compound annual rate over the past decade. GE Aerospace, 4.1%: The aerospace company has a roughly 0.5% dividend yield. It increased its dividend nearly 30% earlier this year. As those top holdings show, the fund holds a mix of higher-yielding dividend stocks and lower-yielding but faster-growing dividend payers. Over the past 12 months, CGDV has paid dividends equating to a 1.5% yield. That's above the S&P 500's average of less than 1.5%. The Capital Group Dividend Value ETF provides investors with an above-average dividend yield compared with the S&P 500, making it a better option than the broader market index for those seeking passive income. However, several other ETFs have higher dividend yields. For example, the iShares Core High Dividend ETF (NYSEMKT: HDV) has a 3.5% dividend yield based on its payments over the trailing 12 months. Meanwhile, the SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) has a dividend yield of around 4.5%. iShares Core High Dividend ETF is a passively managed fund that tracks the performance of the Morningstar Dividend Yield Focus Index. That index screens for companies with attractive dividend yields and strong financial qualities. The fund holds 75 companies. Its top holdings all have well-above-average dividend yields, and most companies have solid records of increasing their dividend payments. SPDR Portfolio S&P High Dividend ETF is also a passively managed fund. It aims to track the S&P 500 High Dividend Index, which measures the performance of the top 80 high-dividend-yielding companies in the S&P 500. In addition to their higher yields, these funds also have lower costs. The actively managed Capital Group Dividend Value ETF has a 0.33% ETF expense ratio. That compares with 0.08% for the iShares Core High Dividend ETF and 0.07% for the SPDR Portfolio S&P High Dividend ETF. Put another way, every $10,000 invested in CGDV would cost $33 annually, compared with $8 for HDV and $7 for SPYD. CGDV's higher costs eat into the dividend income it would have paid to investors. The Capital Group Dividend Value ETF is a solid fund for those seeking to invest in companies with above-average dividend yields and solid growth profiles. Those features could enable the fund to produce attractive total returns over the long term. However, it's not the best dividend ETF if your goal is generating passive income. It has a much lower yield and higher expense ratio than other top dividend ETFs, such as the iShares Core High Dividend ETF and the SPDR Portfolio S&P High Dividend Those ETFs are better options for those currently seeking to generate more passive income. Before you buy stock in Capital Group Dividend Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Capital Group Dividend Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Matt DiLallo has positions in Broadcom. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends British American Tobacco, Broadcom, GE Aerospace, and RTX and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2026 $40 calls on British American Tobacco, short January 2026 $40 puts on British American Tobacco, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. CGDV Is a Popular Dividend ETF for Passive Income. But Is It the Best? was originally published by The Motley Fool 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
