Equity markets have turned increasingly volatile in recent weeks, pressured by persistent geopolitical tensions, inflationary concerns stemming from elevated energy prices, and rising bond yields. Nevertheless, the S&P/TSX Composite Index has gained 13.1% year to date, supported by stronger commodity prices and resilient corporate earnings. Against this uncertain backdrop, investors may benefit from balancing their portfolios across growth, defensive, and dividend-paying stocks. With that in mind, here are my top Canadian stock picks right now.

Dollarama

Dollarama (TSX: DOL) is a defensive retailer with attractive growth prospects. Its efficient direct-sourcing model, streamlined operations, and optimized logistics help keep costs low, enabling it to offer a broad range of products at compelling prices. This model has supported resilient same-store sales across economic cycles.

Dollarama is also expanding its store network, targeting 2,200 Canadian locations by 2034, up from 1,734, while increasing its Australian footprint from 414 to 700 stores. Additionally, its 60.1% stake in Dollarcity provides exposure to Latin America’s growing discount retail market. Dollarcity operates 781 stores and aims to reach 1,050 by fiscal 2031. With a resilient business model, solid financial performance, and visible growth opportunities, Dollarama remains an attractive long-term investment.

5N Plus

Second on my list is 5N Plus (TSX: TRP), a provider of specialty semiconductor and performance materials. The company recently delivered an impressive second-quarter performance, with revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increasing 28.4% and 10%, respectively.

Looking ahead, structural growth in its specialty semiconductors segment and the resilience of its Performance Materials business could support sustained growth. Its expertise in producing ultra-high-purity semiconductor compounds positions 5N Plus to expand its market share and addressable market. Furthermore, its $420 million backlog at the end of the second quarter, equivalent to roughly 313 days of annualized revenue, provides strong visibility into future sales. With robust financial momentum and attractive long-term growth prospects, 5N Plus remains a compelling growth opportunity.

Savaria

Savaria (TSX: SIS), a provider of accessibility and mobility solutions, is my third pick. The company is benefiting from favourable demographic trends, including an aging population and rising incomes, which are supporting demand for its products and services. Savaria is also investing in product innovation and pursuing strategic acquisitions to expand its capabilities, geographic reach, and addressable market.

Management expects revenue to reach $1.6 billion by 2030, representing an annualized growth rate of 11.8%. It also projects adjusted EBITDA per share to reach $4.25, implying annualized growth of 10.4%. Meanwhile, Savaria also recently raised its monthly dividend by 5.36% to $0.04916 per share, yielding approximately 2.1%. With solid fundamentals, visible growth opportunities, and a growing presence in an expanding market, Savaria offers an attractive long-term growth opportunity.

Fortis

Fortis (TSX: FTS) serves 3.5 million customers across Canada, the United States, and the Caribbean, providing essential electricity and natural gas services. Its regulated utility operations and stable asset base support resilient financial performance across economic cycles. Fortis has also rewarded shareholders with 52 consecutive years of dividend increases. Its quarterly dividend of $0.64 per share currently offers a forward yield of approximately 3.36%.

Looking ahead, rising electricity and natural gas demand should support continued infrastructure investment. Fortis plans to invest $28.8 billion over five years, potentially expanding its rate base at an annualized 7% to $57.9 billion. Management also expects dividend growth of 4%-6% annually through 2030. With defensive characteristics, reliable income, and visible growth opportunities, Fortis could be a compelling option for long-term investors.

Bank of Nova Scotia

My final pick is Bank of Nova Scotia (TSX: BNS), which provides a broad range of financial services across multiple markets. Its diversified revenue streams and established banking operations support resilient earnings across economic cycles, enabling the bank to maintain a long record of shareholder distributions dating back to 1833. BNS has also increased its dividend at a 4.5% annualized rate over the past decade and currently offers a forward yield of approximately 3.46%.

The bank is repositioning its business toward higher-margin North American operations while reducing its exposure to Latin America, potentially improving earnings quality and stability. Meanwhile, a favourable interest-rate environment could support net interest margins and lending profitability. BNS is also repurchasing shares, with its latest program expected to reduce shares outstanding by 1.2%. These factors make BNS a compelling option for long-term investors.

The post 5 TSX Stocks to Buy With $10,000 in September appeared first on The Motley Fool Canada.

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia, Dollarama, and Fortis. The Motley Fool has a disclosure policy.

When you have decades to invest, one of the smartest things you can do is own high-quality businesses capable of compounding earnings and shareholder returns over time. In a Tax-Free Savings Account (TFSA), that compounding can become even more powerful because qualifying investment gains and income are generally sheltered from tax.

A business built for the long haul

One Canadian stock that looks particularly well suited to this long-term strategy is Loblaw (TSX: L).

Loblaw is about as easy a business to understand as investors can find. Loblaw is Canada’s largest food and pharmacy retailer and operates more than 2,400 locations nationwide, serving millions of Canadians each week. About 90% of Canadians live within 10 kilometres of one of its stores.

Its grocery operations include familiar banners such as Loblaws, No Frills, Real Canadian Superstore, Maxi, and T&T. This segment generates roughly 70% of sales. The company also owns Shoppers Drug Mart (and Pharmaprix in Quebec), giving it exposure to pharmacies, health and beauty products, and convenience items. Loblaw also has a financial-services business through PC Financial and a valuable loyalty program: PC Optimum.

This combination gives Loblaw something investors should appreciate: recurring demand.

A proven compounder

People need groceries, medicine, and other everyday essentials regardless of whether the economy is booming or struggling. That doesn’t make Loblaw immune to economic pressures, but it can make its underlying business considerably more resilient than many cyclical companies.

And Loblaw has demonstrated its ability to turn that resilience into shareholder returns. Over the past decade, the company has increased adjusted earnings per share (EPS) at a compound annual growth rate of nearly 11%, while its dividend has grown at a similar pace. Loblaw has also increased its dividend for roughly 13 consecutive years.

The dividend yield, at only around 1%, certainly won’t attract income investors looking for immediate cash flow. But focusing solely on the yield misses the bigger picture. For a TFSA investor with a long time horizon, earnings growth, dividend growth, and capital appreciation can matter far more than today’s yield.

Consider the historical results. Over the past decade, with dividends reinvested, Loblaw stock generated annualized returns of roughly 18%. A hypothetical $1,000 investment would have grown to approximately $5,294. By comparison, iShares S&P/TSX 60 Index ETF (TSX: XIU), a broad Canadian-market benchmark, delivered annualized returns of less than 13%, turning $1,000 into about $3,327 over the same period.

Past performance, of course, doesn’t guarantee future returns. But it does illustrate the power of owning a business that consistently compounds.

A stock to accumulate patiently

The challenge is that a quality company like Loblaw rarely goes on sale. That makes dollar-cost averaging a sensible approach for investors who want to build a position without trying to perfectly time the market.

For example, an investor could contribute $200 each month through a commission-free brokerage like Wealthsimple, National Bank, or Bank of Montreal and steadily accumulate shares. At $62.73 per share at writing, the analyst consensus price target indicates roughly 10-15% potential upside over the near term.

The bottom line

Loblaw isn’t a flashy growth stock, and there are many other stocks that offer higher yields than Loblaw’s 1% dividend yield. But a resilient business, consistent earnings growth, rising dividends, and a long history of rewarding shareholders make it a suitable candidate for a long-term TFSA portfolio. Given enough time, Loblaw could prove to be the kind of dependable “BFF” investors are happy to keep around for decades.

The post The 1 Canadian Stock That’ll Be Your TFSA’s BFF 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Tax-Free Savings Account (TFSA) is a lifetime investment account that lets Canadians shelter their money from taxes. Interest, capital gains, and dividend income earned inside the account are generally tax-free, even when withdrawn. Furthermore, TFSA contribution room accumulates, whether you contribute in a given year or not.

If it means for my whole life, Bank of Montreal (TSX: BMO) would be the “hold-forever” stock in my TFSA. Canada’s oldest bank is also the TSX’s dividend pioneer. This big bank is in a class of its own, given its unrivaled dividend legacy. The dividend longevity makes it the ultimate tax-free compounder.

Nearly two-century payout record

BMO boasts an unbroken dividend payout record of 197 years. The record is a remarkable feat in global finance. The bank endured the Great Depression, two World Wars, and ensuing financial crises in the modern day. Canadian banks have massive capital reserves as mandated by the Office of the Superintendent of Financial Institutions (OSFI).

The best part for TFSA investors is that dividend income and growth won’t affect your contribution room. If BMO pays $1,000 in dividends, the money can remain invested and compound without contributing more. You don’t lose a cent to taxes.

Long-term total returns

As of September 15, 2026, the financial services sector, where Canada’s major banks belong, is the second-best performer among 11 primary sectors. BMO, however, outpaces both the sector (+18.6%) and the broader market (+12.2%) with its 38.9% year-to-date gain.

Consistent earnings growth through the years drives long-term total returns. TFSA investors can harness tax-free compounding with BMO. At $241.69 per share, the dividend yield is 2.82%.

BMO trades at $241.69 per share and pays a 2.82% dividend. Assuming your available TFSA contribution room is $35,000, the principal will compound to $70,569.60 in 25 years, including dividend reinvestment. If you need recurring cash flows instead, the same amount transforms into $246.75 in tax-free quarterly passive income.  

Latest earnings results

In Q3 fiscal 2026 and year to date (nine months ending July 31, 2026), adjusted net income increased 19.2% and 20.9% year over year to $2.9 billion and $8.1 billion, respectively. Provision for credit losses (PCL) declined 22.9% to $2.2 billion from a year ago. BMO sold its Transportation and Vendor Finance businesses during the quarter.

A key long-term growth catalyst to watch out for is BMO’s expanding growth across lucrative U.S. markets, notably California, following the full integration and absorption of Bank of the West. Net income for the U.S. banking segment rose 11% in Q3 fiscal 2026 to $868 million, up from Q3 fiscal 2025.

Darryl White, CEO of BMO Financial Group, said, “We continue to reallocate and deploy capital to areas positioned to deliver sustainable and long-term value for our shareholders.” According to White, BMO aims to deliver a sustainable 15% return on equity (ROE) by the close of fiscal 2027.

“Hold-forever” TFSA stock

BMO is not only the ultimate anchor in any investment portfolio but also a “hold-forever” TFSA stock. The $168.5 billion bank, Canada’s third-largest lender today, has provided income stability and capital growth to investors for decades. You can build a lifetime portfolio and generate wealth without tax consequences.

The post Why BMO Is the Only Stock I’d Hold Forever in My TFSA appeared first on The Motley Fool Canada.

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Fool contributor Christopher Liew 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.

High-yield dividend stocks are a top investment to boost a portfolio’s income potential. However, a high dividend yield should not be the sole reason for buying a dividend stock. In some cases, a high yield can result from a declining share price, which may also signal that the company faces challenges and may not sustain its payouts.

For investors, dividend sustainability is therefore an important factor to evaluate. Rather than focusing only on yield, investors should consider TSX stocks with solid underlying businesses, strong distribution history, consistent earnings, and healthy cash flow generation. These characteristics can provide a stronger foundation for maintaining dividend payments over time.

SmartCentres REIT (TSX: SRU.UN) and Gibson Energy (TSX: GEI), for example, are two Canadian companies that offer relatively high dividend yields. But how dependable are their dividends, and do their business fundamentals support these payouts over the long term? Here’s my take.

High-yield dividend stock #1: SmartCentres REIT

SmartCentres REIT is a real estate investment trust (REIT). It offers a monthly dividend of $0.154, yielding about 7% based on its September 15 closing price of $26.69.

While SmartCentres REIT offers a high yield, it also has a solid dividend payment history. Moreover, its distributions appear sustainable.

Its payouts are supported by a diversified real estate portfolio spanning retail and mixed-use properties that generate steady net operating income (NOI). As its diversified properties are concentrated in high-demand markets, it supports strong occupancy and leasing activity. The REIT also benefits from a solid tenant base, which supports its rental income and adds stability.

The REIT’s occupancy was 98.1% at the end of the second quarter, while rent collections remained very high. SmartCentres has also completed about 86% of its 2026 lease renewals, with renewed leases being signed at higher rents.

Overall, its strong tenant retention, double-digit rental-rate growth on renewals, and high occupancy should continue to support NOI and funds from operations (FFO) growth and drive payouts. With leasing conditions expected to remain favourable, these trends could provide a solid foundation for sustained NOI and FFO growth in future quarters.

Beyond its existing properties, the REIT has significant land holdings and a mixed-use development pipeline. These assets provide additional avenues for long-term growth.

High-yield dividend stock #2: Gibson Energy

Gibson operates a diversified portfolio of liquids infrastructure assets, including storage terminals, processing facilities, gathering systems, and waterborne loading services for crude oil and refined products, which drives steady cash flow and supports its distributions.

The energy infrastructure company has consistently rewarded its shareholders and has increased its dividend for seven consecutive years, reflecting strong earnings and cash flow. Further, GEI stock offers a high yield of 5.8%.

Gibson’s payouts are backed by its Infrastructure segment, which generates most of its earnings. Revenue from this business is largely secured through long-term, take-or-pay contracts with investment-grade customers. This contractual operating structure adds stability to earnings and cash flow and limits exposure to commodity price volatility, supporting dividend payments.

Gibson is well-positioned to sustain its payouts in the years ahead. The acquisition of Teine Energy’s Chauvin Infrastructure Assets expands its presence in Canada’s crude oil infrastructure market. Meanwhile, the Wink-to-Gateway Integration project is designed to strengthen connectivity across its network and improve operating efficiency. These projects are likely to boost the Infrastructure segment’s earnings, thereby supporting higher payouts.

The bottom line

SmartCentres REIT and Gibson Energy’s high yields are supported by stable businesses, reliable cash flows, and sustainable payout policies. While neither stock guarantees dividend payouts, their strong operating fundamentals and growth initiatives support future distributions. For income investors, these two TSX stocks are actually good.

The post 2 High-Yield Dividend Stocks: Here’s My Take on Whether They’re Actually Good appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Gibson Energy and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Empire Company (TSX: EMP.A) just dropped more than 9% from its summer highs. A falling stock isn’t automatically a bargain, but when a solid business declines, it can be worth asking whether the market has become too pessimistic.

For Empire, the answer depends largely on whether its long-term strategy can overcome today’s margin pressures.

Empire is adapting to a more price-sensitive consumer

Empire operates more than 1,600 grocery and pharmacy stores across all 10 Canadian provinces under banners including Sobeys, Safeway, IGA, FreshCo, Farm Boy, Longo’s, Thrifty Foods, and Lawtons Drugs. It also has more than 350 retail fuel locations.

The challenge is that Canadian shoppers have become increasingly focused on value. That has benefited discount grocery formats, forcing Empire to expand FreshCo and other value-oriented offerings. While discount stores can generate lower margins, they can also help Empire defend market share and remain relevant as consumer preferences change.

Management plans to open roughly 70 stores over three years, with about 75% expected to be discount supermarkets. More than 25 new stores are planned for fiscal 2027 alone.

That investment could pressure margins in the near term, but it also gives Empire a potential avenue for longer-term growth.

The latest results offer some encouragement

Empire’s fiscal first-quarter 2027 results help explain the recent pullback. Revenue increased 2.6% year over year to $8.5 billion, while food same-store sales growth slowed to 1.2% from 1.9% a year earlier.

Gross profit rose 1.5% to $2.3 billion, although gross margin slipped to 26.8% from 27.1%. Importantly, earnings before interest, taxes, depreciation, and amortization (EBITDA), a cash flow proxy, increased 6.1% to $712 million, with the EBITDA margin improving to 8.4% from 8.1%.

Even more encouraging, diluted earnings per share (EPS) jumped 14% to $1.04. Management expects fiscal 2027 EPS growth toward the high end of its 8% to 11% outlook.

That’s hardly a picture of a business in retreat, but more of a company with resilient growth.

The dividend adds to the appeal

At $46.41 per share at writing, Empire trades at about 13.8 times earnings. This valuation offers a bit of a discount for investors who believe the company’s margin pressures are manageable.

The dividend is another reason to keep Empire on the watch list. The company has increased its dividend for roughly 30 consecutive years, with a 20-year dividend-growth rate of 8.2%. Its most recent increase, announced in June, was a healthy 10.2%.

At the recent share price, the dividend yield was approximately 2.1%, which is above its five-year average of about 1.8%. This suggests investors are getting a somewhat better entry yield than they have historically.

Empire isn’t without risks, particularly if consumers remain intensely focused on discount shopping and margins continue to deteriorate. However, the combination of a reasonable valuation, growing earnings, and a long record of dividend increases makes the recent pullback worth investigating. 

Empire stock is obviously having a period of weakness currently. Long-term investors could observe if it holds the recent levels of about $46 over the next few weeks before further consideration.

The bottom line

Empire stock has pulled back from its recent highs, but the weakness may be creating an opportunity for long-term dividend investors. Its grocery business faces margin pressure as shoppers prioritize value, yet improving earnings, discount-store expansion, and a growing dividend could make the stock worth a closer look, especially if it holds the $46 level.

The post This Dividend Stock Just Dropped +9%: Is Now the Time to Buy? 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

When investing for the long term, say 20 years, consider dividend stocks that consistently pay and grow their dividends. These companies often have durable business models, strong cash flows, and the financial resilience to navigate changing economic conditions.

For instance, companies like Enbridge (TSX: ENB) in the energy sector and Fortis (TSX: FTS) in the utility sector have been trustworthy buy-and-hold investments for decades, providing steady passive income. Both of these companies have consistently paid and increased their dividends.

While Enbridge and Fortis are reliable dividend payers, there is one Canadian dividend stock from the banking sector I’d trust for the next 20 years.

Toronto-Dominion Bank is a reliable dividend stock

Toronto-Dominion Bank (TSX: TD) is one of the top Canadian stocks I’d trust for the next 20 years. Its long track record of dividend payments, consistent dividend growth, and sustainable payout ratio support its investment case.

Beyond reliable dividend income, TD also has the potential to generate market-beating capital gains, making it an attractive long-term investment.

Notably, the financial services giant has been paying dividends for more than a century and a half. Since 2016, it has increased its annual dividend at a compound annual growth rate (CAGR) of 8%. Currently, TD pays a quarterly dividend of $1.12 per share, representing a yield of more than 2.6% based on its recent closing price.

TD has also delivered impressive share price appreciation. Its stock has grown at a CAGR of about 32% over the past three years, generating total capital gains of 128.6%.

With TD continuing to grow its dividend while maintaining a strong underlying business, investors could benefit from dependable income and long-term capital appreciation.

TD’s growth outlook remains solid

Toronto-Dominion Bank is well positioned to continue rewarding shareholders, supported by its ability to generate profitable growth. In the third quarter of 2026, the bank’s adjusted earnings per share (EPS) increased 26% year over year, driven by strong performance across its Canadian businesses and Wholesale Banking segment, along with growing momentum in U.S. Banking. Its return on equity (ROE) also improved significantly, reaching 16% compared with 13.2% a year earlier.

TD’s credit quality remains resilient, while its diversified business model and positive operating leverage continue to support earnings growth. Higher revenue and operating efficiency should further strengthen the bank’s bottom line and provide additional capacity for dividend growth.

TD also appears well positioned to achieve its fiscal 2029 targets of 7–10% adjusted EPS growth and a 16% ROE. Meanwhile, the bank maintains a sustainable long-term dividend payout ratio of 40–50%. With sufficient capital retained to pursue growth opportunities, TD appears to have ample flexibility to support both future expansion and shareholder returns.

The bottom line

Although TD is not the highest-yielding Canadian dividend stock, its growing earnings base and consistent history of dividend growth make it a reliable long-term income investment. As long as the bank continues to grow earnings while maintaining a sustainable payout ratio, shareholders can benefit from steadily rising dividends alongside potential capital appreciation over time.

Its dependable dividend, financial strength, and ability to deliver above-average capital gains are why TD remains one of the most trusted Canadian dividend stocks to hold for decades.

The post The Canadian Dividend Stock I’d Trust for the Next 20 Years appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

Royal Bank of Canada (TSX: RY) and Toronto-Dominion Bank (TSX: TD) are behemoths in the Canadian stock market. They have a combined market cap of $670 billion ($394 billion for RBC and $275 billion for TD). These two stocks alone collectively make up 10% of the TSX Composite Index. When they move, the index follows.

Royal Bank and TD have delivered strong gains, but valuations are stretched

While Royal Bank and TD Bank are up 22% and 30% respectively this year, they have recently hit a pullback. Despite, investors should be cautious buying the stocks here. Both banks are trading with a price-to-earnings (P/E) ratio of 18. That is substantially above their long-term P/E average of 13.

No doubt, both these banks are considerably better than they were even 10 years ago. Generally, they have been great long-term investments.

Yet, these stocks are still economically sensitive and highly correlated to macro-economic factors. Rising bond rates, inflation, a stagnant economy, a challenging trade environment, and the potential for rising interest rates could all effect their future earnings.

You might not want to own these stocks at a peak valuation, especially when earnings growth is a little less than certain. You just don’t have a large margin of safety when buying them today. Also their dividend yields have compressed, so your return profile is a diminished.

Pembina Pipeline: A top Canadian infrastructure stock

If you are looking for a higher dividend yield than Royal Bank or TD, infrastructure stocks are an interesting place to look. Pembina Pipeline (TSX: PPL) stock is yielding 4.5% today.

With a market cap of $38.5 billion, it is one of the largest diversified energy infrastructure companies in Western Canada. As it adds LNG export terminals and data centre power assets, it is becoming more and more diversified.

89% of Pembina’s income is contracted. With a payout ratio of only 57%, the company still generates excess cash after it pays its dividend. That enables Pembina to maintain a strong balance sheet, grow its asset portfolio, and regularly increase its dividend.

Pembina is looking to grow its fee-based revenues by a 5-7% compounded annual growth rate over the coming four years. The company could do even better if energy prices remain elevated. This dividend stock offers a great mix of growth and income. You can buy Pembina today close to its long-term average valuation range.

Richards Group: A turnaround stock with a nice dividend

If you are looking for a really cheap stock compared to Royal Bank or TD, Richards Group (TSX: RIC) could be an interesting buy. This $328 million company only trades with a forward P/E ratio of 10! It also happens to have 4.3% dividend yield that is paid out on a monthly basis.

Richards has been a transformation in the works. The company has historically been a packaging distributor. However, it has been expanding into medical devices and medical disposables. Not only are these more economically resilient, but also higher margin.

Richards has been challenged due to tariffs and trade wars. However, with a greater focus on Canada and international opportunities, Richards is taking the right steps to diversify its distribution strategy.

This is a turnaround story, so a new investor might need to be extra patient. However, unlike Royal Bank and TD, this stock is cheap. If Richards can hit its stride through smart acquisitions and organic growth, there could be upside from earnings growth and a valuation re-rating.

The post Forget the Big Banks: 2 Dividend Stocks to Buy While RBC and TD Take a Breather appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline and Richards Group. The Motley Fool has a disclosure policy.

You don’t need to own a whole slate of exchange-traded funds (ETFs), since most of them already check that diversification box automatically unless, of course, we’re talking about a narrow-sector ETF or something of the sort. Of course, just because a broad index ETF is quite well diversified doesn’t mean that your sector breakdown will be ideal or even well-diversified. There’s a difference between diversification and optimal diversification.

When it comes to the TSX Index, it’s quite well diversified, as there are a ton of stocks within a number of industries. However, stepping back, the breakdown for investors will mean an overweighting in financials and energy. Sure, there’s tech and consumer staples, but in my view, it’s just not enough to get your overall portfolio sector allocation where it needs to be. That’s why adjusting weightings across ETFs, even broad ETFs, could make a lot of sense.

Many Canadians are probably well aware of how concentrated the Canadian stock market is in the financial and energy sectors. For most, the solution is to just load up on the S&P 500, which represents a number of sectors and industries that the TSX Index doesn’t.

With the great run-up in tech stocks amid the AI boom, though, even the S&P 500 isn’t as diversified as it used to be. It’s gotten heavier in tech, with the Magnificent Seven plus a few AI-related gainers boasting heavy weights at the top; it feels like the bottom 490 stocks aren’t really getting as much representation as you’d think. Either way, this piece will look into two ETFs that I think could be a magnificent complement for Canadian investors looking to set and forget for decades at a time.

The only ETFs passive investors need?

First, the S&P 500 is a must-have. For cost-effectiveness, I like Vanguard S&P 500 Index ETF (TSX: VFV) for most accounts (especially the Tax-Free Savings Account), with the exception of the Registered Retirement Savings Plan (RRSP). For the RRSP, you’ll want a U.S.-traded version for dividend tax efficiency purposes. In any case, with the VFV, you’re getting all that tech exposure that stands to win as the AI revolution takes hold.

And while the Mag Seven are over-represented within the index, I’d say that’s a good thing, especially considering valuations are quite modest and that gains could arrive for the hyperscaler names that own the infrastructure once the AI monetization wave finally does hit. It’s a tech-heavy index for sure, but one that’s still worth owning.

Another ETF that I’d be more than willing to look at is iShares Core Equity ETF Portfolio (TSX: XEQT), a one-stop shop offering that pretty much covers all bases for passive investors who would rather think about things beyond investing. With a focus on long-term capital appreciation, the fund of funds (or ETF of ETFs) provides exposure to the U.S. (a 45% or so allocation), Canada (24%), and the rest of the world, including emerging markets.

All considered, it’s a stellar fund that’s incredibly low-cost, with a management expense ratio (MER) of 0.17% (and probably poised to keep falling). For set-and-forget investing, the XEQT is really all you’ll need, but in my opinion, I’d want the extra U.S. tech exposure, so I’d pair it with something like VFV or any other S&P 500 ETF.

The post Create a Set-and-Forget Portfolio With Just 2 ETFs appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has positions in Vanguard S&P 500 Index ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

IAMGold (TSX: IMG) shares have been quite explosive, gaining more than 853% in just five years, thanks in part to the impressive run-up in gold prices, which has since taken a bit of a breather. While the big banks are still quite upbeat about the prospects for gold from here (still a respectable amount of upside according to some big-name firms, thanks in part to the ongoing debasement trade), it’s the miners (big and small) that stand to get an even more noticeable leg higher.

Indeed, the miners are a more explosive, volatile trade than the likes of the physical asset itself. For a mid-cap miner like IAMGold, which boasts a $16.1 billion market cap, the volatility has been taken up a few notches. Shares have a 2.34 beta at the time of this writing, which is a much rougher ride than investors would get with the likes of a larger-cap rival.

For now, the big question on the minds of investors is whether it makes more sense to own physical bullion (a coin in your drawer or a physical gold exchange-traded fund) or one of the miners for added torque and operational leverage. For those craving a higher risk/reward, perhaps a more junior member in the latter camp could make sense on a pullback. Personally, I think physical gold and the miners fit very nicely together, serving different purposes for a portfolio.

IAMGold stands out as a great miner to stash away

As a less volatile asset than miners, physical gold is a terrific ballast for a portfolio, while miners are, at least in my view, an incredibly undervalued way to play amplified upside for those fine with the potential for amplified downside risks. Indeed, the miners are more sensitive to labour costs, inflationary pressures, and all the sort. In my humble opinion, much of the gold-mining space seems quite cheap unless, of course, you expect a crash in gold prices, in which case the low valuation multiples might be nothing more than a siren song for deep-value seekers and gold bugs.

I guess it all comes down to whether you believe in the asset and the value it can provide to your portfolio. Yes, the U.S. debt is getting up there, but at the same time, rates are another question mark. The good news is both factors are probably already priced into the asset. For the miners, though, I think there’s an extra layer of upside that, dare I say, might not be fully priced in with some of the smaller-cap miners out there.

When it comes to IAMGold, the stock looks like a parabolic gainer that’s exhibiting technical weakness, and the chart certainly looks a bit uneasy to get behind with new money. That said, when you consider the fundamentals (and they’re strong) and the mere 8.9 times forward price-to-earnings (P/E) multiple, it’s my opinion that IAMGold might still be misunderstood and underestimated.

The bottom line

With a steadily improving balance sheet, plenty of projects that could further bolster production, and growing evidence of improving cost structure, I certainly wouldn’t bet against shares of IMG. For long-term investors bullish on gold, I think there’s real value to be had, even though the chart may suggest otherwise. While I am bullish in the long term, I acknowledge that things could go either way in the near term. As such, I’d be a buyer, but a cautious, incremental buyer on the way down. Maybe buying in fifths could make a lot of sense in the coming months, especially as gold’s recent run reverses course.

The post IAMGold Stock Is up 854%: Buy, Sell, or Hold at Today’s Prices? appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette 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.

The S&P/TSX Composite Index has continued to climb despite persistent tariff pressures and heightened geopolitical uncertainty. At the same time, several top Canadian stocks with fundamentally strong businesses and attractive long-term growth potential have retreated from their recent highs, creating more appealing entry points for investors. A few have maintained their strong run, and their prospects make them a buy.

Against this backdrop, here are five Canadian stocks I’d buy right now.

Canadian stock #1: MDA Space

MDA Space (TSX: MDA) is a top Canadian stock I’d buy right now. Shares of this space technology company have pulled back 40% from its high, offering a compelling entry point. MDA Space will continue to benefit from the expanding global space industry through its diverse operations in satellite systems, robotics, space operations, and geointelligence.

Growing government and defence budgets, rising satellite connectivity needs, and increased demand for space-based data could support future growth. MDA Space also has an estimated $40 billion opportunity pipeline and has expanded its capabilities through acquisitions such as CLS and Blue Canyon Technologies.

With a backlog of roughly $4 billion reported at the end of Q2, the company has meaningful revenue visibility and potential to benefit from long-term growth in space infrastructure.

Canadian stock #2: Celestica

Celestica (TSX: CLS) remains an attractive stock following a roughly 31% decline from its recent peak. It is seeing growing demand in its Connectivity & Cloud Solutions (CCS) business, led by ongoing investment in artificial intelligence (AI) infrastructure.

CCS revenue rose 84% year over year in Q2, led by strong communications and enterprise growth. Demand for 800G networking products remains robust, while 1.6-terabit solutions are progressing toward mass production. Enterprise sales are also benefiting from hyperscaler spending on AI and machine-learning infrastructure.

Looking ahead, improving storage demand could provide another growth catalyst. With strong exposure to AI infrastructure and continued expansion opportunities, Celestica offers solid long-term growth.

Canadian stock #3: Shopify

Shopify (TSX: SHOP) is a top stock to buy now. Although tougher year-over-year comparisons and rising competition from AI-focused companies present challenges, the Canadian technology giant continues to report solid financial performance.

Shopify is positioned to benefit from the continued shift toward digital and omnichannel retail. Its Gross Merchandise Volume (GMV) is expanding across merchants, markets, and sales channels. Growth is also extending into offline and B2B commerce, while its payments segment continues to gain traction through Shop Pay.

With increasing platform adoption, growing B2B and offline sales, expanding payment volumes, and ongoing AI development, Shopify will benefit from the long-term expansion of omnichannel commerce.

Canadian stock #4: CES Energy

CES Energy (TSX: CEU) is an attractive stock to consider now. Although its stock has risen significantly, it still has solid upside potential. The company provides specialized chemical products to oil and gas producers, helping improve well productivity, efficiency, and infrastructure protection. Both drilling activity and ongoing production intensity support its recurring demand.

CES benefits from significant U.S. exposure, vertically integrated operations in Canada and the U.S., and a flexible supply network that can help manage tariff pressures.

The company is benefitting from higher demand, customer additions, market-share gains, and acquisitions. Further, its asset-light structure supports healthy cash generation and strengthens its financial flexibility. Looking ahead, stronger upstream activity and increasing demand for advanced chemical solutions could provide further growth opportunities.

Canadian stock #5: Bird Construction

Bird Construction (TSX: BDT) remains an attractive long-term investment, supported by Canada’s rising infrastructure spending. The company continues to win major construction and maintenance contracts, strengthening revenue visibility. Its diversified operations span industrial, building, and infrastructure projects, with exposure to defence, healthcare, nuclear energy, LNG, renewables, critical minerals, and transportation.

Looking ahead, its exposure to high-growth end markets and opportunities in the AI data centres space augur well for growth. In addition, Bird’s strong balance sheet provides flexibility for acquisitions, while its expanding backlog supports future earnings visibility. With a broad project pipeline, exposure to several growth markets, and financial strength, Bird Construction is a compelling long-term bet.

The post 5 Canadian Stocks I’d Buy Right Now appeared first on The Motley Fool Canada.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Celestica, Ces Energy Solutions, and MDA Space. The Motley Fool has a disclosure policy.