Top Canadian Stocks to Buy With $5,000 in 2026

If you think you need a huge pile of cash to start building long-term wealth, you might be overthinking the process. In reality, a focused $5,000 could still open the door to strong Canadian businesses that keep growing year after year. The key is consistency and knowing which stocks have the potential to multiply your investment over time. In this article, I’ll talk about two top Canadian stocks you can consider buying in 2026 that can make a $5,000 investment work harder.

Canadian Pacific Kansas City stock

One way to make a smaller investment count, especially over long holding periods, is by leaning on Canadian stocks that sit at the center of the economy, and Canadian Pacific Kansas City (TSX:CP) fits that idea well. This transportation giant operates one of the most important rail networks in North America, connecting Canada, the United States, and Mexico. CP stock currently trades at $102.27 per share, with a market cap of roughly $91.8 billion. It also pays dividends with an annualized yield of about 0.94% at this market price, offering a small income stream while you wait for growth.

Over the past year, CP stock has slipped by about 10%. This pullback has more to do with normalization after its recent merger with Kansas City Southern and lower freight volumes, rather than any major issue with its core business. For investors with a 2026 mindset, that weakness can actually create a more reasonable entry point.

Operationally, Canadian Pacific Kansas City continues to focus on improving efficiency across its expanded network. The company is currently focusing on cost discipline, longer trains, and better asset utilization, which will help it protect margins even when volumes fluctuate. These efforts have supported stable cash generation in recent quarters despite a mixed macro backdrop.

On the financial side, pricing actions and productivity gains have supported its revenue. While growth has moderated lately compared to the immediate post-merger period, the company’s profitability remains strong relative to peers in the rail industry. This stability is an important factor when you are trying to stretch a $5,000 investment over several years.

Going forward, Canadian Pacific Kansas City’s long-term story remains intact. Trade flows between Mexico and the U.S. continue to expand, nearshoring trends are reshaping supply chains, and rail remains one of the most efficient ways to move goods. These fundamental factors make this TSX-listed rail giant a solid Canadian stock to hold through 2026 and beyond.

iA Financial stock

Balancing infrastructure exposure with financial strength can make your $5,000 investment even more resilient, which brings iA Financial (TSX:IAG) into focus. This Quebec City-based financial firm operates across insurance and wealth management in Canada and the United States.

After rallying by around 22% over the last year, IAG stock now trades at $166.91 per share, giving it a market cap of about $15.3 billion. It also offers an annualized dividend yield of roughly 2.4%.

Consistent earnings growth and strong sales momentum have helped its stock surge over the last year. Investor confidence has also been driven by the company’s ability to grow profits while maintaining a robust capital position.

In the third quarter of 2025, iA Financial posted a strong 18% YoY (year-over-year) jump in its core earnings to $3.47 per share. This growth was mainly driven by favourable market conditions and higher activity across its business lines. During the quarter, its wealth management segment stood out, generating more than $1.1 billion in net fund inflows.

From a longer-term angle, the recently completed acquisition of RF Capital expands iA’s presence in the high-net-worth segment. These positive factors, combined with disciplined capital deployment, share buybacks, and stable dividends, make it an attractive Canadian stock for investors aiming to grow a $5,000 investment into 2026 and beyond.

The post Top Canadian Stocks to Buy With $5,000 in 2026 appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Pacific Railway right now?

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* Returns as of January 15th, 2026

More reading

• Prediction: 10 Years From Now, You’ll be Glad You Bought These Winners
• Best TSX Stock to Buy Right Now: CN Rail vs. CP Rail?
• Better Railway Stock: Canadian National vs Canadian Pacific?
• The Average RRSP at 40 Isn’t Enough: Here’s How to Boost it
• 5 Top Canadian Stocks to Pick up Now in January

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.