Many investors are in the market to build lasting wealth. If you’re investing in the current environment, a prudent strategy is to pick companies with stable earnings along with a visible growth runway.
In the wake of geopolitical volatility in 2026, taking positions in TELUS (TSX:T) and MDA Space (TSX:MDA) offers a path to long-term growth. The former is a defensive income play, while the latter boasts unstoppable upward momentum, driven by the fast-growing space economy. By holding both, you have an anchor and a rocket in your portfolio.
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The anchor
TELUS is one of Canada’s ‘Big Three’ telecom players, second to BCE in market capitalization. This $28.6 billion company is repositioning to become a global technology powerhouse. By cutting its capital expenditure by 10% to $2.3 billion, free cash flow (FCF) growth is the focus in 2026. The consolidated FCF target is approximately $2.5 billion.
At $18.38 per share, the 5G stock is up nearly 4% year-to-date. The dividend yield is a juicy 9.2%. Doug French, Executive Vice-President and Chief Financial Officer of TELUS, said, “As part of our capital allocation strategy and focus on deleveraging, we are maintaining our dividend at the current level.”
The financial highlight in 2025 was the nearly 10% year-over-year increase in net income to $797 million. Alongside this bottom-line growth, there was a record $2.2 billion in FCF. TELUS generates consistent, recurring revenue from essential internet and wireless services even during economic downturns.
Its outgoing President and CEO, Darren Entwistle, notes the record 287,000 connected device net additions in Q4 2025. TELUS also surpassed one million combined mobility and fixed customer additions for the fourth consecutive year.
TELUS Technology Solutions, one of two main business divisions, is the connectivity provider (wireless, wireline, and security services). The second, TELUS Health operates a comprehensive digital health platform. Collectively, they generate billions.
The acquisition of TELUS International (100%), now TELUS Digital, in late October 2025, aims to enhance its enterprise-wide artificial intelligence (AI) and data capabilities. It would also accelerate the integration of world-leading digital customer experience solutions. Today, each business segment has solid growth potential.
The rocket
MDA Space could see explosive growth in 2026 and beyond. On March 12, 2026, the $5.4 billion Brampton-based satellite company officially cross-listed on the New York Stock Exchange. Its CEO, Mike Greenley, said, “We have strong growth, strong persistent profitability, strong cash generation.”
Meanwhile, the aerospace stock is flying high on the TSX. At $43.63 per share, current investors enjoy a nearly 64% year-to-date return. MDA ranked 15th in the 2025 TSX30, an annual ranking of the 30 top Canadian stocks. Its dividend-adjusted share price performance over a three-year period is 340%.
In 2025, revenue and net income rose 51.2% and 36.6% year-over-year to $1.6 billion and $108.5 million. In addition to the $4 billion contracted backlog at the end of Q4 2025, Greenley said MDA has a $40 billion pipeline of opportunity to pursue over the next five years.
Scaling production and expanding operations in attractive markets and geographies are ongoing. He added, “We want the full capability of the space investment community to be able to easily invest in us,” Greenley added. Market analysts recommend a “strong buy” rating for MDA.
Perfect combination
TELUS and MDA Space are suitable for income-focused and growth-oriented investors, respectively. But if combined in a portfolio, you have an income powerhouse and a cash flow engine.
