Should you invest $1,000 in Ishares Trust - Ishares Nasdaq Biotechnology Etf right now?

Before you buy stock in Ishares Trust - Ishares Nasdaq Biotechnology Etf, 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 Ishares Trust - Ishares Nasdaq Biotechnology Etf 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

These 2 Canadian Dividend Stocks Are a Retiree’s Best Friend

Retirees can consider these large-cap stocks for generating additional income.

| More on:
Retirees sip their morning coffee outside.

Source: Getty Images

Dividends could add to your income post-retirement. However, investors should note that dividends are not guaranteed. Moreover, volatility associated with stocks could negatively impact your capital. 

Nevertheless, this shouldn’t keep you from investing in dividend-paying stocks. Thankfully, the TSX has several top stocks that have been consistently paying and growing their dividends for decades. This implies that retirees can consider these stocks to enhance their inflow of cash post-retirement. 

Here, I’ll focus on two Canadian dividend stocks that have uninterruptedly paid and increased their dividends for at least 25 years. Moreover, these large-cap companies have a growing earnings base and well-covered payouts. What stands out is that these companies increased dividends amid all market conditions, including the recession of 2008 and the COVID-19 pandemic. Let’s begin. 

Enbridge

Enbridge (TSX:ENB) operates in the energy sector, offering the infrastructure needed for the transportation and storage of hydrocarbons. The company is also engaged in renewable power generation. As Enbridge is a vital part of the energy value chain, its assets continue to witness strong demand and high utilization. Also, diverse cash flows and contractual arrangements reduce price and volume risk, supporting its cash flows and dividend payouts.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Thanks to the resiliency of its business and inflation-protected EBITDA (earnings before interest, taxes, depreciation, and amortization), Enbridge consistently generates solid distributable cash flow per share (DCF/share), which comfortably covers its payouts. 

It has been paying dividend for about 68 years. Meanwhile, it raised its dividend at a CAGR (compound annual growth rate) of 10% for 28 consecutive years.  

The company’s solid mix of conventional and renewable assets and continued investment in infrastructure positions it well to benefit from the energy demand. Also, its multi-billion-dollar secured capital projects are likely to drive its asset base, adjusted EBITDA, and DCF/share. 

While Enbridge’s payouts are well covered, its target payout ratio of 60-70% of DCF is sustainable in the long term. It pays an annual dividend of $3.55, translating into a high yield of 6.38%. 

Fortis

Next is the regulated electric utility company Fortis (TSX:FTS). Thanks to its rate-regulated business, Fortis remains relatively immune to the economic cycles and generates predictable cash flows. Due to its predictable cash flows, Fortis has consistently enhanced its shareholders’ returns through higher dividend payments. 

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Fortis increased its dividend for 49 consecutive years. Also, Fortis stock is relatively less volatile, making it a perfect investment for retirees to generate additional income. 

Fortis’s $22.3 billion capital plan will likely drive its rate base and future payouts. For instance, Fortis projects its rate base to grow at a CAGR of over 6% through 2027. During the same period, Fortis’s dividend is forecasted to increase by 4-6% annually. 

Overall, Fortis’s strong dividend payment and growth history, its low-risk business model, predictable cash flows, and dividend-growth guidance make it an attractive investment. Fortis pays a dividend of $2.26 per share annually, reflecting a dividend yield of 4.05%.  

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 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.

More on Dividend Stocks

analyze data
Dividend Stocks

Why I’d Focus on Canadian Value Stocks for My Long-Term Portfolio

Canadian value stocks often provide income and growth that makes them great for long-term investing.

Read more »

woman looks at iPhone
Dividend Stocks

Investing $7,000 in Your TFSA? Consider These 2 Canadian ETFs for Retirement Planning

These two Canadian ETFs can be excellent long-term investments to add to your TFSA if you have contribution room available.

Read more »

ways to boost income
Dividend Stocks

Where I’d Invest $5,000 in Canadian Value Stocks During This Market Pullback

For patient, long-term investors, here are three discounted TSX stocks to have on your watch list right now.

Read more »

calculate and analyze stock
Dividend Stocks

Here’s How Many Shares of Brookfield Renewable You Should Own to Get $500 in Quarterly Dividends

If you want some dividends on deck, then consider this energy producer, which could provide that and more.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s Exactly How $15,000 in a TFSA Could Grow Into $215,000

If you're looking to grow your $15,000 investment into $200,000, here's exactly how to get it done.

Read more »

A worker gives a business presentation.
Dividend Stocks

Navigating Economic Headwinds and Buying the Dip

If you're looking to get in on the markets, but fearful of the market dip, then here's how to navigate…

Read more »

Canadian Dollars bills
Dividend Stocks

A 10% Dividend Stock Paying Cash Every Month

This dividend stock doesn't only offer a massive income, but a variety of investments during this volatile period.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Income-generating Stocks That Could Accelerate Your TFSA Growth in 2025

Generate tax-free passive income in your TFSA with these two stocks and grow your wealth.

Read more »