2026 would possibly show to be a difficult yr for Canadian inventory buyers. The TSX Index is up over 50% prior to now two years. Valuations for main TSX gamers are beginning to look stretched. There isn’t any scarcity of financial and geopolitical dangers.
Given a few of the dangers, it’s clever to extensively diversify and unfold out your holdings. If I had $20,000 to speculate, I’d break up it into 5 $4,000 holdings. Right here is how I’d construction my portfolio.
AltaGas: A strong Canadian dividend inventory
I’d first search for a defensive anchor to carry by means of any potential market volatility. A dividend inventory like AltaGas (TSX:ALA) seems to be nicely positioned in the present day.
It has a rising American utility that gives a predictable regulated revenue stream. It additionally has a number of development avenues by means of its Canadian midstream enterprise. Asian demand for its propane exports continues to extend. Improved pure gasoline costs actually assist its return prospects for 2026.
It’s focusing on 5-7% earnings and dividend per share development over the approaching 5 years. It yields 3.2% in the present day.
Dream Industrial REIT
Dream Industrial REIT (TSX:DIR.UN) is one other solution to earn revenue in a passive, low-risk method. It has a big portfolio of commercial properties throughout Canada and Europe. It has 95% occupancy and long-term leases.
A current three way partnership transaction demonstrates that this inventory nonetheless trades at a big low cost to its personal market worth. The inventory continues to be comparatively low cost. It earns a gorgeous 5.4% distribution yield proper now.
Calian Group
Calian Group (TSX:CGY) is in an enviable place in 2026. It’s a main provider of healthcare, coaching, and satcom companies to the Canadian navy. At this time, over 50% of its revenue is defence associated. Given current activist consideration, it’s prone to make defence operations a fair bigger section of its enterprise.
Calian inventory has underperformed for a few years. Nonetheless, that ought to begin to change as current Canadian authorities and NATO defence spending guarantees begin to flip into contracts. This firm trades at an inexpensive valuation given its development prospects.
Topicus.com
Software program shares have been demolished over the previous seven months. Many imagine AI might be a terminal risk. Nonetheless, this might be a serious worth alternative if these threats don’t materialize.
Topicus.com (TSXV:TOI) consolidates small, area of interest software program companies throughout Europe. These markets are much less prone to be pursued by AI disrupters given their small whole addressable market. Likewise, Topicus can use AI functions to hurry up growth and add extra companies for its prospects.
It is a firm that can have grown by a mid-teens fee in 2025. But, it trades with a ten% free money stream yield proper now. You might should be a contrarian, however this seems to be like an amazing long-term purchase.
Stantec: A powerful Canadian compounder inventory
Stantec (TSX:STN) has was a strong Canadian compounder inventory. It’s up practically 200% prior to now 5 years. It has grown into a serious participant within the engineering, structure, and environmental consulting area.
Over 2025, Stantec has seen its margins enhance. Its backlog has risen practically 15%. Natural development has stayed over 5% and acquisitions have contributed 7%.
This inventory is down 8% prior to now six months. Whereas this Canadian inventory continues to be costly in comparison with friends, its development and margin outlook seemingly deserve a small premium.
