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a day ago
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How to Use $10,000 to Transform a TFSA Into a Cash-Pumping Portfolio
Written by Amy Legate-Wolfe at The Motley Fool Canada Turning a Tax-Free Savings Account (TFSA) into a reliable income stream is a goal many Canadians share. With $10,000 to invest, selecting the right asset can make all the difference. One compelling option is CT Real Estate Investment Trust (TSX: a dividend stock that has consistently delivered stable returns and growing distributions. CT REIT primarily owns and manages a portfolio of retail properties across Canada, with a significant portion leased to Canadian Tire. This relationship provides a dependable tenant base, contributing to the REIT's consistent performance. As of March 31, 2025, CT REIT reported a net income of $105.7 million for the first quarter, marking a 4.5% increase compared to the same period in the previous year. The net operating income also rose by 4.6% to $118.7 million, reflecting the trust's ability to generate steady cash flows. Investing $10,000 in CT REIT could provide a monthly income stream, thanks to its regular distributions. In May 2025, the REIT announced a 2.5% increase in its monthly distribution, bringing it to $0.07903 per unit, or approximately $0.94836 annually. This marks the 12th consecutive annual increase since its initial public offering in 2013, highlighting a commitment to rewarding unit holders. So here's what that looks like for today's investor for dividends alone. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL $15.44 647 $0.9252 $599.63 Monthly $9,993.68 The big question is whether the dividend stock can keep it going. The answer, in short, looks like a trust's occupancy rate remains high, standing at 99.4% as of the end of the first quarter of 2025. This indicates strong demand for its properties and efficient management. Additionally, the adjusted funds from operations (AFFO) per unit increased by 3.9% to $0.320, demonstrating the REIT's capacity to support and grow its distributions. CT REIT's financial stability is further underscored by its AFFO payout ratio of 72.2%, slightly improved from the previous year's 73.1%. This conservative payout ratio suggests that the REIT retains sufficient earnings to reinvest in its portfolio and weather potential economic downturns. The trust's portfolio comprises over 375 properties, totalling more than 31 million square feet of gross leasable area. This extensive and diversified asset base reduces risk and enhances income stability. From a valuation perspective, CT REIT's units are trading at a price that some analysts consider attractive. As of writing, the units were priced at approximately $16, with a market capitalization of around $3.9 billion. The REIT's price-to-earnings ratio stands at 10.5, and it offers a dividend yield of about 6 %, making it a potentially appealing option for income-focused investors. Incorporating CT REIT into a TFSA allows investors to benefit from tax-free income and capital gains. This means that the monthly distributions and any appreciation in unit value are not subject to Canadian income tax, enhancing the overall return on investment. Moreover, the dividend stock's conservative debt management, with an indebtedness ratio of 40.3%, provides additional financial flexibility. This prudent approach to leverage supports the REIT's ability to maintain and potentially increase distributions over time. In summary, allocating $10,000 to CT REIT within a TFSA could be a strategic move for investors seeking a steady and growing income stream. The trust's strong financial performance, consistent distribution increases, high occupancy rates, and conservative financial management make it a noteworthy candidate for a cash-generating portfolio. The post How to Use $10,000 to Transform a TFSA Into a Cash-Pumping Portfolio appeared first on The Motley Fool Canada. Before you buy stock in Ct Real Estate Investment Trust, 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 Ct Real Estate Investment Trust 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube 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. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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11.5% Yield! I'm Buying This Dividend Stock and Holding for Decades
Written by Amy Legate-Wolfe at The Motley Fool Canada In a market where many investors are chasing the next big tech stock, there's something comforting about a steady, reliable dividend payer. Allied Properties Real Estate Investment Trust (TSX: fits that bill, offering a substantial yield and a focus on Canada's urban workspaces. So let's dig into this analyst-loving dividend stock. Allied specializes in owning and operating distinctive urban office properties in major Canadian cities like Toronto, Montreal, and Vancouver. Its portfolio includes a mix of heritage and modern buildings, catering to knowledge-based organizations seeking creative and collaborative environments. This niche focus has allowed Allied to carve out a unique position in the Canadian real estate landscape. As of the end of the first quarter of 2025, Allied's portfolio comprised 171 income-producing properties, encompassing approximately 15.8 million square feet of gross leasable area. The REIT reported a leased area of 86.9% and an occupied area of 85.9%, reflecting stable demand for its urban workspace offerings. The average in-place net rent per occupied square foot stood at $25.30, up 5% from the same period in the previous year. Financially, Allied reported rental revenue of $150.6 million for Q1 2025, a 4.9% increase compared to Q1 2024. However, the dividend stock also recorded a net loss and comprehensive loss of $107.7 million for the quarter, primarily due to a fair value loss on investment properties and investment properties held for sale amounting to $164.1 million. Despite the net loss, Allied's funds from operations (FFO) for the quarter were $71.1 million, translating to $0.509 per unit on a diluted basis. Adjusted funds from operations (AFFO) stood at $64.8 million, or $0.464 per unit. The AFFO payout ratio was 97%, indicating that the REIT is distributing nearly all of its adjusted funds from operations to unit holders. Allied has been proactive in managing its portfolio and balance sheet. In 2024, the REIT acquired three triple-A urban properties: 400 West Georgia in Vancouver, 19 Duncan in Toronto, and Calgary House in Calgary. To fund these acquisitions and maintain a healthy balance sheet, Allied sold seven non-core properties for $229 million in 2024 and plans to sell additional non-core properties for at least $300 million in 2025. The REIT also completed $850 million in replacement debt financing in Q1 2025, including a $450 million green bond offering and a $400 million dual-tranche offering of debentures. These financings were used to refinance all debt maturing in 2025, except for construction financing on a Vancouver property. As a result, Allied's total debt ratio stood at 42.9%, and net debt as a multiple of annualized adjusted EBITDA was 11.6 times at the end of Q1 2025. Looking ahead, Allied aims to increase its occupied and leased area to at least 90% by the end of 2025. The REIT also expects to achieve growth in same asset net operating income (NOI) of approximately 2% for the year. However, management anticipates a contraction in FFO and AFFO per unit by approximately 4% in 2025, primarily due to higher overall interest costs stemming from the 2024 acquisitions. Yet even during this period, investors can still look forward to a whopping 11.5% dividend yield. In fact, here is what a $10,000 investment would look like on the TSX today. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL $15.50 645 $1.80 $1,161.00 Monthly $9,997.50 That adds up to $96.75 dished out monthly! Therefore, Allied Properties REIT offers a compelling investment opportunity for those looking to add a high-yielding, urban-focused real estate asset to their portfolio. With a current yield of approximately 11.5% and a strategic focus on Canada's major cities, Allied presents a blend of income and growth potential that could appeal to long-term investors. The post 11.5% Yield! I'm Buying This Dividend Stock and Holding for Decades appeared first on The Motley Fool Canada. Before you buy stock in Allied Properties Real Estate Investment Trust, 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 Allied Properties Real Estate Investment Trust 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube 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. 2025
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2 days ago
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1 Magnificent Canadian Energy Stock Down 38% to Buy and Hold for Decades
Written by Amy Legate-Wolfe at The Motley Fool Canada Energy stocks have always had a bit of a wild streak. Prices rise and fall with every geopolitical event, Organization of Petroleum Exporting Countries (OPEC+) decision, or shift in consumer demand. But amidst that volatility, smart investors often find real gems, companies with strong fundamentals trading at bargain prices. Right now, Baytex Energy (TSX:BTE) fits that description. It's down 38% year-to-date at writing, but with a solid long-term outlook, this may be the perfect time to buy and hold for the decades ahead. Baytex is a Canadian oil and gas company based in Calgary. It produces crude oil and natural gas across key regions including the Western Canadian Sedimentary Basin and Eagle Ford in Texas. This dual exposure gives it a nice mix of conventional and shale oil production. It's not one of the biggest names on the TSX, but it has spent the last few years cutting costs, boosting production, and returning capital to shareholders. Baytex reported its first quarter 2025 results on April 25, and the numbers were solid. Revenue came in at $791.2 million, up from $775 million a year earlier. Net income was $70 million or $0.09 per share. While that's down from the $113.7 million reported in Q1 2024, the dip was largely due to foreign exchange and hedging losses, not operational issues. What really stood out was the energy stock's free cash flow, which came in at $53 million. That's real money which can be used to pay down debt, buy back shares, or reward shareholders with dividends. Production during the quarter averaged 144,194 barrels of oil equivalent per day, a 2% increase year over year. About 84% of that was oil and natural gas liquids, which fetch higher prices than dry gas. Baytex's break-even price is below US$50 per barrel, giving it a wide margin of safety with oil currently trading closer to US$80. That makes its production profitable even in a downturn, which is something long-term investors should love. Baytex has also been aggressively reducing debt, which is key in a cyclical industry. As of March 31, its net debt was approximately $1.3 billion. That's down sharply from over $2 billion just a few years ago. The energy stock wants to reduce that even further and has committed to returning 50% of its excess free cash flow to shareholders through buybacks and dividends. That means investors can count on both stability and growing income as long as oil prices remain supportive. In Q1, Baytex repurchased 3.7 million shares for $13 million and paid a dividend of $0.0225 per share. That's not a huge yield, but it's a sign of a shareholder-friendly strategy. And with free cash flow projected to climb later this year, there's room for increases ahead. In fact, here's what a $7,000 investment would look like today. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL $2.97 2,356 $0.09 $212.04 Quarterly $6,999.32 What makes Baytex particularly interesting is its long-term potential. Energy demand isn't going away. Even as the world transitions toward renewables, oil will still be needed for petrochemicals, aviation, heavy transport, and heating. Baytex doesn't have to grow explosively to be a winner, it just has to keep operating efficiently, reducing debt, and returning cash to investors. If it does that, today's share price could look like a serious bargain in hindsight. There are always risks with energy stocks. Oil prices can fall fast, regulatory changes can impact operations, and Baytex has some U.S. exposure that adds currency risk. But the flip side is that this is a well-run, well-positioned company that's trading at a valuation that makes little sense given the financials. A price-to-earnings ratio under 6 and price-to-cash flow ratio of about 2.8 are both lower than the industry average. If you're looking for a long-term energy stock to tuck away, Baytex Energy looks like a smart bet. It's producing strong cash flow, paying a dividend, and buying back shares. And with its stock down 38%, you're getting it at a steep discount. The post 1 Magnificent Canadian Energy Stock Down 38% to Buy and Hold for Decades appeared first on The Motley Fool Canada. Before you buy stock in Baytex Energy, 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 Baytex Energy 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube 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. 2025 Sign in to access your portfolio
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4 days ago
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I'd Put $7,000 in This Canadian Bank for Decades of Growth and Income
Written by Amy Legate-Wolfe at The Motley Fool Canada When deciding what to do with a lump sum of savings, it's tempting to chase fast-moving stocks or new trends. But sometimes the smartest move is the simplest one: putting your money into something that has proven itself for decades. If I had $7,000 to invest today and wanted dependable growth and income for the long haul, I'd put it into Royal Bank of Canada (TSX:RY). It's not flashy, but it's stable, profitable, and shareholder-friendly, exactly the kind of stock that helps you sleep at night. Royal Bank stock is the largest bank in Canada by market cap, serving over 17 million clients across more than 30 countries. It's involved in retail banking, capital markets, insurance, wealth management, and more. That kind of diversification is key when you're looking to invest for decades. If one division has a rough year, another often picks up the slack. And with a business model this wide, Royal Bank stock isn't overly exposed to any single market or sector. As of writing, the stock trades at about $175 per share. RY's 52-week range sits between $180 and $140. Its market cap is over $247 billion, firmly cementing it as one of Canada's top blue-chip names. The bank stock currently offers a dividend yield of roughly 3.5%. That may not seem like much at first glance, but Royal Bank stock has increased its dividend for 12 consecutive years, and it historically delivers a strong total return when you factor in both price appreciation and dividend growth. The company's most recent earnings report from Q2 2025 shows just how solid the foundation is. Revenue came in at $13.5 billion, beating expectations of $13.3 billion. Net income for the quarter was $3.95 billion, which represented a 4% increase from the same period last year. Diluted earnings per share (EPS) came in at $2.76, well ahead of the $2.67 analysts had expected. Digging deeper, it's clear the bank's performance isn't just luck. It posted an efficiency ratio of 52.1%, showing it's operating efficiently while still growing. The bank's return on equity was 16.3%. That tells you how well Royal Bank stock is using shareholder money to generate profits. A number above 15% is generally considered excellent in the banking world. It also reported a common equity tier 1 (CET1) ratio of 13.7%, meaning the bank has a strong capital cushion in place. One of the most exciting developments this year is Royal Bank stock's acquisition of HSBC Canada. The deal was finalized in early 2025 and adds over 700,000 new clients to the bank's already massive customer base. It also adds more than $100 billion in assets, making this one of the largest banking transactions in Canadian history. Now, no stock is without risk. Royal Bank stock is exposed to interest rate changes, economic cycles, and regulatory shifts. But those are part of any investment in the financial sector. What makes Royal Bank stand out is how well it manages those risks. It's been around for more than 150 years and has weathered everything from world wars to financial crises. If the economy slows, Royal Bank has the capital and discipline to ride it out. In short, Royal Bank stock offers a rare combination of safety, income, and growth. It's not the kind of stock that makes dramatic headlines, but it's exactly the kind that builds wealth over time. With a rock-solid balance sheet, reliable earnings, and a generous dividend, it's an ideal place to park long-term savings. For anyone looking to invest $7,000 in a Canadian stock with decades of potential ahead of it, Royal Bank stock is a choice you can feel confident about for the long run. The post I'd Put $7,000 in This Canadian Bank for Decades of Growth and Income appeared first on The Motley Fool Canada. Before you buy stock in Royal Bank of Canada, 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 Royal Bank of Canada 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube 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. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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The Smartest Canadian Stock to Buy With $1,000 Right Now
Written by Amy Legate-Wolfe at The Motley Fool Canada When markets start to feel shaky, many investors head straight for safety. Some go for gold, others hold cash, but many smart Canadians look to real estate. Not just any real estate investment, but ones that provide reliable income, steady growth, and insulation from retail or office volatility. One of the best places to start, especially if you have $1,000 to invest, might be Granite Real Estate Investment Trust (TSX: It's not a household name, but it definitely should be. Granite is a REIT that focuses almost entirely on logistics and industrial properties. So instead of shopping malls or apartment buildings, it owns warehouses and distribution centres. These are the buildings that keep supply chains moving and online orders arriving on time. It's a part of the economy that's become essential, especially as e-commerce continues to boom. With tenants like Amazon and Magna International, Granite's portfolio is both diversified and dependable. As of writing, it owns over 140 income-producing properties spread across Canada, the U.S., and Europe. That geographic spread adds some global resilience, while the tenant list speaks volumes about its reliability. Granite recently released its first-quarter earnings for 2025, and the numbers were strong. Rental revenue came in at $154.7 million, up from $138.9 million the year before. Net operating income was $125.7 million, also showing steady growth. It reported $91 million in funds from operations (FFO), or $1.46 per unit, which is up from $1.30 a year earlier. FFO is a key metric for REITs, and rising FFO usually means more potential cash for distributions. Even better, adjusted funds from operations (AFFO) hit $88.4 million, or $1.41 per unit, compared to $1.22 the previous year. That's an impressive increase and speaks to Granite's efficiency and rising profitability. The AFFO payout ratio dropped to 60% from 67%, which shows the dividend is not just sustainable, it's well-covered. Another bright spot is the balance sheet. Granite finished the quarter with about $3.2 billion in total debt, but its leverage ratio sat at just 32%. That's low compared to many REITs, giving it room to grow or weather headwinds. It also repurchased nearly a million units under its buyback plan, spending $63.6 million at an average price of $68.30. That kind of buyback shows the company thinks its own stock is undervalued, and it's putting money behind that belief. Occupancy remained strong at 94.8%, with rental spreads of about 10% over expiring leases. This means Granite isn't just keeping its tenants, it's raising rents as leases renew. It completed over 736,000 square feet of leasing activity during the quarter, a healthy sign in any real estate market. Long-term leases and high-quality tenants help protect its cash flow, even in uncertain times. As of writing, Granite's stock was trading at around $67.23. It pays an annual dividend of $3.40, which gives it a yield of roughly 5.1%. That's a generous payout from a company with excellent financials and a defensive portfolio. Over time, those payments can compound, especially if reinvested. What's more, Granite is well-positioned for long-term growth. Demand for warehouses and logistics centres is only growing, thanks to shifts in global supply chains, rising e-commerce, and just-in-case inventory strategies. New construction for these types of buildings hasn't kept up with demand, especially near urban centres. That bodes well for Granite, as higher demand and limited supply usually mean better rental income and property values. So if you're sitting on $1,000 and wondering where to put it, Granite REIT deserves your attention. You're not just buying a stock, you're buying into a growing global portfolio of essential infrastructure. You're collecting income while you wait. And you're owning a piece of something that isn't going out of style anytime soon. The post The Smartest Canadian Stock to Buy With $1,000 Right Now appeared first on The Motley Fool Canada. Before you buy stock in Granite Real Estate Investment Trust, 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 Granite Real Estate Investment Trust 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 $21,345.77!* 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 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Granite Real Estate Investment Trust, and Magna International. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
