Restaurant Brands’ global footprint of over 32,000 restaurants across 100 countries provides significant diversification benefits and exposure to growing international markets where quick-service restaurant penetration remains underdeveloped. The underlying fundamentals of the business remain strong.
Restaurant Brands continues to take advantage of expanding international demand. That includes buying out its partners’ stakes in Burger King China and expanding Firehouse Subs in Mexico.
Meanwhile, the company recently raised its dividend and yields a solid 3.7% for investors.
RESTAURANT BRANDS INTERNATIONAL INC. (Toronto symbol QSR; www.rbi.com) has 32,149 fast-food outlets in over 100 countries. Its top banners are Burger King, Tim Hortons (coffee and donuts), Popeyes (fried chicken) and Firehouse Subs.
In May 2024, the company acquired the remaining 85% of Carrols Restaurant Group (Nasdaq symbol TAST) that it didn’t already own, for $974 million. (All amounts in U.S. dollars). Carrols, the largest Burger King franchisee in the U.S., owned 1,020 Burger King and 60 Popeyes restaurants in the U.S. Restaurant Brands will invest $500 million to modernize 600 of those Burger King locations.
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In February 2025, Restaurant Brands bought its partners’ stakes in Burger King China for $158 million and is seeking a new local partner. Specifically, Restaurant Brands has acquired the interests from TFI Asia Holdings BV and Pangaea Two Acquisition Holdings XXIII Ltd. (Cartesian).
The company now owns nearly 100% of the business and is looking for a new local partner to invest in the operations and become the controlling shareholder.
Restaurant Brands says TFI helped Burger King grow in China from around 60 restaurants in 2012 to about 1,500 today and will continue growing its operations in Turkey as one of Restaurant Brands’ largest business partners.
The company will also continue to be a partner with Cartesian in growing Tim Hortons in China.
Meanwhile, Restaurant Brands recently entered into an agreement to develop and grow Firehouse Subs in Mexico. It plans to open 100 restaurants in Monterrey and other major cities in the next five years.
Partner Foodplay is set to open the first Firehouse Subs restaurant this year in Monterrey, Nuevo León, followed by additional openings in the metropolitan area.
Firehouse Subs currently has over 1,300 restaurants across the U.S., Canada, Switzerland, Mexico, Albania, and the United Arab Emirates, with plans to open its first restaurants in Brazil and Australia later this year. This new agreement marks another milestone in the brand’s growth strategy in Latin America and around the world.
Growth Stocks: International expansion delivers strong growth
In the quarter ended March 31, 2025, Restaurant Brands’s sales rose 21.3%, to $2.11 billion from $1.74 billion a year earlier. Consolidated system-wide sales grow 2.8% year-over-year, including 8.6% in International.
The company earned $0.75 a share before one-time items in the quarter, up 2.7% from $0.73.
Restaurant Brands raised your quarterly dividend by 6.9% with the April 2025 payment. The new annual rate of $2.48 U.S. yields 3.7%.
The 3M Company’s strategic positioning following a major spinoff has created a more focused industrial enterprise with enhanced growth prospects. Its extensive global manufacturing footprint plus a significant U.S. presence provides competitive advantages in an environment of increasing supply chain localization and potential trade policy changes.
We particularly like the company’s diverse end-market exposure across automotive, aerospace, electronics, healthcare, and consumer applications. This profile provides natural hedging against sector-specific downturns while positioning it to benefit from multiple growth vectors including infrastructure investment, electrification trends, and safety regulation expansion.
Meanwhile, the stock trades at a reasonable 18.3 times its forecast earnings while paying a solid dividend. This pick has lots of upside over the long run.
3M COMPANY (New York symbol MMM; www.3m.com) makes more than 55,000 industrial and consumer product items, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.
3M has three main businesses: Safety & Industrial (45% of 2024 sales, 50% of earnings) makes hearing and eye protection devices, face masks, adhesives and tapes and industrial abrasives; Transportation & Electronics (35%, 31%) makes protective films, reflective signage for highways and packaging materials; and Consumer (20%, 19%) makes stationery products, home cleaning products and furnace filters.
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The Americas is the company’s biggest market, accounting for 55% of sales, followed by Europe, the Middle East and Africa (17%), Asia (16%) and China (12%).
3M spun off its Health Care division as a separate firm called Solventum Corp. (New York symbol SOLV) on April 1, 2024. That business makes products to treat and prevent infection in wounds; it also manufactures dental filling materials, and filtration and purification products.
Investors received one share of Solventum for every four shares of 3M they held. 3M retained a 19.9% stake in the new firm, but it plans to sell those shares within five years.
Dividend Stocks: 3M will relocate production to cut tariff costs
If you adjust for the Solventum spinoff, 3M sales in the three months ended March 31, 2025, rose 0.8%, to $5.95 billion from $5.74 billion a year earlier. That beat the consensus forecast of $5.75 billion.
The higher sales are mainly due to rising demand for products used in electronic devices, as well as industrial adhesives and tapes. Those improvements offset slower demand for automotive-related products and packaging materials.
Thanks to a cost-cutting plan, earnings before excluding unusual items gained 9.9%, to $1.88 a share from $1.71. That, too, exceeded the $1.77 consensus estimate.
3M expects new tariffs in the U.S. and other countries will add $850 million to its costs in 2025. The company makes its products in 26 countries, so it plans to adjust some of its production lines to reduce the tariff impact.
Despite those extra costs, 3M still expects to earn between $7.60 to $7.90 a share in 2025. The stock trades at a reasonable 18.3 times the midpoint of that range.
Due to the spinoff, 3M cut your quarterly dividend by 53.6% with the June 2024 payment. However, with the March 2025 payment, it raised the dividend by 4.3%. The new annual rate of $2.92 a share yields 2.0%.
Due to the spinoff, 3M cut your quarterly dividend by 53.6% with the June 2024 payment. However, with the March 2025 payment, it raised the dividend by 4.3%. The new annual rate of $2.92 a share yields 2.1%.
Thanks to that earlier cut, 3M’s annual dividend rate has now declined by an average 13.1% in the past 5 years. Its TSI Dividend Sustainability Rating is now Average.
A Member of Pat McKeough’s Inner Circle recently asked for his advice on a Canadian conglomerate that’s primarily engaged in food retailing.
Pat likes the steady sales growth and strategic investments in store renovations and digital capabilities. The valuation is also reasonable. However, inflationary pressures on operating costs as well as intense competition are challenges.
Empire Company Ltd. (Symbol EMP.A on Toronto; www.empireco.ca) is primarily a food retailer and also invests in real estate.
Empire operates through two segments: Food retailing, and Investments and other operations.
Empire’s Food retailing segment does business through its wholly owned Sobeys business. Headquartered in Stellarton, Nova Scotia, the segment owns, partners with, and franchises more than 1,600 stores in all 10 provinces. Its retail banners include Sobeys but also Safeway, IGA, Foodland, FreshCo, Thrifty Foods, Farm Boy, Longo’s and Lawton Drugs.
Sobeys also runs e-commerce businesses under the banners Voila, Voila par IGA, and ThrifyFoods.com. The segment first launched its Voila e-commerce platform in 2020, to bring online grocery home delivery to its customers.
Sobeys also runs and/or supplies 350 retail gas stations under the Fast Fuel and Shell brands.
Through its Investments and other operations segment, Empire invests in real estate.
The company has a 41.5% interest in Crombie REIT (symbol CRR.UN on Toronto), a real estate investment trust. Crombie is one of Canada’s leading national retail property landlords. The REIT owns, operates and develops grocery and pharmacy-anchored shopping centres, freestanding stores and mixed-use developments, mostly in Canada’s top urban and suburban markets.
Crombie REIT’s largest tenant is Sobeys, which contributes 58.4% of the REIT’s total annual rents.
The segment also has interests ranging from 31.7% to 49.0% in the Genstar Capital group of companies. Genstar is a residential real estate development company headquartered in San Diego, California.
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In December 2018, Empire completed the acquisition of Farm Boy stores for $800 million. The Ottawa-based chain now has 21 locations in the Greater Toronto Area. The retailer specializes in local fresh produce and meat; it also offers a wide range of ready-to-eat food prepared in-store and a strong group of private-label foods.
In May 2021, Empire completed the acquisition of 51% of Longo’s for $700 million. That firm was a longstanding, family-built network of specialty grocery stores in the Greater Toronto Area of Ontario. Longo’s now has 38 stores.
Empire Company’s Digital transformation initiatives offer long-term e-commerce growth
In the quarter ended February 1, 2025, Empire’s revenue rose 3.1%, to $7.73 billion from $7.49 billion. Same-store food sales grew by 2.6%. Excluding one-time items, earnings fell 4.6%, to $146.1 million from $134.2 million. The decline was mostly due to higher finance and income tax expense. Per-share earnings were unchanged at $0.62 on fewer shares outstanding
Going forward, the company’s outlook is positive, but it does face some challenges in the hyper-competitive Canadian market.
Inflation, and the accompanying high costs of food, energy and housing, have pushed many Canadian consumers to turn to cheaper food options. This puts Sobeys and other Empire banners at a disadvantage compared to most of its rivals. That’s because the company’s grocery stores are mostly full-service, higher-end stores. Empire is moving to expand its discount presence in Western Canada, but this will take time and expense to accomplish.
Nonetheless, cost-cutting actions that Empire has taken over the last few years will keep adding to its profitability. As well, two of the company’s specialty food banners—Farm Boy and Longo’s—offer strong growth prospects.
The company’s digital transformation initiatives represent a significant competitive advantage in the evolving retail environment. Empire’s focus on digital and data capabilities includes continued e-commerce expansion through Voilà, enhanced personalization features, and the successful growth of its Scene+ loyalty program.
Empire’s shares trade at a moderate 18.2 times the $2.97 a share it expects to earn in 2025. The company will raised its quarterly dividend by 10.0% with the July 2025 payment, to $0.22 a share from $0.20. The stock yields 1.5%.
Recommendation in Pat’s Inner Circle: Empire Company Ltd. is okay to hold.
Cintas’ dominant market position in essential business services, combined with its track record of consistent growth and profit margin expansion, makes it an attractive defensive growth investment suitable for most any market conditions. Management’s ability to execute strategic initiatives while maintaining operational discipline has delivered superior financial performance that consistently exceeds investor expectations.
Cintas’ diversified customer base, long-term service contracts, and essential nature of its offerings provide substantial downside protection while offering meaningful upside potential as the economy continues to expand. We also love the firm’s focus on innovation, technology deployment, and operational excellence. So does the market, with the shares consistently outperforming the S&P500. That includes a 21.5% gain in 2025 compared to just 2.0% for the S&P500.
Meanwhile, the stock trades at 50.5 times the company’s forward earnings forecast. That’s a high multiple, but we feel it’s justified thanks to superior earnings growth, a recession-resistant recurring revenue model, industry-leading operational efficiency, and a proven track record of consistent shareholder returns.
CINTAS CORP. (Nasdaq symbol CTAS) designs and makes uniforms, then sells them to businesses, mainly in North America. It also offers related products and services such as office-cleaning and first-aid kits.
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Cintas gets 78% of its revenue from renting uniforms, which it makes and cleans at its own factories, and from renting a wide variety of related products, such as floor mats, towels, mops and cleaning supplies.
It gets a further 11% of its revenue by providing first-aid kits, as well as safety equipment, such as eyewash stations, and personal protective gear like goggles and face masks.
The remaining 11% comes from selling uniforms to businesses, and providing fire extinguishers, sprinklers and emergency-exit lights. In addition, Cintas helps its clients comply with local safety regulations.
In its fiscal 2025 third quarter, ended February 28, 2025, revenue rose 8.4%, to $2.61 billion from $2.41 billion a year earlier. That beat the $2.60 billion consensus forecast.
The higher revenue and a lower tax rate lifted the company’s earnings in the quarter by 16.6%, to $463.5 million from $397.6 million. Due to fewer shares outstanding, per-share earnings rose at a faster rate of 17.7%, to $1.13 from $0.96. (Note—All per-share amounts adjusted for a 4-for-1 stock split on September 11, 2024.)
If you exclude a $0.03-a-share gain on the sale of property, Cintas earned $1.10 a share in the latest quarter. That topped the consensus estimate of $1.05.
Cintas now expects its revenue for all of fiscal 2025 will rise about 7.5%. It should also earn between $4.36 and $4.40 a share, which is higher than its earlier forecast of $4.28 to $4.34 a share. The stock, which is up 21.5% so far this year, trades at 50.5 times the midpoint of that new range. That’s a high p/e, but still acceptable given the company’s leading position in its niche market and its improving profitability.
Cintas also uses multiple suppliers, so it’s at little risk due to U.S. tariffs. The $1.56 dividend yields 0.7%.
Andrew Peller’s bright future reflects its strong operational execution cost cutting as well as its strategic positioning in Canada’s evolving beverage alcohol market.
The firm’s diversified operations across wine production, craft beverages, and multiple distribution channels provide defensive characteristics while enabling participation in growth segments of the Canadian beverage market. With production facilities in British Columbia, Ontario, and Nova Scotia, and sourcing from premium wine regions including the Niagara Peninsula and Okanagan Valley, Andrew Peller maintains competitive advantages in quality and supply chain control.
The company’s track record offers an attractive total return opportunity for investors seeking exposure to the Canadian consumer discretionary sector. With the stock trading at just 10.5 times the company’s forward earnings forecast, this is a buy.
ANDREW PELLER LTD. (Toronto symbols ADW.A; www.andrewpeller.com) is Canada’s second-largest wine producer after Arterra Wines.
In its fiscal 2025 fourth quarter, ended March 31, 2025, Peller’s sales fell 11.2%, to $75.5 million from $85.0 million a year earlier.
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That decrease is largely because the year-earlier quarter included $5.8 million in support payments from the Ontario government; in fiscal 2025, the company recorded those payments throughout the year instead of reporting all in the final quarter like it did the previous year.
Thanks to a cost-cutting plan, losses in the quarter improved to $0.02 a share (or a total of $747,000) from $0.17 a share (or $6.9 million). For all of fiscal 2025, the plan cut Peller’s costs by $10.7 million.
Dividend Stocks: Tariff effect should be offset by higher sales in Canada
Peller imports some of its wine, concentrates and packaging materials from a wide range of other countries, including the U.S., so tariffs could increase its costs. However, in response to U.S. tariffs on Canadian products, provincial liquor boards have stopped importing U.S. wines. That should help spur sales of Peller’s products.
In fiscal 2026, the company will probably earn $0.47 a share, and the class A shares trade at a low 10.5 times that estimate.
Peller also continues to pay a quarterly dividend of $0.0615 a share; the annual rate of $0.246 yields a high 5.0%.
Allied Properties REIT’s strategic focus on premium urban workspace across Canada’s major metropolitan markets positions it as a compelling investment opportunity for those seeking exposure to the recovering commercial real estate sector.
A focus on knowledge-based organizations and sustainable, wellness-focused workspace aligns perfectly with evolving tenant preferences and ESG investment themes. This positions the trust to capture premium rents and maintain high occupancy levels as the market recovery continues.
Meanwhile, the stock trades at just 8.1 times the projected 2025 cash flow of $2.09 per unit, which is well below historical averages for high-quality Canadian REITs and suggests meaningful upside potential.
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST (Toronto symbol AP.UN; www.alliedreit.com) owns 188 office buildings and nine properties under development. All are in seven urban markets—Montreal, Ottawa, Toronto, Kitchener, Calgary, Edmonton and Vancouver. The overall occupancy rate is 86.9%.
Allied aims to distinguish itself with workspace innovation—including through technology. The REIT says light harvesting has made great strides, as has fresh air delivery. Raised-floor systems have made aesthetic and practical contributions in recent years. Aesthetically, they declutter the workspace and obviate the need for drop-ceilings. Practically, they improve air circulation by pressurizing the underfloor area and depressurizing the actual work environment.
The trust’s composition remains strategically focused on three urban workspace formats: Allied Heritage, Allied Modern, and Allied Flex. This diversified approach to workspace solutions positions Allied to capture varying tenant preferences and market demands across different sectors and company sizes.
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Allied has already executed several critical strategic initiatives in 2025 that significantly strengthen its financial foundation and growth prospects. Most notably, the company completed a $400 million offering of senior unsecured debentures in April 2025, consisting of $150 million in Series L floating-rate debentures and $250 million in Series M fixed-rate debentures, both maturing in April 2027. This refinancing successfully addressed the company’s $400 million unsecured term loan that was scheduled to mature in October 2025, effectively extending the debt maturity profile and providing enhanced financial flexibility.
Dividend Stocks: Sale of non-core properties strengthens Allied’s portfolio
In 2024, Allied sold $256 million worth of its less-important properties in Montreal, Toronto, and Ottawa. It expects to sell $170 million worth of non-essential properties in 2025. The REIT also completed $745 million in acquisitions in 2024.
In the quarter ended March 31, 2025, Allied’s revenue rose 4.9%, to $150.6 million from $143.6 million a year earlier. However, higher costs and interest expenses cut cash flow by 12.4%, to $71.1 million, or $0.509 per unit, from $81.1 million, or $0.581.
Allied’s units currently yield a very high 10.6%. Meanwhile, the REIT’s units trade at just 8.1 times projected 2025 cash flow of $2.09 a unit.
With substantially lower fees, our preferred Canadian ETF has delivered comparable returns for investors at lower cost
Investors use ETFs in a variety of ways. To build the best ETF portfolio, you should know both the advantages they offer, and some potential drawbacks.
Diversification is one of the most attractive features of ETFs. With an ETF, an investor is accessing all the stocks in an index.
ETFs give investors the broad market exposure of a traditional mutual fund, plus the ability to trade at will with nominal fees. The best ETFs represent a low-cost, tax-efficient way for investors to make money in the long term.
Investors can buy ETFs via stock exchanges, as well as on margin. They can also sell them short. High quality ETFs offer well-diversified portfolios with exceptionally low management fees.
The MERs (Management Expense Ratios) are also generally much lower on ETFs than on conventional mutual funds. That’s because most ETFs take a much simpler approach to investing. Instead of actively managing their portfolios, these ETF providers invest so as to mirror the holdings and performance of a particular stock-market index.
ISHARES MSCI CANADA INDEX FUND is a sell in favor of a cheaper alternative. The ETF (New York symbol EWC; buy or sell through brokers; ca.ishares.com) holds the stocks in the Morgan Stanley Capital International Canada Index.
The fund has a 0.50% MER and gives you a yield of 2.0%. It began trading for investors on March 12, 1996.
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The ETF’s top holdings are Royal Bank, 7.5%; Shopify, 5.5%; TD Bank, 5.0%; Enbridge, 4.6%; Brookfield Corp., 3.4%; Bank of Montreal, 3.3%; CPKC, 3.1%; Canadian Natural Resources, 3.1%; Constellation Software, 3.0%; Bank of Nova Scotia, 2.8%; and Agnico Eagle, 2.6%.
If you want to own a Canadian index fund, you should instead buy the largest TSX ETF, the iShares S&P/TSX 60 Index ETF. You’ll pay about a third as much in management fees, while holding essentially the same stocks.
Here’s our preferred fund for Canadian equity exposure
ISHARES S&P/TSX 60 INDEX ETF is a buy. The ETF (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way for you to buy the top companies listed on the TSX. Specifically, the fund’s holdings represent the S&P/TSX 60 Index. It focuses on the 60 largest, most heavily traded stocks on the exchange. This is the largest TSX ETF.
The ETF began trading on September 28, 1999. Investors pay an MER of just 0.18%. The units give you a 2.8% yield.
The S&P/TSX 60 Index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few companies we would not include.
The quality of the ETF’s holdings should drive your future gains: its top stocks are Royal Bank, 7.9%; Shopify, 5.8%; TD Bank, 5.2%; Enbridge, 4.8%; Brookfield Corp., 3.7%; Bank of Montreal, 3.5%; CPKC, 3.3%; Canadian Natural Resources, 3.2%; and Constellation Software, 3.1%.
Recommendation in Canadian Wealth Advisor: iShares MSCI Canada Index Fund is a sell in favour of the iShares S&P/TSX 60 Index ETF.
A Member of Pat McKeough’s Inner Circle recently asked for his advice on a global leader in supplying industrial gases across the healthcare, electronics, clean energy, and manufacturing sectors.
Pat likes the firm’s growth prospects even in times of economic uncertainty—and even better when the economy expands. Meanwhile, the company has a 32-year dividend-increase streak.
Linde PLC (Symbol LIN on Nasdaq; www.linde.com) is the largest industrial gas company in the world.
Linde was created by the merger of Praxair Inc. and Linde AG in 2018. Formed under the laws of Ireland, it has principal offices in the U.K. and the U.S.
The company’s primary products are atmospheric and process gases. Atmospheric gases include oxygen, nitrogen, argon, and rare gases. Process gases include carbon dioxide, helium, hydrogen, electronic gases, specialty gases and acetylene.
Linde also designs, engineers, and builds equipment that produces industrial gases. The company offers its customers a wide range of gas production and processing services. They include olefin plants, natural gas plants, air separation plants, hydrogen and synthesis gas plants and other types of plants.
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On August 27, 2024, Linde signed a long-term agreement with chemical company Dow Inc. to supply clean hydrogen at Dow’s Fort Saskatchewan Path2Zero Project. Linde will invest more than $2 billion to build, own and operate a clean hydrogen and atmospheric gases facility in Alberta, Canada.
Expected to reach completion in 2028, the new complex will be the largest facility of its sort in Canada, and one of the largest globally. It will be Linde’s largest single investment in clean hydrogen.
Linde plc: Client diversification lets this gas giant report steady results
In the three months ended March 31, 2025, Linde’s revenue rose slightly, to $8.11 billion from $8.10 billion a year earlier. Sales increased due to 2% higher prices, partly offset by 1% lower volumes largely driven by the manufacturing and metals & mining end markets.
Revenue at the Americas segment rose 3.0%, to $3.67 billion from $3.56 billion. The increase came from 3% higher pricing and 1% higher volumes, primarily in the electronics, chemicals & energy end market.
Revenue at the EMEA segment, however, fell 2.9%, to $2.03 billion from $2.09 billion. The decline was due to 2% higher pricing more than offset by 3% lower volumes, primarily in the metals &mining and chemicals & energy end markets. Similarly, sales at the Asia Pacific segment decreased 3.3%, to $1.54 billion from $1.59 billion. Stable pricing was offset by 1% lower volumes, primarily in the metals & mining and manufacturing end markets
Meanwhile, revenue at the Engineering segment was up 4.8%, to $565 million from $539 million.
Excluding one-time items, Linde earned $1.88 billion, or $3.95 a share, in the latest quarter. That was up 3.2% from $1.82 billion, or $3.75 a share.
The company raised its quarterly dividend by 7.9% with the March 2025 payment, to $1.50 a share from $1.39. This marked the 32nd consecutive year of dividend increases. The stock currently yields 1.3%.
Linde’s outlook is positive, in part because it serves a diverse group of industries. These include healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics. The client mix helps the company report stable financial results through various business cycles.
Meanwhile, the stock trades at a somewhat high 28.7 times the forecast 2025 earnings of $16.42 a share. That adds risk.
TSI’s Scott Clayton has identified seven enterprises at the forefront of nuclear energy. Each one has been selected for dividend sustainability and growth potential using our 12-point rating system to emphasize multi-year dividend growth, strong balance sheets, and consistent earnings.
Among the final selections is a North American uranium producer that plays an integral role in the global nuclear fuel supply chain. Joining it is an engineering and services leader that specializes in guiding regulatory compliance and managing nuclear waste for major facilities. Also included is a U.S.-based manufacturer renowned for supplying critical nuclear components and medical isotopes. Rounding out the group are a major power producer operating the largest fleet of nuclear reactors in the country, and a diversified utility that generates a significant share of its electricity from nuclear plants.
Each of these companies demonstrates robust cash flow, a multi-year track record of reliable dividends, and increased institutional investor confidence. They share strategic advantages such as essential roles in clean energy infrastructure, recurring revenues from regulated markets, high barriers to entry, prudent debt management, and executive teams focused on shareholder interests. Their selection reflects a disciplined approach to balancing income needs with capital preservation.
That gives you the best chance of achieving strong returns even amid recent market volatility.
Excerpt from theglobeandmail.com
What are we looking for?
Reliable dividends from companies tapping demand for nuclear energy – increasingly seen as a cheap and clean way to power artificial intelligence (AI).
The screen
Meta Platforms Inc. spurred nuclear power stocks this week after announcing a 20-year supply deal with nuclear energy giant Constellation Energy Corp. Financial terms weren’t disclosed, but the Meta deal should help Constellation cover the costs of upgrading and relicensing its nuclear reactors and maintaining one of its facility. The contract is also the latest in a string of industry agreements with AI computing leaders, now grappling with the high-electricity needs of those computer applications.
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The outlook for the nuclear industry had been uncertain since Japan idled its own program in the wake of the 2011 Fukushima disaster. However, our analysts at TSI Network point out that nuclear power has regained interest over the last several years. The environmental push for carbon-free electricity generation as well as Europe’s hunt for a long-term replacement for Russian natural gas have driven the turnaround.
The growing use of energy-thirsty datacentres to power AI has been another spur.
For this search, we focused on top U.S. and Canadian firms tied to nuclear power deployment and poised to gain from industry trends. We then applied our TSI Dividend Sustainability Rating System, which awards points to a stock based on key factors:
One point for five years of continuous dividend payments – two points for more than five
Two points if it has raised the payment in the past five years
One point for management’s commitment to dividends
One point for operating in non-cyclical industries
One point for limited exposure to foreign currency rates and freedom from political interference
Two points for a strong balance sheet, including manageable debt and adequate cash
Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
One point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.
7 nuclear energy stocks you’ll want for reliable income
Cameco Corp. (with a 0.2% yield), headquartered in Saskatoon, is one of the world’s largest producers of uranium. It also holds 49% of Westinghouse Electric Company, which serves about half of the world’s nuclear power reactors.
Ottawa’s Calian Group Ltd. (2.8%) provides an array of services to Canadian private and public sector clients – including interpreting regulatory requirements and developing licensing strategies for the nuclear industry. It also offers nuclear waste management and plant decommissioning.
BWX Technologies Inc. (0.8%), headquartered in Virginia, is a leading maker and supplier of nuclear components, reactors and fuel to the U.S. government and private sector. It also provides medical radioisotopes and more.
Meanwhile, here are some power producers primed to benefit from renewed interest in nuclear power:
NextEra Energy Inc. (3.2%), based in Florida, is a holding company for Florida Power & Light Co. It gets about a fifth of its power from nuclear plants in the state as well as New Hampshire and Wisconsin.
Constellation Energy Corp. (0.5%), headquartered in Baltimore, operates the largest fleet of nuclear plants in the U.S., with its 21 reactors generating 70% of its output.
Duke Energy Corp. (3.6%), based in North Carolina, is one of the largest energy producers in the U.S. About 30% of its electricity comes from 11 nuclear units at six sites in North Carolina and South Carolina.
And finally, Virginia-based Dominion Energy Inc. (4.8%) gets about 26% of its power from its four nuclear plants.
We advise investors to do additional research on investments we identify here.
This year, we picked this firm as your #1 Aggressive Buy. We feel the company has several advantages that will continue to fuel your gains for many years to come, well beyond 2025.
Those strengths include the company’s ability to acquire smaller firms and improve their profitability. Moreover, many of the former owners continue to run their businesses. That lets FirstService utilize their local knowledge and experience.
FirstService Brands (59% of its 2024 revenue, 59% of earnings) offers a wide variety of property management services through several franchised businesses, including Paul Davis Restoration (water, fire and mould cleanup), CertaPro Painters (painting and decorating), California Closets (closet and home storage solutions), Pillar to Post Home Inspectors, and Floor Coverings International.
FirstService Residential (41%, 41%) provides property management services such as collecting monthly condominium fees and cleaning/maintenance work. It has 100 offices across 25 U.S. states and three Canadian provinces that manage over 9,000 communities, representing more than 4.5 million residents. The company estimates that it accounts for 6% of the North American property services market. Moreover, its client retention rate is roughly 95%.
The U.S. accounts for 88% of FirstService’s overall revenue, with Canada supplying the remaining 12%. As its businesses sell their services in their local territories, the company has little exposure to tariffs.
FirstService operates in a highly fragmented industry (with many small companies), so it tends to fuel its growth with acquisitions. It cuts risk by focusing on smaller businesses that expand its market share and geographic reach. Moreover, many of the former owners continue to run their businesses. That lets FirstService utilize their local knowledge and experience.
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For example, in 2023, FirstService acquired 12 businesses for a total of $594.4 million (all amounts except share price and market cap in U.S. dollars). Those purchases included its $447.2 million purchase of Roofing Corp. of America. Based in Atlanta, Georgia, this firm provides a variety of roofing services to commercial and residential clients; those include roof replacements and repairs. It added $400 million to FirstService’s annual revenue.
In 2024, the company acquired eight more businesses for $265.05 million. They included two roofing firms in Florida—Crowther Roofing and Hamilton Roofing—that nicely complement Roofing Corp. and will help FirstService take advantage of growing demand in that state for roofing systems that can better withstand hurricanes.
Thanks partly to acquisitions, FirstService’s revenue rose 88.2%, from $2.77 billion in 2020 to $5.22 billion in 2024.
Growth Stocks: Strategic acquisitions fuel revenue and earnings increases
FirstService continues to make acquisitions, in the three months ended March 31, 2025, spending $8.6 million on the purchase of smaller firms. Those new businesses helped lift its revenue in the quarter by 8.0%, to $1.25 billion from $1.16 billion a year earlier. However, that missed the consensus forecast of $1.28 billion.
Thanks to cost controls, earnings before unusual items jumped 38.3%, to $42.07 million from $30.42 million. Due to more shares outstanding, earnings per share rose at a slower pace of 37.3%, to $0.92 from $0.67. That topped the consensus estimate of $0.84 a share.
The company can easily afford to keep making acquisitions. As of March 31, 2025, its long-term debt was $1.30 billion, which is a low 16% of its market cap. It also held cash of $217.2 million.
FirstService’s capital spending rose 21.7%, to $112.8 million in 2024 from $92.7 million in 2023. That’s mainly due to the replacement of certain vehicles and upgrades to its computer systems.
Even so, as a services provider, the company’s annual capital spending is relatively low. That gives it plenty of cash to reward investors.
With the April 2025 payment, the company raised your quarterly dividend by 10.0%, to $0.275 a share from $0.25. The stock has nearly doubled in the past few years, which is why the new annual rate of $1.10 yields 0.6%. FirstService has now increased its annual dividend by at least 10% each year for the past 10 years.
The company continues to benefit as falling interest rates make home renovations more affordable. In 2025, FirstService’s earnings will probably rise 13% to $5.66 a share. It’s also possible that earnings could gain a further 10% to $6.25 a share in 2026. The stock trades at 28.4 times that 2026 forecast. That’s a high but reasonable multiple in light of FirstService’s recurring revenue streams and the high quality of its businesses.
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