An election can change the name on the premier’s office. Quebec’s latest one changed considerably more than that.

The Parti Québécois returned to power with 59 seats, forming a minority government after the Coalition Avenir Québec was wiped out of the legislature. The result also puts sovereignty back into the national conversation. PQ leader Paul St-Pierre Plamondon pledged another independence referendum during his mandate, although not before U.S. President Donald Trump leaves office.

That gives Canadians well outside Quebec a reason to pay attention. Quebec has more than nine million residents and produces roughly one-fifth of Canada’s economic output. Its government will also have a major voice in federal-provincial fights over immigration, infrastructure, trade, and national unity just as Canada is trying to manage U.S. tariffs and diversify its economy.

Why every Canadian should care

Politics can’t magically refill a household budget after groceries, housing, and everything else have taken their turn. Quebec’s real economy grew just 0.2% in the second quarter, following 0.4% growth in the first. That’s still growth, not recession. Yet the slowdown means the new government inherits an economy where consumers are already becoming more careful with their money.

For investors across Canada, that creates a useful distinction. The election could produce national headlines for years. Household spending decisions are happening right now. That’s exactly when defensive businesses get interesting.

Follow the grocery cart

A defensive stock isn’t one whose sales never decline. It’s a company selling things customers have difficulty removing from the budget. Groceries and prescriptions qualify rather nicely.

Consumers can trade restaurant meals for groceries, premium products for private labels or full-service supermarkets for discount banners. That means an economic slowdown can shift spending without making it disappear.

Loblaw (TSX: L) has exposure across those choices through grocery, discount and pharmacy businesses, including Maxi in Quebec. That gives investors a way to participate in consumer spending without requiring Quebec’s economy to suddenly boom.

The customer is still spending

Loblaw’s second-quarter retail revenue increased 4.1% to $15.1 billion. Food same-store sales rose a more modest 1.6%, while Shoppers Drug Mart same-store sales climbed 4.6%. Pharmacy and healthcare services were particularly strong, rising 7.5%.

E-commerce sales jumped 19.3%. Those numbers aren’t spectacular enough to require fireworks. That’s the whole point. Loblaw also expects roughly $2.1 billion of share repurchases this year. Buying back shares can increase each remaining share’s claim on future earnings, provided management doesn’t overpay.

That combination makes Loblaw interesting among Canadian blue-chip stocks. It offers essential spending today, with buybacks helping per-share growth tomorrow.

Considerations

Here’s where I’d be picky, however. Loblaw recently traded around $61.54. With trailing earnings per share around $2.26, that’s roughly 27 times earnings. That’s a healthy valuation for a grocery and pharmacy business. Investors are already paying for resilience. What’s more, it’s not like you’re getting some enormous dividend while you wait.

Regulation is another risk. Grocery prices attract enormous political attention, while stronger competition or food-cost inflation could pressure margins. Consumers might need groceries, but they still notice when the bill becomes offensive.

That’s why I’d rather buy Loblaw gradually than treat defensive demand as permission to pay any price. Investors buying stocks in Canada still need growth to justify the multiple.

Bottom line

Quebec’s slower growth makes consumer essentials more appealing, not because households stop feeling pressure but because groceries and prescriptions remain difficult to avoid.

Loblaw’s latest results show growth across food, pharmacy and e-commerce, while buybacks can add to per-share earnings over time. I’d consider the stock on weakness. A defensive business can survive a softer economy. The better investment comes when the purchase price provides some defence too.

The post Quebec’s Next Government Faces a Slowing Economy: I’d Buy This Defensive Stock appeared first on Seaside Success Stories.

Tariffs have an annoying habit of arriving at the border and eventually showing up at the cash register. Canada’s latest retaliatory tariffs cover roughly $20 billion of U.S. goods, while the trade dispute has expanded across steel, autos and other products. Bank of Canada Governor Tiff Macklem recently warned that the newest U.S. tariffs could push Canadian fourth-quarter growth below 1%.

For businesses, the problem is straightforward. Imported products become more expensive, supply chains get shuffled, and passing every extra dollar onto customers risks sending them elsewhere. That makes pricing power rather valuable.

Not every price increase is equal

Pricing power doesn’t simply mean charging more. A company needs customers willing to keep buying after the price changes. That’s much easier when the product is necessary, difficult to replace, or still looks inexpensive compared with alternatives.

Smaller retailers can get trapped between rising wholesale costs and customers unwilling to pay more. Large companies have another weapon: scale. They can negotiate with suppliers, spread logistics costs across more stores, adjust the product mix and selectively increase prices rather than slapping another dollar onto everything.

Those advantages can become particularly useful during a stock market correction when investors sometimes sell businesses facing temporary cost pressure without considering which ones can actually defend margins. Dollarama (TSX: DOL) belongs in that second group.

Cheap products, powerful model

Dollarama operates 1,734 Canadian stores selling consumables, household products and general merchandise at relatively low fixed price points. Its advantage isn’t that customers enjoy higher prices. Instead, Dollarama has enormous sourcing scale, a frequently refreshed product assortment and enough price points to manage increases without destroying its value proposition.

Management also hedges most forecasted U.S.-dollar merchandise purchases, providing some protection from currency swings. The latest quarter provided a useful stress test. Canadian comparable-store sales increased 5.4%, including 3.7% growth in transactions and 1.7% growth in the average purchase. Even better, Canadian gross margin increased slightly to 45.7% from 45.6%.

Guidance goes higher

That performance convinced management to raise its fiscal 2027 Canadian comparable-store-sales outlook to between 4% and 4.5%, up from 3% to 4%. Dollarama also increased its expected Canadian store openings to between 65 and 75.

Meanwhile, international expansion is adding another leg. Dollarcity sales jumped 30% during its latest quarter as the network reached 781 stores across Latin America and Mexico.

That growth makes Dollarama more than a defensive Canadian retailer. It increasingly resembles one of those Canadian blue-chip stocks that can keep finding another place to deploy capital. However, the share price reflects quite a bit of that optimism.

A magnificent price tag

Dollarama recently traded around $183.40, or almost 37 times trailing earnings. That’s a serious valuation for a retailer, even one this good. There’s also Australia. Dollarama is transforming The Reject Shop business it acquired there, and management still expects the Australian segment to record a net loss this fiscal year.

Tariffs, currencies, and sourcing disruptions could also eventually overpower some of Dollarama’s margin tools. Pricing power has limits when customers visit specifically because things are cheap. Then again, the long-term record explains why investors tolerate the valuation.

Split-adjusted Dollarama shares were around $32.37 in October 2016. Today, they are roughly $183, representing annualized growth of about 18.9%.

Those future prices simply extend the historical growth rate and are not forecasts. At today’s valuation, expecting another identical decade would be ambitious.

Bottom line

Tariffs won’t magically become good news for Dollarama. Higher sourcing costs can still hurt. Yet the advantage is having several ways to respond before profits take the full hit. This comes through scale, sourcing, product refreshes, currency hedges and carefully managed pricing.

With Canadian traffic still rising and margins holding up, Dollarama has already shown something many tariff-exposed businesses would dearly like to borrow. That’s the ability to ask customers for a little more without watching them walk out the door.

The post Tariffs Are Squeezing Canadian Businesses: This TSX Stock Has More Pricing Power appeared first on Seaside Success Stories.

Using a Tax-Free Savings Account (TFSA) is one of the easiest ways you can build wealth without paying tax on investment gains — but you’ll need to be careful with it. The contribution rules can trip people up. One of the biggest mistakes you can make is assuming the number shown in your Canada Revenue Agency (CRA) account is always fully up to date.

The CRA says TFSA information is updated annually using the previous year’s transactions, so referring to your own most recent records throughout the year can matter a lot. For 2026, the annual TFSA dollar limit is $7,000, but your actual room could be higher depending on unused room and withdrawals from 2025. It could also be lower if you’ve already contributed this year. Getting your contribution room number wrong could lead to tax on the excess contribution.

Once you’re certain you know how much room you have, you may want to consider adding some stocks to your TFSA.

Waste Connections

If it were me buying stocks for a TFSA today, I’d consider investing some of my room in a fundamentally solid stock like Waste Connections (TSX: WCN).

The company mainly provides waste collection, transfer, disposal, and recycling services across the United States and Canada. After sliding 9% over the last year, WCN stock currently trades around $220 per share with a $55 billion market cap and a 0.9% annualized dividend yield.

The recent pullback in the stock doesn’t feel justified when you look at the underlying business fundamentals. In the second quarter, Waste Connections’ revenue rose 6.4% year-over-year (YoY), while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 6.8% to US$840.1 million.

The waste services firm’s adjusted net profit for the quarter also jumped nearly 15% YoY to US$381.7 million, while adjusted free cash flow surged 25%. Strong execution helped the business absorb higher fuel costs and weaker commodity values while maintaining a strong 32.8% adjusted EBITDA margin.

Waste Connections recently also raised its 2026 revenue and adjusted EBITDA outlook. In addition, the company completed acquisitions representing more than US$100 million in annualized revenue during the first half of the year.

That combination of cash generation and continued growth makes WCN an appealing stock for long-term TFSA investors, especially after its recent declines.

Constellation Software stock

Another business worth considering for a TFSA is Constellation Software (TSX: CSU), particularly if long-term growth is your priority.

The Toronto company focuses on acquiring, managing, and building vertical market software businesses worldwide. Down about 22% over the last year, CSU stock currently trades close to $3,000 per share with a market cap of $64 billion. Still, the stock is actually up around 400% over 10 years.

Constellation’s second-quarter revenue jumped 17% YoY, mainly for making quality acquisitions. Its organic growth was 3% as its maintenance and other recurring revenue also climbed to roughly US$2.6 billion from about US$2.1 billion.

At the same time, cash flow from operations rose 10%, while free cash flow available to shareholders increased 57%.

With recurring revenue, stronger cash generation, and an acquisition-driven growth strategy, CSU could be another attractive way to put properly calculated TFSA contribution room to work for the long run.

The post Don’t Make This TFSA Contribution Room Mistake appeared first on Seaside Success Stories.

There are stocks that are nice to own, and there are stocks that you really need to own. For me, there is one dividend stock that I really need to own and will never sell.

Market downturns and volatility are a real part of investing. To watch a portfolio drop in value sharply can change the long-term outlook for any investor. That’s only one of several reasons why this dividend stock is one that I won’t sell, not even in a downturn.

A business that investors can understand is key

That stock is Fortis (TSX: FTS). And it’s one of those businesses that’s easy to understand, own and earn dividend income from.

The company is one of the largest utility stocks in North America. That includes regulated electric and gas service to parts of Canada, the U.S. and the Caribbean. The sheer necessity of the services that Fortis provides to households and businesses is a key element of the stock’s appeal.

To put it another way, you can postpone a vacation or put off buying a new vehicle. But cutting your electricity or natural gas use can only go so far.

Adding to that appeal is the regulatory side of the business. Utilities like Fortis operate under frameworks that set out how they recover costs and earn returns on their infrastructure. In other words, Fortis generates a stable, recurring revenue stream that’s backed by long-term frameworks.

By extension, it also means that Fortis is able to reliably predict earnings. In the most recent quarter, Fortis reported earnings of $0.78 per share. That reflects a $0.02 improvement over the same period last year.

As a long-term investor, that’s the type of business performance I expect to see, even during a downturn. Even if the share price falls, the underlying utility can continue to operate well.

What about that dividend?

A stable business backed by one of the best defensive moats on the market is one thing. What really attracts investors like myself to Fortis is the dividend that it offers.

Fortis offers a quarterly dividend that, as of the time of writing, carries a yield of 3.4%. That’s not the highest yield on the market, but it comes from the stable business described above.

More importantly, that income is also growing.

Fortis has the second-longest dividend increase streak in Canada. Currently, that stands at 52 consecutive annual increases. If you started investing in Fortis in 1974, you would have received a bump to that dividend in every year since then.

For investors with $25,000 to invest in Fortis within a larger, diversified portfolio, that works out to a first-year income of over $850. The reason I say first-year income is because that $850 income can be reinvested to receive nearly a dozen new shares.

That’s a way to keep building a position in a single dividend stock without adding more cash.

But again, there’s still more.

Fortis isn’t just paying out dividends from its regulated business. The company is also investing in long-term growth. Specifically, Fortis has a $28.8 billion capital plan that extends through 2030.

That plan is expected to support annual 7% growth in its regulated asset base. In turn, the company expects that growth to support annual dividend increases of 4–6% through 2030.

Why this dividend stock stays in my portfolio

There’s always going to be the next best growth stock, or a dividend stock that carries a much higher yield. The reason I hold Fortis is because of the stability and defensive appeal it offers.

I would reconsider if Fortis struggled to cover its dividend or fund its growth plans. But a falling share price alone wouldn’t be enough to make me want to sell.

In short, I’m comfortable holding it even through a downturn, collecting those quarterly dividends and waiting for that growth to come.

The post The Dividend Stock I’d Never Sell, Even in a Downturn appeared first on Seaside Success Stories.

There are several ways to generate an income stream. You could, for example, invest in a monthly dividend stock that pays out on a fixed schedule. Alternatively, you could consider investing in a Guaranteed Investment Certificate (GIC).

For many Canadians, GICs represent the easier way to earn guaranteed returns without taking on risk. You know exactly what you’ll get back at maturity, and the principal amount remains protected within deposit-insurance limits.

While that does work, opting for a monthly dividend stock can provide more income and a regular monthly payout, provided that investors choose the right company.

One option for those investors to consider is SmartCentres REIT (TSX: SRU.UN). As of the time of writing, the real estate investment trust (REIT) offers a yield of 6.93%, which is far more than a GIC can provide.

Here’s how the two options compare.

GICs offer safety, but income investors may want more

One of the main reasons GICs are popular is because they are simple, predictable, and designed to preserve principal. In short, it’s a great place to park cash.

The trade-off is that the quoted interest rate caps income potential for a fixed term. Once the term ends, if you want to continue to stay invested, you need to reinvest at whatever rate is available at that time.

That means GICs can provide stability, but they don’t offer much potential in the way of capital appreciation or growing income over time.

That’s where the case for owning dividend stocks, or more specifically, a monthly dividend stock, fits into a larger portfolio. They represent a way to earn more income while also benefiting if the business itself grows.

SmartCentres is a monthly dividend stock to consider

SmartCentres provides investors with that monthly distribution. That can appeal to investors looking for monthly cash flow.

Given the current yield, a $25,000 investment in SmartCentres will generate just under $145 every month.

For those investors who aren’t ready to draw on that income yet, they can reinvest that distribution to generate several new shares each month. This allows any eventual income to continue growing until needed.

One clear difference is unit price. An investment in SmartCentres exposes investors to fluctuating market prices. That price can either move up or down, affecting the total value of the initial investment.

That’s a key contrast from a GIC, which keeps the principal fixed and known throughout the term.

Why SmartCentres has room to keep growing

SmartCentres is one of the better-known REITs in Canada. The company owns a large portfolio of retail properties. SmartCentres’s retail portfolio is focused on businesses that shoppers continue to visit in person for necessities. That includes grocery stores, pharmacies, restaurants, banks, and other service-oriented retailers.

Adding to that appeal is the fact that many of those properties are anchored by Walmart. That gives the REIT a significant traffic boost to its shopping centres.

SmartCentres is also developing mixed-use communities through what it calls SmartCentres Place projects. These sites combine retail and residential, offices, and other uses on a single property.

That gives the REIT another way to generate revenue from land it already owns.

SmartCentres vs. the GIC: Which one will you choose?

The answer to that really comes down to an investor’s appetite for risk and how liquid those funds need to be.

SmartCentres can offer high income and more liquidity, but it comes with greater risk of price fluctuation. For investors comfortable with that risk, the 6.93% yield is tempting.

A GIC, however, offers a lower, fixed income and guaranteed principal. It also comes with less liquidity than owning a REIT on the market.

The post Forget GICs — This 6.93% Dividend Stock Pays You Monthly appeared first on Seaside Success Stories.

Key Points

• Boeing recently landed a $131 billion contract to enhance the Air Force’s F-15 fighter jet.

• There are implications for Lockheed Martin in that deal.

• The contract shows the Department of Defense (DoD) is committed to extending the lifespan of successful avionics platforms.

• 10 stocks we like better than Lockheed Martin ›

One need not be an avionics expert to understand that military aircraft are described in generational terms. That lesson was effectively taught in the 2022 blockbuster Top Gun: Maverick, where the term “fifth generation,” or “fifth gen,” was used to describe unidentified enemy fighter aircraft.

Fear not, because the U.S. is the leader in the development of fifth-generation fighter jets, but those planes are expensive to produce, and some older planes are still plenty useful in combat. Hence, Boeing (NYSE: BA) recently won a contract worth as much as $131.2 billion to produce more of and enhance existing planes in the Air Force’s F-15 fleet.

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Boeing won a big F-15 contract, but it’s relevant to Lockheed Martin investors, too. Image source: Getty Images.

The original F-15 Eagle first flew in 1972. Still, the current iteration is considered fourth-generation or fourth-generation-plus, implying that new models and upgrades to current aircraft are akin to “generation 4.5.”

Not to be lost in the F-15 shuffle are potential implications for Lockheed Martin (NYSE: LMT). Some investors may think that Boeing and Lockheed are in a dogfight, but the latter can benefit from the former’s big contract win. Here’s why.

Don’t forget the Fighting Falcon

Officially dubbed the “Fighting Falcon” and colloquially known as the “Viper,” the Air Force’s F-16 is produced by Lockheed Martin in South Carolina with new models shipped exclusively to foreign customers. However, the U.S. is showing commitment to the F-16.

While the Air Force has said “No thanks” to some Lockheed products, the branch of the military announced earlier this year it’s shelling out $438 million for an F-16 upgrade cycle for 48 jets. Obviously, that’s nowhere near the size of the Boeing F-15 agreement, but the point is the Air Force still sees value in the F-16, and it’s willing to put its money where its mouth is to that effect.

As it should. Perhaps Lockheed is “talking its own book.” Still, the manufacturer describes the F-16V as the most technologically advanced version of that jet, adding to its legacy “as the world’s foremost combat-proven 4th Generation multi-role fighter aircraft.”

The point is that global defense budgets are soaring, and the White House is requesting fiscal 2027 defense outlays of $1.5 trillion, implying a robust fighter jet upgrade cycle that could benefit multiple manufacturers, not just Boeing.

Lockheed may be the safer bet

Boeing is a well-documented turnaround story, and much of that turnaround needs to occur in its commercial aircraft unit. Undoubtedly, there are signs of progress on that front, as deliveries are at their highest level in eight years. Still, passenger jet issues aren’t material to Lockheed investors because the company isn’t involved in that space.

So it’s not a stretch to say that of these two stocks, Lockheed is the cleaner, potentially safer story due to its focus on defense contract procurement. That’s not a guarantee of share price appreciation, but it is confirmation that Lockheed isn’t dependent on the often cyclical nature of commercial aircraft demand and upgrade trends.

Of note to long-term investors considering Lockheed is that the company very much has its hands in the “fifth gen” fighter-jet pie. Interestingly, Boeing and Lockheed work together in the production of the F-22 Raptor, but let’s focus on the F-35 Lightning, of which Lockheed is the sole producer.

That aircraft is widely considered the most technologically advanced fifth-generation combat aircraft in the world, and because technology is, well, always advancing, the need to stay on top of F-35 upgrades is persistent and potentially material to Lockheed’s top and bottom lines. We’re not talking about small fixes and “tinkering” here.

Modernizing this jet to keep it on the cutting edge of technology is one reason why the program’s procurement cost is now estimated at $536.2 billion, or $51 billion more than the 2023 forecast. That probably isn’t what government bean counters want to hear, but with air superiority a must-have for governments worldwide, Lockheed Martin is in the right place at the right time.

Should you buy stock in Lockheed Martin right now?

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Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing and Lockheed Martin. The Motley Fool has a disclosure policy.

The post Boeing Landed a $131 Billion F-15 Order. Here’s What It Means for Lockheed Martin. appeared first on Seaside Success Stories.

M/I Homes MHO is a single-family homebuilder that’s suffering alongside the entire housing and homebuilder market as mortgage rates rebound back above 7%.

MHO’s recent downward earnings revisions extend a longer-term trend of negative EPS revisions, earning the homebuilder a Zacks Rank #5 (Strong Sell). Investors with near-term outlooks likely want to stay away from the entire Zacks Home Builders industry, which lands in the bottom 5% of nearly 250 different industries

Why Investors Might Want to Stay Away from MHO Stock Right Now

M/I Homes is a home builder focused on single-family homes, serving a range of buyers from first-time and move-up to luxury and empty nesters. The Columbus, Ohio-based company serves 17 markets across the U.S.

MHO went on a booming run between 2012 and 2022. It has been a rougher go of it for M/I Homes and the entire industry since the post-Covid boom. The wild Covid-driven housing run created a significant pull forward.

Image Source: Zacks Investment Research

On top of that, and more importantly, the ultra-low interest and mortgage rate environment is long gone.

The average 30-year fixed-rate mortgage has ripped back to 7% as long-term U.S. yields rise. On top of higher mortgage rates, the housing market is cooling off because home prices remain out of reach for many throughout critical areas of the country.

MHO’s GAAP earnings fell 25% YoY in 2025 and another 19% in the first six months of 2026. The company’s adjusted earnings outlook slipped 13% for Q3 since its second-quarter report in late July, with its FY26 estimate 5% lower and its 2027 consensus down 15%. This backdrop lands M/I Homes its Zacks Rank #5 (Strong Sell) and prolongs its downward EPS revisions spiral.

Image Source: Zacks Investment Research

The firm’s “homes delivered” decreased 6% in the second quarter, with revenue down 9%. M/I Homes is expected to see its adjusted 2026 earnings fall 19% YoY on 5.4% lower revenue.

Looking ahead, it is expected to return to growth in 2027, to the tune of 8.4% EPS expansion on 4.4% higher revenue. Nonetheless, investors likely want to look beyond M/I Homes and the entire Building Products – Home Builders industry if they are looking for near-term upside. 

Radical New Technology Could Hand Investors Huge Gains

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Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

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M/I Homes, Inc. (MHO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The post Bear of the Day: M/I Homes (MHO) appeared first on Seaside Success Stories.

Picture a young couple who just purchased a house in Toronto, Ontario. Every month, they need to have about $3,400 ready for the mortgage payment.

With rising interest rates, the mortgage payment could go up over the next 12 months. A low-cost way to offset part of these payments is to invest in quality dividend stocks that offer an attractive yield in 2026. Let’s see how this strategy works for Canadian homeowners.

Why top dividend stocks matter when the mortgage bill is big

The average Canadian mortgage payment in 2026 is roughly $2,867 a month, or about $34,400 a year, according to WealthNorth.

The estimate assumes an average home price of $652,941, a 20% down payment, a 25-year amortization, and a 4.35% five-year fixed rate. It doesn’t include property tax, insurance, or condo fees.

The national average home price in August rose 0.6% to $668,219 according to Storeys, citing the Canadian Real Estate Association (CREA).

However, a homeowner in British Columbia pays a monthly mortgage of $4,058, compared to one in New Brunswick who pays just $1,448.

How much in TSX dividend stocks does it take to cover your mortgage?

Say you invest $1,000 a month and earn about 7% a year, which includes dividends and capital gains. After about 12 years, you’d have roughly $225,000.

Assume a 4% withdrawal rate, and you can allocate $750 a month toward the mortgage, covering roughly 25% of the payment.

Here’s another simple version. At a 4% dividend yield, every $100,000 invested pays about $4,000 a year, or $333 a month.

Why Enbridge stands out among TSX dividend stocks

Enbridge (TSX: ENB) is one of the world’s largest energy infrastructure companies and offers a yield of almost 6% in 2026.  

In Q2 of 2026, it increased adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by $130 million year over year. Mainline volumes averaged 3.1 million barrels per day, and Enbridge ended Q2 with a capital backlog of $41 billion.

Its projected capital spending should expand its base of cash-generating assets, driving the dividend yield at cost higher over time. Notably, ENB stock has raised the annual dividend from $0.58 per share in 2006 to $3.88 per share today.

On the company’s Q2 earnings call, CFO Pat Murray made the dividend’s role crystal clear.

“Growing our dividend remains central to our strategy. Over the past five years, we’ve returned $38 billion to shareholders and expect to return between $40 billion to $45 billion over the next five years,” Murray said.

The Foolish takeaway

Dividends are never guaranteed and can be suspended or lowered amid economic downturns. So, it’s essential to own top dividend stocks such as Enbridge that generate stable cash flows across business cycles.

Moreover, if you hold dividend stocks in a TFSA (Tax-Free Savings Account), the quarterly dividend payouts and capital gains are exempt from Canada Revenue Agency taxes.

Homeowners need a starting point, a TFSA, and patience. A $215,000 portfolio could cover a quarter of the average payment, and every dividend raise gets them closer.

The post Imagine Part of Your Mortgage Payment Coming From Dividends Instead of Your Paycheque appeared first on Seaside Success Stories.

Key Points

One of the generally accepted rules of investing is that to capture higher return potential, you need to take on more risk.

Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

Tech stocks, for example, usually come with more volatility, but they’ve delivered market-beating returns over the past few years. Consumer staples stocks, on the other hand, are more defensive but often lag the market.

Historically, one simple strategy has been able to reverse that relationship. It has actually delivered better returns with demonstrably less risk.

I have to warn you, though, that this strategy isn’t exciting or flashy. But dividend growth stocks have been able to deliver for investors over the past 50 years.

Image source: Getty Images.

Dividend growers have produced better returns with less volatility

A recent study by Ned Davis Research examined S&P 500 stocks from 1973 to 2025. It found that companies that grew their dividends or initiated a new dividend returned 13% annually. That’s roughly 13% higher than the 11.5% average annual return generated by non-dividend payers.

Dividend status proved to be very telling for other categories as well. Dividend payers who made no change to their distribution returned around 11.1% per year, while dividend cutters or eliminators gained just 9.5% annually.

The reason for the performance gap is pretty straightforward: balance sheet health. Companies that are increasing their dividends are generally in better shape because they’re generating the cash flows that support this. Dividend cutters, on the other hand, are likely experiencing some form of financial distress, and it’s showing up in their stock prices.

The interesting finding is that those returns haven’t required taking on excess risk or any additional risk at all.

The study also found that dividend growers had a historical beta of 0.94 compared to a 1.11 beta for non-dividend payers, a 15% discount. The standard deviation of historical returns comes to a similar conclusion. In that case, dividend growers demonstrated 27% less volatility.

Three top dividend growth ETFs

If you want to capture the dividend growth strategy in your portfolio, here are the dividend ETFs best-suited for the job.

1. iShares Core Dividend Growth ETF

The iShares Core Dividend Growth ETF (NYSEMKT: DGRO) has one of the more lax dividend growth screens. Companies need to have at least five consecutive years of dividend growth and a payout ratio of less than 75%. This latter criterion helps ensure that dividend growth is sustainable.

2. Vanguard Dividend Appreciation ETF

The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) has a more stringent 10-year dividend growth requirement. It also eliminates the top 25% of highest-yielding eligible stocks, helping reduce the risk of yield traps damaging performance.

3. ProShares S&P 500 Dividend Aristocrats® ETF

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The post This Simple Stock Market Strategy Has Produced 13% More Return With 27% Less Volatility appeared first on Seaside Success Stories.

The S&P 500 Index ($SPX) (SPY) closed up by +0.51% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +0.93%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.42%.  December E-mini S&P futures (ESZ26) rose +0.47%, and December E-mini Nasdaq futures (NQZ26) rose +0.39%.

Stock indexes settled higher on Friday amid a slide in crude oil prices.  WTI crude oil tumbled more than -2% on Friday on hopes for diplomacy to end the US-Iran war that would reopen the Strait of Hormuz.  Also, strength in chipmakers and AI stocks on Friday supported stocks amid optimism over AI and demand for AI infrastructure. 

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Friday’s US economic news was better than expected and supportive for stocks after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m.  In addition, the University of Michigan US Sep consumer sentiment index was unexpectedly revised upward by +0.3 to 48.1, stronger than expectations of a downward revision to 47.5.

Gains in stock indexes were limited on Friday after the 10-year T-note yield climbed to a new 19-year high of 5.23% on fears the Fed will continue to raise interest rates.  New York Fed President John Williams said Friday that the Fed needs to return inflation to target, and it can’t ignore supply shocks if they have a persistent effect on prices.

Nov WTI crude oil prices (CLX26) fell more than -2% on Friday after Iran proposed a 7-day plan to end the war and reopen the Strait of Hormuz.  Under the conditions Iran has set for the agreement, all hostilities would end during the seven days, including in Lebanon; the US would release Iran’s frozen assets (estimated at $12 billion), waive sanctions on Iranian oil, and lift the naval blockade on Iran.  Then, on the last day, the Strait of Hormuz would be reopened.  Iran’s foreign minister, Abbas Araghchi, said that after the seven days, comprehensive negotiations over Iran’s nuclear program would immediately begin.

Markets are discounting a 64% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.

Overseas stock markets settled higher on Friday.  The Euro Stoxx 50 closed up +0.48%.  China’s Shanghai Composite did not trade Friday, with markets in China closed for the Mid-Autumn Festival holiday.  Japan’s Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.

Interest Rates

December 10-year T-notes (ZNZ6) settled unchanged on Friday.  The 10-year T-note yield fell -1.2 bp to 5.165%.  Dec T-notes recovered from early losses on Friday and moved higher after WTI crude oil fell more than -2%, which eased inflation expectations and sparked some short covering. 

T-notes initially moved lower on Friday, and the 10-year T-note yield rose to a new 19-year high of 5.225%.   T-notes came under pressure on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes were also undercut by better-than-expected US economic news, including Aug nondefense ex-aircraft capital goods new orders and the University of Michigan Sep US consumer sentiment index.

European government bond yields were mixed on Friday.  The 10-year German bund yield rose to a 17-year high of 3.632% and finished up +0.2 bp to 3.601%.  The 10-year UK gilt yield fell from a 1.5-week high of 5.408% and finished down -1.5 bp to 5.366%.

The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.

Markets are discounting a 42% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.

US Stock Movers

Chipmakers and AI stocks rallied on Friday, supporting the overall market.  The iShares Semiconductor ETF (SOXX) closed up more than +1%.  Microchip Technology (MCHP) closed up more than +5% to lead gainers in the Nasdaq 100, and ON Semiconductor (ON) closed up more than +5%.  Also, NXP Semiconductors NV (NXPI) and Qualcomm (QCOM) closed up more than +3%, and Analog Devices (ADI), Applied Materials (AMAT), Lam Research (LRCX), and Texas Instruments (TXN) closed up more than +2%.  In addition, ARM Holdings Plc (ARM), SanDisk (SNDK), ASML Holding NV (ASML), Western Digital (WDC), Marvell Technology (MRVL), and Seagate Technology Holdings Plc (STX) closed up more than +1%.

Cybersecurity stocks were under pressure on Friday, led by a -10% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1.  Also, Gen Digital (GEN) closed down more than -6% to lead losers in the S&P 500, and SentinelOne (S) closed down more than -6%.  In addition, Okta (OKTA) closed down more than -5%, and Palo Alto Networks (PANW) closed down more than -3% to lead losers in the Nasdaq 100.  Finally, Fortinet (FTNT), CrowdStrike Holdings (CRWD), and Cloudflare (NET) closed down more than -2%. 

Atlas Energy Solutions (AESI) closed up more than +13% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.

People Inc. (PPLI) closed up more than +11% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.

Humana (HUM) closed up more than +4% after Barclays upgraded the stock to overweight from equal weight with a price target of $515.

Akamai Technologies (AKAM) closed up more than +3% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.

Twilio (TWLO) closed down more than -7% after HSBC downgraded the stock to reduce from hold with a price target of $211.

Otis Worldwide (OTIS) closed down more than -1% after Wells Fargo & Co initiated coverage on the stock with a recommendation of underweight.

Comcast Corp (CMCSA) closed down -1% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18. 

Earnings Reports (9/28/2026)

IDT Corp (IDT), Jefferies Financial Group Inc (JEF), Liberty Live Holdings Inc (LLYVA), ReposiTrak Inc (TRAK), SR Bancorp Inc (SRBK), Vail Resorts Inc (MTN).

On the date of publication,

Rich Asplund

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.

For more information please view the Barchart Disclosure Policy

here.

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