2 TSX Stocks That Could Shine if the Bank of Canada Holds Rates Steady

If the Bank of Canada stays steady, IGM and Power look positioned to benefit from calmer markets, healthier asset values, and continued client inflows.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 28, 4:30 pm EDT

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Key Points

IGM grows when assets and net inflows rise, and its earnings momentum supports a higher dividend and buybacks.
Power offers diversified exposure to insurance, wealth, and alternatives, with dividend growth and a holding-company discount as a buffer.
Both can lag if markets turn volatile again, because fee income and portfolio values can cool quickly.

When the Bank of Canada holds rates steady, investors don’t need to chase the flashiest stocks. Calm rate policy tends to favour companies with dependable earnings, strong balance sheets, and businesses that benefit from stable markets and confident clients. Wealth managers, insurers, and diversified financial groups can fit that bill nicely. They often earn more when asset values stay healthy, client money keeps flowing in, and borrowing conditions stop swinging all over the place. Right now, two TSX names stand out for exactly that reason.

dancer in front of lights brings excitement and heat — Source: Getty Images

IGM

IGM Financial (TSX:IGM) sits behind IG Wealth Management and Mackenzie Investments, so it has exposure to advice, investment products, and long-term client relationships. That mix worked well in 2025. IGM reported record assets under management and advisement of $310.1 billion at year-end, up 14.7% from 2024, while assets including strategic investments reached $566.2 billion.

For 2025, IGM posted net earnings of $1.101 billion, or $4.64 per share, and record adjusted net earnings of $1.093 billion, or $4.61 per share. In the fourth quarter alone, adjusted earnings per share (EPS) climbed 21% to $1.27. The dividend stock also raised its quarterly dividend by 10% to $0.62 per share. On top of that, early 2026 flow data stayed strong, with January assets at $316.1 billion and record net inflows of $3.7 billion, followed by February assets of $326.6 billion. It’s not bargain-basement cheap, but it still looks reasonable for a business putting up this kind of momentum.

There’s also a growth angle here that makes IGM more interesting than a plain old dividend stock. Management highlighted the October 2025 transactions involving Wealthsimple and Rockefeller Capital Management as proof that its strategic investments can add value beyond its core advisory business. The renewed buyback program adds another shareholder-friendly lever. The risk, of course, is that IGM still depends on healthy markets and strong client activity. If volatility spikes or investors pull back, fee growth can cool fast. Still, if the Bank of Canada stays put, IGM looks built to shine.

POW

Power (TSX:POW) owns major stakes in Great-West Lifeco, IGM Financial, and GBL, plus alternative asset platforms like Sagard and Power Sustainable. That gives investors a broad financial holding company with exposure to insurance, wealth, asset management, and private investments. In a steady-rate backdrop, that kind of mix can work well as it gives Power several ways to grow even if one segment slows down.

For 2025, Power reported adjusted net earnings from continuing operations of $3.4 billion, or $5.31 per share, up from $2.971 billion, or $4.58 per share, in 2024. In the fourth quarter, adjusted net earnings reached $867 million, or $1.36 per share. Power also lifted its quarterly dividend by 9% to $0.6675 per share and bought back 12.4 million shares in 2025 for $711 million. Right now, it offers a discount that gives investors a little extra breathing room.

Recent news adds another layer. In late 2025, Power put more money into Wealthsimple, with its direct equity stake valued at $1.47 billion based on that financing, or $1.57 billion including the fresh investment. That shows Power still has access to faster-growing financial platforms, not just mature cash cows. The main risk is complexity. Holding companies can stay undervalued for a long time, and some of Power’s alternative assets, especially in energy infrastructure, have dragged on results. But if rates stay steady, Power’s mix of quality assets, dividend growth, and underlying earnings momentum looks hard to ignore.

Bottom line

If the Bank of Canada keeps holding the line, investors may want to lean into businesses that thrive on stability rather than excitement. Plus, both offer income from even a $7,000 investment.