The 3 Stocks I’d Buy and Hold Into 2026

After witnessing a steep sell-off on Friday, the Canadian benchmark index, the S&P/TSX Composite Index, has bounced back strongly this week, gaining 2% and bringing its year-to-date return to 2.7%. Despite this recovery, persistent inflation, ongoing geopolitical tensions, and the potential impact of protectionist economic policies on global growth remain key concerns. Given this uncertain outlook, investors should focus on balancing their portfolios with a mix of growth, defensive, and dividend stocks to optimize their risk-return profile.

Against this backdrop, here are three Canadian stocks that I believe are compelling buys right now.

5N Plus

The accelerating adoption of artificial intelligence (AI) and the growing proliferation of connected devices are creating compelling long-term growth opportunities for 5N Plus (TSX: VNP), which focuses on developing, manufacturing, and marketing specialty semiconductors and performance materials.

Further supporting its growth outlook, the company has secured a US$18.1 million grant from the U.S. government. The funding could expand and enhance its germanium recycling and refining capabilities using industrial residues and mining by-products. These initiatives could strengthen 5N Plus’s optics and solar germanium crystal supply chains in the United States, positioning the company to meet rising demand for germanium-based technologies.

In addition, 5N Plus is boosting its production capacity. It plans to increase solar cell output by 25% this year through expanded manufacturing at its subsidiary, AZUR SPACE Solar Power GmbH. Given these growth initiatives and its expanding addressable market, I believe 5N Plus represents an attractive growth stock to buy right now.

Fortis

Fortis (TSX: FTS) operates nine highly regulated natural gas and electric utilities, serving approximately 3.5 million customers across the United States, Canada, and the Caribbean. About 94% of its assets are invested in low-risk transmission and distribution businesses. This regulated, low-risk business model has enabled Fortis to deliver stable and reliable financial performance across economic cycles and market volatility, resulting in consistent shareholder returns.

Over the past 20 years, the utility has generated an average annual total shareholder return of 9.7%, outperforming broader equity markets. It has also increased its dividend for 52 consecutive years and currently offers a forward dividend yield of 3.5%.

Looking ahead, Fortis plans to invest $28.8 billion over the next five years to grow its rate base at a 7% annualized pace, reaching $57.9 billion by 2030. Alongside these investments, the company is implementing cost-reduction and efficiency initiatives that should support earnings and dividend growth. Management expects to raise the dividend at an annualized rate of 4–6% through the rest of the decade, making Fortis an attractive defensive investment.

Canadian Natural Resources

My final pick would be Canadian Natural Resources (TSX:CNQ), a dividend stock that has raised its dividend for 25 previous years at an annualized rate of 21%. Given its large, low-risk, and high-value reserves, diversified, balanced asset base, and lower capital reinvestment requirements, the oil and natural gas producer enjoys lower operating expenses and a lower breakeven point, thereby achieving higher profitability and cash flows. These healthy cash flows have allowed the company to raise its dividend consistently, while its forward yield stands at a 4.5%.

Moreover, CNQ has around five billion barrels of oil equivalent in reserves, with a proven reserve life index of about 32 years. Additionally, the company plans to invest $6.7 billion in 2025 and $6.4 billion in 2026 to strengthen its production capabilities. On the back of these expansions, the company’s management expects its average production this year to range between 1,590 and 1,650 thousand barrels of oil equivalent per day, with the midpoint representing a 3.2% increase from last year.

Considering its high-quality reserve base, strengthened production capabilities, and robust free cash flow generation, I expect CNQ to maintain dividend growth, making it an excellent buy.

The post The 3 Stocks I’d Buy and Hold Into 2026 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Natural Resources right now?

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points.*

They revealed what they believe are 10 TSX Stocks for 2026… and Canadian Natural Resources made the list – but there are 9 other stocks you may be overlooking.

Don’t miss out on our Top 10 TSX Stocks for 2026, available when you join our mailing list!

Get the 10 stocks instantly #start_btn5 { 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_btn5 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn5 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn5 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• 5 TSX Dividend Champions Every Retiree Should Consider
• 4 Dividend Stocks to Double Up on Right Now
• Market on Fire: How to Invest When the TSX Refuses to Slow Down
• TFSA Gold: 2 Dividend Stocks to Lock in Now for Decades of Passive Income
• Where Will Canadian Natural Resources Be in 5 Years?

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Fortis. The Motley Fool has a disclosure policy.