Pay attention, I acquired two children. They’re wild and so they’re nuts, and so they’re additionally completely good and great. But although these two are nonetheless fairly younger, I’m already stressing out on how on earth I’m going to pay for no matter it’s they change into captivated with of their lives. Proper now, that fluctuates between rocket scientist and the following KPop Demon Hunter. Undecided the right way to fund that one, if I’m sincere.

Even so, my husband and I proceed to place away the utmost quantity we will annually in direction of every little one’s Registered Training Financial savings Plan (RESP). But that’s solely half the battle. The remaining comes all the way down to the place on earth to take a position? At present, one inventory might be the most suitable choice on the TSX right this moment.

TRP

If there’s one factor that the world wants, it’s power. Vitality produces our meals, powers our vehicles, helps nearly all the pieces. That’s what makes TC Vitality (TSX:TRP) such a powerful possibility for these desirous to put money into their little one’s future.

First, let’s take a look at what’s been happening just lately. This dividend inventory reported a powerful second quarter for 2025, with web earnings from persevering with operations hitting $900 million. That’s up from $800 million during the last yr. In the meantime, comparable earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) rose to $2.6 billion, up 12% from robust operational execution.

Extra to come back

What’s extra, the dividend inventory has much more earnings energy coming down the pipeline. The corporate efficiently positioned $8.5 billion in initiatives into service. Let’s say that once more: $8.5 billion! They embody the Southeast Gateway pipeline, which the corporate initiatives will enhance EBITDA for 2025 to between $10.8 and $11 billion!

Whereas the dividend inventory continues to carry excessive debt ranges at $59.5 billion and a debt-to-equity ratio (D/E) of 159%, it nonetheless has quite a bit to stay up for from all these investments. It seems to be like its unfavourable free money movement of $2 billion might simply be reversed with the brand new initiatives in service this yr.

Trying forward

Now bear in mind, when fascinated about an RESP, buyers have to look past right this moment. They want to consider worth, alternatives, earnings, and long-term progress. Proper now, this dividend inventory gives all of that. The dividend sits at 4.8%, with a dividend of $3.40, popping out quarterly. Its ongoing East Lateral XPress challenge and multi-year progress plan are expansions with additional cash-creating alternatives.

Then there’s worth. The dividend inventory is now close to 52-week highs however nonetheless trades at an affordable 17.5 instances earnings. So with challenge execution underway, a steady dividend, robust worth, and extra progress sooner or later, now might definitely be the time to purchase. In reality, $5,000 invested on this dividend inventory would offer buyers with $235 in annual dividend earnings. All that earnings may be invested additional into your little one’s future.

Backside line

This dividend inventory is a stellar alternative for buyers. It offers earnings, a strong progress path ahead, and resilient challenge execution. New buyers ought to contemplate the rewards from its challenge pipeline and monetary administration. As nicely, a long-term funding on this explicit inventory will surely create returns in right this moment’s North American power market.

With progress already underway, dividends coming in, and a steady path ahead, TC Vitality seems to be like a major possibility, particularly for folks trying to construct up an funding portfolio for his or her little one’s future. It doesn’t matter what that seems to be.