On this piece, we’ll examine in on a number of Canadian dividend shares that long-term traders could want to think about choosing up as they give the impression of being to maintain the magic of long-term compounding going sturdy. Undoubtedly, in terms of the higher-yielding dividend shares, the important thing to maximizing the facility of compounding is to maintain reinvesting the dividends.
Certain, it is likely to be fairly tempting to spend the money dividends which are coming in. However if you happen to’re a youthful investor who doesn’t want the additional earnings enhance on the finish of the quarter, maybe it’s a greater thought to place that cash again into your favorite dividend (development) inventory.
Let’s take a look at two very completely different dividend shares that I view as premier candidates that can assist you compound your wealth, not solely in 2026, however over the subsequent decade and past.
Canadian Tire
Canadian Tire (TSX:CTC.A) is considered one of my prime picks to play the Canadian retail scene, which is in a little bit of a muted spot proper now. Both means, Canadian Tire’s administration is doing an ideal job, and the dividend, presently yielding 4.1%, seems poised for development within the new 12 months.
Within the newest (third) quarter, Canadian Tire reported an excellent quantity, seeing revenues rising shut to six%. After all, it’s too early to inform if the trace of energy is the beginning of a pattern, however I do suppose many traders are discounting the strong outcomes. The massive story going into the brand new 12 months is whether or not the retailer can ship margin positive aspects and excessive single-digit share gross sales development. If it could possibly, the inventory is likely to be price a far richer a number of than it’s presently commanding.
Any means you have a look at it, I view Canadian Tire as extremely well-positioned to make up for misplaced time, and the inventory seems means too low cost at 12.3 instances trailing price-to-earnings (P/E), particularly because the “purchase Canadian” retail tailwind seems to energy the retailer for yet one more 12 months.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) shares haven’t simply been overbought; they’ve been one of many hottest large-cap shares on your entire TSX Index, thanks partially to gold’s historic rally, which could have room to the upside in 2026, as traders develop anxious about mounting macro headwinds.
With the U.S. Federal Reserve’s independence being challenged and uncertainties over the destiny of Greenland, maybe it ought to come as no shock that gold and its miners surged greater on Monday’s session. Both means, gold seems like a incredible hedge, even when it feels such as you’re chasing momentum right here.
After all, the momentum may reverse shortly, however given the forces which are driving gold (central financial institution shopping for or rising macro nervousness), I actually wouldn’t be shocked if AEM inventory and different premier miners have extra gasoline left within the tank. Both means, the most recent rally, I feel, has endurance. Although I might be extra of a sluggish, incremental purchaser of gold performs, fairly than plowing a lump sum right into a single title without delay. Even gold, a safe-haven asset, carries its personal share of draw back dangers!
