1 Canadian Stock Ready to Rise in 2026

In 2026, investors are no longer just looking for stability from an investment. The potential for a rebound is also becoming increasingly important, especially after years of high interest rates. Market volatility and shifting sentiment have now set up a rotation back into areas of the market that were punished by those higher rates. One Canadian stock stands to benefit from that shift in a unique manner.

That Canadian stock is Brookfield Renewable (TSX:BEPC).

Brookfield has endured the past few years while the entire renewable energy sector was pressured by higher interest rates. Now that rate cuts are approaching, and demand for clean energy is accelerating, the prospects for this Canadian stock look increasingly promising.

A global renewable powerhouse

Brookfield Renewable’s parent company, Brookfield Asset Management, is a global leader in infrastructure and real assets. The company has its operations across multiple segments of the market, including infrastructure, asset management, and renewables.

That backing gives the renewable business both the operational expertise and access to capital that other players simply cannot afford. This gives the renewables business one of the largest renewable energy portfolios in the world.

The company boasts a massive portfolio that spans hydro, wind, solar, energy storage, and emerging decarbonization technologies. Those assets are spread across multiple continents, giving the company a massive level of diversification and stability.

That stable business also means that the company’s cash flows are backed by long-term contracts that provide a recurring and predictable revenue stream, even during volatile periods. Despite that stability, the stock has lagged, and the disconnect is exactly what makes this a compelling Canadian stock pick for 2026

Why BEPC is ready to rise in 2026

There are several reasons why investors may want to consider investing in BEPC stock.

One of the biggest reasons is the impact of rate cuts.

Building and operating a renewable energy portfolio is capital-intensive. When rates rise, financing becomes more expensive and valuations compress. That’s the scenario that led to BEPC’s current predicament. Despite posting solid gains over the past 12 months, the stock remains down more than 5% over the trailing five‑year period.

Fortunately, the opposite is also true, and that’s why the stock’s more recent appointment shines brighter. As rates fall, the return on projects in the development pipeline improves. Financing costs begin to come down, and the market starts to reward long-duration assets again.

That development pipeline represents another key reason for investors to consider Brookfield as one of the renewable energy stocks for any portfolio. In fact, BEPC has one of the largest renewable energy development pipelines on the planet.

More importantly, those new assets are concentrated in areas where demand is accelerating. Clean energy demand is becoming the standard for infrastructure development. BEPC is uniquely positioned to capitalize on that long-term shift.

That is reason enough for long-term investors to consider this Canadian stock for inclusion in any portfolio.

Generate a reliable income

Another reason for investors to consider BEPC stock as a portfolio candidate is the company’s quarterly dividend. Brookfield is known for delivering consistent dividends with annual growth across all its platforms, and Brookfield Renewables is no exception.

As of the time of writing, BEPC offers a respectable 3.6% yield. That yield is supported by long-term contractual cash flows and continues to grow.

For investors who want both income and upside potential, the dividend provides a cushion while waiting for the rebound to play out. It also makes this Canadian stock an attractive option for income-focused investors who want exposure to renewables without taking on excessive risk.

Buy this Canadian stock in 2026

Brookfield Renewable offers a rare combination of rebound potential, long-term growth, global scale, stable cash flows, and a reliable dividend. With rate cuts approaching and renewable demand accelerating, 2026 could be a turning point for the stock.

For investors seeking TSX stocks to buy with meaningful upside potential, this Canadian stock stands out as a compelling addition to any well-diversified portfolio.

The post 1 Canadian Stock Ready to Rise in 2026 appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy.