Building a diversified portfolio is something every Canadian investor needs to do in 2026. That includes picking the right stocks to balance growth, generate income and provide some defensive appeal.
The market gives plenty of options to choose from. Here are three of those top picks to consider in 2026.
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Top pick #1: The big bank
Canada’s big bank stocks are appealing choices for any Canadian investor. The reasons for that include offering growing dividends, reliable revenue streams, and wide defensive moats.
Among those big bank stocks, Toronto-Dominion Bank (TSX:TD) emerges as a solid option for investors in 2026.
TD is the second-largest of the big banks. The bank has segments that include retail, wealth management, and wholesale banking units in both Canada and the U.S. TD’s growth focus is on the U.S. market.
TD rapidly established its U.S network in the years following the Great Recession. Today, it stretches from Maine to Florida.
That Canada-U.S. dual setup allows TD to focus on growth in the U.S. while maintaining strong conservative approaches to expansion in the more regulated market at home. Throw in TD’s strong CET1 capital ratio (14.7%), and you have a solid, income-generating option for any portfolio.
Speaking of income, TD offers investors a quarterly payment that it has reliably paid for well over a century. The bank stock has also provided annual upticks to that dividend for over a decade, making it a reliable choice for the Canadian investor seeking buy-and-forget appeal.
As of the time of writing, TD offers a robust 3.36% yield, which includes the 2.9% hike for 2026.
Top pick #2: The utility stock
If 2026 pans out in any way similar to 2025, there will be plenty of volatility for the Canadian investor. This means that investing in a defensive stock such as Fortis (TSX:FTS) is always a good idea.
Fortis is one of the largest utility stocks on the continent. The company provides regulated electric and gas utility service to over 3.5 million customers across the U.S., Canada, and the Caribbean.
That regulated utility service provides a recurring and stable revenue stream, which allows Fortis to invest in growth initiatives while paying out a handsome dividend.
The predictable nature of that revenue stream also means that planning that growth over several years is an easier task when compared to other businesses.
Fortis’ current capital plan includes a whopping $28 billion over several years to fund grid upgrades and transitioning some facilities over to renewables.
Turning to income, Fortis really shines. Fortis builds off its reputation as a reliable and consistent payer, offering investors a quarterly dividend with a yield of 3.5%. Not only is that dividend well-covered, but it continues to grow.
In fact, Fortis has provided annual upticks to that dividend for an incredible 51 consecutive years without fail. This makes it one of just two Dividend Kings in Canada, and a top investment for the Canadian investor looking for stable income.
Top pick #3: Diversified energy infrastructure
The third stock for any Canadian investor seeking to build a diversified portfolio is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure companies on the planet.
The company operates several different segments, including a pipeline business, a renewable energy operation, and a natural gas utility.
The pipeline business generates the bulk of Enbridge’s revenue, offering a fee-based model that is similar in operation to a toll road. More importantly, the business is insulated from the volatile price of oil.
The renewable energy business comprises approximately 40 facilities in Europe and the U.S., generating a recurring revenue stream backed by long-term regulated contracts. That defensive-contract appeal extends to the natural gas utility, which is one of the largest by customer count in North America.
Each of those businesses generates ample revenue for Enbridge to invest in growth from its multi-billion-dollar backlog while paying out one of the best dividends on the market.
As of the time of writing, that yield works out to 6%.
Every Canadian investor needs these stocks
No stock is without risk. Fortunately, the trio of stocks mentioned above can provide ample growth, defensive appeal, and income-generation to build a well-diversified portfolio.
Buy them, hold them, and watch your portfolio grow.
