Canada’s Big Six banks just pulled off the investing equivalent of six siblings bringing home excellent report cards at once. Every bank beat Bay Street’s third-quarter earnings estimate. Profit grew, capital remained sturdy, and the economy declined to provide the disaster investors had been preparing for.

That should make choosing a bank stock easy. Unfortunately, the share prices also grew. Canadian banks recently traded near 15 times forward earnings, their highest sector valuation since 2010 and well above the roughly 10.8 times decade average. A great quarter is considerably less useful when the price already reflects expectations of a future increase.

How to compare

Adjusted earnings growth shows whether profit is improving after unusual items are removed. Return on equity (ROE) measures how efficiently each bank turns shareholder capital into earnings. Investors comparing Canadian bank stocks should then examine credit losses, capital strength, valuation, and whether the quarter relied too heavily on trading revenue. So, let’s take a look.

Royal Bank produced the highest return, but its premium valuation leaves little room for a stumble. CIBC delivered broad growth, although its price-to-book ratio has expanded sharply. Scotiabank finally cleared its 14% return target, then the stock celebrated with a 7% earnings-day jump. BMO still faces U.S. integration work, while National Bank must digest Canadian Western Bank and pursue its Laurentian Bank portfolio deal.

TD edges the pack

Toronto-Dominion Bank (TSX: TD) operates Canadian and U.S. banking franchises alongside wealth management, insurance, and wholesale banking. Adjusted earnings reached $2.77 per share, up 26% and approximately $0.30 above consensus. That was the strongest earnings beat of the reporting season.

The quality was encouraging. Canadian banking produced record earnings, wholesale banking profit climbed 87%, and reported U.S. banking profit rose 41%. Adjusted U.S. profit increased a more repeatable 12% as loan and deposit margins improved. TD now plans to open 100 U.S. branches by the end of 2028, giving the previously troubled division a visible growth project.

TD’s 14.3% Common Equity Tier 1 (CET1) ratio was the strongest among the Big Six. That capital can support lending, buybacks, and the dividend while management funds its U.S. repair work.

Small dividend, but mighty

TD stock maintained its $1.12 quarterly dividend, equal to $4.48 annually. Near $165.87, the yield is approximately 2.7% at writing. The payout remains comfortably covered, but the share-price rally has turned a former high-yield bargain into a growth-and-income stock. Even so, here’s what $10,000 could bring in at writing.

Risk remains

TD expects fiscal 2026 U.S. anti-money-laundering remediation and control spending of approximately US$550 million, up from US$500 million. Important work remains through 2027, and regulators, not management, decide when the U.S. asset cap disappears.

Valuation supplies the second warning. TD stock trades near 17 times adjusted earnings, compared with approximately 13 times one year ago. I would open a starter position rather than arrive with a major investment ready to go, then add only as U.S. remediation milestones and earnings confirm the thesis.

Foolish takeaway

None of the Big Six look cheap enough to purchase without digging a bit deeper. TD stock is still my favourite because it combined the quarter’s strongest beat with the group’s best capital ratio and improving U.S. profitability. Investors developing long-term dividend investing habits can begin gradually. If TD completes its compliance repair while expanding earnings, today’s premium could become more reasonable before the stock ever feels cheap again.

The post The Big 6 Reported Earnings: Here’s My Favourite Bank Stock to Buy Now appeared first on The Motley Fool Canada.

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• 5 Canadian Stocks That Are Great for Beginners to Hold Forever

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.

A six-figure Tax-Free Savings Account (TFSA) sounds like you’ve won the retirement game. Then retirement arrives and that impressive-looking balance suddenly has to help pay for groceries, property taxes, travel, home repairs, and perhaps another 30 years of life. The better question isn’t whether your TFSA looks big. It’s how much life it can actually fund.

That’s what makes the TFSA so valuable. Investment gains, dividends, and withdrawals can remain tax-free, while withdrawals don’t count toward income used to calculate federal income-tested benefits such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS). In retirement, keeping more of your money can be almost as useful as earning more of it.

So, how big is big enough?

The Canada Revenue Agency (CRA) set the 2026 TFSA contribution limit at $7,000. Unused room carries forward indefinitely, while withdrawals are generally added back to contribution room the following calendar year. Someone who was eligible every year since the TFSA launched in 2009 could have accumulated $109,000 of contribution room by 2026, although individual room varies. That’s why investors should check their own limit before contributing inside a TFSA.

There isn’t a universal retirement number, either. Canada Pension Program (CPP), Old Age Security (OAS), workplace pensions, Registered Retirement Savings Plans (RRSP), spending, and retirement age all change the equation. Still, a simple withdrawal illustration shows just how much the TFSA balance can matter.

A 4% withdrawal rate is only an illustration, not a promise that a portfolio will last. Yet it exposes an important point. A $100,000 TFSA could be a wonderful retirement supplement, but probably isn’t enough to retire on by itself. Getting toward $500,000 changes the conversation considerably, and reaching those larger balances requires growth rather than simply parking contributions in cash.

Consider SLF

This is where I’d want a combination of growth and rising income. One Canadian company I like for that job is Sun Life Financial (TSX: SLF), a global insurer and wealth manager with businesses spanning Canada, the United States, Asia, and asset management.

That mix gives Sun Life stock several ways to grow alongside an aging and increasingly wealthy global population. Its second-quarter results were particularly sturdy. Underlying net income climbed 11% year over year to $1.1 billion, while underlying earnings per share (EPS) rose 13%. Underlying return on equity reached a hefty 19.1%.

The dividend adds another layer. Sun Life stock now pays $0.96 per share quarterly, or $3.84 annualized, giving the stock a yield of roughly 3.4% at recent prices around $112. Better yet, the quarterly payout stood at $0.88 a year earlier. That’s the kind of dividend growth I’d rather own than chase an enormous yield that might disappear when conditions get ugly. Investors building retirement income can see why dividend growth can matter when choosing Canadian dividend stocks.

That said, Sun Life stock isn’t a savings account wearing a stock-market costume. Falling markets can pressure asset-management fees, while insurance claims, credit losses, currencies, and weaker economic growth can hurt earnings. A 3.4% dividend yield shouldn’t be treated as guaranteed income.

Bottom line

All in all, a retirement-sized TFSA doesn’t usually arrive through one heroic investment. It grows through years of contributions, reinvested dividends, and businesses capable of earning more over time. Your TFSA may not be big enough to retire on today. Give it enough time and enough productive assets, though, and the tax-free paycheque waiting at the other end could become considerably harder to ignore.

The post Is Your TFSA Big Enough to Retire Comfortably? appeared first on The Motley Fool Canada.

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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.

There’s a wonderfully annoying thing about the stock market. The correction you’ve been patiently waiting for can arrive right after prices have already climbed 15%.

Suddenly, that glorious 10% dip isn’t much of a bargain. It’s a slightly cheaper price than yesterday and still more expensive than the one you could’ve paid months ago.

This’s why long-term investors can spend far too much energy searching for the perfect entry price. Price matters, of course. Paying anything for anything is a terrific strategy for becoming poorer. Yet when the investing horizon stretches across decades, time has an advantage that a clever limit order simply can’t recreate.

That doesn’t mean buying every stock regardless of valuation. It means investors should be careful about turning “I’ll wait for a better price” into “Why am I still holding cash three years later?” And one stock offers a perfect example.

PPL

Pembina Pipeline (TSX: PPL) owns pipelines, natural-gas processing plants, fractionation facilities, storage, and export infrastructure across Western Canada and beyond. The beauty of that business is that Pembina doesn’t need oil or gas prices to hit the jackpot every quarter. Much of its infrastructure earns fees for transporting, processing, and handling energy products, creating a steadier stream of cash flow.

Second-quarter earnings rose 23% year over year to $512 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion. Management is targeting 5% to 7% compound annual growth in fee-based adjusted EBITDA per share through 2030. Investors waiting for the perfect entry price could therefore be watching the underlying business expand without them.

AI angle

The newest twist isn’t another pipeline. Pembina and its partners recently approved the 932-megawatt Greenlight Electricity Centre in Alberta. The natural-gas-fired facility will provide dedicated electricity to Meta’s enormous new data centre.

Greenlight is expected to enter service in the second half of 2030 and, once operating, generate about $310 million in annual run-rate adjusted EBITDA net to Pembina. That creates an interesting loop. Data centres require reliable power. Greenlight burns natural gas to provide it. That additional gas demand can also benefit Pembina’s existing processing and transportation network.

Meanwhile, Cedar LNG remains on track for late 2028, giving Pembina stock another route to connect Western Canadian natural gas with global customers. Suddenly, this isn’t simply a story about maintaining old pipelines.

Considerations

Pembina stock recently traded around $68. Its quarterly dividend is $0.74 per share, or $2.94 annualized, producing a yield of roughly 4.3%. That means investors are collecting meaningful income while waiting for Greenlight, Cedar LNG, and other projects to contribute. In fact, here’s what $7,000 could bring in at writing.

There are risks. Pembina has billions of dollars of projects underway, so construction costs and financing need monitoring. Regulatory delays can complicate infrastructure development, while weaker Western Canadian production would eventually reduce demand for its assets. I wouldn’t ignore those risks simply because the dividend looks attractive.

Still, investors buying stocks in Canada don’t have to solve the timing problem in one afternoon. Starting a position now and adding on future weakness lets investors take advantage of a correction without requiring one to begin.

Bottom line

There will always be another reason to wait. Pembina stock doesn’t need to be at its cheapest price ever for time to start working. With a roughly 4.3% yield along the way, waiting indefinitely for a perfect entry could eventually become the more expensive choice.

The post Why This 4.3% Dividend Stock Is Still a Forever Buy for Me appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Meta Platforms and Pembina Pipeline. The Motley Fool has a disclosure policy.

Monthly dividends have a psychological advantage that quarterly payouts simply can’t match. There’s something satisfying about watching cash arrive every few weeks instead of waiting three months for payday.

Of course, frequency doesn’t make a dividend safe. A company paying 12 times per year still needs enough cash to cover all 12 cheques. That’s why investors hunting for monthly dividend stocks should look past the yield and check how the underlying business produces cash, how much gets distributed, and whether that cash flow has room to grow.

That said, one TSX stock currently offers all 12 payments with a yield hovering around 7%. And the business behind those payments is surprisingly eclectic.

DIV

Diversified Royalty (TSX: DIV) makes money by buying royalty streams from established franchise businesses. Its portfolio includes names such as BarBurrito, Oxford Learning, Nurse Next Door, Mr. Mikes, Stratus Building Solutions, Cheba Hut, and AIR MILES. Most recently, the company went considerably further by acquiring the actual Mr. Lube + Tires franchisor business.

Some royalty payments increase at predetermined rates. Others can grow as franchise systems expand or sales rise. The model allows Diversified Royalty to collect recurring revenue without operating hundreds of restaurants, tutoring centres, or home-care locations itself.

That creates an interesting foundation for passive income. Diversified Royalty currently pays $0.0237 per share every month, or $0.285 annually. With the shares recently around $4.10, that works out to a yield of approximately 7%. The payment has also gradually moved higher.

A $10,000 investment at roughly $4.10 per share would purchase 2,442 full shares for $9,999.99. At today’s dividend, that position would generate approximately $695.97 annually, or almost $58 per month. For investors who don’t need the cash immediately, reinvesting those payments can steadily increase the share count instead.

More to come

The most interesting development is Diversified Royalty’s $227.9 million acquisition of Mr. Lube + Tires’ franchisor business in June. Instead of merely collecting a royalty from Mr. Lube, Diversified Royalty now owns the franchisor operation. Management expects it to contribute about $58.7 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the first 12 months after closing.

The broader business is already growing. Second-quarter revenue increased 21.5% year over year to $21.7 million, while distributable cash rose 4.8% to $13.1 million. That acquisition gives the company another way to grow cash flow beyond simply purchasing additional royalties, which could eventually support further dividend growth among Canadian dividend stocks. There’s just one number I’d watch carefully.

Diversified Royalty’s second-quarter payout ratio reached 93.7%, up from 84.7% a year earlier. That’s high. It means relatively little distributable cash was left after paying dividends during the quarter. The Mr. Lube acquisition only closed in mid-June, so investors haven’t yet seen a full quarter of its contribution, but I’d want that payout ratio moving lower as the new business gets incorporated.

Foolish takeaway

Sutton is a weak spot. Diversified Royalty has been renegotiating its royalty arrangement after financial pressure at the real estate franchisor, demonstrating why spreading royalties across several businesses is so important. Acquisitions also bring debt and execution risk.

Still, this isn’t a 7% yield supported by a business standing perfectly still. Diversified Royalty has expanded its portfolio, increased its dividend over time, and just added its largest new growth engine yet.

For investors willing to watch payout coverage closely, getting paid nearly $58 per month on a $10,000 investment while that story develops isn’t a bad place to start.

The post Want Monthly Income? Here’s a 7% Dividend Stock to Consider appeared first on The Motley Fool Canada.

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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.

If you were eligible for a Tax-Free Savings Account (TFSA) when it launched in 2009, you could have accumulated $109,000 of contribution room by this year. That sounds like a daunting benchmark, but there’s an important distinction: $109,000 is the amount you could have contributed, not what your TFSA should be worth today.

Your actual milestone depends on when you became eligible and whether you’ve contributed or made withdrawals. And if your TFSA balance is nowhere near $109,000, you’re far from alone.

The $109,000 TFSA milestone is a maximum, not a target

The cumulative TFSA contribution limit reached $109,000 in 2026 for Canadians eligible since 2009. The annual limits are listed as follows.

The $109,000 figure can make investors feel behind. But there’s no deadline for your annual contribution limits. Unused room carries forward, allowing Canadians to catch up later. 

The latest Statistics Canada data (for the contribution year 2024 made available in 2026) illustrates how much room many investors still have. For example, the data indicated substantial unused TFSA contribution room across working-age Canadians. Younger investors often have competing priorities such as housing, childcare, and debt repayment, while utilization tends to increase with age. 

So, rather than obsessing over whether your balance matches $109,000, a better question is whether you’re steadily increasing your savings and putting that money to work.

Your biggest advantage is time

If you’re behind, increasing your savings rate is a sensible first step. Many financial professionals suggest saving roughly 15% to 20% of pre-tax income, although the right amount depends on your circumstances.

More importantly, don’t underestimate the power of compounding. Early contributions have more time to grow, but as your portfolio becomes larger, investment returns can eventually become a more significant driver of your TFSA’s growth.

That makes the investments you hold inside the account particularly important. A TFSA isn’t just a place to park cash; it can be a powerful long-term wealth-building vehicle.

A quality stock can help put your TFSA to work

One example is Fortis (TSX: FTS), a defensive Canadian dividend stock whose regulated utility operations generate relatively predictable cash flows.

Fortis has increased its dividend for more than 50 consecutive years, demonstrating the durability of its business and commitment to returning cash to shareholders. Its 10-year dividend-growth rate was roughly 5.9%, providing investors with a growing stream of tax-free income if the shares were held in a TFSA.

Like any stock, FTS stock can experience periods of weakness, such as when interest rates rise. At roughly $76 per share at writing, Fortis offers a dividend yield of about 3.4%, while the analyst consensus price target suggests a fairly valued stock.

The takeaway, however, isn’t that every TFSA investor should buy Fortis. It’s that quality businesses purchased at reasonable valuations can give your contributions an opportunity to compound over decades.

The bottom line

The $109,000 TFSA milestone is useful as a benchmark, but it shouldn’t become a source of anxiety. If your balance is lower, focus on what you can control: contribute regularly, use your available room, invest for the long term, and give compounding time to work.

A TFSA’s greatest advantage isn’t hitting a particular number. It’s building a portfolio that can grow — and generate tax-free returns — for years to come.

The post How Does Your TFSA Compare to the $109,000 Milestone? appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

A fat dividend yield can be wonderfully distracting. When a stock is handing you more than 5% a year, it’s tempting to admire the cash arriving in your account, ignoring everything happening behind the curtain.

Income investors can’t afford to do that anymore. A dividend is only as useful as the cash flow supporting it, and the past couple of years have reminded Canadians that even household-name companies can cut payouts. That makes the boring stuff increasingly important.

Bigger might not be better

When comparing Canadian dividend stocks, I’d look at three things before the yield. Can the company comfortably cover the payout? Can earnings grow enough to raise it? Is the balance sheet strong enough that management won’t eventually have to choose between shareholders and debt?

Payment frequency matters less than those questions. Quarterly dividends can still create reliable retirement income, while reinvesting those payments can steadily increase the number of shares producing your next cheque. That gets even more attractive inside a Tax-Free Savings Account (TFSA), where Canadian dividends and investment gains can compound without annual tax eating away at them.

BCE

BCE (TSX: BCE) is still one of Canada’s obvious income stocks. Bell operates wireless, internet, media, business technology, and U.S. fibre assets, giving the company enormous recurring revenue. Yet BCE stock also showed investors exactly why yield alone isn’t enough.

BCE stock reduced its annualized dividend from $3.99 to $1.75 per share in 2025. At a recent price around $32.67, that still produces a roughly 5.4% yield, paid quarterly at $0.44 per share. More importantly, BCE expects free cash flow to grow between 4% and 10% in 2026. The smaller dividend now leaves considerably more room for debt reduction and investment.

That makes BCE stock healthier than it was before the cut. It doesn’t necessarily make it the income stock I’d choose with fresh money, however, because another Canadian giant is offering a different trade-off.

EMA

Emera (TSX: EMA) owns regulated electric and natural-gas utilities across Canada, the United States, and the Caribbean. Roughly 95% of its adjusted net income comes from regulated investments, meaning regulators largely determine what the company can invest and the returns it can earn.

That predictability is feeding a serious growth plan. Emera intends to invest about $20 billion through 2030, which it expects will drive annualized rate-base growth of 7% to 8%. Management continues to target average adjusted earnings-per-share (EPS) growth of 5% to 7% through 2030 and believes 2026 growth can land above that range.

Meanwhile, Emera stock increased its dividend for 19 consecutive years. Its current $0.73 quarterly payment works out to $2.93 annually and roughly a 4.1% yield at a recent $71.55 share price.

Bottom line

Emera isn’t the bargain here. Its shares have climbed strongly, leaving investors with a lower starting yield, while utilities remain sensitive to financing costs and regulatory decisions. BCE stock carries its own risks from heavy debt, aggressive telecom competition, and the execution required around its U.S. fibre expansion. Yet both can create strong income from investing today.

So I wouldn’t dump BCE stock simply because Emera exists. BCE stock now has a more manageable dividend and improving free-cash-flow outlook. Yet for investors choosing where the next $10,000 goes, I prefer Emera. You collect a little less income today, but its regulated growth pipeline and dividend record give that payment a stronger chance of becoming meaningfully larger over the decade ahead.

The post If You Own BCE for Income, You Need to Compare it With This Dividend Rival appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

AI stocks are the hottest thing in the market today.

Big U.S. tech stocks have been flying high in the markets since 2023, beating the S&P 500 by a wide margin. The stocks are rising both because of expected future growth and concrete financial performance. Investors expect these companies to grow in the future, and financial statements show that they are growing and earning high margins now.

However, the profitability of many of these companies is currently in question. While the “earnings” figures in their financial statements are going up, their cash flow performance is deteriorating. Alphabet and Tesla both posted negative free cash flow (FCF) in their most recent earnings releases, while Meta Platforms posted a 90% decline. “Profit” has many possible definitions; if you think “cash in minus cash out” is the best definition, then many big AI companies are either unprofitable or undergoing deteriorating profitability.

While it’s likely that some of the big AI giants will become cash flow positive eventually, investors don’t need to figure out who the winners will be to invest profitably in AI. Companies that use AI to augment their operations without investing in building models from scratch are, in many cases, already profitable today. In this article, I will reveal two Canadian AI companies that are already profitable and whose shares you can buy on the TSX.

Shopify

Shopify Inc (TSX: SHOP) is a Canadian tech company that builds a shopping cart service, a point-of-sale (POS) solution, and various payment systems. Its main business activity is providing a platform that lets e-commerce vendors host their own websites, which gives such vendors more control over branding and lower sales cuts than Amazon does. The company’s point-of-sale system lets retail stores manage sales, while its payment systems allow users to receive payments from buyers. So basically, Shopify provides comprehensive infrastructure for running an online business.

Shopify is investing heavily in AI. However, unlike the companies that are building models and spending money on cloud-related CapEx, its cash flows are not hurting from it. This is because the company uses established models to build its AI services, which include AI-generated copy and graphics. These AI features allow Shopify’s users to create ad campaigns more quickly and easily than they could have before.

In the trailing 12-month period, Shopify earned $2.7 billion in profit, down 17% year over year, and $2.25 billion in free cash flow (FCF), up 75% year over year. The decline in earnings may appear concerning, but the high FCF growth shows that Shopify is a cash-flowing machine, quite the opposite of many other AI companies.

Kinaxis

Kinaxis (TSX: KXS) is a Canadian supply chain management software company. It develops a software suite that lets companies track inventory, inputs, purchases, customer buying patterns, and more. It uses AI to facilitate all of these tasks, enabling businesses to get key insights into their supply chains on autopilot.

Despite the heavy use of AI in its business, Kinaxis does not appear to be spending ridiculous sums of money on AI investment. In its most recent 12-month period, it earned $123 million in profit, up 255%; and $201 million in FCF, up 87%. Despite using AI extensively, Kinaxis isn’t wrecking its profits or cash flows over AI. So, it’s a highly profitable AI-based operation.

Foolish takeaway

These days, many investors think that accepting profit-crushing capital expenditures is just part of the AI investing game. Indeed, if you’re buying the biggest AI companies, that’s the case. However, if you look at overlooked companies that use AI instead of building its infrastructure, you often see the opposite. Shopify and Kinaxis prove that Canada has such companies within its borders.

The post 2 Canadian AI Stocks Worth Buying in September appeared first on The Motley Fool Canada.

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Fool contributor Andrew Button has positions in Alphabet. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Alphabet, Amazon, Kinaxis, Meta Platforms, and Tesla. The Motley Fool has a disclosure policy.

Income-seeking investors who pick the best Canadian dividend stocks are often rewarded over the longer term. That’s thanks to longstanding dividend growth and higher yields backed by reliable businesses with decades of experience.

Prospective investors looking to add some of those dividend stocks to their portfolios have no shortage of options to choose from.

In my opinion, here’s a look at three worth considering today.

Invest in stability and growth

The first of those best Canadian dividend stocks to consider is Canadian Utilities (TSX: CU). Canadian Utilities is one of the larger utility stocks on the market.

The company operates regulated utility businesses with operations located in Canada, Australia, and Puerto Rico. By providing a necessary service, Canadian Utilities is able to generate a recurring, stable revenue stream that is less dependent on what the market is doing.

That recurring revenue helps support ongoing investment in growth initiatives and Canadian Utilities’ quarterly dividend.

As of the time of writing, that dividend carries a yield of 3.6%. That’s not the highest yield, but that’s where the other key advantage of investing in Canadian Utilities comes into play.

Canadian Utilities has provided investors with annual increases to that dividend for 54 consecutive years without fail. That’s the longest dividend increase streak in Canada and makes Canadian Utilities one of just two Dividend Kings in Canada.

This stock offers income and international exposure

No list of the best Canadian dividend stocks would be complete without at least one of Canada’s big bank stocks. Bank of Nova Scotia (TSX: BNS) is the bank for investors to consider adding to that list.

Scotiabank is the most international of Canada’s big banks. This means the bank offers an alternative to its domestic branch network that offers long-term growth potential.

In recent years, that growth focus has shifted from volatile Latin American markets to more mature markets such as the U.S. and Mexico.

That shift is already showing promise and helps Scotiabank maintain its attractive quarterly dividend. As of the time of writing, Scotiabank offers a yield of 3.5%, which is the highest among its big bank peers. The bank has also paid that dividend for well over a century.

For investors seeking one of the best Canadian dividend stocks to own, Scotiabank offers a defensive domestic segment, a growing international segment and a stable, growing dividend.

Consider a higher monthly yield

Wrapping up the trio of the best Canadian dividend stocks is a REIT. SmartCentres REIT (TSX: SRU.UN) is a retail-focused REIT catering to essential retail properties located across markets in Canada.

That retail segment includes a close relationship with Walmart, which is an anchor tenant for many of those properties. This provides SmartCentres with a boost to foot traffic that translates into strong results and an attractive monthly distribution.

That distribution currently carries a yield of 6.7%, making it one of the better-paying options on the market.

Beyond its portfolio of retail-focused sites, SmartCentres is also branching out into mixed-use properties. This gives SmartCentres an additional growth path beyond its retail-focused portfolio.

These are the best Canadian dividend stocks I’d buy now

There’s no shortage of great dividend stocks on the market. What makes the trio mentioned above some of the best Canadian dividend stocks to own comes down to what they can offer investors.

Canadian Utilities provides stability and dividend growth. Scotiabank adds recurring bank income and international upside. SmartCentres delivers a higher monthly yield and long-term growth.

Together, they provide exposure to multiple segments along with some defensive appeal.

This makes them, in my opinion, some of the best stocks to own right now.

The post IMO, These Are the Best Canadian Dividend Stocks to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Demetris Afxentiou has positions in Bank of Nova Scotia. The Motley Fool recommends Bank of Nova Scotia, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy.

Artificial intelligence (AI) may get all the glamorous headlines, but every data centre eventually runs into the same decidedly unglamorous problem: the power bill. Servers need enormous amounts of dependable electricity, and demand is climbing quickly enough that an energy source once considered yesterday’s technology suddenly looks rather useful again.

The International Energy Agency expects global data centre electricity consumption to roughly double by 2030 to around 945 terawatt-hours (TWh). Meanwhile, more than 70 gigawatts (GW) of nuclear capacity is already under construction globally, one of the highest levels seen in decades.

And of course, Canada is joining in. But a reactor certainly needs uranium. Yet somebody also has to design the reactor, manufacture components, maintain it, refurbish it, and eventually supply fuel for decades. Investors interested in buying stocks in Canada, therefore, don’t need to place the entire wager on uranium.

CCO

Cameco (TSX: CCO) remains Canada’s nuclear heavyweight. It owns major uranium operations, produces nuclear fuel, and holds 49% of Westinghouse, giving investors exposure to everything from digging uranium out of Saskatchewan to servicing reactors around the world.

Cameco maintained its 2026 attributable uranium-production guidance of 19.5 million to 21.5 million pounds despite temporary disruptions. More importantly, contracts already cover average annual deliveries exceeding 28 million pounds through 2030.

Westinghouse adds another engine. Its technology is used across 57% of the global operating reactor fleet, while its AP1000 pipeline includes as many as 91 potential reactors.

The problem is price. Cameco stock recently traded around 100 times trailing earnings, leaving little room for uranium weakness or disappointing project execution. I’d rather accumulate it gradually, particularly during a stock market correction, than chase every nuclear headline.

ATRL

AtkinsRéalis (TSX: ATRL) may offer the cleaner risk-reward trade. The engineering company owns the exclusive licence to market CANDU reactor technology and earns from reactor design, maintenance, life extensions, and new construction.

Its nuclear business is already enjoying the boom that investors have been waiting for. Second-quarter nuclear revenue jumped 18% to $671.2 million, prompting management to raise its full-year nuclear revenue outlook from approximately $2.5 billion to $2.7 billion.

Nuclear backlog sits at $4.2 billion, while the segment generated an impressive 25.6% adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin on net revenue. Shares have recently traded around 18 times forward earnings, considerably less demanding than Cameco stock.

There’s still risk. Nuclear backlog declined from the prior year, while major projects can be delayed by politics, regulation, and construction schedules. Still, AtkinsRéalis can collect revenue years before a new reactor begins producing power. That’s a useful place to stand when countries start ordering more of them.

NXE

For investors willing to tolerate considerably more excitement, NexGen Energy (TSX: NXE) offers the development-stage option. Its Rook I uranium project in Saskatchewan received its federal construction licence in March, and construction is now underway. At full production, NexGen says the mine could supply more than 20% of current global uranium requirements from one deposit.

That potential comes with a rather large asterisk. NexGen doesn’t yet produce uranium commercially, but plans to raise roughly $1 billion over the coming nine months to help finance Rook I. Financing, construction delays, cost inflation, or future share issuance could all hurt investors.

Its roughly $9.7 billion market capitalization therefore already prices in considerable success. NXE is the one holding I’d keep the smallest, even though successful execution could also create the largest percentage upside.

Bottom line

For most investors, I’d start with AtkinsRéalis. Cameco stock remains the premier long-term nuclear name, though its valuation deserves patience. NexGen offers much more speculative upside as Rook I moves from blueprint to actual mine.

The nuclear revival won’t be finished next quarter. Reactors take years to build and can operate for 60 years or longer. That frustratingly slow timeline is also the opportunity. By the time the world realizes how much uranium, engineering, and reactor capacity it needs, these Canadian companies could already have years of work lined up.

The post The Next Nuclear Boom Is Already Underway: These TSX Stocks Could Lead It appeared first on The Motley Fool Canada.

More reading

• 5 TSX Stocks Worth Buying This August
• A $10,000 TFSA Won’t Build Itself: These Are the 3 Stocks I’d Start With Today
• 3 Canadian Companies Set to Go Nuclear in 2026
• 1 Magnificent Canadian Stock Down 28% to Buy and Hold for Decades
• I Think These 2 TSX Stocks Could Supercharge Your TFSA

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

With decades still separating me from retirement, I have an important advantage: time. Rather than simply chasing the highest dividend yields today, I’m focused on building an income stream that can grow substantially over the years.

That means I’m willing to buy dividend stocks when temporary business setbacks or market weakness create attractive opportunities. My goal is straightforward: own companies with durable competitive advantages, growing cash flows, and the financial strength to increase their dividends year after year.

A starting yield of around 4% would certainly be attractive, particularly when it’s roughly double the broader Canadian market yield. However, I don’t necessarily need that much income today. A lower-yielding company that can compound earnings and dividends at a high rate could ultimately provide a much larger retirement income stream.

Here are two stocks I’m buying for that reason.

TMX Group: A Canadian financial infrastructure powerhouse

TMX Group (TSX: X) is the financial backbone of Canada’s capital markets, operating the Toronto Stock Exchange and other major platforms where securities and contracts are listed, traded, and cleared.

What particularly attracts me is its dominant position. TMX Group has virtually no direct domestic competition, giving it a powerful competitive moat and an important role in the Canadian economy.

It is an asset-light business that can generate attractive margins, while recurring revenue from market data, analytics, and listings adds stability.

The company’s recent results demonstrate why I’m optimistic. In the first half of the year, revenue increased 16% to $975.7 million, operating income climbed 25% to $465.7 million, and adjusted earnings per share jumped 27% to $1.28.

TMX Group has increased its dividend at roughly a 10% annualized rate over the past decade and recently raised the payout by 8.3%. At $54.55 per share, the stock yields about 1.9%, with a sustainable payout ratio of roughly 40%.

That yield isn’t huge today. But if earnings and dividends continue compounding, the income generated on my original investment could become considerably more meaningful in retirement.

Brookfield: Betting on long-term compounding

Brookfield (TSX: BN) is another important piece of my personal pension strategy.

Brookfield owns and operates a collection of high-quality real assets and businesses while managing alternative investments around the world. Its scale, global reach, and operational expertise provide significant advantages.

With dividends reinvested, Brookfield has generated annualized returns of nearly 15% over the past decade. Its dividend has also grown at roughly 10% annually over the same period, while the company recently increased its payout by 16.7%, indicating management’s confidence in the business.

At $57.45 per share, the stock yields only about 0.7%. Yet Brookfield targets long-term shareholder returns of more than 15% annually, making it a compelling growth-oriented complement to higher-yielding dividend stocks.

The bottom line: Building income for the future

TMX Group and Brookfield illustrate why I’m not simply chasing dividend yield. I want growing income, supported by growing businesses.

By reinvesting dividends today and owning companies capable of increasing their payouts for years, I can potentially create a personal pension that becomes larger and more dependable over time.

That’s the strategy: buy quality, reinvest the income, let compounding do the heavy lifting, and give my dividend stocks decades to work.

The post Here’s How I’m Building My Own Pension With Dividend Stocks appeared first on The Motley Fool Canada.

More reading

• Here Are 5 Stocks I Think Every Canadian Should Own
• Here’s Why I’m Investing in Canada’s Infrastructure Boom Now
• This Canadian Dividend Stock Is Down 15%: I’m Holding Forever
• The Stock Market Won’t Wait for Your Next Paycheque: Here’s Where I’d Start With $1,000
• I’d Put $1,000 Into These 2 Dividend Stocks Before the Next Dip

Fool contributor Kay Ng has positions in Brookfield Corporation and TMX Group. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool recommends TMX Group. The Motley Fool has a disclosure policy.