For buyers in search of the suitable stability of passive earnings and slow-and-steady progress, utility shares may be glorious investments to think about for self-directed funding portfolios. Lots of the prime Canadian utility gamers have seen share costs rise in recent times. As buyers proceed in search of high-quality long-term investments, this trade provides loads of worth for individuals who know what to search for.
Right this moment, I’ll talk about two blue-chip shares from the Canadian utility sector that you must contemplate including to your holdings in 2026.
Northland Energy
Northland Energy Inc. (TSX:NPI) is a $4.8 billion market-cap firm that develops, constructs, and operates maintainable infrastructure property throughout varied renewable vitality amenities. The corporate boasts a manufacturing capability of round 3.2 gigawatts throughout its community, however issues haven’t been totally constructive for the facility producer.
Following third-quarter outcomes, the inventory got here underneath strain as its web losses went from $191 million to $456 million from the year-ago quarter. The administration additionally slashed dividends by 40% to strengthen its stability sheet. Operationally, the enterprise goes sturdy. Its income within the third quarter rose by 12.8% from the identical interval final yr.
Between bettering enterprise and its plans to speculate as much as $66 billion over the subsequent 5 years, it may be an enormous winner in the long term. I might contemplate including this inventory to your holdings this yr as a long-term funding.
Algonquin Energy & Utilities
Algonquin Energy & Utilities Corp. (TSX:AQN) is a inventory that has been doing nicely of late. The $6.8 billion market-cap Canadian inventory is a diversified worldwide era, transmission, and distribution utility firm. As of this writing, AQN inventory trades for $8.83 per share, up by a large 43% within the final 12 months.
The US Federal Reserve and Financial institution of Canada aggressively elevated rates of interest in 2022 and 2023, prompting the strain of upper borrowing prices to weigh on its financials. Nonetheless, the speed hikes have made manner for rate of interest cuts, and issues are getting higher. The turnaround started early in 2025, when it bought off renewable vitality property for $2.5 billion.
The corporate’s administration is banking on a pure-play regulated utility enterprise mannequin to make sure higher stability and success. The method can lead to a major increase in share costs within the coming weeks. I might suggest investing in its shares proper now.
Silly takeaway
Given their long-term progress alternatives, discounted valuations, and defensive enterprise fashions, these two shares can ship superior long-term returns. I might add these two Canadian utility shares to my portfolio to kick issues off in 2026.
