The Boxing Day (or should I say week) sales might be long gone, but when it comes to the TSX Index, there is no shortage of intriguing buy ideas, especially as macro headwinds look to mount and investors take a bit of profit from the biggest gainers of 2025.
In this piece, we’ll concentrate on the premier blue chips that are down, but certainly not out of the game quite yet. For new investors looking for a holding to stash away for the next five to eight years, the following hard-hit large caps might be worth initiating a position in or, at the very least, adding to the radar should shares continue to come in over the coming weeks and months.
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Enbridge
Long-term income investors shouldn’t hesitate to pick up a few shares of Enbridge (TSX:ENB) anytime they fall into correction territory (remember, that’s a 10% fall from peak levels). The stock is in the process of recovering from such a dip, and while there’s a lot to look forward to up ahead, the recent slate of choppiness might not yet be over.
With more growth on the table for 2026 and a likely dividend hike in the cards as cash flows rise, my guess is that the dividend yield, currently sitting at 6.1%, won’t stay above the 6% mark for very long, especially if the coming quarter powers a continued recovery in the shares. While there are many solid dividend giants to go with this January, I still think that it’s tough to top the value proposition of the pipeline giant, especially since its management team is arguably one of the most shareholder-friendly in the country.
When times are good, the dividend stands to grow at a quicker pace. But when times are tough, the firm has what it takes not only to keep the dividend intact, but to keep the annual dividend raises coming (the firm just hiked its payout over a month ago, right ahead of the holiday season). While the pipelines might not be the steadiest ride in the world, Enbridge’s commitment to its dividend, I think, makes it a top dividend growth stock to own for very long periods of time.
Of course, the stock hasn’t done much in the past year, but a lagging 2025 could set the stage for a better 2026, especially when you consider the firm has spent big money on a number of initiatives that stand to really bolster cash flows in the quarters ahead. Despite the lack of momentum, I continue to think Enbridge shares will reward those who are most patient.
Empire Companies
Empire Company (TSX:EMP.A) is another hard-hit stock that looks like a compelling buy on weakness. Shares are down nearly 19% from all-time highs, thanks in part to margin pressures that have weighed on profitability.
Undoubtedly, recent quarters may not have been applause-worthy, especially relative to Empire’s better-performing rivals in the Canadian grocery scene. Despite the pressures and higher costs, though, I do think Empire can manage through the pressures. At the end of the day, the grocery scene remains a great place to be heading into the new year, especially for the chains that can offer a good bang for the buck.
As Empire looks to manage costs while upping its value proposition amid intense competition with its peers, I’d rather be a buyer than a seller with shares going for 15.9 times trailing price-to-earnings (P/E). That’s too cheap, especially for a low-beta (0.37) dividend stock (1.8%) that can help add stability to just about any portfolio.
