We are only two months in and 2026 has already been an interesting year for Canadian stocks. We have seen a “Software-as-a-Service apocalypse,” service apocalypse, expansionist threats, tariffs, tariffs made unlawful, and then more tariffs.
Frankly, the world is becoming a little unpredictable, and the stock market feels quite the same. If you are looking for some safe bets that could still have some upside in 2026, here are two Canadian stocks that could surge forward.
Hard assets that help fuel the economy seem like a good place to invest right now. Once these assets are in place, they can last decades, and they aren’t likely to be disrupted by any computer algorithm.
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Pembina Pipeline: A Canadian infrastructure stock gaining some steam
Pembina Pipeline (TSX:PPL) stock is at the cross roads of the energy supply chain in Canada. This Canadian company collects and moves oil and gas to processing plants and then on to end markets. These are crucial assets to customers. In many instances Pembina is the only way producers get their oil and gas to market.
With so much geopolitical disruption, oil prices have been climbing (it’s up 15% this year). Likewise, natural gas prices should continue to increase as more LNG terminals comes online and the Canadian gas market tightens.
A rise in commodity prices is always good for Pembina. Around 15% of its income comes from its marketing business. Even if that commodity thesis doesn’t play out, the remaining 85% of its income is contracted. As it continues to bring new assets onto the market, that contracted income will rise.
Pembina has one of only a few LNG terminals in construction in Canada. It is set for completion in 2028. Once that comes online, it could see a nice surge in income.
Pembina’s stock is up 15% this year already. If commodities continue to behave nicely, there could still be more upside for this undervalued Canadian infrastructure stock.
Granite: Its recent surge could continue
Real estate has been a challenging stock asset to hold for the past few years. Fortunately, things seem to be starting to turn.
Granite Real Estate Investment Trust (TSX:GRT.UN) has risen 30% in the past year. However, this Canadian stock could still enjoy upside in 2026. Granite has steadily been delivering around 7% compounded annual funds from operation per unit growth for the past five years. Yet, its stock is only neutral over that time.
Granite’s portfolio has significantly improved in that period. Right now, it extends across Canada, the United States, and Europe. Occupancy is sitting at 98% and its weighted average lease term is over five years.
Granite has been very prudently managed. It has one of the best balance sheets amongst industry peers. It can consistently provide good returns in most economic environments.
Granite pays a 4% yield. It has grown its distribution for 15 consecutive years, and it recently increased its dividend by a faster pace than previous.
If you want a mix of high-quality assets, a strong operating platform, and a nice stream of income, this stock is a perfect bet. It might not be the most exciting business, but it isn’t likely to get disrupted by AI.
Granite’s valuation remains below its private market value, so you still get a good bargain at today’s price. With a recent surge in stock market and economic uncertainty, this could be a nice Canadian stock to weather the storm with.
