2 Stocks Every Canadian Retiree Should Seriously Consider Avoiding

I like to spend most of my time discussing top Canadian stocks I think investors should own right now. Whether those are growth stocks, dividend stocks, or a range of other defensive companies in other sectors, I’m finding plenty of incredible bullish cases to be made around a number of leading blue-chip TSX names.

That said, there are still a few TSX-listed stocks I think are worth avoiding right now. For those nearing or in retirement, here are two particular stocks I think are worth avoiding right now.

Bitfarms

The cryptocurrency revolution hasn’t really turned out to be what many investors were hoping for. That’s what Bitfarms’ (TSX:BITF) stock chart below highlights.

Now, the company has undergone a switch from a full-blown crypto miner to a cloud/data centre computing story play. Renting out its GPU processing capacity to such companies, the hope was that Bitfarms would see its operating metrics improve.

Unfortunately, that hasn’t been the case. Bitfarms’ peers have all made the same move, and the commoditization of excess computing capacity appears to be driving margins lower. With potential constraints on the horizon around AI spending, and what that could mean for companies at the back end like Bitfarms, this is a more speculative name I think investors should seriously consider moving away from.

That’s simply because there are so many better growth opportunities in the market to consider right now, in my view.

Allied Properties REIT

I’m generally bullish on the Real Estate Investment Trust (REIT) landscape over the long term, but Allied Properties REIT (TSX:AP.UN) is one such REIT I think investors may do better avoiding.

In short, there are a plethora of Canadian REITs to choose from with better balance sheets, net income growth, and payout ratios. I think the company’s near-double-digit dividend yield is worth reminiscing on. Indeed, the market appears to be implying that at some point, Allied will no longer be able to pay out its 7.8% yield. I’m not 100% sure either way on this, but a dividend cut or suspension can be the kiss of death for most firms in this space.

Additionally, the company’s portfolio has deteriorated, with weak fundamentals in the office space driving investors to look at other sub-segments of the real estate market. Until these dynamics shift, this is a stock I’m going to remain wary of here, given Allied’s payout ratio and the seemingly unsustainable yield this stock provides.

The post 2 Stocks Every Canadian Retiree Should Seriously Consider Avoiding appeared first on The Motley Fool Canada.

Should you invest $1,000 in Allied Properties Real Estate Investment Trust right now?

Before you buy stock in Allied Properties Real Estate Investment Trust, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Allied Properties Real Estate Investment Trust wasn’t one of them. The 10 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 $20,155.76!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 90%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of February 17th, 2026

More reading

• TSX Today: What to Watch for in Stocks on Thursday, February 12
• This Monthly Dividend Stock Just Reset Its Payout: Here’s Why That Matters
• TSX Today: What to Watch for in Stocks on Monday, February 9

Fool contributor Chris MacDonald 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.