Latest news with #MotleyFoolCanada
Yahoo
2 days ago
- Business
- Yahoo
This Financial Services Stock Is My Fintech Exposure Pick
Written by Amy Legate-Wolfe at The Motley Fool Canada When people think of fintech stocks, their minds often go to flashy U.S. names like Square, PayPal, or Robinhood. But right here in Canada, there's one under-the-radar name that offers exposure to the growing intersection of finance and technology: Bitfarms (TSX:BITF). While it might not fit the traditional mould of a bank-turned-tech firm, Bitfarms is building out a digital infrastructure that could make it a powerhouse in the financial services industry of the future. An alternative fintech stock Let's be clear: Bitfarms is not a bank, nor does it operate like one. It's a Bitcoin mining company. But with crypto adoption on the rise and institutions increasingly warming to digital assets, Bitfarms offers exposure to one of the fastest-evolving areas of fintech. It combines data centre operations, blockchain validation, and financial technology in a way that most traditional financial stocks simply don't. And it's growing. In its first-quarter 2025 results, Bitfarms reported revenue of $67 million, up from 33% from the year before. That's driven by both higher production and increased transaction fees on the Bitcoin network. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $16 million, down from $23 million in the same quarter of 2024. It also mined over 693 Bitcoin in Q2, up from the last quarter, but down from 2024 levels. With a new site opening in Paraguay and further upgrades across its Canadian facilities, Bitfarms is pushing for more scale and lower costs. More to come Of course, there are risks. This is a volatile fintech stock that moves closely with the price of Bitcoin. When Bitcoin fell sharply in 2022 and 2023, Bitfarms shares tumbled as well. But the company used that downturn to clean up its balance sheet, restructure its debt, and streamline operations. It ended the first quarter of 2025 with the flexibility to weather short-term crypto price swings. More importantly, Bitfarms now has over 19.5 exahash per second of installed hashrate capacity, more than triple what it was a year ago. That makes it one of the largest and most efficient public miners in the world. As Bitcoin adoption continues and more financial services integrate crypto infrastructure, Bitfarms stands to benefit. It doesn't just mine coins, it validates transactions on a secure, decentralized network that underpins a new form of digital finance. Considerations So why consider this a fintech play? Because the future of finance is digital. From tokenized assets to blockchain-based lending, everything about the way we exchange value is evolving. Bitfarms doesn't build the apps; we're not talking about flashy consumer tech here, but it provides the back-end rails for a decentralized, digital financial future. That's the kind of exposure many fintech exchange-traded funds (ETF) completely miss. Valuation-wise, Bitfarms is still inexpensive, especially considering its growth rate. The fintech stock's market cap is just over $964 million, and it trades at a fraction of the multiples you'd see with legacy fintech names. As the market begins to recognize digital infrastructure as a core part of the financial system, Bitfarms could re-rate much higher. Bottom line This isn't a pick for the faint of heart. The stock is volatile and tied closely to Bitcoin sentiment. But if you're looking for fintech exposure with higher risk and potentially higher reward, it's worth a look. Unlike some tech darlings that are all promise and no profit, Bitfarms is producing results. It's mining real assets, generating real cash, and scaling up operations with every quarter. When everyone's looking at payment apps and digital wallets at the front end, it's easy to miss the infrastructure behind it all. Bitfarms gives investors exposure to that infrastructure. And if you believe that crypto will play a growing role in global finance, this Canadian miner could be your ticket into the backend of fintech. That's why it's my fintech exposure pick, even if it doesn't come wrapped in the usual tech packaging. The post This Financial Services Stock Is My Fintech Exposure Pick appeared first on The Motley Fool Canada. Should you invest $1,000 in Robinhood Markets, Inc. right now? Before you buy stock in Robinhood Markets, 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 Robinhood Markets, 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Block and PayPal. The Motley Fool has a disclosure policy. 2025
Yahoo
2 days ago
- Business
- Yahoo
Which Dividend Stocks Are Good for Retirees in Canada?
Written by Rajiv Nanjapla at The Motley Fool Canada Retirees tend to be risk-averse investors, as they no longer have a regular income stream to offset potential losses from their investments. Therefore, they should consider investing in stocks with solid underlying businesses, healthy cash flows, and a consistent dividend payout history. Against this backdrop, let's look at my three top picks for retirees. Fortis Fortis (TSX:FTS) would be my first pick due to its regulated, low-risk business and consistent dividend increase for 51 years. The electric and natural gas utility company serves 3.5 million customers across the United States, Canada, and the Caribbean through its 10 regulated utilities. Its expanding rate base, favourable customer rate revisions, and improving operating efficiencies have supported its financial growth, driving its stock price. Over the last 20 years, the company has delivered an average shareholders' return of 10.2%. Moreover, the demand for electricity and natural gas continues to rise amid rapid urbanization, the electrification of transportation, rising income levels, and the development of new data centres due to increased artificial intelligence usage. Meanwhile, the St. John's-based utility company continues to expand its rate base through its five-year capital investment plan of $26 billion. These investments could grow its rate base at an annualized rate of 6.5% to $53 billion by the end of 2029. Amid these growth initiatives, Fortis, which currently offers a forward dividend yield of 3.7%, anticipates increasing its dividends by 4–6% annually through 2029, making it an attractive buy. Enbridge Second on my list is Enbridge (TSX:ENB), which has paid dividends for the last 70 years and has also raised its dividend at an annualized rate of 9% since 1995. It transports oil and natural gas across North America, through a tolling framework and long-term take-or-pay contracts. It also operates a low-risk natural gas utility business and renewable energy facilities, while selling the power from these facilities through long-term power purchase agreements (PPAs). Therefore, the company generates reliable cash flows, enabling it to consistently raise its dividends . Meanwhile, ENB stock's forward dividend yield currently stands at 6.1%. Further, the Calgary-based energy company continues to expand its rate base by making annual capital investments of $9 billion to $10 billion. It has also identified $50 billion of growth opportunities across its business segments. Its financial position also looks healthy, with a liquidity of $13.4 billion. The company is targeting a sustainable payout ratio of 60–70%. Considering all these factors, I expect Enbridge to continue paying dividends at a healthier rate, thereby making it an attractive buy for retirees. Bank of Nova Scotia I have chosen the Bank of Nova Scotia (TSX:BNS), which has been paying dividends since 1833, as my final pick. Due to its diversified revenue sources, offering multiple financial services in over 20 countries, the company enjoys healthy and stable cash flows, enabling it to pay dividends at a healthier rate. Its current quarterly payout of $1.10/share translates into a forward dividend yield of 5.7%. Moreover, BNS is focusing on expanding its business in North America. It has acquired a 14.9% stake in KeyCorp for US$2.8 billion, allowing it to deploy its capital cost-effectively in its priority market. Further, it is scaling back its Latin American operation to improve operating efficiency and drive profitability. The management also announced in May that it would repurchase 20 million shares over the next 12 months, representing 1.6% of its total share count as of May 23. Considering its expansion and cost-cutting initiatives, I believe BNS stock can continue to reward its shareholders with high dividend yields. The post Which Dividend Stocks Are Good for Retirees in Canada? appeared first on The Motley Fool Canada. Should you invest $1,000 in Bank of Nova Scotia right now? Before you buy stock in Bank of Nova Scotia, 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 Bank of Nova Scotia 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia, Enbridge, and Fortis. 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
2 days ago
- Business
- Yahoo
1 AI Revolution Stock That's My Ultimate Growth Play for Decades
Written by Amy Legate-Wolfe at The Motley Fool Canada Artificial intelligence (AI) is transforming everything, from how we shop to how companies build their products. It's easy to think the winners are all flashy tech giants or chipmakers, but Canada has its own players flying under the radar. One of them is Celestica (TSX:CLS), a tech stock that's quietly becoming a top growth story in the AI revolution. About Celestica You may not hear about it often, but Celestica has been building the backbone of tech infrastructure for years. It started as a contract electronics manufacturer, supplying parts to big-name clients. Over the last decade, it has shifted toward higher-margin, high-performance computing systems. And now, it's playing a key role in the AI boom. In its first quarter 2025 earnings, Celestica once again blew past expectations. The tech stock reported revenue of $2.65 billion, up from $2.21 billion the year before. Earnings per share (EPS) came in at $1.20, up from $0.83 last year. Even better, management confirmed full-year guidance, citing continued strong demand for its AI-related hardware and cloud infrastructure. That kind of growth isn't a one-time thing. Celestica is now a go-to partner for hyperscalers, those massive companies running the biggest cloud data centres in the world. As AI continues to require more processing power and energy-hungry servers, Celestica is there, designing, building, and scaling the systems behind it all. In other words, it's not just a bystander in the AI revolution – it's helping build the arena. More to come Despite all this momentum, the tech stock still trades at a relatively low valuation. As of writing, Celestica trades at 46 times forward earnings. That's a major discount compared to U.S. tech peers, with similar or even slower growth. So while markets chase the big names, Celestica offers a more modest, grounded way to ride the same wave. There's also something to be said about how well-run the company is. It's not racking up massive debt or burning through cash. In fact, Celestica continues to post strong cash flows and has a solid balance sheet. That gives it the flexibility to invest in future growth while weathering any economic slowdown. And unlike many tech names, it doesn't need to keep raising capital to stay afloat. The other strength that stands out is its diversification. While AI and data centres are the fastest-growing parts of the business, Celestica also serves industrial, aerospace, and defence clients. That gives it some stability when one segment cools off. But right now, all signs suggest the AI-related tailwinds aren't going away anytime soon. Bottom line Of course, no stock is perfect. Celestica isn't immune to global supply chain risks or tech sector slowdowns. And because it's still categorized by many as a 'boring' hardware stock, it might not get the attention – or premium valuation – it deserves in the short term. But if you're investing with a multi-decade mindset, that's exactly the kind of setup you want: strong fundamentals, massive long-term tailwinds, and a stock price that hasn't caught up yet. For investors willing to be early and patient, Celestica could be one of those rare stocks you look back on decades later and think, 'I can't believe how cheap it was.' In a market full of hype, it's refreshing to find a company that's simply doing the work and getting better quarter after quarter. That's why, for me, Celestica is the ultimate AI growth play for the long haul. The post 1 AI Revolution Stock That's My Ultimate Growth Play for Decades appeared first on The Motley Fool Canada. Should you invest $1,000 in Celestica Inc. right now? Before you buy stock in Celestica 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 Celestica 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love 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
Yahoo
3 days ago
- Business
- Yahoo
I'd Put My Entire TFSA Contribution Into This 7.3% Dividend Stock
Written by Amy Legate-Wolfe at The Motley Fool Canada When it comes to making the most of your Tax-Free Savings Account (TFSA), few things beat the combination of income and growth. A well-chosen dividend stock can compound wealth quietly in the background with no taxes and no hassle. But with markets wobbling and energy prices in flux, many investors are unsure where to park their cash. That's why Whitecap Resources (TSX:WCP), a Canadian oil and gas producer, stands out right now. It offers a high dividend yield, strong free cash flow, and plenty of upside—all wrapped up in a stock that still flies under the radar. So, how much are we talking? As of writing, Whitecap offers a dividend yield of approximately 7.3%. That's well above the TSX average and far more than what you'd get from a Guaranteed Investment Certificate (GIC) or savings account. And importantly, it looks sustainable. Into earnings In its first quarter 2025 earnings report, Whitecap posted solid numbers despite a dip in oil prices earlier in the year. Production averaged 179,051 barrels of oil equivalent per day (boe/d), up from 169,660 a year before. The dividend stock generated funds flow of $446.3 million and free funds flow of $48.2 million, jumping from a loss of $9.2 million the year before. That gave it plenty of room to cover the dividend, which cost just $107.2 million for the quarter, showing a clear commitment to capital returns. This is no fluke. Whitecap has spent the last few years cleaning up its balance sheet and streamlining operations. Debt has come down significantly, with net debt now sitting at $986.9 million, a drop from $1.5 billion a year ago. And this could mean investors might want to look out for a raise. Considerations Of course, oil stocks aren't everyone's cup of tea. The sector is notoriously volatile, and energy prices are influenced by everything from Organization of Petroleum Exporting Countries (OPEC+) decisions to geopolitics to weather. But Whitecap offers some protection here. It produces both oil and natural gas and is geographically diversified across Western Canada. Plus, the dividend stock has hedging programs in place to smooth out price swings. It's not without risk, but it's far less speculative than smaller energy plays. What really makes Whitecap stand out is its focus on free cash flow. Unlike some energy producers that chase growth at all costs, Whitecap has made it clear it wants to reward shareholders. The dividend stock expects to generate production growth between 3% and 5% per share through long-term repurchases. A solid TFSA buy And here's where the TFSA angle really shines. If you were to contribute the full $7,000 annual TFSA limit into Whitecap today, you could expect about $511 in annual tax-free income. Reinvest that each year, and it adds up quickly. Over a decade, assuming flat share prices and consistent dividends, that could grow to over $7,000 in cumulative income, not including any share price appreciation or dividend increases. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY INVESTMENT TOTAL WCP $10.00 700 $0.73 $511.00 Monthly $7,000.00 And let's not forget the upside. If oil prices climb back above US$90 or if Whitecap announces another dividend hike, the yield-on-cost for today's buyers could move even higher. That's the kind of potential that makes it attractive not just for income, but for long-term total return. Bottom line Is it the safest stock on the TSX? No. But few investments offer this blend of high yield, disciplined capital allocation, and upside potential. Whitecap isn't trying to reinvent the wheel. It's just doing what works: keeping costs low, returning money to shareholders, and staying focused on the bottom line. For Canadian investors looking to make their TFSA contribution count in 2025, Whitecap offers a rare mix of value and income in one tight package. And at over 7%, the dividend alone makes a strong case. Sometimes, simple and boring is exactly what you want, especially when it pays you every single month. The post I'd Put My Entire TFSA Contribution Into This 7.3% Dividend Stock appeared first on The Motley Fool Canada. Should you invest $1,000 in Whitecap Resources right now? Before you buy stock in Whitecap Resources, 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 Whitecap Resources 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy. 2025 Melden Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
5 days ago
- Business
- Yahoo
1 Magnificent Canadian Energy Stock Down 22% to Buy and Hold for Decades
Written by Andrew Walker at The Motley Fool Canada Canadian Natural Resources (TSX:CNQ) saw its share price take a hit over the past year as oil prices fell from their 2024 highs. Investors who missed the bounce off the April low are wondering if CNQ stock is still undervalued and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) focused on dividends and total returns. Canadian Natural Resources stock price CNRL trades near $43 per share at the time of writing. The stock is down from a high around $55 last year. It slipped as low as $35 during the market rout a few months ago. CNRL is a giant in the Canadian energy patch. The company owns a diversified portfolio of assets, including oil sands, conventional heavy oil, conventional light oil, offshore oil, natural gas liquids, and natural gas production and reserves. CNRL is typically the sole owner or majority owner of its businesses. This gives management the flexibility to quickly move capital around the portfolio to take advantage of positive shifts in commodity prices. In addition, CNRL's size and strong balance sheet enable the company to make large strategic acquisitions at opportune times to boost earnings and reserves. For example, the company spent US$6.5 billion in 2024 to buy the Canadian assets owned by Chevron. CNRL says its breakeven West Texas Intermediate (WTI) oil price is around US$40 to US$45 per barrel. At the time of writing, WTI trades near US$66 per barrel. That's down from more than US$80 last year, but still at a level where CNRL can generate decent margins. The large natural gas division provides a good hedge against lower oil prices. Natural gas prices are higher in 2025 than they were through most of the past two years. Oil market outlook Aside from brief spikes due to geopolitical events, the price of oil has trended lower over the past year. This is due to weak demand from China and concerns that tariffs imposed by the United States will lead to a recession in the American and global economies. At the same time, OPEC intends to increase supply to regain lost market share. Non-OPEC producers, including Canada and the United States, are also increasing production. As such, analysts widely expect oil prices to remain under pressure through the rest of 2025 and into 2026. That being said, a major geopolitical disruption in the Middle East or an announcement of a concrete trade deal between the U.S. and China could push oil prices higher as traders adjust demand and supply expectations. Dividends CNRL raised its dividend in each of the past 25 years. This is a great track record for a business that relies on commodity prices to determine its margins. Investors who buy CNQ stock at the current level can get a dividend yield of 5.5%. The company continues to generate solid earnings through increased production from acquisitions and the drilling program. This should support ongoing dividend growth. Time to buy? Near-term volatility is expected and the stock could easily retest the 2025 low if trade negotiations between the U.S. and its largest trading partners go off the rails. That being said, dividend investors might want to start nibbling on the stock at this price point and look to add to the position on further weakness. At the current yield, you get paid well to ride out some turbulence. The post 1 Magnificent Canadian Energy Stock Down 22% to Buy and Hold for Decades appeared first on The Motley Fool Canada. Should you invest $1,000 in Canadian Natural Resources right now? Before you buy stock in Canadian Natural Resources, 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 Canadian Natural Resources 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 $24,927.94!* 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 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 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
