For equity investors, a plethora of catalysts and price appreciation drivers should be watched closely. I’d argue earnings and cash flow growth matter more than anything else. Though momentum and valuation premia, as well as fiscal and monetary policy, can matter a great deal.
This year, plenty of market participants have had to digest on the latter fronts. New administrations in both Canada and the U.S., with Prime Minister Mark Carney and President Donald Trump both driving their own agendas to push each country forward (though perhaps not holding hands while doing so).
With divergent policies on a number of fronts, it can be hard to find common ground. That said, these two TSX stocks are among the key winners from both administrations’ core priorities right now.
Enbridge
Energy infrastructure giant Enbridge (TSX:ENB) remains one of the most stable stocks in the market. Operating one of the most vast pipeline networks in the world, Enbridge’s thousands of kilometres of laid pipe deliver oil mainly from the Western Canadian oil sands to U.S. refineries.
That said, with Trump’s focus on bringing prices at the pump down, I think the Canadian energy sector could be exempt from any more tariff/trade games coming from south of the border. And with Carney’s newfound love for pipeline development (to attract new global trade partners), I do think Enbridge is likely in pole position to receive approval for a massive pipeline project to the B.C. coast – something I’ve argued should have taken place decades ago, but here we are.
With a current dividend yield of 6% and forward price-earnings ratio of just 20 times, Enbridge hasn’t been this cheap relative to its growth potential in a long time.
Suncor
Another energy-related stock I think can have a very positive 2026 amid these new political regimes in North America is Suncor (TSX:SU).
Suncor is one of Enbridge’s most valuable customers, so in essence, this pairs trade is one I think can take advantage of the vertical supply chain, which could become more valuable over the year to come. That’s my base case, anyway.
Suncor’s status as one of the most efficient and profitable oil sands producers remains undisputed, and the company’s absolutely incredible profitability surge this past year as oil prices have trended lower is notable.
Now, the price of oil has dropped considerably, so Suncor stock could have some commodity price-related downside in the year to come. But with a solid dividend yield of 4% and an even more incredibly cheap multiple than Enbridge, Suncor remains one of my top stock picks for the year to come.
