The Basic Personal Amount Just Increased in 2025! #CanadaFinance

Written by Amy Legate-Wolfe at The Motley Fool Canada

The Canada Revenue Agency (CRA) unveiled an update for 2025 that will have Canadians breathing a sigh of relief: no federal taxes on the first $16,129 of income! This update increases the Basic Personal Amount (BPA), which acts as a tax credit to help Canadians keep more of their hard-earned dollars. For anyone who earns under this threshold, the federal tax bill is zero. And if you earn more, you’ll still benefit from reduced taxes. This policy aims to lighten the financial load, particularly for low- and middle-income earners, leaving extra cash in your pocket. What better way to use this windfall than to invest it wisely?

Investing in a solid stock like WSP Global (TSX:WSP) is one way to make the most of this tax savings. WSP is a leader in professional consulting services, specializing in infrastructure, environmental science, and sustainability projects worldwide. It’s a robust choice for those looking to build wealth over the long term, especially given its growth trajectory and dividend reliability. Imagine setting aside a portion of that tax-free $16,129 and putting it to work in a stock like WSP, which has demonstrated resilience and consistent growth.

Looking at WSP’s recent performance, its quarterly earnings released earlier show impressive revenue growth of 10.7% year over year, reaching $15.23 billion over the trailing 12 months. Earnings per share (EPS) grew substantially, with a 30.3% jump year over year. These numbers indicate a company that’s not just surviving but thriving in a competitive market. WSP has also maintained a reasonable payout ratio of around 29.13%. This means it can comfortably pay dividends while reinvesting in future growth.

Past performance shows that WSP has consistently rewarded its investors. Over the last year, its stock price has climbed significantly, nearing its 52-week high of $259.60. This demonstrates its ability to weather economic turbulence while delivering solid returns. Moreover, its forward price-to-earnings ratio of 26.88 suggests that investors expect continued growth.

For those looking ahead, WSP’s future outlook is bright. With the global focus shifting towards green energy and sustainable infrastructure, WSP is poised to capitalize on these trends. Its diversified portfolio of projects and geographic presence position it well for growth in both developed and emerging markets. Analysts predict that its ability to win high-profile contracts and maintain operational efficiency will drive further revenue and earnings growth in the coming years.

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