Finding non-traditional ways to play long-term trends is one of the games I like to play. Indeed, narratives around certain stocks can build over long periods of time. Investors may view one company as purely an income or value play, while others are purely growth stocks. In certain instances, this can be true.
That said, these two companies are ones I think investors should think outside the pre-defined box on. Here’s why I think these two Canadian companies could have explosive upside in the year to come, despite what many in the financial media may say.
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Restaurant Brands
I typically feature Restaurant Brands (TSX:QSR) as one of my top defensive picks in the market, and that view still holds true. This company’s vast portfolio of fast food banners insulates it from market downturns, with the brand still holding growth potential in down markets as consumers trade down.
However, I’d argue that the way things are setting up for 2026, Restaurant Brands has the potential to be a significant market outperformer. That’s due in part to the company’s international expansion into Asia, and strong growth seen in these core markets. Additionally, same-store sales at some of the company’s underperforming banners has improved in recent quarters. I expect this trend to continue into 2026.
With a solid dividend yield of 3.5%, a robust balance sheet and solid growth outlook, I wouldn’t be surprised to see a high-teens return for QSR stock in 2026. That’s my base case for now, at least.
Enbridge
Another company I typically discuss in the context of its high yield as a top dividend stock to buy now is Enbridge (TSX:ENB). Indeed, the company’s 5.8% yield is among the best among Canadian large-cap stocks and positions this stock well for continued capital inflows from income-hungry investors.
That said, with a changing of the political guard in both Canada and the U.S., the potential for pipeline expansion projects (or new pipelines) to get approved has changed dramatically. In this environment, I think Enbridge’s vast network of already laid pipe stands to position the company well for any future contracts that may arise.
I think 2026 could be a big year on this front, and we’ll have to ultimately see what gets announced. But from where I stand, this is a stock with the sort of durability and near-term upside that warrants a look, particularly given the fact that this company currently trades at just 20 times forward earnings.
