3 TSX Stocks to Buy During a Market Dip

Market dips can be opportunities if a company’s cash flow covers payouts and its balance sheet can handle higher interest costs.

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Key Points
  • Northland Power had a rough 2025, but its 2026 guidance suggests recovery potential.
  • Brookfield plays offense when other companies freeze.
  • Colliers is growing into more recurring revenue and still expects mid-teens growth, supported by acquisitions and operating leverage.

When the TSX dips, investors can get suspicious of stocks: Is there something truly wrong with the underlying businesses, or are the stocks just dropping for macro reasons? Smart investors know not to guess, but to buy companies that can outlast the sell-off.

My filter is to look for stocks with steady cash flow and strong balance sheets. When those boxes get ticked, a lower share price can be a feature, not a flashing red light. Here are three TSX stocks that fit the bill and why you might want to buy them now.

people ride a downhill dip on a roller coaster

Source: Getty Images

Northland Power: Resetting and rebuilding

Northland Power (TSX: NPI) is a renewable power producer with offshore wind in Europe, other renewables, and a growing storage footprint. Last year tested investors with heavy construction, noisy commissioning timelines, and a dividend cut to $0.72 per share annually, which signalled that the company wanted more flexibility while it finishes major projects like Baltic Power in Poland and Hai Long in Taiwan.

Despite all that, it delivered 2025 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.25 billion and free cash flow of $1.46 per share. Net results for the year got hit by a non-cash impairment tied to Nordsee One, which is the kind of accounting punch that can scare off investors. For 2026, it expects adjusted EBITDA of $1.45 billion to $1.65 billion.

The bull case for NPI is that project delivery and a cleaner cash flow story will rebuild investors’ confidence in the stock.

Brookfield: Recycling capital

Brookfield (TSX: BN) is a dip-buyer’s friend because it’s built to play offence when others freeze. It owns and controls a collection of real asset and financial businesses, and it also holds a major stake in its asset management engine. Over the last year, its story has leaned into scale and capital recycling.

The 2025 scoreboard stayed strong. It reported distributable earnings before realizations of $5.4 billion for the year, or $2.27 per share, and total distributable earnings of $6 billion, or $2.54 per share. Brookfield also completed a record $91 billion of monetizations, deployed $126 billion of capital, and repurchased more than $1 billion of shares. It raised its quarterly dividend by 17%, to $0.07 per share. The more practical question is whether it can keep growing fee-bearing capital, keep recycling mature assets, and keep buying back shares when the market hands it a discount.

Colliers: Leaning into recurring revenue

Colliers International Group (TSX: CIGI) is an underappreciated “buy the dip” name as it has been shifting toward more recurring, contractual revenue through engineering, outsourcing, and investment management, while still keeping its meaningful commercial real estate services platform. Over the last year, Colliers continued using acquisitions to widen its reach and reduce reliance on the most cyclical parts of real estate. Its leaders also kept talking up productivity gains and operating leverage, which can matter a lot when the market gets jumpy.

2025 revenue reached $5.56 billion and adjusted EBITDA came in at $732.5 million, while adjusted EPS climbed to $6.58. Management expects mid-teens growth in revenue, adjusted EBITDA, and adjusted EPS in 2026, helped by internal growth plus recent deals, including an announced acquisition of Ayesa Engineering expected to close in the second quarter.

Bottom line

All in all, market dips don’t automatically mean bargains, but they often give you a chance to buy quality stocks at better prices. Today, Northland Power offers a reset-and-rebuild story with big projects that could change its cash flow profile. Brookfield is a compounding machine that goes to work when the rest of the market gets fearful. And Colliers’s growth platform has been steadily becoming more recurring and scalable.

So if the market hands you a pullback, your best move is to buy businesses that can keep moving forward when investor sentiment is doing cartwheels.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield and Colliers International Group. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.

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