It’s that time of year! A new year brings new resolutions and a fresh start. Let the mistakes of 2025 become the lessons of 2026, and make it a point to work on the unfinished things. Make it your resolution to start the first day of the year by investing in stocks that will make money work for you. But don’t leave the research until 2026. When you already have your 2026 investment strategy planned, execution is a piece of cake.
Now is the time to decide and plan where to invest, and January 1 is the date of execution.
My favourite dividend stocks for 2026
For 2026, my investing strategy is to book profits on seasonal stocks and invest that money in dividend stocks that will grow even in a market downturn. The rising global tensions, tariffs entering the second year, and Canada’s move to diversify export markets could create new opportunities. However, every change is accompanied by a pullback before the rally. At such times, dividend stocks with steady cash flows can give immediate returns.
Tourmaline Oil
Some dividend knights are evergreen stocks to accumulate. However, 2026 will likely have an interesting growth cycle for natural gas. The energy industry’s transition to lower-emission substitutes has made natural gas the preferred choice for heating, electricity, cooking, and transportation.
Tourmaline Oil (TSX:TOU) is Canada’s largest natural gas producer and fifth largest in North America. At a time when energy and telecom infrastructure companies are pausing dividend growth to repay debt, Tourmaline is giving a special dividend and dividend growth. The company is developing its most profitable resource inventory in Northeast British Columbia (NEBC). The NEBC project is expected to add 1.1 billion cubic feet per day (bcf/d) of new gas production and over 50,000 barrels per day (bpd) of condensate and natural gas liquid (NGL) over the next six years. Higher production increases free cash flow and dividends.
Tourmaline has been giving special dividends for the last five years as natural gas prices have increased. It can fund the base dividend of $2/share when the natural gas price is at US$2.15/thousand cubic feet (mcf) NYMEX & $2.15/mcf AECO. Assuming the natural gas price remains $4.01/million British thermal units in 2026 NYMEX US, the producer will have surplus cash to grow its base dividend, give special dividends, fund capital expenditure, invest in exploration, and buy back shares.
The company aims to increase natural gas production and use the excess cash flow to repay debt and become net cash positive in the next three years. Once the debt is repaid, the surplus cash will go towards exploration, buybacks, and dividends. The strong balance sheet and low-cost natural gas reserves make Tourmaline Oil my preferred dividend stock.
Power Corporation of Canada stock
Power Corporation of Canada (TSX:POW) is my second favourite because of the double-digit income growth in its holding companies. Its biggest source of income is dividends from Great-West Lifeco and IGM Financial, which earn money from premiums and asset management fees.
Power Corporation’s share price increases when the share price of the holding companies increases. And the share price of the holding company is dependent on the fair market value of the portfolio. When the equity markets are doing well, POW’s share price rises, and when there is uncertainty, dividends rise as more people buy insurance.
The stock has surged 62% in 2025 and is trading near its all-time high. Despite this, it is a buy as its share price could benefit from a recovery in the stock market in the second half of 2026. The company can continue to grow dividends by 5-10% in 2026 and beyond as it keeps buying back shares.
