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2 days ago
- Business
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Why Putting $7,000 in These Renewable Energy Stocks Makes Sense Now
Written by Jitendra Parashar at The Motley Fool Canada Whether you're looking to put your annual Tax-Free Savings Account (TFSA) contribution of $7,000 to good use or simply seeking a timely investment opportunity, renewable energy stocks could be worth considering in 2025. While the renewable energy sector enjoyed its time in the spotlight a few years back, things have since cooled down a bit. But that's exactly when Foolish Investors should start paying attention. What looked too expensive a few years ago is now trading at levels that could offer long-term value, especially if you believe the world isn't turning away from clean power anytime soon. In this article, I'll highlight two top dividend-paying renewable energy stocks and tell you why buying them right now could be a smart move for patient investors. The first renewable energy stock you may want to consider right now is Brookfield Renewable Partners (TSX: The company runs one of the world's largest publicly traded renewable power platforms, including hydro, wind, solar, and storage facilities spread across several continents. The stock is currently trading at $32.56 per share with a market cap of $9.3 billion and offers quarterly dividends with a generous 6.3% annualized dividend yield. Brookfield Renewable stock has had a rough year, dropping about 15% over the past 12 months. But here's why that might actually work in your favour. The company posted a record quarter (three months ended in March 2025) with US$315 million in funds from operations, up 7% from a year ago. Its development pipeline has also grown stronger as it added 800 megawatts of new capacity in the recent quarter, with more expected later this year. Also, Brookfield Renewable has been busy acquiring growth platforms like Neoen and National Grid Renewables, expanding its clean energy footprint in key geographic markets. With 90% of its portfolio under long-term contracts and about 70% of revenues linked to inflation, its setup is ideal for patient investors who want reliable dividends with long-term upside. Another top renewable energy stock worth looking at is Northland Power (TSX:NPI). This Toronto-based firm generates electricity through a mix of offshore and onshore wind, natural gas, and battery storage projects. NPI stock is currently trading at $20.77 per share with a market cap of $5.4 billion and an annualized dividend yield of 5.8%, paid out monthly. While the stock is still down nearly 15% over the past year, it has made a solid comeback recently with gains of over 13% in the last month alone. Northland just achieved a big milestone by bringing Canada's largest battery project, the 250-megawatt Oneida facility, into commercial operation. And more importantly, it did so ahead of schedule and under budget. That kind of project execution adds to its credibility. Meanwhile, construction is also progressing steadily at its Hai Long and Baltic Power offshore wind farms, which are expected to start generating revenue over the next couple of years. With more than 10 gigawatts of potential capacity in development and growing global demand for clean energy, long-term investors may find this renewable power stock attractive. The post Why Putting $7,000 in These Renewable Energy Stocks Makes Sense Now 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 Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. 2025
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4 days ago
- Business
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This AI Technology Stock Could Be the Best Investment of the Decade
Written by Jitendra Parashar at The Motley Fool Canada If you don't want to get caught reacting to short-term market movements, you may want to invest in long-term growth trends — and few could be as transformative as artificial intelligence (AI). The global AI industry is expected to generate trillions in economic value over the coming years by reshaping everything from enterprise software to automation and cybersecurity. For investors, the goal should be to find companies that aren't just experimenting with AI but are integrating it deeply into scalable, revenue-generating platforms. In this article, I'll highlight a Canadian AI technology stock that could be one of the best investments of the next decade. If you're looking for the top AI technology stock to ride the next wave of digital transformation, Open Text (TSX:OTEX) deserves a closer look. Open Text is currently playing a central role in enterprise AI adoption, helping global businesses automate operations, boost cybersecurity, and extract real-time insights from massive amounts of data. This software firm mainly delivers AI-powered solutions across content management, cloud infrastructure, analytics, and security through what it calls the 'Open Text Aviator' platform. Currently trading at $38.90 per share, OTEX stock has a market cap of slightly over $10 billion and also offers an annualized dividend yield of about 3.7%. While the stock has rebounded by nearly 8% over the last month, it's still down 18% from its 52-week high — making this top AI technology stock look undervalued based on its long-term fundamentals. The recent gains in Open Text stock came after investors reacted positively to its improved margins and strong free cash flow performance. In the most recent quarter (ended in March), it reported US$402 million in operating cash flows and US$374 million in free cash flows, up over 4% and 7% YoY (year over year), respectively. These gains came despite a broader dip in its total revenue, partly due to industry-wide demand volatility and the sale of a business unit that focused on upgrading and connecting older software systems. Nevertheless, the company's cloud revenues have been rising for 17 straight quarters — showing the durability of its subscription model. Notably, Open Text's latest quarterly results reflected ongoing strength in its recurring cloud revenues, even as its total revenue fell on a YoY basis. The company recently launched its new Cloud Editions 25.2 by combining AI, hybrid cloud tools, and cybersecurity features into one enterprise-grade platform. Meanwhile, it's also expanding its business optimization plan with automation and AI investments projected to save up to US$550 million annually. Overall, Open Text is sharpening its focus on high-priority areas like Aviator AI, enterprise content, and next-gen security. Not only could these moves improve its margins, but they may also open up new revenue opportunities in AI-powered solutions. Simply put, Open Text is executing exactly what's needed to thrive in an AI-first era — and that's why it could be the best investment of the decade. The post This AI Technology Stock Could Be the Best Investment of the Decade appeared first on The Motley Fool Canada. Before you buy stock in OpenText, 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 OpenText 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 Jitendra Parashar has positions in Open Text. 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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27-05-2025
- Business
- Yahoo
1 Magnificent TSX Stock Down 18% Paying Monthly Dividends Forever
Written by Jitendra Parashar at The Motley Fool Canada If you want to build wealth steadily, and also get paid while doing it, owning a high-quality monthly dividend stock could be one of the smartest strategies out there. Right now, one magnificent TSX stock is giving investors a rare chance to do exactly that. It's down 18% from recent highs, but the core business is strong, the dividend is intact, and the monthly payout keeps coming. For long-term Foolish investors, this might be the window to lock in a better yield and own a piece of a company that's built for consistent returns. In this article, I'll show you why this discounted dividend stock belongs in any income-focused portfolio and why I believe it has what it takes to pay monthly forever. The monthly dividend stock I believe offers a great mix of income and future upside potential right now is Northland Power (TSX:NPI). This Toronto-headquartered utility player is a global clean energy firm that generates electricity from wind, solar, battery storage, and efficient natural gas. NPI stock is currently trading at $20.24 per share with a market cap of $5.3 billion. Despite being down 18% from its 52-week high, it offers a juicy annualized dividend yield of nearly 6%, and yes — it pays monthly. Much of the recent pullback in NPI stock could be attributed to unusually low wind resources in Europe, some of the weakest in a decade. While that did affect Northland's offshore wind revenues in the latest quarter, the company's North American onshore wind and natural gas assets more than picked up the slack. Combine that with the market's reaction to ongoing macroeconomic uncertainties, and the decline becomes easier to understand. In the first quarter of 2025, Northland generated $649 million in revenue and posted $361 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Although that was lower from a year ago due to weaker wind in Europe, the company's overall business still held firm. With the help of solid performance from its natural gas and onshore assets, NPI's quarterly cash provided by operations actually grew by over $120 million year over year. Northland also maintained a free cash flow of $0.60 per share for the quarter. That's important because it backs its reliable monthly payouts. With over $1.1 billion in liquidity, its dividend payouts remain very well supported. Currently, Northland is in the middle of bringing three large-scale projects to life: Oneida, Hai Long, and Baltic Power. The 250-megawatt Oneida battery project just came online ahead of schedule. Meanwhile, Baltic and Hai Long offshore wind farms are expected to be operational in 2026 and 2027, which could dramatically boost the company's energy output and cash flow. Once these projects are fully operational, Northland's adjusted EBITDA is projected to rise to between $1.6 billion and $1.8 billion, up from roughly $1.3 billion today. With nearly 10 gigawatts of additional capacity in its development pipeline, Northland is building for a future that could make it a monthly dividend stock to hold forever. The post 1 Magnificent TSX Stock Down 18% Paying Monthly Dividends Forever appeared first on The Motley Fool Canada. Before you buy stock in Northland Power, 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 Northland Power 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 Jitendra Parashar 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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24-05-2025
- Business
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Aritzia Stock Soars 57% in 4 Weeks: Could the Rally Continue?
Written by Jitendra Parashar at The Motley Fool Canada The recent record-breaking TSX rally has pushed the shares of Aritzia (TSX:ATZ) up by a solid 57% over the last four weeks. With this, ATZ stock now trades at $66.25 per share with a market cap of $7.6 billion. While easing inflation and rate cut hopes have driven much of the market's rise, Aritzia's surge is being driven by more than just macro momentum, as its financial growth trends and fundamental outlook continue to show strength despite the volatile economic environment. In this article, I'll talk about the key factors behind ATZ stock's sudden surge and discuss whether there's more upside to come. So, what's really behind Aritzia's recent jump in share price, apart from the general excitement in the markets? For starters, the company crushed expectations in its latest earnings report for the fourth quarter of its fiscal year 2025 (three months ended in February). During the quarter, the company's sales surged over 31% YoY (year over year), and even more impressively, comparable sales jumped 26% from a year ago. That's not something you see a lot in retail, especially in an uncertain economic environment. Interestingly, most of this growth came from its U.S. operations, where sales soared 48.5% YoY. Clearly, Aritzia's expansion efforts south of the border are paying off well. It wasn't just the top line that impressed investors either, as Aritzia's profit margins got a nice boost last quarter due mainly to a mix of fewer markdowns, lower warehousing costs, and some sharp spending discipline. All of this led to a 122% YoY spike in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and an increase of more than 300% in net profit. And that strong quarter wrapped up a year of impressive gains. Aritzia's full-year fiscal 2025 revenue rose 17.4% YoY, and adjusted net profit more than doubled. But even more impressive was the strength in both its retail and e-commerce segments. Notably, during the year, the company expanded its boutique footprint, with 12 new locations opened and several repositioned in high-traffic areas like Manhattan and Chicago. Meanwhile, its online sales grew over 21% YoY and now make up more than a third of total sales. It's also worth noting the company's gross margin expanded from 38.5% to over 43% in fiscal 2025. When ATZ stock has already jumped nearly 95% in the past year, you'd think the best days might be behind it. But with Aritzia stock, there are good reasons to believe the runway is far from over. The company is still in the early years of its U.S. expansion, which now makes up the majority of its sales. And with a healthy balance sheet and plans to open at least 12 more boutiques this year, we can expect more growth. These factors, coupled with its investment in a new distribution centre and enhanced digital tools, could help Aritzia stock see more upside in the coming years. The post Aritzia Stock Soars 57% in 4 Weeks: Could the Rally Continue? appeared first on The Motley Fool Canada. Before you buy stock in Aritzia, 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 Aritzia 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 Jitendra Parashar has positions in Aritzia. The Motley Fool has positions in and recommends Aritzia. 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
01-05-2025
- Business
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Where I'd Invest for Value in Canadian Stocks During This Market Correction
Written by Jitendra Parashar at The Motley Fool Canada It's true that market corrections can be uncomfortable. But for value-focused investors, such corrections tend to bring some of the best opportunities. Right now, with the TSX struggling to hold ground in early 2025 amid worries about trade tensions and inflation weighing on sentiment, many great Canadian stocks are trading at rare discounts. That's why it could be the right time to focus on quality companies whose long-term prospects haven't changed much, even if their share prices have taken a temporary hit. Let's take a closer look at two such fundamentally strong value stocks listed on the Toronto Stock Exchange. Down 50% over the last 12 months, BRP (TSX:DOO) is the first value stock I'd be looking at during this market correction. This Valcourt-based firm focuses on making recreational vehicles and powersports products. Right now, BRP stock is trading at around $46.69 per share, giving it a market cap of about $3.4 billion. On top of that, it offers a 1.8% annualized dividend yield, which can be a nice bonus for income seekers. A broader slowdown in recreational vehicle demand could be one of the key reasons behind DOO stock's recent declines. BRP's revenues slipped by nearly 20% YoY (year over year) in the January 2025 quarter because of weaker demand and the company's strategy to trim network inventory. In addition, its normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) fell by about 45% from a year ago, partly due to lower shipment volumes and higher promotional spending. But despite these short-term challenges, BRP is continuing to focus smartly on the future. For example, in recent quarters, the company trimmed dealer inventories faster than competitors to protect brand value, even if it meant sacrificing some short-term sales. It's also leaning hard into its powersports core business while scaling back its marine operations, which could sharpen its focus and growth prospects down the line. Overall, with a strong product lineup and innovation plans in motion, BRP looks like a classic case of a temporarily beaten-down stock with strong rebound potential once the market stabilizes. Another top-value stock catching my eye during this correction is Magna International (TSX:MG). This global mobility technology giant is known for building everything from auto body parts and advanced driver assistance systems to complete vehicles. Right now, MG stock trades around $47.38 per share with a market cap of about $13.4 billion. Besides, it offers an attractive annualized dividend yield of nearly 5.9%. Over the past year, the stock has slipped nearly 29%, mainly reflecting industry-wide challenges and lower vehicle volumes in its key markets. However, in the fourth quarter of 2024, the company's sales still managed to grow 2% YoY to US$10.6 billion, supported by new program launches and stronger engineering revenues. Similarly, smart operational execution helped it post a strong 27% YoY increase in its adjusted quarterly earnings to $1.69 per share. Moreover, Magna is increasing its focus on expanding its margins, boosting cash flow, and even trimming capital spending to keep things efficient. With its 2026 sales and earnings projected to climb, Magna could see a quick bounce back once market sentiment improves. The post Where I'd Invest for Value in Canadian Stocks During This Market Correction appeared first on The Motley Fool Canada. Before you buy stock in Brp 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 Brp 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 Jitendra Parashar has positions in Magna International. The Motley Fool recommends Brp and Magna International. The Motley Fool has a disclosure policy. 2025
