After a stellar 2025, Canadian equity markets have continued their upward momentum, with the S&P/TSX Composite Index up around 4% year to date. Despite rising investor optimism, concerns surrounding ongoing geopolitical tensions, sticky inflation, and increasingly protectionist trade policies persist. In addition, elevated valuations following the sharp gains of the past 12 months add to market risk.
Against this uncertain backdrop, I believe the following three stocks could be compelling additions to a well-balanced portfolio.
Source: Getty Images
Kinross Gold
The rising tensions between the United States and Europe, as Donald Trump continues to push to acquire Greenland, have prompted investors to rush toward gold, a safe-haven asset, driving its prices to a record high. Higher gold prices could benefit gold-producing companies, including Kinross Gold (TSX:K), which operates a diversified portfolio of mines across the United States, Canada, Brazil, Chile, and Mauritania.
Although its production declined due to lower output from its Tasiast and Fort Knox mines, the company posted solid financial growth in the third quarter amid higher realized gold prices. Its adjusted earnings per share came in at $0.44, up 83.3% from the same quarter last year.
Looking ahead, I expect gold prices to remain elevated in the near- to medium-term. Besides, the company is also focusing on strengthening its production capabilities. Further, the company planned to repurchase $600 million in shares last year, which would support its earnings growth. Further, it pays a quarterly dividend of $0.035 per share, yielding approximately 0.42% on an annualized basis. Moreover, the management expects gold-equivalent production to remain steady at around two million ounces in both 2026 and 2027. Along with these factors, its attractive next 12 months price-to-earnings multiple of 12.3 makes Kinross Gold an attractive buy right now.
Bank of Nova Scotia
Another stock that appears to be an excellent buy right now is the Bank of Nova Scotia (TSX:BNS). This long-standing dividend payer has rewarded shareholders with uninterrupted dividend payments since 1833. Its diversified revenue base generates stable, reliable cash flows, enabling the bank to consistently return capital to shareholders. At current levels, BNS offers an attractive forward dividend yield of approximately 4.3%.
The bank’s financial performance has also been improving. In the most recently reported fourth quarter, revenue and adjusted earnings per share (EPS) increased by 15% and 22.9%, respectively. In addition, BNS has strengthened its balance sheet and improved its loan-to-deposit ratio, positioning the bank to support sustainable long-term growth.
Moreover, BNS has been strategically refocusing its operations toward lower-risk North American markets while reducing exposure to less profitable, higher-risk Latin American markets. This shift could streamline operations, enhance overall profitability, and improve the sustainability of future dividend payments. Taken together, these factors make BNS a compelling buy in the current environment.
Waste Connections
My final pick is Waste Connections (TSX:WCN), which has delivered an impressive annualized return of 18.4% over the past decade. The waste management company has pursued a balanced growth strategy, combining steady organic expansion with disciplined strategic acquisitions to scale its operations and strengthen its financial performance. Since 2020, WCN has acquired more than 100 assets, adding approximately $2.2 billion in total annualized revenue. In addition, the company operates primarily in secondary and exclusive markets, where it faces less competition and benefits from higher margins.
Looking ahead, WCN expects to maintain an active acquisition strategy, supported by healthy cash flows and a strong balance sheet. Its acquisition pipeline includes private companies across the United States and Canada with an estimated $5 billion in annualized revenue. The company is also leveraging technological advancements, including robotics and optical sorting systems at its recycling facilities, to improve operational efficiency. Furthermore, lower voluntary employee turnover, driven by improved employee engagement and safety metrics, could support continued margin expansion.
Considering these factors, WCN appears well-positioned to outperform the broader equity markets in the year ahead.
