The recent pullback of the basic materials and technology sectors seems to suggest a market rotation. Investors are moving away from AI-related stocks or risky mining stocks and reverting to old-school staples such as financials, energy, and utilities.
If you are sitting on $45,000 in idle cash and have the urgency to invest, consider buying the top Canadian stocks right away. Toronto-Dominion Bank (TSX:TD), Gibson Energy (TSX:GEI), and Brookfield Infrastructure Partners (TSX:BIP.UN) are solid choices for income and growth investing.
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Financial
Canada’s banking sector is the cornerstone of the country’s economy. The five Big Banks, in particular, are established passive income providers. Their dividend track records are approaching two centuries. Toronto-Dominion Bank is the top performer in the last 12 months. At $130.40 per share, the trailing one-year price return is plus-60.5%.
If you invest in TD today, the dividend yield is 3.3%. This $217.9 billion lender has been paying dividends, without fail, for 168 years. In fiscal 2025 (12 months ending October 31, 2025), net income rose 132% to $20.5 billion compared to fiscal 2024. Despite lower net income in Q4 fiscal 2025 versus Q4 fiscal 2024, TD announced a 3% dividend hike.
Note that Canada’s second-largest bank is smarting from a money-laundering scandal in the U.S., including a record US$3 billion in fines. According to its President and CEO, Raymond Chun, management took decisive action throughout 2025 to strengthen TD and shape it for the future.
Energy
Gibson Energy’s latest earnings results raise buy signals. The assets of this $4.6 billion midstream oilfield service company include over 500-kilometre-long crude pipelines and 25.2 million barrels of storage capacity. At $28.46 per share (+13.3% year-to-date, the mid-cap stock pays a hefty 6% dividend.
The nearly 5% hike announced on February 17, 2026 marked seven consecutive years of dividend increases. Riley Hicks, Senior Vice President and Chief Financial Officer of Gibson Energy, said the continued growth in the stable infrastructure cash flows prompted the dividend increase.
In the 12 months ending December 31, 2025, gross profit and net income rose 7.7% and 29.9% year-over-year to $456.3 million and $197.6 million, respectively. Infrastructure EBITDA in Q4 2025 reached a quarterly record of $160 million. Hicks said Gibson targets 7%-plus Infrastructure EBITDA per-share growth over the next five years.
Gibson Energy’s unique infrastructure-light model provides stable, utility-like dividends. Two recent major contract extensions (20 and 10 years) will further enhance the stability and quality of Infrastructure cash flows.
Utilities
Brookfield Infrastructure Partners is an ideal rotation stock. This $24.5 billion company owns and operates critical infrastructure assets globally. The assets included midstream, transport, utilities, and data operations. For the full-year 2025, net income climbed 50.4% year-over-year to US$2.5 billion.
Its CEO, Sam Pollock, said BIP exceeded its ambitious $3 billion capital recycling target in 2025. He also expects the investments to fully contribute to the results in 2026. The growth pipeline includes AI infrastructure.
Management’s pitch for investors is a strong risk-adjusted total return. At $52.76 per share (+10.6% year-to-date), the dividend offer is 4.7%. The distribution growth target is 5% to 9% annually.
Balance the risk
Allocate $15,000 each for TD, Gibson Energy, and Brookfield Infrastructure to balance the risk and weather the market rotation. You’d have a high-performance three-stock portfolio that can deliver immediate income and long-term growth.
