Investing isn’t always about chasing the next hot trend or the fastest-growing tech stocks. Sometimes, the smartest moves are also the most dependable. For decades, Canadian financial stocks have built wealth for investors — not through wild swings or media hype, but through consistency and the ability to navigate uncertainty better than most sectors.
In this article, I’ll talk about two top Canadian financial stocks you can hold in your portfolio to make it more resilient and stable.
EQB stock
The first Canadian financial stock worth a serious look right now is EQB (TSX:EQB) — a digital banking firm that’s become one of the most consistent performers on the TSX. It currently trades at $97.31 per share with a market cap of $3.7 billion. Over the past year, EQB stock has gone up by around 15%. It also pays a quarterly dividend, with a current annualized yield of nearly 2%.
EQB mainly operates through its subsidiary Equitable Bank, offering a full range of personal and commercial banking services. In its latest quarter ended January 2025, the company’s adjusted earnings rose 8% YoY (year over year) and 19% sequentially to $2.98 per share. During the quarter, its total revenue also rose 8% from a year ago to $323 million with the help of higher loan volumes, net interest income, and solid growth in non-interest income. As a result, its adjusted quarterly net profit grew by 9.4% YoY to $116 million.
To accelerate its financial growth further, EQB is continuing to focus on scale. Its total assets under management and administration hit $132 billion in the latest quarter. More importantly, customer growth at its EQ Bank rose 26% YoY, and it’s expanding fast in many areas like multi-unit residential mortgages and decumulation lending. Given these strong fundamentals, EQB could be a top stock in the Canadian financial space for investors looking for stability.
Fairfax Financial stock
The second dependable Canadian stock that deserves a spot in any smart investor’s portfolio is Fairfax Financial Holdings (TSX:FFH). After rallying by 40% over the last 12 months, FFH stock currently trades at $2,051.61 per share, giving it a market cap of $46.8 billion. It pays an annual dividend, which currently works out to a 1.1% yield.
This Toronto-based holding company operates mainly in property and casualty insurance, reinsurance, and investment management segments. In 2024, Fairfax posted an adjusted net profit of US$3.9 billion, down from US$4.38 billion the year before. That dip came despite its record underwriting profit of US$1.8 billion and a solid combined ratio of 92.7%. Nevertheless, its adjusted operating profit rose 21% YoY to US$4.76 billion, driven by strong insurance results and rising interest income. The company also witnessed investment gains of over US$1 billion last year, even after weathering losses on bonds due to higher rates.
What makes Fairfax an amazing stock for the long term is its consistent focus on smart acquisitions. For example, it acquired Sleep Country and increased its stake in Peak Achievement last year. With over US$35 billion in insurance float and a solid balance sheet, Fairfax has the potential to keep delivering solid returns in the long run.
