Canadian investors seeking reliable long-term holdings should prioritize companies with robust balance sheets, consistent dividend growth, and proven earnings momentum amid 2026’s economic uncertainties. These traits offer stability and compounding potential in a portfolio.
Here are three top picks for investors to consider right now.
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Bank of Nova Scotia
The Bank of Nova Scotia (TSX: BNS) stands out with a compelling 5.7% dividend yield and a payout ratio around 80%, making it a top pick for income-focused buyers right now.
The company’s Q1 2026 adjusted EPS jumped 16% to $2.05 year-over-year, alongside double-digit EPS growth projected for the full year. These strong results were supported by broad-based gains in Canadian Banking, International, and Wealth Management segments.
Trading at a reasonable forward price-earnings multiple of just 13 times and a price-book ratio of just 0.8 times, Scotiabank looks undervalued relative to peers. I think the company’s sturdy CET1 ratio and potential upside tied to widening net interest margins makes this a top bank stock to consider right now.
Alimentation Couche-Tard
Another top Canadian stock I’ve continued to pound the table on in recent years is Alimentation Couche-Tard (TSX: ATD).
That’s because this is a company that’s delivered steady growth through its global convenience store network. Now boasting a low 21% payout ratio, I think the company’s dividend sustainability for its small but meaningful 1.1% yield is noteworthy.
Market experts now expect Couche-Tard to grow its earnings at a near-double-digit pace this year, backed by solid revenue growth and expanding EBITDA margins.
With solid fundamentals including a return on equity of more than 18%, a debt-to-equity of 0.98 (well below 1.0), and interest coverage over 5.7, I think Couche-Tard is well-positioned for more M&A-driven upside at a reasonable valuation today.
Manulife Financial
Last, but certainly not least, we have Manulife Financial (TSX: MFC).
Manulife combines insurance prowess with wealth management, yielding 3.7% at the time of writing.
The company’s dividend yield is well-covered, with earnings growth continuing to pick up. The company grew core earnings per share in the high-single-digit range for most of 2025, with 2026 expected to bring even more in the way of bottom-line growth.
Impressively, the life insurance and wealth management giant has also targeted a return on equity of 18% for the year, putting this company in the upper echelon of its peers. If the company can continue to expand globally and see balance sheet improvement, I think many investors would be remiss to ignore this name at current levels.
