Crucial Investment Theme in 2026: Income vs. Growth

Growth is a dominant investment theme in 2026, although some investors might move towards income generation due to inflation risks.

Key Points
  • Pair income and growth: Fortis (TSX:FTS) offers defensive, regulated utility income while DPM Metals (TSX:DPM) provides leveraged gold exposure for upside.
  • Fortis (~$72.56) yields 3.52% with a 52‑year dividend streak and a $28.8B five‑year capital plan targeting 4–6% annual dividend growth; DPM ($35.91) is up ~177.5% YTD, posted strong revenue/FCF gains and a new high‑grade discovery at Chelopech that can extend mine life.
  • 5 stocks our experts like better than [Fortis] >

The crucial investment theme in 2026 is either income or growth. Growth investing is a dominant theme because of the gold rush and AI trend in 2025. On the other hand, tariff and inflation risks could prompt investors to seek capital protection and create passive income to hedge against inflation.

If you’re rebalancing your portfolio, consider taking positions in Fortis (TSX: FTS) and DPM Metals (TSX: DPM). The former will deliver high-quality income streams while the latter has a long-term growth pipeline and benefits from the strong demand for gold.

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property

Source: Getty Images

Low-risk profile

Fortis operates in the utility sector is thus a safe choice for income investors regardless of the economic environment. The $36.7 billion electric and gas utility company is a dividend king. In addition to the 52-year dividend streak, almost 100% of its assets are regulated. The low-risk, essential services generate predictable earnings.

If you invest today, FTS trades at $72.56 per share (+26% year-to-date) and pays a 3.5% dividend. The dividend champion’s annual dividend growth guidance through 2030 is 4% to 6%. Expect higher quarterly payouts over the next five years.

On November 4, 2025, Fortis announced its new $28.8 billion five-year capital plan. the largest ever. According to David Hutchens, President and CEO of Fortis, the plan is not only executable but also extends the robust rate base growth. It supports management’s annual dividend growth target for shareholders.

In Q3 2024, net earnings increased 6% year-over-year to $2.9 billion, although net earnings declined 2.6% to $409 million. On a year-to-date basis (nine months ending September 30, 2025), profit rose 7% to $1.3 billion from a year ago.

“During the third quarter, our utilities delivered earnings growth and executed capital investments in line with expectations,” Hutchens said. “We remain focused on low-risk, regulated utility growth, and our recent decisions to sell assets further support our funding plan and strengthen the balance sheet.”

Fortis commits to continue enhancing shareholder value through the execution of its capital plan. The company believes in the balance and strength of its diversified regulated utility businesses. Beyond the five-year capital plan, further expansion of the U.S. electric transmission grid will follow.

Superior value

Dundee Precious Metals, or DPM Metals, has rewarded investors with substantial capital gains this year. At $35.91 per share, the year-to-date gain is 177.5%. Had you invested $7,000 at year-end 2024, your money would have grown to $19,425.80 today. An added bonus is the modest 0.66% dividend.

The $7.5 billion international gold mining company operates or has projects in Bulgaria, Bosnia, Serbia, and Ecuador. In the first three quarters of 2025, revenue and earnings jumped 40% and 35% year-over-year, respectively, to $598 million and $211.9 million. Notably, free cash flow (FCF) accelerated by 51% to $321.4 million.

DPM is well-positioned to deliver superior value. On November 19, 2025, the company announced the discovery of a high-grade mineralization at the Wedge Zone Deep target at Chelopech, Bulgaria. Its President and CEO, David Rae, said the new find in the mine concession will extend mine life and enhance long-term shareholder value.

Balanced mix

Fortis is a must-own stock for its inherent defensive qualities. DPM Metals should soar higher if the gold rush extends into 2026. You’ll have a balanced mix if you purchase both stocks this year-end.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

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