Latest news with #AmyLegateWolfe
Yahoo
3 days ago
- Business
- Yahoo
This 2.3% Dividend Stock Consistently Pays Cash
Written by Amy Legate-Wolfe at The Motley Fool Canada In today's uncertain market, dividend stocks that pay monthly have become increasingly attractive. For investors looking to smooth out income and reinvest regularly, the right dividend-paying stock can be a game changer. That's where Superior Plus (TSX:SPB) comes in. With a solid dividend and stable business model, it offers something rare in this climate: reliable monthly cash flow with room to grow. If you're looking for a dependable payout while still capturing long-term upside, Superior Plus could be worth a closer look. Superior Plus is one of North America's largest distributors of propane and related products, with operations across Canada and the United States. It serves residential, commercial, agricultural, and industrial markets, making it a key player in delivering heating and energy solutions. It's not a flashy tech stock, but it's essential, and that's part of what makes it appealing. Its products are in demand year-round, particularly in colder regions where propane heating is a necessity. That stable demand has helped fuel consistent financial performance, even when broader markets have struggled. The company's business model supports its reliable dividend. Superior Plus pays shareholders a dividend of $0.18 annually. As of writing, that translates to a dividend yield of approximately 2.3%. The company has maintained its payout throughout periods of market volatility, offering investors peace of mind and predictable income. For retirees or anyone building passive income, that kind of regularity is hard to beat. Superior's most recent earnings report reinforces the strength of its operations. In Q1 2025, it posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $260.5 million, up 10.5% from Q1 2024. This was driven by solid performance in its U.S. propane distribution business and continued benefits from its 'Superior Delivers' cost-saving program. Free cash flow per share came in at $0.94, which was a 54% increase year-over-year. That kind of cash generation provides strong backing for the dividend and also gives the company flexibility to invest in future growth. One key strength is how the company manages its capital. During the first quarter of 2025, Superior Plus repurchased 6.2 million shares, returning capital to shareholders while also increasing earnings per share (EPS). Share buybacks can be a smart move when done sustainably, and in Superior's case, they reflect a company with enough cash on hand to both invest and reward shareholders. Its net debt-to-adjusted EBITDA leverage ratio improved to 3.7 times from 3.8 times last year, showing a steady approach to financial health even while executing on growth plans. Speaking of growth, Superior Plus continues to benefit from its ongoing 'Superior Delivers' transformation initiative. This multi-year strategy is focused on boosting operational efficiency and customer satisfaction. The company aims to deliver an additional $70 million in EBITDA by 2027 through streamlined operations and smarter logistics. Early results are already flowing through to earnings, and if that trajectory continues, shareholders could benefit from both increased profitability and the potential for dividend increases in the future. Another area where Superior Plus shines is in its defensive nature. It operates in an essential service industry, and its customer base is diversified across sectors and regions. During inflationary periods or economic slowdowns, people still need heat and energy. That built-in demand creates a buffer against broader market declines. It's one reason the company has been able to continue raising or sustaining its dividend while other companies have paused theirs. Looking at valuation, Superior Plus shares trade at a forward price-to-earnings ratio that's below many peers in the energy distribution space. It's not the cheapest stock on the TSX, but for a company with strong free cash flow, a sustainable payout, and a clear path for growth, the valuation appears reasonable. Especially when factoring in the monthly income stream, which adds flexibility for reinvestment or expenses. For income investors, consistency matters more than hype. Superior Plus delivers that in spades. Its dividend is backed by real assets, stable demand, and a clear operational plan. It doesn't rely on speculative growth or market swings. Instead, it focuses on growing earnings and sharing them with investors. That makes it a practical choice for any Canadian looking to earn cash every month from their portfolio. The post This 2.3% Dividend Stock Consistently Pays Cash appeared first on The Motley Fool Canada. Before you buy stock in Superior Plus Corp., 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 Superior Plus Corp. 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 recommends Superior Plus. The Motley Fool has a disclosure policy. 2025
Yahoo
7 days ago
- Business
- Yahoo
This 8.6% Yielding TSX Powerhouse Looks Ridiculously Undervalued
Written by Amy Legate-Wolfe at The Motley Fool Canada It's not easy to find a stock that pays out a hefty dividend, shows consistent performance, and trades at what looks like a bargain. But every so often, one appears to tick all the boxes. MCAN Mortgage (TSX:MKP) is exactly that kind of stock right now. With a yield around 8.6%, a steady track record of dividend payments, and an undervalued share price, this TSX-listed powerhouse deserves a closer look. MCAN is a mortgage investment corporation. That means it earns money by investing in residential and commercial mortgages, as well as other real estate-based assets. It operates much like a bank, but without the same kind of overhead or exposure to traditional banking risks. Because it focuses primarily on generating income from its mortgage portfolio, it's able to pass much of that income onto shareholders through dividends. And right now, those dividends are looking especially juicy. As of writing, MCAN's annualized dividend yield sits at 8.6%. That's well above what you'd get from most blue-chip dividend stocks or even a high-interest savings account. The quarterly dividend currently pays $0.41 per share, and those payments have not only been steady, but growing. In 2023, MCAN raised its dividend from $0.38 to $0.41 per share and has kept it there since. And it's not just the yield that makes this company attractive. The earnings continue to support the dividend. In its most recent annual report, MCAN announced net income of $77.6 million for 2024. Earnings per share (EPS) came in at $2.06. While this was a modest drop from $2.14 in 2023, it was still more than enough to comfortably cover the annual dividend of $1.64. The payout ratio, which sits around 85%, remains well within sustainable levels for a company in this line of business. The stock is also trading at what appears to be a discount. Shares are hovering around $19 as of writing. That gives it a price-to-earnings ratio (P/E) of 9. For context, the average P/E ratio for companies in the diversified financials sector in Canada is closer to 12 or 13. MCAN is priced as though there are risks around the corner, but so far, it has continued to deliver. It has a strong return on equity of 13.4%, a solid indicator that it is generating value for shareholders. What makes this especially interesting is that MCAN's business thrives in the kind of environment we're in now. Interest rates have remained higher for longer than many expected. While that's been tough on borrowers, it has boosted yields on new mortgage investments. MCAN has been able to redeploy capital into higher-yielding opportunities as older loans mature. This shift has helped offset some of the softness seen in other parts of the real estate market. Another positive for MCAN is its conservative management approach. It maintains a diverse and well-collateralized mortgage portfolio. The company is focused heavily on urban markets in Canada, with a tilt toward single-family residential loans. It also limits exposure to high-risk development lending. That helps shield it from some of the volatility seen in the broader real estate market, particularly in commercial segments. All told, MCAN Mortgage checks a lot of boxes. High yield? Check. Steady earnings? Check. Reasonable valuation? Check. With interest rates staying higher for longer, it's well-positioned to keep delivering for investors who are looking for income today and value for tomorrow. This is one stock that looks ridiculously undervalued, and one that income-focused investors may want to scoop up before the market catches on. The post This 8.6% Yielding TSX Powerhouse Looks Ridiculously Undervalued appeared first on The Motley Fool Canada. Before you buy stock in Mcan Mortgage Corporation, 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 Mcan Mortgage Corporation 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
Yahoo
26-05-2025
- Business
- Yahoo
This TSX Hidden Gem Yields 6.2% and Is Primed for Massive Growth
Written by Amy Legate-Wolfe at The Motley Fool Canada In the ever-evolving landscape of renewable energy, Brookfield Renewable Partners L.P. (TSX: stands out as a compelling opportunity for investors seeking both income and growth. With a robust portfolio of renewable assets and a commitment to sustainable energy, Brookfield Renewable offers a unique blend of stability and potential in the green energy sector. So today, let's focus on why this stock looks incredibly undervalued, especially with a high dividend yield on deck. As of writing, Brookfield Renewable boasts an impressive dividend yield of approximately 6.2%, making it an attractive option for income-focused investors. The company has a consistent track record of quarterly dividend payments, with an annual dividend totalling $2.06 for its shareholders. This commitment to regular distributions underscores Brookfield Renewable's dedication to delivering value to its unit-holders. In its most recent quarterly earnings report, Brookfield Renewable reported funds from operations (FFO) of US$315 million for the three months ended March 31, 2025. This performance reflects the company's strong operational capabilities and ability to generate stable cash flows from its diversified portfolio of renewable energy assets. Despite facing challenges in the broader energy market, Brookfield Renewable's focus on long-term contracted revenues provides a solid foundation for continued financial strength. Brookfield Renewable's extensive portfolio includes hydroelectric, wind, solar, and energy storage facilities across North America, South America, Europe, and Asia. This geographic and technological diversification not only mitigates risk but also positions the company to capitalize on global trends toward decarbonization and clean energy adoption. With over 19,000 megawatts of installed capacity and a development pipeline exceeding 18,000 megawatts, Brookfield Renewable is well-equipped to meet the growing demand for renewable power. The company's strategic acquisitions further enhance its growth prospects. Notably, Brookfield Renewable's acquisition of a controlling interest in Westinghouse Electric Company expands its footprint in the nuclear energy sector, providing additional avenues for diversification and revenue generation. Such strategic moves align with the company's long-term vision of being a global leader in sustainable energy solutions. From a valuation perspective, Brookfield Renewable's units are trading at levels that may offer an attractive entry point for long-term investors. The company's strong balance sheet, coupled with its commitment to disciplined capital allocation, supports its ability to fund growth initiatives while maintaining financial flexibility. Furthermore, Brookfield Renewable's alignment with Brookfield Asset Management provides access to extensive resources and expertise in infrastructure and energy investments. In fact, the company's valuation looks quite impressive right now. The stock trades at a price-to-sales (P/S) ratio of 1.1, and price-to-book (P/B) value of 1.7. This shows that the company certainly looks undervalued, especially when compared to its peers. Analysts agree, with a price target delivering a potential upside of 26% as of writing. In conclusion, Brookfield Renewable Partners L.P. represents a compelling investment opportunity for those seeking exposure to the renewable energy sector. Its combination of a generous dividend yield, robust operational performance, strategic growth initiatives, and commitment to sustainability positions it as a hidden gem on the TSX. As the world continues to transition toward cleaner energy sources, Brookfield Renewable is poised to play a pivotal role in shaping the future of global power generation. The post This TSX Hidden Gem Yields 6.2% and Is Primed for Massive Growth appeared first on The Motley Fool Canada. Before you buy stock in Brookfield Renewable Partners, 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 Brookfield Renewable Partners 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 recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. 2025
Yahoo
26-05-2025
- Business
- Yahoo
I'd Invest $7,000 in This Single Stock for Generational Wealth
Written by Amy Legate-Wolfe at The Motley Fool Canada When it comes to building wealth that lasts, some stocks simply stand out — not because they're flashy or all over the headlines but because they deliver quiet, consistent performance year after year. If I had $7,000 to invest today and wanted to set it aside for decades, maybe even for future generations, there's one Canadian stock I'd pick: (TSXV:TOI). Topicus isn't your typical growth company. Based in the Netherlands but listed on the TSX Venture Exchange, it specializes in acquiring and growing vertical market software businesses. That means it focuses on software companies that serve very specific industries. Think education, healthcare, public administration, and finance. These are areas where software becomes deeply embedded in operations, leading to high customer retention and recurring revenue. It's the kind of model that quietly compounds wealth over time. Topicus was spun out of Constellation Software in early 2021, and it follows a similar acquisition-focused playbook. But it has a more regional focus, with a growing presence across Europe. Since the spinout, it has been steadily snapping up niche software companies, integrating them into its decentralized structure, and encouraging them to keep growing. That strategy has worked incredibly well for Constellation, and Topicus appears to be on a similar path. Let's look at the numbers. In its most recent earnings report, Topicus posted revenue of €364.9 million for the fourth quarter (Q4) of 2024. That's up 18% from the same quarter a year ago. Net income came in at €56.2 million, a 32% increase from Q4 2023. For the full year, revenue rose 15% to €1.29 billion, and net income jumped 30% to €149.5 million. These numbers show a business that's growing both organically and through acquisitions, with solid control over costs. It's also worth noting that Topicus is very good at converting revenue into cash. In 2024, it generated €347.6 million in cash from operations, up 41% year over year. Free cash flow available to shareholders came in at €177.4 million, up 44% from 2023. That kind of cash generation gives it the flexibility to keep buying great businesses without relying on debt or issuing more shares. What makes Topicus so compelling for long-term investors is how boring and beautiful the business really is. Most of the software companies it owns serve very specific, regulated industries. Their customers rely on them every single day, and switching software providers would be a hassle. That means revenue is sticky, margins are high, and churn is low. It also means that once Topicus buys a company, that company tends to keep paying off for years or often decades. Now, the stock isn't exactly cheap. As of writing, Topicus trades at about $172 per share, giving it a market cap of roughly $13.4 billion. But paying a premium for quality is often worth it when the business compounds value over time. And Topicus has proven it knows how to do that. Its return on invested capital is consistently high, and it's reinvesting that capital in more businesses that meet its strict acquisition criteria. So, why would I put $7,000 into Topicus today? Because it offers the kind of compounding machine that few companies can match. It has a stable cash flow, sticky customers, and a clear path for long-term expansion. It's not trying to reinvent the wheel; it's just steadily adding more spokes to it. And that's exactly the kind of business you want when thinking about building wealth that lasts a generation or more. The post I'd Invest $7,000 in This Single Stock for Generational Wealth appeared first on The Motley Fool Canada. Before you buy stock in Inc., 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 Inc. 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 positions in and recommends The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy. 2025
Yahoo
14-05-2025
- Business
- Yahoo
1 Magnificent Canadian Stock Down 29% to Buy and Hold Forever
Written by Amy Legate-Wolfe at The Motley Fool Canada Finding a Canadian stock you can buy, hold, and feel good about for years is never easy, especially when the market is full of noise. But every once in a while, a company shows up with steady growth, rising dividends, and a solid business model that makes it feel like a keeper. For Canadian investors looking for just that, goeasy (TSX:GSY) might be the hidden gem worth scooping up. It's one magnificent stock that has quietly built a reputation for strong returns, and right now, it's on sale. goeasy is a non-prime lender that helps Canadians access personal loans, retail financing, and lease-to-own products. While it doesn't operate in the same world as the big banks, that's actually the point. It serves borrowers who may not qualify for traditional loans, filling a crucial gap in the financial system. Its main divisions, easyfinancial and LendCare, offer everything from $500 emergency loans to financing for car repairs and furniture. And Canadians are lining up. Loan demand remains strong even with higher rates, and goeasy continues to see record originations. Despite this strength, goeasy's stock has taken a hit. As of writing, it trades around $146, down 29% from its 52-week high of $206.02. So, what gives? Like many lenders, goeasy has faced rising loan-loss provisions as consumers feel the pinch of higher borrowing costs. That's led to a short-term dip in earnings. In the Canadian stock's latest results for the first quarter (Q1) of 2025, revenue came in at $391.9 million, a year-over-year increase of 10.7%. However, adjusted earnings per share (EPS) were $3.53, down from $3.83 the year before, and were short of analyst expectations. Even so, the long-term picture remains bright. Loan originations in Q4 2024 reached a record $814 million, pushing the total loan book to $4.6 billion, up 26% year over year. That kind of growth doesn't happen by accident. The Canadian stock continued to build its customer base while improving efficiency. It's also been expanding its reach, including a stronger push into point-of-sale financing through LendCare, which partners with businesses across Canada to offer payment plans to customers. Dividends are another reason goeasy stands out. It has raised its dividend every year for nearly a decade, and in 2024, the Canadian stock hiked it by 25%, bringing the annual payout to $5.84 per share. That gives it a yield of roughly 3.7% at current prices. Not bad for a growth company. And this isn't a stretch-the-budget kind of dividend. goeasy's payout ratio remains conservative, with management signalling confidence in both earnings and cash flow. goeasy has also made headlines recently for a big leadership change. Dan Rees, a veteran from Scotiabank, is stepping in as CEO this month. He brings with him years of experience in Canadian banking, including retail and commercial segments, which should help guide goeasy through its next growth phase. Investors often get nervous around leadership changes, but this one feels like a win. Rees knows how to scale a financial business responsibly, and his arrival signals that goeasy is preparing for an even bigger future. Management has laid out an ambitious long-term plan. By 2027, goeasy expects its loan portfolio to grow to between $7.35 billion and $7.75 billion. That's more than 60% growth from current levels. It also plans to keep the total yield around 30%, thanks to product diversification and smart underwriting. Even if interest rates stay higher for longer, goeasy believes it can deliver consistent, profitable growth. So, is this stock worth buying and holding forever? If you're looking for a mix of growth, income, and staying power, it just might be. The Canadian stock is recession-resistant, thanks to strong demand from a specific customer base. The dividend keeps growing. And the company has room to scale both organically and through new partnerships. While the Canadian stock is down now, the fundamentals haven't changed. If anything, this dip offers an ideal entry point. The post 1 Magnificent Canadian Stock Down 29% to Buy and Hold Forever appeared first on The Motley Fool Canada. Before you buy stock in goeasy, 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 goeasy 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
