Shocking Declines: Canadian Stocks That Disappointed Investors in 2025

Christmas Eve has finally arrived! As we enter the season for Santa rallies and the trading year wraps up, while investors set their sights on 2026, investors might be wondering what’s worth reflecting back on. It was a big year, an S&P 500-crushing one, for the TSX Index. But not all Canadian stocks were in the green, with some former market darlings really dragging their feet as other names did more of the heavy lifting for the Canadian stock market.

Whether these colossal 2025 laggards are worth buying for the new year and the fresh slate remains the big question. If you’re a patient value investor who’s willing to wait things out, I think these hard-hit value names might be ready to lead again.

As always, though, put in the homework before even thinking about buying! Let’s check in on three names that are in a rough spot, but might be in a position to rally hard once the tides finally do turn. It’s hard to time, but if you’ve got the stomach and time to wait, the following are definitely worth a closer look!

Telus

Telus (TSX:T) stock is the dividend stock to watch this year, with shares retreating another 11% year to date. That’s a fairly bad year when the TSX Index is flirting with a 30% gain. And while the 2026 setup looks far better, don’t assume that the coast is clear just yet, as the dividend yield hovers north of the 9.6% mark.

The dividend may be safe for now, but it’ll grow no further, at least for the time being. That’s the nature of dividend growth feezes. Going into the new year, some big pundits are optimistic about Telus and its supercharged payout. While the dividend growth is frozen, there might not be big reductions on the way.

Arguably, it doesn’t make a whole lot of sense to pause dividend growth if you’re just going to slash that dividend. Either way, I think the dividend is safe. And if it is, perhaps 2026 will be the year income investors start piling into the name with the hopes that a quarter will unveil improving trends. Is the telecom scene challenged?

Most definitely. But it’s times like these when the swollen yields are available for grabbing. The big question is whether investors can handle the risk and the potential for another lost year. I think the risk/reward tradeoff is worth it.

Spin Master

Spin Master (TSX:TOY) stock could not catch a break this year, with shares currently down more than 40% year to date. Undoubtedly, tariffs have hit hard, but with the holiday season underway, I think there’s potential for an upside surprise come the next round of quarterly earnings results. The consumer might be mixed, and headwinds have weighed heavily, but perhaps things aren’t as bad as they seem. Either way, I’d not bet against the toymaker at $20 and change.

There’s a low bar that’s set, and the management team thinks it’s “too early” to tell how things will pan out as the holiday season continues. I think there’s a chance it could be fantastic, especially as the brands pull through and new innovations (think physical-digital toys or “phygital” toys) look to hit the mark.

The post Shocking Declines: Canadian Stocks That Disappointed Investors in 2025 appeared first on The Motley Fool Canada.

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More reading

• 5 Dividend Stocks to Double Up on Right Now
• Better Dividend Stock in December: Telus or BCE?
• How to Turn Losing TSX Telecom Stock Picks Into Tax Savings
• 2 Easy Ways to Boost Your Income (Including Buying Telus Stock)
• Betting on a Holiday Retail Revival? 3 Stocks That Could Benefit

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Spin Master and TELUS. The Motley Fool has a disclosure policy.