If you handed me $100,000 today with the instruction to build a rock-solid foundation for my retirement portfolio, I wouldn’t hesitate. My strategy would be straightforward, perhaps even boring to some, but incredibly powerful: a buy-and-hold investment approach focused on high-quality Canadian dividend stocks.

The main goal is to get rich steadily by harnessing the twin engines of dividend income and compound growth. With this strategy, you can transform your lump-sum capital into a reliable, ever-growing, regular passive income stream that can fund your holidays, retirement living expenses, and those sweet cravings in the golden years.

Dividend investing: The unbeatable power of “buy-and-hold” compounding

Dividend investing and long-term holding pair up to unlock the power of compounding. Compounding is what Albert Einstein would famously call the eighth wonder of the world.

When you own a Canadian dividend-paying stock, you get paid simply for being a shareholder. The compounding magic begins when you reinvest those dividends to buy more dividend stocks. This increases your next dividend payment, which buys even more shares, creating a snowball effect.

Over decades, this cycle does the heavy lifting for you. A $100,000 portfolio yielding a conservative 4% generates $4,000 in annual income in the first year. Reinvested, that income buys more shares, and the cycle accelerates. In 20 or 30 years, the income generated can dwarf your initial investment without you adding another dime.

The key is to never interrupt this wealth-compounding machine. A buy-and-hold strategy avoids transaction costs, minimizes taxes on capital gains, and ensures you stay invested to capture every dividend payment.

How I’d Invest $100,000 in a Canadian dividend stock portfolio today

Instant diversification is non-negotiable. I’d want to own a slice of the Canadian economy without taking on undue risk from any dividend stock. With that in mind, here is how I would allocate $100,000 across three core holdings.

Let’s take a closer look at the dividend stocks’ allocation

iShares S&P/TSX Composite High Dividend Index ETF

The iShares S&P/TSX Composite High Dividend Index ETF (TSX: XEI) is a low-cost exchange-traded fund (ETF) with $2.5 billion of net assets invested into a portfolio of 75 blue-chip Canadian dividend stocks with above-average dividend yields. At a management expense ratio (MER) of 0.22% (or $2.20 per $1,000 invested), I’d get instant diversification across several large Canadian companies and expect to earn about a 4.3% dividend yield annually.

Most noteworthy, the high-yield dividend ETF converts otherwise quarterly dividend payments from the dozens of companies into monthly dividend cheques. It’s a “set-it-and-forget-it” holding that ensures your portfolio’s performance is tied to the long-term growth of the Canadian economy. Its solid dividend yield forms a reliable base for our compounding strategy.

The XEI is eligible for registered investment plans, and a distribution reinvestment plan (DRIP) is available to automate the compounding process.

Royal Bank of Canada (RBC) stock

If there’s one thing you can count on in Canada, it’s the chartered banks. The Royal Bank of Canada (TSX: RY), or RBC stock, is a gold standard. It boasts above-average returns on equity, reaching 17%, from diversified sources. The Canadian bank stock has paid dividends since 1870 and has consistently raised payouts for 14 consecutive years now. With a dividend payout rate under 50% and stable earnings, RBC’s dividends are well covered by earnings and could maintain a steady growth path while the banking behemoth maintains healthy capitalization levels.  

By allocating a significant chunk to RY, I’d be anchoring the portfolio in a Canadian bank stock with a proven track record of surviving recessions and sharing its profits with shareholders.

Granite Real Estate Investment Trust

An industrial Real Estate Investment Trust (REIT) like Granite Real Estate Investment Trust (TSX: GRT.UN) introduces a different asset class and income schedule to the portfolio. REITs are required to distribute most of their income to shareholders, leading to attractive yields. Granite REIT’s focus on industrial properties, forming the backbone of Canadian eCommerce, makes its cash flow resilient. Management has been raising distributions every year for 14 years now. The monthly distributions are a key benefit, providing more frequent opportunities to reinvest and compound.

The path forward

The unallocated portion is strategically made available for opportunistic, high-conviction dividend stock opportunities that will emerge during the remainder of 2025. Such ideas may come from personal research, or an investment group or forum that taps into some of the best minds in the investing industry.

I’d set up a DRIP to automate the compounding process.

The post How I’d Invest $100,000 in Canadian Dividend Stocks appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

If you’re looking for a cornerstone Canadian dividend stock to buy, hold, and build a stress-free retirement around, the Royal Bank of Canada (TSX: RY), or RBC stock, is one name that should be at the top of your list. It’s a dominant, cash-gushing, market-leading Canadian bank stock that has proven its resilience for over 150 years. Here’s why RBC stock is the ultimate sleep-well-at-night passive income investment.

RBC stock: A financial fortress

In banking, safety is everything. And RBC’s safety comes from two key places: its diversified business and fortress-like balance sheet.

First, RBC’s stable and growing earnings come from five vibrant business lines: Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets. This diversification acts as a shock absorber, supporting a smooth ride for RBC stock investors. When one segment faces a headwind, others can pick up the slack.

In its most recent third-quarter 2025 earnings report, RBC shattered expectations, posting a record $5.4 billion in net income, a 21% jump from the prior year’s quarter. The bank’s stellar profitability was driven by broad-based growth across all of its segments. Its recent return on equity (ROE) above 17% makes competitors envious.

Second, the bank is built to withstand a storm. Its Common Equity Tier 1 (CET1) ratio, a key measure of a bank’s capital safety, sits at a rock-solid 13.2%. This is far above the regulatory minimum requirements. The Royal Bank of Canada has robust capital buffers to navigate the macroeconomic risks that keep investors up at night, from consumer credit fears to trade uncertainty.

Adequate capitalization gives the bank stock ample capacity to underwrite more financial risks, meet client needs, and generate even more profits.

RBC’s growing profits support its dividend growth policy, and organically grow the bank’s capital base so it can accept more banking business.

RY’s growing payout: A dividend you can count on

A fortress is nice, but retirees need to get paid. This is where the top Canadian bank stock truly shines.

RBC stock has consistently paid dividends to investors since 1870. The payout has survived all economic recessions in modern history. The bank has raised its dividends consistently for 14 years now, earning a deserved place in the prestigious S&P/TSX Dividend Aristocrats Index.

The bank raised its quarterly dividends at an average growth rate of 9% annually over the past three years to $1.54 per share. That dividend is supported by a healthy and stable payout ratio of 47%. After RBC posted a record $3.75 in earnings per share during the most recent quarter, the bank’s dividend is not only safe but has plenty of room to grow.

The long-term investment appeal

Today, RBC’s stock price of around $207 per share gives it a dividend yield of about 3%.

Many new investors would scoff at that. “Why buy into a 3% dividend yield when I can chase a 7% yield?” This would be a classic mistake. With seemingly safe dividend growers like the Royal Bank of Canada stock, the real magic is in the dividend yield you could be earning 20 years from now.

Let’s do the math.

Imagine you bought RBC stock 20 years ago, in October 2005, and a 2-for-1 stock split in 2006 reduced your split-adjusted price to roughly $47 per share. Your one original share has turned into two, and today, those two shares are paying you $1.54 each, per quarter, for an annual income of $12.32. On your original $94 investment, you are now collecting a yield on cost of over 13.1% annually. This is how you retire stress-free: by letting a world-class banking institution do the heavy lifting.

With full dividend reinvesting, a $10,000 investment in RY stock 20 years ago could have grown tenfold to over $107,000 today.

RY data by YCharts

A bank stock built for the future

The biggest risk to a “buy and hold” stock is obsolescence. But RBC doesn’t seem like an old-world bank waiting for disruption; it’s already a technology leader.

According to the Evident AI Index, RBC ranks First in Canada and Third globally for artificial intelligence (AI) maturity in the financial services industry. The bank has aggressively invested in artificial intelligence to drive efficiency, manage risk, and create new value for clients. This forward-thinking approach ensures it will remain a financial services industry leader for many more years.

RBC stock could remain a rewarding core holding for decades to come.

The post The Safe Dividend Stock That Could Let You Retire Stress-Free appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza 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.

It’s so tempting for investors to chase the next flashy get-rich-quick theme and gamble on speculative “growthy” stocks, hoping to catch lightning in a bottle. Such assets may deliver life-changing returns, but their market-churning volatility usually leaves many investors’ accounts bleeding. However, real generational wealth can still be built in the background, quietly, without taking on too much capital risk, by owning essential assets that generate boatloads of cash year after year.

You don’t necessarily have to settle for the safety of a slow-growing utility, though. There is a TSX-listed infrastructure giant that offers the rock-solid stability of a utility combined with a hidden growth engine tied directly to the world’s biggest investment trends. I’m referring to Brookfield Infrastructure Partners (TSX: BIP.UN), and it could be one of the best core holdings for your retirement portfolio.

Brookfield Infrastructure Partners stock: A global empire built on “boring” essentials

Brookfield Infrastructure Partners is a global powerhouse that owns the mission-critical assets you use every day without a second thought. Its portfolio is diversified across four essential segments: Utilities, Transport, Midstream, and Data.

The infrastructure powerhouse owns everything from natural gas pipelines and electricity transmission lines to railways, ports, and toll roads. It owns energy storage facilities and the data centres and cell towers that power our digital lives. Assets are spread across North America, South America, Australia, and other countries. This global footprint is incredibly defensive.

A massive 85% of Brookfield’s cash flow is either regulated or tied to long-term contracts and protected from, or indexed to, inflation. The US$37 billion billion infrastructure portfolio has been a financial fortress for BIP.UN units investors for years.

BIP’s “quietly rich” two-engine growth strategy

Brookfield Infrastructure Partners builds investors’ wealth using two powerful engines, and this is where its story gets exciting.

The first is the “quiet” income stream. This infrastructure powerhouse is a dividend-growth machine. It has a 17-year history of consistently increasing its dividend payout, actively targeting 5–9% annual growth for that distribution. The current payout yields 5% annually. Given management’s dividend commitment to shareholders, this reliable passive income stream could grow faster than inflation, and it has been a significant source of returns for investors over the past 20 years.

But income is only half the story. Capital gains on this infrastructure play could make investors satisfactorily rich.

Just looking at Brookfield’s historical track record, a hypothetical $10,000 investment in BIP.UN a decade ago, with dividends reinvested, could have grown to nearly $155,000 today. Even if you just pocketed the dividends, the capital gains alone could have turned that $10,000 into more than $73,000.

BIP.UN data by YCharts

But how could the “boring” infrastructure company grow investors’ capital over the next decade?

The “secret” AI engine hiding in plain sight

BIP is arguably the best Canadian infrastructure stock to buy right now to profit from the artificial intelligence (AI) revolution. While management focuses on three unstoppable megatrends: Decarbonization, Deglobalization, and Digitalization, the last one is a goldmine.

The fast-emerging AI-powered global economy requires a massive build-out of physical assets, and Brookfield is building this infrastructure backbone. Its data segment already includes over 140 data centres, 308,000 telecom towers, and even two semiconductor manufacturing foundries. In fact, Brookfield’s partnership with Intel to build a US$30 billion semiconductor facility in Arizona is on the mark. Intel’s Arizona fabs will mass-produce the company’s latest and most advanced silicon for 2026, starting this quarter. Such deals are core growth drivers.

Brookfield fuels its growth with a brilliant strategy called “capital recycling”. It’s selling mature, slow-growing assets for good profits to reinvest that cash into high-growth areas. The infrastructure powerhouse’s asset recycling is gaining momentum with many takers in 2025, bringing in billions in fresh liquidity to plow into new acquisitions like the Hotwire fiber-to-the-home network in the U.S.

Investor takeaway

While no equity investment is risk-free, and Brookfield Infrastructure Partners essentially uses a significant amount of debt to execute its strategy, leverage is mostly a concern during high-interest rate regimes. Rates are coming down, and Brookfield maintains a strong BBB+ investment-grade credit rating, and most of its debt is locked in at fixed rates.

Brookfield Infrastructure Partners is a “get-rich-reliably” infrastructure powerhouse that offers a combination of secure, growing dividends and a powerful, hidden growth story that may successfully ride on AI infrastructure this decade. It might just be the best Canadian infrastructure stock to buy and hold for the next decade.

The post This Infrastructure Powerhouse Could Quietly Make You Rich appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has positions in Intel. The Motley Fool recommends Brookfield Infrastructure Partners and Intel. The Motley Fool has a disclosure policy.

Searching for compelling Canadian dividend stocks to buy for your portfolio can at times be a challenge, but a trio of TSX-listed names currently stands out from the crowd. Pipelines company Pembina Pipeline (TSX: PPL), Peyto Exploration & Development (TSX: PEY), and PRO Real Estate Investment Trust (TSX: PRV.UN) each offer a powerful combination of attractive yield, clear growth potential, and compelling value that could deliver handsome total returns for years to come.

Pembina Pipeline stock: A contracted cash flow powerhouse

Pembina Pipeline represents a cornerstone holding for any passive income investor. One of Canada’s leading energy infrastructure companies, it has built its business model on stability. With a remarkable 85% of its annual income derived from long-term, fee-based contracts, Pembina generates incredibly predictable cash flows.

The pipeline stock’s cash flow reliability directly supports its attractive 5.4% dividend yield, which is well-covered and is now growing. Since transitioning from monthly dividends to quarterly payments in 2023, Pembina has consistently raised its payout, signaling a confident shift towards consistent dividend growth.

Beyond its steady core business, Pembina is activating key growth levers. It is a key player in developing critical LNG export terminals on Canada’s West Coast, projects that open Canada’s access to lucrative international natural gas markets. Combined with a rumoured potential move into powering data centres, Pembina Pipelines could be a growth-oriented income stock to consider holding in a retirement portfolio.

Peyto Exploration: Your monthly dividend stock

For investors seeking a high-octane yield, Peyto Exploration & Development is a must-consider play on the future of Canadian energy. This $4 billion TSX dividend stock is a disciplined, low-cost champion in the Canadian natural gas scene. Its relentless focus on operating efficiency gives it one of the lowest cost structures in North America, allowing it to print profits and fund a massive 6.6% dividend yield, paid monthly, even in a turbulent natural gas price environment.

The safety of Peyto’s dividend payout is a key selling point, backed by a remarkably low funds-from-operations (FFO) payout ratio of just 31.7% for the first half of 2025. This means the company requires a small portion of its cash flow to cover the dividend, leaving ample room for reinvestment and debt reduction.

With the LNG Canada expansion poised to double the country’s export capacity, Peyto’ vast reserves and strategic positioning make it a direct bet on growing global demand for Canada’s clean-burning natural gas. Investors get a juicy monthly income from a company that has engineered itself for resilience and production growth.

PRO Real Estate Investment Trust: An industrial REIT with 31% rent upside

PRO Real Estate Investment Trust (PROREIT) has just executed a brilliant strategic transformation, shedding 12 non-core retail properties to become a pure-play industrial landlord. This well-executed pivot focuses squarely on the high-demand logistics and e-commerce warehouse sector with high occupancy rates and elevated rental rates.

The little-known Canadian REIT has been reprising higher over the past month, but still offers a juicy 7.3% yield on its monthly distribution. The most exciting part of the story, however, is its embedded growth engine.

PROREIT’s in-place rents averaged $9.67 per square foot going into the third quarter of 2025, which is a staggering 31% below the average market net rent of $12.64. As leases expire over the coming years, management may re-lease this space at significantly higher rates, which will powerfully boost rental income and cash flow. This improvement in payout safety is already visible in its AFFO payout ratio (which measures the distribution as a percentage of Adjusted Funds From Operations, a key cash flow metric for REITs), which has dropped from 94% to a much safer 91.8%.

Most noteworthy, the Canadian REIT’s units continue to trade at a double-digit discount to its most recent net asset value. You could essentially buy a dollar’s worth of prime industrial real estate for under 80 cents.

Canadian investors looking to build a robust passive income stream may wish to take a good look at these three Canadian dividend stocks as potential buys for decades of high-yield passive income in retirement. They offer a powerful and diverse mix of high yield, strategic growth runways, and undeniable value.

The post These 3 Dividend Stocks Are Worth a Good Look appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.

Trash isn’t exactly a thrilling investment or dinner party topic. While everyone was chasing the next hot tech stock or the most promising cannabis stock a decade ago, a quiet, essential service business was methodically turning modest investments into small fortunes. If you’re looking to build a formidable retirement portfolio, sometimes the most profound wisdom lies not in what’s flashy, but in what is fundamentally indispensable.

This is the story of Waste Connections (TSX: WCN), a stellar example of how a so-called “dull” business can deliver spectacular returns. If you had invested your retirement savings in this integrated solid waste services company a decade ago, your patience would be handsomely rewarded.

Waste Connections stock: From a merger to a six-fold return

Imagine it’s June 2016. United States-based Waste Connections has just merged with Canada’s Progressive Waste and is listed on the TSX, with shares trading around $60.60. You decide to commit $10,000 to this North American waste collection and disposal enterprise, trusting in the constant need for its services.

Fast forward to today. That initial investment, with dividends faithfully reinvested, would have ballooned to approximately $64,350. Even if you had simply pocketed the dividends, your capital would be worth about $59,160. That’s a more than six-fold increase, a testament to the power of WCN stock’s steady, compounding growth.

WCN data by YCharts

This transformative return is precisely why Waste Connections stock stands tall among the top TSX stocks to buy and hold for the long run.

The engine behind WCN’s growth

How did a waste company achieve such remarkable growth? The answer lies in a brilliantly executed, disciplined strategy. Waste Connections actively engineers its revenue and earnings growth through a savvy acquisitions-led model. The company consistently identifies and acquires smaller, often less efficient, waste businesses. Then, it applies its deep operational expertise to improve their profitability, seamlessly integrating them into its vast network.

This strategy is still in play today. Following its strong third-quarter 2025 earnings report on October 21, the company announced commitments for new acquisitions that could add up to $300 million in annual revenue. For the first nine months of 2025, revenue climbed 6.5% year-over-year to $7.1 billion. Normalized earnings per share grew 6.3% to $3.86, and the company’s adjusted EBITDA margin – a key measure of profitability that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization – remains impressively strong at 33.8%. The business has superb control over its costs and operations despite some impairments during the past quarter.

The power of a wide economic moat

In investing, an “economic moat” refers to a business’s sustainable competitive advantage. Waste Connections has dug a very wide one. By focusing on providing essential services in secondary, often rural and suburban markets, it avoids brutal price wars with competitors in major urban centres. This strategic focus grants it strong pricing power, allowing it to protect its profit margins even during inflationary periods. It’s a classic case of a business doing one thing exceptionally well and being irreplaceable in the communities it serves.

Waste Connections’ 0.8% dividend tells a story

Just this week, Waste Connections announced an 11.1% increase to its quarterly cash dividend. To a new investor, the resulting annual yield of 0.8% might seem negligible. But here’s the magic of long-term investing: for an investor who bought shares a decade ago at that original $60 price, the effective yield on their initial cost is a much more respectable 3.2% and growing.

This payout highlights a critical lesson for long-term investing: starting early and holding through consistent dividend raises can transform a tiny initial yield into a significant passive income stream in retirement.

It’s worth noting that the stock isn’t cheap today, trading at a premium with a forward price-to-earnings (P/E) ratio of 43.2 that reflects the market’s high confidence in its future. While this may give value hunters a pause, it also underscores the quality and reliability the market is willing to pay for.

The post If You’d Invested $10,000 in Waste Connections Stock 10 Years Ago, Here’s How Much You’d Have Now appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza 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.

Investing feels too easy when the market is going up, and the TSX is printing new all-time highs this year. However, beyond the gold-supported bull market and the artificial intelligence hype, your personal investments should be able to retain value in retirement. To build a resilient nest egg, remember to consistently keep populating your portfolio with fundamentally great businesses and top Canadian stocks that have strong chances of thriving through economic cycles. These usually fortify portfolios and help individuals create generational wealth.

Investors looking for consistent winners and well-positioned top Canadian businesses built to actively thrive throughout economic cycles may check out Cameco (TSX: CCO), Constellation Software (TSX: CSU) stock, and Alimentation Couche-Tard (TSX: ATD) stock. These companies dominate their industries, benefit from massive, long-term tailwinds, and have a clear, proven path to generating more operating profits. Here’s why they are compelling long-term investment ideas for October 2025 and beyond.

Cameco: The energy security champion

Uranium mining giant Cameco successfully survived a decade-long nuclear winter with its asset base intact. As uranium prices rebound to confirm a super cycle this year, Cameco stock strikes me as a richly rewarding pure-play on the global shift toward energy security and decarbonization.

The world needs more nuclear power. Countries are scrambling for reliable, baseload, emissions-free energy as economies modernize and power-intensive artificial intelligence data centres trigger power shortages. Uranium is back in high demand, and Cameco is one of the largest Western suppliers, with its core assets safe in Canada. This makes it a go-to nuclear power partner for allied nations trying to diversify away from Russian supply chains.

Cameco is bringing idled assets back online to meet growing demand while signing new long-term supply deals at historically high prices. Its recent acquisition, Westinghouse, is harvesting unexpectedly higher cash flows, and this trend is only strengthening.

Cameco is a TSX stock built to thrive through the next decade. Shares trade at an expensive forward P/E of 77.5, but a forward price-earnings-to-growth (PEG) ratio of 1 suggests Cameco stock is fairly valued given its earnings growth prospects.

Constellation Software: The proven compounding machine

Constellation Software is a steadily growing Canadian technology stock that has been a disciplined compounding machine for decades. Its thriving business model is genius in its simplicity: it buys and holds hundreds of small, “vertical market software” companies. Think software that runs a specific factory, a municipal transit system, or a private golf club. These businesses are mission-critical and incredibly “sticky.” Customers rarely leave, which provides a predictable, recurring cash flow stream.

For decades, Constellation has used these cash flow streams to acquire more and more of these niche tech companies. Its acquisitions-led growth strategy is a rinse-and-repeat model that has delivered spectacular returns. This company’s profits are diversified across hundreds of industries, and its management team is masterful at allocating capital.

Most noteworthy, the recent departure of founder Mark Leonard due to health reasons triggered a temporary drop in CSU stock that long-term investors should pounce on in October. Mark entrenched a culture of autonomy across Constellation’s hundreds of subsidiaries, and his successor is a long-time lieutenant promisingly capable of maintaining CSU’s tempo, making it one of the most reliable top Canadian stocks to buy and hold for long-term growth.

Shares trade at a forward P/E of 28.5, which is significantly lower than Constellation Software stock’s five-year average of 36.5.

Alimentation Couche-Tard: The global convenience king

Finally, let’s look at a global convenience stores giant hiding in plain sight: Alimentation Couche-Tard, the owner of Circle K. Its business is built to thrive because it’s fundamentally resilient. People need gas, coffee, and snacks in good times and in bad. Couche-Tard is a financially stable convenience store operator that is a growth-focused acquirer. Its secret sauce is buying smaller, regional chains and transforming them with its global scale, superior logistics, and strong branding.

Worried about electric vehicles (EVs) destabilizing gas station cash flows? Couche-Tard is aggressively rolling out EV chargers, turning a potential threat into a new revenue stream. It’s also boosting margins by expanding its high-profit fresh food and private-label offerings.

Alimentation Couche-Tard stock trades at a forward P/E of 18.3, just slightly above its five-year average of 17.8. The consumer staples stock has historically generated 20.2% in compound annual total returns over the past 24 years.  

The post 3 Top Canadian Stocks Proving They are Built to Thrive appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has positions in Cameco. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Cameco and Constellation Software. The Motley Fool has a disclosure policy.

The fundamental question for any long-term investor in the Canadian energy sector is the future path of global oil demand. On this point, two leading authorities offer differing views. The International Energy Agency (IEA) projects oil demand will peak this decade, while OPEC sees growth for decades to come. There’s significant divergence and uncertainty. However, the solution for investors is simply to find Canadian energy stocks built to withstand volatility and continue rewarding shareholders through any market environment. Whitecap Resources (TSX: WCP) stock is one of the most promising Canadian energy stocks to buy in October, and its exceptional commitment to returning cash to shareholders is outstanding.

Whitecap Resources stock: Your monthly dividend machine

If you’re looking for regular passive income, Whitecap Resources stock is a rare gem. Most TSX stocks that historically paid monthly dividends have changed payment frequencies to quarterly, from 12 dividend cheques to just four per year. However, Whitecap Resources stands apart by paying shareholders a juicy dividend every single month. This monthly paycheque compounds faster, accelerating your wealth building. With a compelling 7% dividend yield, these regular monthly dividends form the bedrock of its total return proposition.

The math behind this income stream is equally impressive. Using the Rule of 72 – a simple calculation that estimates how long it takes to double your money through compounding – investors could see their capital double in approximately 10.3 years from dividends alone. That’s before considering any potential share price appreciation.

What makes this dividend particularly secure is the company’s conservative historical payout ratio below 50%, meaning Whitecap has been earning more than enough to cover its distributions while reinvesting in the business.

A fortress balance sheet in a cyclical industry

Whitecap Resources is a lesson in financial discipline. The company maintains an investment-grade credit rating that speaks to its financial health. More impressive is its net debt-to-EBITDA ratio (a measure of leverage that compares what a company owes to its annual earnings before interest, taxes, depreciation, and amortization), which management projects at just 1 times for 2025. This remarkably manageable debt level provides crucial flexibility when oil and natural gas prices fluctuate, ensuring the company can continue rewarding shareholders even during market downturns.

This financial strength supports Whitecap Resources’s explicit target of delivering 10% to 15% in annual total shareholder returns. The strategy is straightforward: grow organically, buy back shares when they’re undervalued, and maintain that coveted monthly dividend. Management has already demonstrated this commitment, aggressively raising the dividend between 2021 and 2024 while completing nearly $1 billion in share repurchases since 2017.

While past performance isn’t indicative of future returns, Whitecap Resources stock averaged 40.7% in compound annual total returns during the past five years.

WCP stock: A Canadian energy stock positioned for whatever comes next

Whitecap’s operational excellence makes its good financial performance possible. As Canada’s seventh-largest oil producer and fifth-largest natural gas producer, the company boasts a diversified portfolio across Alberta and Saskatchewan. Its production is weighted toward higher-value light oil and natural gas liquids, and it’s strategically positioned to benefit from Canada’s expanding LNG export capacity to premium international markets.

The company further de-risks its operations through sophisticated hedging strategies, with 25% of its 2026 oil production and 33% of natural gas already protected against price drops. This prudent management ensures stability in the company’s cash flow, directly supporting that reliable monthly dividend.

Perhaps most compelling for long-term investors is Whitecap’s extensive resource base, which would take 17.5 years to deplete at current production rates. The company has consistently grown its reserves at a 13% compound annual rate since 2009 while increasing per-share production by 11% annually since 2010. This demonstrates an exceptional ability to replace and expand what it produces, ensuring longevity that few competitors can match.

Long-term-oriented investors searching for Canadian energy stocks to buy in October may check out Whitecap Resources stock right now. It represents a complete package: substantial monthly income, fortress-like financials, and disciplined growth. While the energy sector is known for its booms and busts, this is one oil and gas stock you could comfortably hold forever, collecting juicy monthly dividends while watching your investment compound for decades.

The post 1 Canadian Energy Stock You’ll Want to Hold Forever appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy.

International gold prices have shattered records in 2025, finally surpassing the thrilling US$4,000 per ounce mark this week. This surge is fueled by a potent mix of global uncertainty, from trade tensions and political clashes to a recent U.S. government shutdown. Investors watching this glittering rally could be wondering how to participate. Fortunately, Canada is home to some of the planet’s most formidable gold mining giants, and gold stocks have been powerful engines driving the TSX to new heights this year.

While the gold rally has lifted all gold miners, it’s worth noting that this environment can turn even the least viable projects into instant money-makers. However, gold remains a volatile asset, and buying low-quality stocks at bullion’s all-time highs is a momentum strategy that carries significant risk. If you’re looking to add some golden luster to your portfolio in October, here are three top gold stocks to consider as bullion prices sparkle.

Newmont Corporation

Newmont Corporation (NYSE: NEM) is the world’s largest gold miner with a diversified portfolio that includes other soaring metals like silver. With mines spread across North and South America, Australia, and Africa, its operations are insulated from region-specific political risks.

What makes Newmont stock particularly appealing for investors is its investor-friendly capital return policy, which becomes even more generous as gold prices climb. The company is flush with cash, as evidenced by its record quarterly free cash flow of US$1.7 billion reported in July. It’s using that strength to aggressively repurchase shares, doubling its buyback authorization for 2025 to a hefty US$6 billion.

For production growth, look to Newmont’s robust pipeline of projects, like the new Ahafo North mine in Ghana, which celebrated its first gold pour in September and is expected to produce over 275,000 ounces annually for 13 years.

With a 2025 production forecast of 5.6 million ounces at an All-in Sustaining Cost (AISC) – a comprehensive measure of production costs – of US$1,620 per ounce, its profit margins are set to explode with gold at US$4,000.

Newmont stock has rewarded its shareholders with a stunning 140% in total returns so far this year.

Kinross Gold

If you want to bet on efficiency, Kinross Gold (TSX: K) stock is a compelling choice. As a Tier 1 producer, its projected AISC of around US$1,500 per ounce in 2025 is among the lowest in the industry. Think of it this way: the higher the gold price climbs above this cost floor, the wider its profit and cash flow margins become. This operational excellence has propelled the stock to deliver nearly 170% in total shareholder returns this year, widely outperforming most industry peers.

Kinross expects to produce roughly 2 million gold-equivalent ounces every year through 2027. Its key to future growth lies in its Great Bear project in Canada. If developed as planned, this asset could churn out over 500,000 ounces of gold annually for at least 10 years starting in 2029, likely at costs that remain in the industry’s most attractive tier.

Kinross represents a pure play on expanding margins for Canadian gold stock investors, making it one of the top TSX gold stocks to buy in October as it turns high gold prices into record earnings.

Agnico Eagle Mines stock

Investors who prize stability will like Agnico Eagle Mines (TSX: AEM) stock as a standout gold play. As Canada’s largest mining company and the world’s second-largest gold producer, it operates primarily in politically safe jurisdictions like Canada and Australia, giving it the lowest geopolitical risk profile on this list.

In the first half of 2025, Agnico demonstrated its operational prowess by producing over 1.7 million ounces of gold at a remarkably low AISC of US$1,235 per ounce. Imagine the cash flow gusher’s performance with gold prices now at US$4,000!

Agnico Eagle’s AISC margin has already jumped significantly, and its net income per share may double this quarter.

The company generously shares its growing wealth with investors, having returned a third of its free cash flow to shareholders in the first half of the year, largely through buybacks.

Furthermore, Agnico is using its excess cash to strengthen its balance sheet, paying down over half a billion dollars in debt last quarter. With its flagship Canadian Malartic mine expanding underground to extend its life, Agnico Eagle offers a powerful combination of financial discipline, shareholder rewards, and low-risk production, all of which have contributed to its 110% total return this year.

The post 3 Top Stocks to Buy as Gold Hits Record Highs appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza 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.

OpenText Corporation (TSX: OTEX) stock surged 13% in September and continued its rally in October, reaching a new 52-week high of $54.20. This is the first time since January 2024 that the stock has crossed the $50 mark, hinting at an improvement in fundamentals.

OpenText has been innovating its information management solutions for Cloud, Security, and artificial intelligence (AI) markets. As part of this transition, it has been divesting non-core businesses. In May 2024, it divested its Application Modernization and Connectivity (AMC) Business to Rocket Software for US$2.3 billion. In October 2025, it divested its on-premise solution (eDOCS) to NetDocuments for US$163 million in cash. It has been using the proceeds to reduce debt and invest in AI and cloud.  

Behind OpenText stock’s September rally

This transition to the cloud saw a decline in revenue from divested businesses. It was the first time in two years that the company provided revenue guidance of 1–2% for fiscal 2026 in its August 7 earnings call for fiscal 2025. That triggered a recovery after a 34% dip between February 2024 and July 2025. OTEX stock has surged 32% in August and September and continues to rally.

Savings on interest expense, divestiture of non-core business, and management’s focus on improving its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin and free cash flow make it a stock to hold throughout the recovery.

The post Why OpenText Stock Had a Huge September appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Puja Tayal 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 had invested $10,000 in Celestica (TSX: CLS) stock just three years ago, you might be looking at a portfolio value of over a quarter of a million dollars today. The top Canadian growth stock’s staggering 2,500% surge turns heads while leaving many investors wondering if they have completely missed the boat, or if there’s still more to Celestica’s marvellous revenue, earnings, and cash flow growth story that could drive positive returns for years to come.

Heading into the $35 billion electronics manufacturing services company’s third-quarter earnings report on October 27, Celestica may present a compelling case as a top TSX growth stock to buy in October for those with a long-term view. The company has found itself in the perfect position at the perfect time, serving as a critical manufacturing partner for the technology giants building the world’s artificial intelligence (AI) infrastructure.

What’s fuelling Celestica’s incredible growth?

Celestica’s recent success is directly tied to the massive spending spree by its hyperscale customers — the tech titans expanding their data centres for new AI applications. The company builds the essential high-performance networking equipment, like data centre switches, that allow these complex AI systems to function efficiently.

The company’s growing sales are being accompanied by expanding operating profit margins and surging earnings per share. In its second quarter of 2025, Celestica grew revenue by 21% to $2.9 billion, blowing past its own guidance. What’s more impressive is that its adjusted earnings per share (EPS), which represents the profit allocated to each share of stock, jumped by 54%. This powerful trend of profits growing faster than revenue attracts a rerating of a stock’s valuation multiples higher.

Celestica’s expanding operating margin, which hit a company record of 7.4% in 2025, is impressive for investors. Think of it this way: for every $100 in sales, the company is now pocketing $7.40, more profit after covering its operational costs than the $4.40 it used to make in 2023. This surge in profitability is largely driven by its Connectivity & Cloud Solutions (CCS) segment, which handles the high-demand AI hardware and boasts even higher adjusted operating margins of 8.3%.

Celestica’s deep moat in a high-tech market

Celestica’s revenue is usually highly concentrated on a few large customers. One might think that Celestica’s reliance on a few large customers is a major risk (and that’s basically true). However, the company has skillfully turned this concentration into a competitive advantage. Celestica doesn’t just assemble off-the-shelf parts; it engages in deep, co-design partnerships with its clients to develop customized products. These joint innovation programs create incredibly sticky relationships, making it difficult for competitors to swoop in and steal its business.

This leadership is evident in its product lineup. While demand for its 400G switches remains very strong in 2025, the company could see an aggressive ramp-up of its next-generation 800G switches during the second half of the year and into 2026. During the second quarter, volumes for 800G products grew to match the 400G business and are set to accelerate further.

This technological edge keeps Celestica stock at the heart of the AI hardware boom.

Can CLS stock’s momentum continue?

The company recently raised its full-year 2025 financial outlook, now expecting 20% revenue growth to $11.6 billion and a stunning 42% increase in adjusted EPS to $5.50 per share. Management’s optimism is supported by tangible growth drivers. The company planned to begin ramping up production for a next-generation AI compute program with a large hyperscaler customer during the third quarter, a new revenue source that will extend into the next year. Overall corporate margins could expand into double-digit levels if AI spending keeps ramping up over the next two to three years, driving the stock potentially higher.

Furthermore, Celestica continues to return value to shareholders through its stock buyback program, having repurchased approximately 600,000 shares in the second quarter alone. These buybacks reduce the number of shares outstanding, which helps to boost EPS.

CLS Shares Outstanding data by YCharts

While Celestica’s stock is no longer cheap by traditional metrics like the forward price-to-earnings (P/E) ratio, which towers above 47, CLS stock’s premium valuation reflects its explosive growth and strategic position. If the AI infrastructure build-out has years left to run, Celestica stock could still outperform the TSX over the next year or two.

The post 1 TSX Stock That Skyrocketed and Could Stay There for Years to Come appeared first on The Motley Fool Canada.

More reading

• Test POst

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.