Here’s Where I’m Investing My Next $2,500 on the TSX

Some people who want to stay invested prefer buying stocks in tranches rather than a single lump sum. Breaking a large amount into smaller scheduled investments is a systematic, defensive approach. Today, for example, a $2,500 investment can create a balanced foundation that can mitigate potential headwinds given the current economic conditions. 

Choosing Canadian Utilities (TSX:CU) and Kinross Gold (TSX:K) for your next $2,500 isn’t a gamble but a smart way to earn defensive income and hedge against inflation or geopolitical risks. The former is a dividend knight, while the latter is a safe-haven asset when markets get rough.

Income anchor

How can you not love Canadian Utilities? The top-tier utility stock has a 54-year track record of dividend increases. Your benefits are capital protection and reliable, recurring income streams. At $43.28 per share, the TSX’s first dividend knight pays a hefty 4.26% dividend, with a quarterly payout.

This most recent hike indicates the board’s confidence in the company’s financial stability and long-term cash flow profile within the sector in which it operates. While the utility stock is rate sensitive, it stands out for its attractive yield and low volatility.

The $11.5 billion diversified energy infrastructure company derives roughly 90% of its earnings from regulated utilities and long-term contracted assets. CU is sometimes referred to as a bond proxy for this reason.

In the third quarter (Q3) of 2025, 95% of the $402 million capital expenditures went into regulated utilities. Bob Myles, CEO of Canadian Utilities, said the company is on track with its growth plans. For 2026, the focus is on major gas transmission and power line projects, the Yellowhead Pipeline for gas and Central East Transfer-Out (CETO) for power.

The Yellowhead Pipeline, a $2.8 billion natural gas project, would boost Alberta’s energy infrastructure. According to management, the construction of the 230 km natural gas pipeline will commence this year. Meanwhile, the in-service date for the $280 million CETO project, an 85-km, 240 kV power line to integrate renewable energy in Alberta, is Q2 2026.

Canadian Utilities expects the total $6.1 billion investments in regulated utilities from 2025 to 2027 to increase the $15.9 billion rate base and contribute significant earnings and cash flows.

Volatility buffer

Metals and mining stocks, including Kinross Gold, benefit from rising gold and silver prices. Both precious metals hit record prices already in January 2026, driven by geopolitical and economic uncertainty.

As of this writing, Kinross trades at $46.30 per share and pays a modest 0.67% dividend following a 17% annual increase. In 2025, the gold stock’s total return was +192%. It also ranked 12th in the TSX30 List, an annual ranking of Canada’s 30 top-performing stocks.

The $55.2 billion senior gold mining company operates mines in the United States, Brazil, Chile, and Mauritania. Its world-class Great Bear Project in Red Lake, Ontario, supports a large, long-life mine complex and has a long-term production outlook.

In Q3 2025, free cash flow (FCF) reached a record $686.7 million, bringing the total FCF to more than $1.7 billion after three quarters. Its CEO, J. Paul Rollinson, said, “Looking ahead, we’re excited by the progress across our growth pipeline.”

Defensive combination

You can split your next $2,500 (50/50) between Canadian Utilities and Kinross Gold. The defensive combination can weather the economic turbulence in 2026.

The post Here’s Where I’m Investing My Next $2,500 on the TSX appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Utilities Limited right now?

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More reading

• Here’s How Much 50-Year-Old Canadians Need Now to Retire at 65
• 1 Unbelievable Canadian Dividend Stock to Buy and Hold for Years
• If I Could Only Buy 2 Dividend Stocks in 2026, These Would Be My Picks
• 3 Canadian Dividend Stocks to Consider Adding to Your TFSA in 2026
• Got $2,000? 4 Dividend Stocks to Buy and Hold Forever

Fool contributor Christopher Liew 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.