3 Stocks to Buy and Hold for 2026 and Beyond

Three TSX stocks are buy-and-hold candidates for 2026 and beyond for dividend sustainability and pricing power.

| More on:
Key Points
  • TSX volatility rose in 2026 (down 1.25% YTD after a March record close) while the energy sector is surging, up ~37.5% YTD.
  • Momentum leaders include Total Energy Services (TOT, +48% YTD) for compression/process equipment demand, Headwater Exploration (HWX, +36.5% YTD) with a debt-free, cash-generating asset base, and Trican Well Service (TCW, +24.7% YTD) as a top pressure‑pumping provider.
  • All three are buy‑and‑hold candidates offering dividend stability (TOT 2.18%, HWX 3.44%, TCW 2.93%) and defensive exposure to energy amid geopolitical uncertainty.

The TSX is experiencing greater volatility in 2026 than in 2025 amid tariff-driven headwinds. After posting an all-time high record close of 34,541.30 on March 2, Canada’s main stock index lost steam, breaking the momentum carried over from a banner year. A military conflict heightens market unpredictability more than trade disputes.

While the broad market is down 1.25% year-to-date (YTD) after a long stretch in positive territory, select stocks continue to outperform amid the war anxiety. Total Energy Services (TSX: TOT), Headwater Exploration (TSX: HWX), and Trican Well Service (TSX: TCW) are sending powerful buy signals with their market-beating returns.

3 colorful arrows racing straight up on a black background.

Source: Getty Images

Momentum leader

Energy (+37.5% year to date, or YTD) is the top-performing sector thus far in 2026, while Total Energy Services (+48% YTD) is the momentum leader. This 803.5 million energy services company, through its business units, provide equipment and various services to the domestic and international marketplace. The continued high demand for compression and process equipment in North America is a growth driver.

Management maintains a favourable business following record results last year and a strong financial position entering 2026. The positive working capital at year-end was $108 million of positive working capital. Also, for the first time since a major acquisition in 2017, cash exceeded bank debt ($49.6 million versus $4.6 million).

The full-year 2025 results are reflected in the stock’s performance. Revenue and net income increased 17% and 22% to $1.1 billion and $74.3 million compared with 2024. Total Energy intends to finance its Board-approved 2026 capital budget of $87.4 million with cash on hand and cash flow.  

TOT trades at $22.05 per share and pays a 2.18% dividend. The quarterly payouts have been consistent since Q1 2010.

Sustainable asset base

Like Total Energy Services, Headwater Exploration is a stable energy play in 2026. At $12.79 per share, the mid-cap stock is up 36.5% YTD. If you invest today, HWX pays an attractive 3.44% dividend. The $3 billion company is debt-free and boasts a sustainable asset base with growing free cash flow (FCF), even at flat oil prices or when West Texas Intermediate oil prices fluctuate.

In 2025, the average production reached a record 22,776 barrels of oil equivalent per day (boe/d), an 12% year-over-year increase. Net income, however, declined 19% to $153.2 million versus 2024. Still, Headwater commits to maximizing shareholder returns by balancing growth and organic expansion.

Critical services

Trican Well Service is worthy of consideration for its critical role in Western Canada’s oil and gas service industry. The $1.55 billion provider of well-servicing equipment and solutions is also the country’s largest pressure pumping service company.

In Q4 2025, Trican’s revenue rose 17% year over year to $322.7 million, notwithstanding the challenging oil pricing environment in the back half of 2025. For the full year, net income increased 2% to $112.2 million. Performance-wise, TCW feels no price pressure. At $7.35 per share, current investors enjoy a +24.7% market-beating return on top of the 2.93% dividend.

Buy-and-hold candidates

Total Energy Services, Headwater Exploration, and Trican Well Service have so far shown resilience against geopolitical shocks in 2026. All three stand out as buy-and-hold candidates for dividend stability and defensive pricing power.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Total Energy Services. The Motley Fool has a disclosure policy.

More on Energy Stocks

senior man and woman stretch their legs on yoga mats outside
Energy Stocks

Retirees Love Dividends: Here’s the Number That Matters More Than Yield

A tempting 7% yield can vanish fast, so checking the payout ratio helps confirm a dividend is actually sustainable.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Oil Just Topped $100 a Barrel: 2 Canadian Energy Stocks to Buy Before the Rally Runs Further

Here's why Canadian Natural Resources (CNQ) and another oil sands stock are top Canadian energy stocks poised for massive cash…

Read more »

some investments are riskier than others
Energy Stocks

2 Energy Stocks to Watch in the Strait of Hormuz Conflict

With Brent crude oil back above US$100 amid escalating Strait of Hormuz tensions, these two TSX energy stocks could deserve…

Read more »

trading chart of brent crude oil prices
Energy Stocks

Should You Buy Canadian Oil Stocks Now, or Is $100 Crude Already Priced In?

With Brent crude back around US$100, these two Canadian oil stocks have already rallied sharply, but their improving operations and…

Read more »

A meter measures energy use.
Energy Stocks

The 1 Canadian Dividend Stock I’d Buy in Any Market

This Canadian dividend stock offers reliable income, steady growth, and a defensive business built to perform through almost any market.

Read more »

Financial analyst reviews numbers and charts on a screen
Energy Stocks

TFSA Passive Income: 2 Top TSX Stocks Finally Trading at a Discount

These energy stocks have solid track records of dividend growth.

Read more »

financial chart graphs and oil pumps on a field
Energy Stocks

This 6.1% Dividend Stock Pays Cash Every Month

Understand the role of dividends in investing. Discover how dividend stocks can simplify your investment decisions and increase income.

Read more »

diversification and asset allocation are crucial investing concepts
Energy Stocks

This Undervalued TSX Stock Could Be Your Ticket to Lasting Wealth

Hammond Power Solutions just posted record sales and rising margins, yet this top TSX stock still looks undervalued today.

Read more »