Should you invest $1,000 in Condor Petroleum right now?

Before you buy stock in Condor Petroleum, 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 Condor Petroleum 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 $20,697.16!*

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 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

Buy These 3 Dividend Stocks Today

Sometimes the market offers you a gift. Right now, excellent incomes stocks like BCE Inc. (TSX:BCE)(NYSE:BCE) are trading at low prices with excellent yields.

| More on:

If you really come down to it, the opportunities to buy and sell are much rarer than the daily market makes it appear. Looking back over the past few years, I can only think of a few good buying opportunities. In February, the quick market drops provided entry points for American dividend stocks. In January of 2016, there was the opportunity to buy the Canadian banks at attractive levels. In 2012, the European credit struggles had stocks languishing at attractive levels for the much of the year.

There are good buying points, but they always come when everyone is telling you the sky is falling, either in a particular sector or in the market as a whole. The problem is that these buying opportunities come when you are the most afraid to buy. As an investor, you must discern whether the pullback is warranted and if further danger exists, or if the selling has gone too far given an individual company’s fundamentals.

Right now, dividend stocks in Canada have sold off far too much. Everyone is so concerned about interest rates rising that they have failed to consider the possibility that rates will most likely not get a whole lot higher.

Recently, the Bank of Canada asserted that it is determined to bring the prime rate up to a normalized range of 2.5-3.5%. Doing some quick mental math, I can come to the conclusion that at that range, dividend yields, at today’s prices, will more than likely still far exceed the interest on a GIC, bank account, or Government of Canada bond.

But investors certainly need to be aware that choosing the right kinds of dividend stocks is extremely important for long-term results. Companies with steady, growing dividends are generally the best income choices. Since many have seen their share prices become quite compressed, there is a very good chance for capital appreciation as well.

Electrical utility companies, telecommunications, and fossil fuel pipeline companies have been fantastic wealth creators over the years. BCE (TSX:BCE)(NYSE:BCE), Emera (TSX:EMA), and TransCanada (TSX:TRP)(NYSE:TRP) are all fantastic choices with decades of excellent performance and dividend appreciation behind them. The best part is that all of these companies have strong, predictable cash flows that will support further dividend increases into the future.

BCE and TransCanada, for example, just reported their Q3 results on November 1. BCE grew its revenue by 3.2% over the previous year and net earnings by 2%. The growth was powered by record wireless additions, a business which will likely continue to grow as the Internet of Things continues to expand. TransCanada increased its earnings by 43% over the same period the year before. It expects to power dividend growth to the tune of 8-10% per year until at least 2021.

While Emera has not yet reported its earnings (release date is November 8), its past performance should give some indication as to its strength. Emera is a largely regulated utility company with operations in Canada and the United States. The company raised its dividend in the second quarter of 2018 and expects to continue to raise the dividend at a rate of 4-5% until at least 2021.

Buy these companies now

Right now is one of those times when you need to buy. The yields on BCE, TransCanada, and Emera are already phenomenal at 5.53%, 5.29%, and 5.7%. Considering these yields are expected to grow for the next several years at least, this is one of those excellent entry points you do not want to miss.

Of course, stocks have more risk than GICs or government bonds. It is therefore a given that very conservative investors will choose to sell dividend stocks and lock the proceeds into ultra-safe investments. This will almost certainly hold down the prices of dividend stocks in the short term. But in the long term, it is highly likely that these stable, cash-flowing businesses will continue to pay and raise their dividends as well as experience capital growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kris Knutson owns shares of BCE INC., EMERA INCORPORATED, and TRANSCANADA CORP.

More on Dividend Stocks

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »