In addition to macroeconomic uncertainties, escalating geopolitical tensions are taking a toll on investor sentiment in 2026. During such periods of market volatility, investing in Canadian utility stocks is often seen as a safe haven. This is because utility companies provide essential services like electricity and natural gas, making them less sensitive to economic slowdowns and other geopolitical risks.
That’s one of the key reasons why the utility sector is showing strength in 2026 that could make it a valuable addition to your portfolio. In this article, I’ll highlight two top utility stocks and what makes them stand out.
Source: Getty Images
Emera stock
The first Canadian utility stock you can consider right now is Emera (TSX: EMA), a Halifax-based firm that invests in regulated electricity generation and electricity and gas transmission and distribution. Its strategic focus on transitioning from high-carbon to low-carbon energy sources positions it well for the future. Following a 25% gain over the last year, Emera’s stock price currently stands at $73.32 per share with a market cap of $22.2 billion. It also offers a quarterly dividend with a yield of 4%.
In its latest earnings report for the year ended December 31, 2025, Emera delivered record annual adjusted earnings of $3.49 per share, reflecting a 19% year-over-year (YoY) increase with the help of solid performance across its segments, especially Florida Electric Utility and Canadian Electric Utilities. The company’s largest-ever annual capital plan of $3.6 billion also drove an 8% YoY increase in its rate base.
Notably, Emera recently extended its adjusted earnings per share (EPS) growth target of 5% to 7% annually through 2030, signaling confidence in its long-term strategy. Meanwhile, its continued investments in regulated businesses and clean energy transition remain key growth drivers. The company’s recent issuance of US$750 million in junior subordinated notes and senior notes further strengthens its balance sheet and supports future investments.
AltaGas stock
AltaGas (TSX: ALA), based in Calgary, could be another reliable utility stock Canadian investors can buy now. This North American energy infrastructure company has operations across Midstream and Utilities. After climbing 33% in the last 12 months, ALA stock now trades at $48.67 per share with a market cap of $15.2 billion. At this market price, it offers a dividend yield of 2.8%, with quarterly payouts.
Last month, AltaGas delivered strong fourth-quarter and full-year 2025 results, with its normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) landing at the upper end of its guidance range. Similarly, the company’s full-year normalized EPS came in at $2.23, supported by solid contributions from both its Utilities and Midstream segments. Notably, its Utilities business posted a 14% YoY increase in normalized EBITDA in the fourth quarter.
AltaGas expects its normalized EBITDA for 2026 to be between $1.925 billion and $2.025 billion, with normalized EPS projected between $2.20 and $2.45. The company also plans to invest around $1.6 billion in capital expenditures, primarily focused on Utilities and Midstream. It has also approved a 6% dividend increase for 2026 and continues to target a 5% to 7% compound annual growth rate (CAGR) in dividends through 2030.
Conclusion
Canadian utility stocks like Emera and AltaGas offer a solid combination of stability and growth. Both companies are backed by strong financial performance, strategic investments, and clear long-term plans – making them even more attractive to buy this year amid escalating geopolitical conflicts.
