2 TSX Stocks That Could Shine if the Bank of Canada Holds Rates Steady

When the Bank of Canada holds rates steady, investors don’t need to chase the flashiest stocks. Calm rate policy tends to favour companies with dependable earnings, strong balance sheets, and businesses that benefit from stable markets and confident clients. Wealth managers, insurers, and diversified financial groups can fit that bill nicely. They often earn more when asset values stay healthy, client money keeps flowing in, and borrowing conditions stop swinging all over the place. Right now, two TSX names stand out for exactly that reason.

IGM

IGM Financial (TSX:IGM) sits behind IG Wealth Management and Mackenzie Investments, so it has exposure to advice, investment products, and long-term client relationships. That mix worked well in 2025. IGM reported record assets under management and advisement of $310.1 billion at year-end, up 14.7% from 2024, while assets including strategic investments reached $566.2 billion.

For 2025, IGM posted net earnings of $1.101 billion, or $4.64 per share, and record adjusted net earnings of $1.093 billion, or $4.61 per share. In the fourth quarter alone, adjusted earnings per share (EPS) climbed 21% to $1.27. The dividend stock also raised its quarterly dividend by 10% to $0.62 per share. On top of that, early 2026 flow data stayed strong, with January assets at $316.1 billion and record net inflows of $3.7 billion, followed by February assets of $326.6 billion. It’s not bargain-basement cheap, but it still looks reasonable for a business putting up this kind of momentum.

There’s also a growth angle here that makes IGM more interesting than a plain old dividend stock. Management highlighted the October 2025 transactions involving Wealthsimple and Rockefeller Capital Management as proof that its strategic investments can add value beyond its core advisory business. The renewed buyback program adds another shareholder-friendly lever. The risk, of course, is that IGM still depends on healthy markets and strong client activity. If volatility spikes or investors pull back, fee growth can cool fast. Still, if the Bank of Canada stays put, IGM looks built to shine.

POW

Power (TSX:POW) owns major stakes in Great-West Lifeco, IGM Financial, and GBL, plus alternative asset platforms like Sagard and Power Sustainable. That gives investors a broad financial holding company with exposure to insurance, wealth, asset management, and private investments. In a steady-rate backdrop, that kind of mix can work well as it gives Power several ways to grow even if one segment slows down.

For 2025, Power reported adjusted net earnings from continuing operations of $3.4 billion, or $5.31 per share, up from $2.971 billion, or $4.58 per share, in 2024. In the fourth quarter, adjusted net earnings reached $867 million, or $1.36 per share. Power also lifted its quarterly dividend by 9% to $0.6675 per share and bought back 12.4 million shares in 2025 for $711 million. Right now, it offers a discount that gives investors a little extra breathing room.

Recent news adds another layer. In late 2025, Power put more money into Wealthsimple, with its direct equity stake valued at $1.47 billion based on that financing, or $1.57 billion including the fresh investment. That shows Power still has access to faster-growing financial platforms, not just mature cash cows. The main risk is complexity. Holding companies can stay undervalued for a long time, and some of Power’s alternative assets, especially in energy infrastructure, have dragged on results. But if rates stay steady, Power’s mix of quality assets, dividend growth, and underlying earnings momentum looks hard to ignore.

Bottom line

If the Bank of Canada keeps holding the line, investors may want to lean into businesses that thrive on stability rather than excitement. Plus, both offer income from even a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTPOW$72.8496$2.67$256.32Quarterly$6,992.64IGM$74.3494$2.48$233.12Quarterly$6,987.96

Neither stock is risk-free, but both look well placed to reward patient investors if rate calm sticks around a little longer.

The post 2 TSX Stocks That Could Shine if the Bank of Canada Holds Rates Steady appeared first on The Motley Fool Canada.

Should you invest $1,000 in Igm Financial right now?

Before you buy stock in Igm Financial, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Igm Financial wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• 3 Canadian Stocks to Buy if Rates Stay Higher for Longer
• How Splitting $30,000 Across 3 TSX Stocks Could Generate $1,315 in Dividend Income
• If I Had $10,000 to Invest in Canadian Stocks Today, Here’s What I’d Buy
• 3 Canadian Dividend Stocks Whose Passive Income Continues to Grow Over Time
• The 5 Top Canadian Stocks to Buy With $10,000 in 2026

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.