It has paid dividends to stay bullish on the Canadian stock market, with the TSX Index looking to add to its already impressive (and historic) 2025 gains. Undoubtedly, it’ll take a few big up days (around 3.5% to go) for the TSX Index to finish the year up 30%. A Santa Claus rally, if it’s in the cards this year, will probably do it.
Either way, the Canadian market’s comeback, led by strength in banking, materials, and energy, might have another year of solid results. So, whether you’re looking to rotate from U.S. names back to Canadian names, either for more momentum or lower valuations, consider the following two dividend growers, which, I think, are set up quite well as the year comes to a close.
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Enbridge
Enbridge (TSX:ENB) stock looks like a great pick up after underperforming the TSX Index, gaining just over 4% year to date. Undoubtedly, one had to think that shares of ENB were overdue to consolidate after last year’s impressive leg higher.
Now that the stock has gone sideways for quite some time (shares are pretty much where they were in the back half of January 2025), I think there’s an opportunity for value seekers to punch a ticket at a relatively attractive price of admission. Shares certainly do look like a better deal today than at their peak in September.
With a 6% dividend yield and a history of dividend hikes, even amid industry turmoil, I’m inclined to believe the pipeline juggernaut is worth more of a premium, especially as lower interest rates and yields across the board (can you believe some of the big banks are now yielding less than 4%?) become a bit harder to come by.
It’s not just relative yield scarcity that should have investors more upbeat on shares of ENB, though. The company sees more growth in the new year, as some of its new pipeline projects come online. Indeed, management sounded pretty confident about the prospects in the new year. With a recent dividend raise delivered only a few weeks ago and a potential cash flow growth spurt on the horizon, I’d argue ENB stock is one of the timelier dividend payers in the midstream energy space.
If you like predictable, growing cash flows and a shareholder friendly (arguably one of the friendliest) management team, it’s tough to overlook ENB stock after a relatively eventful year.
Barrick Mining
Barrick Mining (TSX:ABX) has gone parabolic, but it’s probably not too late to pick up a few shares, especially at just over $60 per share. Of course, the gold miners can be a far more volatile ride than the shiny yellow metal itself. And though physical bullion is the better way to go if you’re looking to reduce beta, I think the miners are a far higher-upside play on continued strength in the price of gold.
Undoubtedly, there are many macro factors at play that could drive even higher gold prices. Whether we’re talking about the eroding value of the U.S. dollar (the debasement trade) or continued central bank buying, I think the miners are one of those momentum stocks to stick with for the long run. With a solid 1.6% yield, potential to increase the payout as cash flows surge amid rising gold, and a modest 13.1 times forward price-to-earnings (P/E) multiple, ABX stock is a must-watch for 2026 in my books.
