It was a wild 2025, but in a good way for investors in the TSX. The Canadian stock market surged to a greater extent than most developed markets, posting an incredible 28% annual gain for one of its best years in a very long time.
Much of this has to do with renewed interest around international (non-U.S.) stocks, the favourable regulatory environment Canadian stocks benefit from (in addition to a far more stable political environment) and a focus on a resource and commodity-heavy economy.
With plenty of growth factors likely to drive interest in top Canadian stocks, it can be difficult to pinpoint where to start. Personally, these are two of my top Canadian picks for 2026.
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Agnico Eagle Mines
My favourite gold miner of the bunch (and there are quite a few names listed on the TSX) is Agnico Eagle Mines (TSX:AEM).
Agnico Eagle, formed as a merger between Agnico and Kirkland Lake Gold, now has one of the best quality and production growth profiles in the sector. Combining a mix of high-grade, low-production mines with higher-volume and lower-grade production mines, this is a company that can benefit both from rising prices of gold (which has been surging and could hit $5,000 per share in short order, according to some experts), as well as production growth over time.
That’s the sort of explosive upside I think investors may want to consider. Indeed, gold’s surge has been astronomical, and it has not been seen in decades. That said, if the U.S. dollar is indeed losing its status as the global reserve currency, and we see continued central bank buying propelling gold prices higher, this is a stock that could just be getting started on its journey higher.
Despite the incredible run AEM stock has been on thus far this year, this is a company that still trades at just 19 times forward earnings. That’s incredibly cheap for a company with such robust momentum, and I think 2026 could be another banner year for this name.
Fortis
Another top pick of mine (for many years now), Fortis (TSX:FTS) is another TSX gem that has finally gotten some love from investors.
Shares of the Canadian utility giant have been on a tear, surging around 25% over the course of the past year. For a utility stock, that’s incredible performance. Indeed, a company many view as a bond proxy performing to this degree suggests that there’s something under the surface worth considering (bonds have performed okay, but nothing like Fortis this past year).
The reason for Fortis’ outperformance from the perspective of dividend stock investors has to do with the company’s solid underlying fundamentals, its growth outlook (thanks to the rise of AI) and the company’s ability to deliver growing dividend income to investors over time. With a 52-year track record of raising its dividend annually, that’s something I think investors can assume will continue for years to come.
Indeed, as electricity demand surges, companies like Fortis will continue to see outsized earnings beats and be able to deliver more value to shareholders. In this environment, that’s a dynamic I think could lead to material share price appreciation.
