New Year, New Portfolio: 2 Canadian Stocks to Own to Diversify Well in 2026

We’re about to turn the page on 2025, which means now is an excellent time for investors to consider picking up shares in some top Canadian stocks that are positioned well for a new year.

I’m of the view that Canadian stocks have outperformed this year for a variety of reasons. This is a market that’s notably cheaper than the U.S. market, with similar high-quality names that are worth investing in for the long term.

For those who are looking to diversify into some top-tier blue-chip Canadian stocks for 2026, here are two of my top picks right now.

Toronto-Dominion Bank

Shares of Toronto-Dominion Bank (TSX:TD) have crushed the returns of the TSX over the past year. And that’s saying something, considering the Canadian exchange is up nearly 30% for the year.

This is a top-tier Canadian bank (with expansive U.S. operations) I’ve long though is among the best growth plays in this sector. During 2025 at least, this thesis has played out. The company has seen strong revenue and profitability growth from its various business units, and is poised to repeat in the year to come.

With surging net interest margins thanks to the rate cutting schedule from both the Federal Reserve and the Bank of Canada bolstering the company’s cash flow and earnings profile, I think 2026 will bring much more of the same.

Additionally, this is a top-tier dividend stock with a yield of 3.3% (still better than most Canadian bonds) and capital appreciation upside to boot. Just check out the chart above for adequate commentary on this front.

Restaurant Brands

I think investors looking for defensive exposure and strong global diversification in 2026 can get both by owning Restaurant Brands (TSX:QSR).

Shares of the giant Tim Hortons, Burger King, and Popeyes (among others) have remained steady in 2025. While this was a relatively disappointing year, considering what the TSX returned, I think there are a couple of key reasons to own this stock now.

First, from a fundamentals standpoint, Restaurant Brands is a gem. The company’s forward price-to-earnings multiple at just 12 times is about as cheap as it comes for a stock yielding 3.5% or so. That’s an incredible valuation for a company with robust cash flows supported by a business model that’s as defensive as they come.

This brings me to my second point. The company’s value options for diners could invite plenty of trade down if we are indeed due for a recession or at least a significant market pullback next year. Those looking to position their portfolios to handle potential pain on the horizon will want to own steady gems like this that can potentially see revenue and earnings growth in down markets.

The post New Year, New Portfolio: 2 Canadian Stocks to Own to Diversify Well in 2026 appeared first on The Motley Fool Canada.

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More reading

• Here’s What’s Driving the TSX’s Top-Performing Stocks
• 3 Must-Own Blue-Chip Dividend Stocks for Canadians
• 3 Reasons to Buy TD Bank Stock Like There’s No Tomorrow
• 3 TSX Consumer Discretionary Stocks That Are Too Cheap to Ingore Right Now
• Balance Is Everything, and These 3 TSX Stocks Are Top-Tier Picks for 2026

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.