The Bank of Canada Just Spoke: 2 Canadian Stocks to Buy Now

The Bank of Canada gave investors a useful hint recently: don’t expect a straight line from here. The central bank held its key interest rate at 2.25%, while pointing to higher oil prices, trade uncertainty, and softer parts of the Canadian economy. Inflation rose to 2.4% in March and could move close to 3% in April, but the bank still expects it to drift back toward 2% in 2027.

That creates a tricky setup. Rates may not plunge quickly, yet the economy still needs support. In that kind of market, investors may want stocks with real earnings, solid dividends, and businesses that can keep going even when consumers feel squeezed.

TD

Toronto-Dominion Bank (TSX:TD) is relevant now as banks tend to wake up when interest-rate uncertainty begins to ease. TD stock is one of Canada’s largest banks, with major operations in personal banking, commercial banking, wealth, insurance, and U.S. banking. It went through a difficult stretch over the last year because of its U.S. anti-money-laundering issues, but that’s also why TD stock still has a comeback angle. The bank has spent heavily on controls, governance, and remediation. That work remains a risk, but it also gives TD stock a clear path to rebuild investor confidence.

The latest earnings showed why investors have not given up on it. In the first quarter of 2026, TD reported adjusted net income of $4.2 billion, up 16% year over year. Adjusted earnings per share (EPS) hit $2.44. Its Canadian personal and commercial banking division delivered record net income of $2 billion, up 12%. TD stock also ended the quarter with a strong CET1 capital ratio of 14.5%, giving it plenty of cushion.

Valuation helps the case. TD stock recently traded around 11.7 times trailing earnings with a forward dividend yield near 3%. That’s not dirt cheap, but it looks reasonable for a bank with strong Canadian operations and room to recover in the U.S. TD stock fits today’s Bank of Canada backdrop as it can benefit from steady loan demand, improving sentiment, and lower funding pressure if rates eventually drift down. The risk is clear: U.S. remediation could take longer and cost more. Still, patient investors could get paid to wait.

BEI

Boardwalk REIT (TSX:BEI.UN) also looks timely after the Bank of Canada’s update. If rates stay steady or eventually fall, real estate investment trusts (REIT) can catch a better mood. Boardwalk owns and operates rental apartment communities across Canada, with a major focus on affordable housing. That gives it a practical edge. People may delay buying homes when mortgage costs stay high, but they still need places to live.

The latest numbers were strong. For the fourth quarter of 2025, Boardwalk reported funds from operations (FFO) of $1.20 per unit, up 11.1% from the year before. Net operating income (NOI) rose 9.5% to $108.5 million. Same-property NOI climbed 7.3%, and the operating margin improved to 65.8%. Occupancy also stayed high, with management pointing to 97.5% occupancy to start 2026. That tells investors demand remains firm, even in a more competitive leasing market.

Boardwalk’s valuation and income also make it interesting. The REIT recently traded near 18 times earnings, with a monthly distribution yielding about 2.5%. It also increased its distribution by 11.1% for 2026. That’s not a huge yield, but it comes with growth potential. The main risk is that rent growth could slow if affordability pressure rises or if competition increases in key markets. Higher borrowing costs can also weigh on REITs. Even so, Boardwalk fits a softer-rate outlook because lower rates could support property values, financing costs, and investor demand for income stocks.

Bottom line

The Bank of Canada did not give investors an all-clear signal. It gave them something more useful: a reminder to stay selective. TD stock offers a recovery story backed by strong earnings and capital. Boardwalk offers steady rental demand and monthly income. And together, $7,000 in each could bring in ample income.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTD$144.7448$4.32$207.36Quarterly$6,947.52BEI.UN$67.84103$1.67$172.01Monthly$6,987.52

Neither stock is risk-free, but both look built for a market where rates stay uncertain and quality matters more than hype.

The post The Bank of Canada Just Spoke: 2 Canadian Stocks to Buy Now appeared first on The Motley Fool Canada.

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

Before you buy stock in Boardwalk 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 Boardwalk 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 over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* 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 April 20th, 2026

More reading

• 3 Canadian Stocks That Could Be an Ideal Fit for a $7,000 TFSA Investment
• The Best Canadian Stocks to Buy Right Away With $45,000
• 3 Canadian Blue-Chip Stocks Worth Holding Through 2026 and Beyond
• How I’d Put $10,000 to Work in a TFSA Right Now
• TD Bank vs. RBC: Which Dividend Stock Looks Better Right Now?

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.