The steady, easy-to-understand dividend-growth stocks seem to be the prime place to be in 2026, while the immense volatility working its way through the tech markets looks to settle. While growth, speculation, and catching falling knives in software amid the AI disruption might be home to timelier gains, I’d argue that the stakes are too high. It’s hard to go against the momentum, especially if all you want is a steady dividend payer that can be relied upon when the tides finally do go out.
Time will tell if the S&P jitters are the start of a correction, a crash, or just a capital expenditure-fuelled growth scare. Either way, it’s not hard to imagine that new investors are feeling like putting a bit more cash into some of the market’s more defensive dividend payers. And, in this piece, we’ll look at one that I believe is under the radar. If there’s more capital that’s going into the “boring but beautiful” dividend payers, perhaps investors may wish to punch their ticket as a part of a rotation.
In any case, going all-in on tech is only fine if you’ve got a stomach of steel. For everyone else, there are perfectly good dividend stocks that can pay you handsomely to wait for the storm to ease (or perhaps worsen).
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Canadian Tire
Canadian Tire (TSX: CTC.A) is the iconic retailer that probably deserves a nice spot in your portfolio, especially after the recent resilience. The stock is up close to 34% in the past year, and despite fears that consumers could be headed for a hit as the AI-driven white-collar layoff hits, the name has been steadily marching higher. With a recent quarterly showcase that impressed as Canadians flocked to the retailer for a wide range of discretionary goods, perhaps Canadian Tire could continue to be one of the bright spots in retail.
The “buy Canada” competitive advantage seemed to have played out in the latest quarter, as winter goods looked to do more of the heavy lifting. Of course, Canadian Tire isn’t the only retailer to sell such items, but for many Canadians, it’s a quick and cheap visit to mark off all the things on one’s shopping list.
Now, retail is a tough place to be, but given all the investments that the management team has made in tech over the years, perhaps the recent margin gains shouldn’t be too much of a surprise. With various efforts that could drive more margins, all while Canadians look to buy Canadian goods where possible, I would not want to bet against shares of CTC.A, especially at 13.4 times trailing price to earnings.
Perhaps one area that Canadian Tire could improve upon is improving the availability of the Hudson’s Bay Stripes merchandise. It’s been a hot seller, and most locations don’t have the best selection in the world. If Canadian Tire can sell such goods online, I think the iconic retailer could have a hit on its hands as it continues to bring back the legendary and very Canadian brand to life. In the meantime, investors can collect the 3.8% yield as they wait for the firm to keep making all the right moves in an environment that favours domestic goods.
