Finding value in today’s market isn’t easy. Indeed, there are plenty of considerations investors have to make, from which geographic area to invest in, to which sector, and which companies fits one’s investing profile.
For stock pickers like myself, targeting individual companies within a specific sector is how I often like to play certain trends. Owning some amount of ETF exposure is certainly helpful. But for those seeking outsized returns, finding the best companies in a specific sector can pay massive dividends.
I’ve been bullish on the utility sector for a long time. Here are three of my top picks for Canadian investors in 2026 and beyond.
Brookfield Infrastructure Partners
Speaking of diversified funds, Brookfield Infrastructure Partners (TSX:BIP.UN) is among the top-tier options available to those looking at creating portfolio stability within the utilities space.
With a 4.9% dividend yield and one of the most impressive portfolios of utility assets (fossil fuels and renewables) in the sector, this is a company I think provides an excellent option for those seeking diversified exposure to a number of utility-focused sub-sectors.
Personally, I think renewable energy will turn out to be one of the most important investing trends in the decades to come. That may not be the case for current administrations in North America, but that will likely change over time. Thus, Brookfield Infrastructure Partners is one stock I’m looking much more intently at right now.
Fortis
No list of top utility stocks to buy can really be complete without discussing Fortis (TSX:FTS), at least in my view.
That’s because this large-cap Canadian utility giant has among the most robust balance sheets and dividend growth profiles in the market. The company’s 3.5% dividend yield is a far cry from the higher yields many of its peers provide (the other two stocks on this list have higher yields). However, it’s Fortis’ 52-year annual dividend increase track record that is truly astounding, and provides a growing stream of passive income for investors over the very long-term.
With energy demand expected to accelerate further over the coming months as the rise of artificial intelligence drives prices (and profitability) higher for companies like Fortis, this is a stock I think could have major upside over the long-term, even after its recent rally.
Northland Power
Last, but not least, we have Northland Power (TSX:NPI).
A utility giant that has historically focused on renewable energy production, Northland Power has seen its stock price hit relatively hard via a hard shift from the Trump administration in how renewable energy projects are ultimately funded or get their permits approved.
That said, as I mentioned earlier, I do think that renewable energy will be a key growth driver over the very long term. So, for investors who are willing to invest in this trend at a massive discount, Northland Power is a top way to do so in my books.
