The year 2026 began with a new escalation of war. What began as a tariff war with the entire world has now escalated to a full-blown war for oil supremacy. The Venezuela and Greenland crises have alerted global nations to up their defence. When the safety of the nation is uncertain, businesses and individuals feel the impact. It is these uncertainties that create opportunities to diversify and invest in every scenario with the right TSX stocks.
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How to diversify your investments across TSX stocks in 2026
Remember the 2020 pandemic? The tech stocks were breaking records. Those who invested in oil and gold, as well as business jet makers and travel software companies, generated wealth back then. While oil and gold are evergreen cyclical stocks, the other two were contrarian to the pandemic.
When you choose your 2026 stocks, consider diversifying your investments across telecom operators and real estate. These are contrarian picks in an uncertain market environment. These sectors have underperformed since 2022 and have not recovered since then. 2026 could be a recovery year for them.
Telus: What to expect in 2026?
Telus Corporation (TSX: T) will focus on repaying debt and bringing the net debt to Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) down to 3 times. The company’s share price has been trading below $18, its 12-year low, as high debt and diluting equity reduced per share value. The targeted debt reduction will reduce interest expenses and capital expenditure in infrastructure, freeing up more cash. It expects to increase free cash flow at an average annual rate of 10% from 2026 through 2028.
The company has also altered its capital allocation policy. It will pause dividend growth until the leverage ratio stabilizes and alter the dividend reinvestment plan (DRIP). Instead of using treasury stocks for DRIP, it will use the dividend money to buy back shares from the market. This will reduce dividend dilution and bring the total dividends, both cash and DRIP, below the 100% free cash flow. These efforts could see Telus’ share price recover to $25, representing an upside of 34% from the current trading price of $18.6.
HIVE Digital Technologies
Last year, HIVE Digital Technologies (TSXV:HIVE) focused on increasing its Exahash per second (EH/s) to mine more Bitcoin. This year, the company’s focus is on converting its Tier 1 bitcoin mining data centres to Tier 3 artificial intelligence (AI) data centres. Building an AI data centre from scratch takes three to five years. However, Hive is using the crypto miners’ model to accelerate AI capacity build, while keeping tight control over its return on invested capital (ROIC).
It is generating hydro electricity at Paraguay and converting it into a liquid asset by mining Bitcoin. It then leverages this Bitcoin and takes a loan against it to upgrade to an AI data centre.
Now, the value of the dollar is depreciating against gold and Bitcoin. Geopolitical tension and wars will increase the demand for AI capacity. If Hive wins even a single contract from defence, government, or a hyperscaler, its share price could skyrocket.
Hive stock has already jumped 24% year-to-date. However, it is not too late to buy the stock. You can consider buying it below $4 to get maximum returns and between $4 and $6 for moderate returns. Its dual supercycle of AI data centre and Bitcoin mining could drive the stock to $10. However, it is trading on four exchanges – Canada, Germany, Nasdaq, and Colombia – that diversifies its equity value. At the same time, it opens new markets for Hive, making it an opportunity to buy on the dip.
