There’s no need to rush into the market as patience is rewarded when volatility creates better entry points. Investors sitting on $7,000 today can begin positioning for attractive long-term returns. By focusing on high-quality Canadian stocks with durable business models, dependable cash flows, and reasonable valuations, investors can set themselves up well heading into 2026.
A balanced approach that blends income and growth can be particularly effective. Historically, dividends have played a powerful role in Canadian equity returns. According to a RBC Global Asset Management article in 2022, dividends accounted for roughly 30% of total Canadian equity market returns over the past 30 years and had often outpaced inflation, helping investors preserve and grow their purchasing power over time.
With that backdrop, here are two interesting Canadian stocks worth considering right now.
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A renewable power leader trading on weakness
After a run-up of about 57% from lows to highs earlier this year, Brookfield Renewable Partners (TSX: BEP.UN) has recently pulled back, creating a potential opportunity for long-term investors. Market pullbacks can be especially attractive for income-focused stocks, as they allow investors to lock in higher yields.
Brookfield Renewable operates one of the largest publicly traded renewable power platforms in the world. Its portfolio spans hydroelectric, wind, solar, distributed energy, and sustainable solutions across five continents. This global diversification positions the company to benefit from long-term trends such as electrification, decarbonization, and digital infrastructure growth.
BEP’s disciplined investment approach targets long-term total returns of 12–15%, supported by annual distribution growth of 5–9%. Over the past decade, the partnership has delivered total returns of just over 13% annually on the TSX, while steadily growing its cash distribution at a compound annual rate of 5.6%. Importantly for income investors, distributions are paid in U.S. dollars, offering some currency diversification.
At roughly $36.70 per unit, the stock trades at about a 12% discount to analyst consensus estimates and yields approximately 5.7%. Management has also demonstrated a willingness to repurchase units when valuations are attractive, adding another layer of downside support.
A high-quality growth stock after a sharp correction
Thomson Reuters (TSX: TRI) represents a very different opportunity — one rooted in high-margin growth and recurring revenue rather than yield. The stock has fallen more than 30% from its highs after previously trading at an elevated valuation, which appears to have triggered profit-taking.
The sell-off accelerated following an earnings miss in the third quarter, despite solid organic revenue growth of 7%. Importantly, management largely reaffirmed its fiscal 2025 outlook and expects free cash flow of roughly US$2.1 billion in fiscal 2026, representing about 10% year-over-year growth.
Thomson Reuters provides essential information, software, and services to legal, tax, accounting, and corporate professionals. Its subscription-based model delivers predictable revenue, strong customer retention, and pricing power — qualities that tend to perform well across economic cycles.
At around $182 per share, the stock trades at more than a 30% discount to analyst consensus price targets. Investors are also paid to wait with a dividend yield near 1.8%, supported by an impressive 31 consecutive years of dividend increases.
Putting $7,000 to work
With $7,000 to invest, investors could consider splitting capital evenly between Brookfield Renewable Partners and Thomson Reuters, using market dips to build positions gradually. Together, these two stocks offer an interesting mix of income, growth, and resilience for long-term Canadian investors looking ahead to 2026 and beyond.
