The Smartest Canadian Stock to Buy With $250 Right Now

Analysts are super excited about this Canadian stock, so let’s get into why.

| More on:

Sometimes, the smartest investments aren’t the flashiest. These Canadian stocks don’t always make headlines or promise overnight riches but quietly build wealth year after year. That’s exactly why Badger Infrastructure Solutions (TSX:BDGI) might be one of the smartest places to put $250 right now. So, let’s get into why.

Paper Canadian currency of various denominations

Source: Getty Images

About Badger

Badger is a leader in non-destructive excavation across North America. Its signature offering is the Badger Hydrovac system, which uses high-pressure water and a vacuum system to safely dig around underground infrastructure. It sounds niche, but it’s incredibly useful. Cities and contractors need this service when working near power lines, water mains, or telecom cables when they don’t want to risk accidentally cutting into something important, which is often.

What sets Badger apart is the essential nature of its work. Infrastructure repair, installation, and inspection aren’t optional. Whether the economy is booming or slowing, governments and businesses still need roads, utilities, and pipelines. That steady demand has helped Badger carve out a reliable, cash-generating business in a space with few competitors.

The numbers

Let’s look at the numbers. The most recent earnings paint a strong picture. In the first quarter (Q1) of 2025, Badger reported revenue of $172.6 million, up 7% from the same quarter last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $33.8 million, up 16%. Earnings per share (EPS) rose 36% year over year to $0.19. For a Canadian stock focused on heavy infrastructure services, those are impressive growth numbers. These show not just stability but momentum.

That growth is translating into shareholder rewards. Badger pays a quarterly dividend of $0.1875 per share, which works out to about $0.75 per year and a yield of 1.9%. That’s not sky-high, but it’s a solid, sustainable dividend backed by strong cash flow. It also leaves room for future increases as earnings grow.

Institutional investors seem to agree. Over 61% of Badger’s shares are held by institutions, signalling confidence in its long-term outlook. Even more encouraging is insider activity. Over the last year, executives and directors have collectively bought more than $1.3 million worth of shares. That kind of buy-in from those running the company speaks volumes.

Think long term

What makes Badger especially interesting right now is how it fits into bigger economic trends. Governments in Canada and the U.S. are pumping billions into infrastructure renewal. From water systems to broadband expansion, demand for safe, efficient excavation is rising. Badger is well-positioned to capture that growth.

With labour shortages affecting many construction businesses, Badger’s scalable, mobile model gives it an edge. It builds its own hydrovac units, trains its operators, and manages operations centrally, creating a flexible and efficient business. From a valuation standpoint, the stock doesn’t look expensive either. With strong revenue growth, expanding margins, and rising free cash flow, there’s reason to believe the stock has room to run.

Foolish takeaway

So, what does all of this mean if you’re holding $250 and wondering where to put it? You could chase the next hot tech stock. Or you could invest in a Canadian stock that provides essential services, grows steadily, and rewards shareholders. That $250 could buy you around six shares of Badger today, plus dividends going forward — not bad for a company that quietly supports the pipes, wires, and infrastructure we all rely on. Badger may not be flashy, but it’s dependable, profitable, and growing. And in a market full of noise, that kind of quiet strength can go a long way. If you’re looking to make a smart move with $250, this Canadian stock deserves a serious look.

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.

More on Dividend Stocks

dividend stocks are a good way to earn passive income
Dividend Stocks

Today’s Perfect TFSA Stock: 6% Monthly Income

SmartCentres REIT stands out as the perfect TFSA stock for Canadians seeking reliable monthly income, and long‑term stability.

Read more »

A modern office building detail
Dividend Stocks

2 Canadian REITs That Look Worth Buying Right Now

SmartCentres REIT (TSX:SRU.UN) and another yield-rich, passive-income play are fit for Canadian value seekers.

Read more »

man gives stopping gesture
Dividend Stocks

2 Stocks That Canadian Retirees May Want to Think Twice About Owning

If you have a long investment horizon and a portfolio geared for retirement planning, these two stocks are investments you…

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

3 Dividend Stocks to Buy if Rates Stay Higher for Longer

Higher rates make yield traps more dangerous, so these three dividend names show three different “quality income” approaches.

Read more »

middle-aged couple work together on laptop
Dividend Stocks

5 Canadian Stocks Beginners Can Buy and Hold Forever

These five Canadian stocks offer beginners a mix of simple business models and long-term staying power.

Read more »

Income and growth financial chart
Dividend Stocks

1 Canadian Stock I’d Buy Before Trade Tensions Heat Up Again

Trade tensions can rattle markets, but food companies like Maple Leaf tend to hold steadier because people still need to…

Read more »

farmer holds box of leafy greens
Dividend Stocks

One Canadian Dividend Stock That’s Down 10% — and Worth Holding for the Very Long Term

Nutrien (TSX:NTR) might be down, but shares are too cheap as the TSX Index rallies onward.

Read more »

A plant grows from coins.
Dividend Stocks

The Smartest Dividend Stocks to Buy With $250 Right Now

Start early and invest consistently in solid dividend stocks for long-term wealth creation.

Read more »