A $2,000 capital outlay is relatively small, but it can buy shares of top Canadian companies and build a diversified foundation in 2026. The “strong buys” today are Fortis (TSX:FTS), Alimentation Couche-Tard, (TSX:ATD), and Imperial Oil (TSX:IMO).
Together, the three stocks provide an immediate hedge against market volatility. This year, the investment landscape is shifting dramatically away from tech dominance. You need a well-balanced, resilient portfolio.
Source: Getty Images
Income
Fortis wears a crown. The top-tier utility stock is a dividend king, owing to 52 consecutive years of dividend increases. At $76.32 per share, the dividend offer is 3.3%. FTS delivered a 24% positive return in 2025 amid the tariff war. The $38.6 billion regulated electric and gas utility company targets dividend growth of 4% to 6% annually through 2030.
Net earnings in both Q4 and full-year 2025 increased 7% year-over-year to $422 million and $1.7 billion, respectively. Its President and CEO, David Hutchens, said 2025 was another year of strong financial and operational performance. He notes the growth of regulated utilities.
Hutchens added that the new five-year capital plan (2026 to 2030) of $28.8 billion will drive long-term rate base growth of 7% and support the dividend growth guidance. Fortis sees further growth opportunities beyond the plan, including increased energy infrastructure investments to accelerate load growth.
Growth
Like Fortis, Couche-Tard is a defensive holding but with double the market cap. The $76.8 billion company is the leader in the global convenience store industry. About 13,200 stores out of the total 17,300 offer road transportation fuel. This consumer staples stock trades at $82.95 per share and pays a modest but 1% dividend.
On February 11, 2026, its President and CEO, Alex Miller, announced the Core + More strategy. Miller said it represents the next stage of Couche-Tard’s growth journey. “This strategy is about turning the full power of our scale, network, and people into greater value for our shareholders,” he added. Moreover, Core + More supports earnings growth and disciplined capital deployment.
From year-end fiscal 2026 to fiscal 2030, management targets a 6% to 8% compounded annual growth rate in adjusted EBITDA. For fiscal 2026 alone, the expected free cash flow (FCF) exceeds US$2.5 billion. Couche-Tard will continue to pursue deals, but at the proper timing.
Value
Imperial Oil adds value to this portfolio and a lot more. The $76.7 billion integrated energy company achieved downstream refinery capacity utilization of 94% in Q4 and 93% in full-year 2025. The 438,000 gross oil-equivalent barrels per day for the year was the highest annual production in over 30 years. Its renewable diesel facility started operations in July 2025.
Looking ahead, its Chairman, President and CEO, John Wheelan, is confident that Imperial Oil can profitably grow volumes, lower unit cash costs, and continue its ongoing restructuring. During the earnings call, Wheelan announced a 20% dividend hike.
If you invest today, IMO trades at $158.50 per share and pays a 2.1% dividend. This large-cap stock boasts a 31-year dividend growth streak.
Volatility protection
A suggested allocation is $750 each for Fortis and Imperial Oil and $500 for Alimentation Couche-Tard. You’d have an ‘income and value heavy’ portfolio with volatility protection in 2026. Add more shares of one or all if finances allow.
