What kinds of stocks are a great fit for Canadian retirees as the TSX Index looks to keep up the gains in 2026? While I’m not against going for the market darlings, many of which are at (or very close to) all-time highs as we head into the early summer, I still think that it’s worth looking at some of the names that have flirted with a correction (or even a bear market).
Of course, energy stocks and the big banks (insurers as well) have been feeling the full force of the tailwinds of late. And while they may seem somewhat overheated or expensive, I still think that the fundamentals are good enough to justify paying up a higher price of admission.
Either way, this piece will look at two dividend stocks that stand out as great bets for the long run.
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National Bank of Canada
National Bank of Canada (TSX:NA) might be just off its all-time highs, now above $204 per share, but I still think dividend investors shouldn’t hesitate to pick up a few shares, even at close to 20 times trailing price-to-earnings (P/E).
Make no mistake, shares of NA are getting up there in valuation. Indeed, it’s one of the pricier bank stocks you’ll come across today. And while the hefty multiple and recent surge in the share price may set the stage for a bit of a pullback, I must say that the nearly $80 billion bank is very much on the growth track. And, given this, I think it’s worth such a premium to the peer group.
With Canadian Western Bank aboard (and all its rich synergies), as well as fantastic management and more room to run domestically, I think NA stock is, more or less, fairly valued. The 2.4% dividend yield is also very modest as far as bank stocks are concerned. If you’re willing to pay up for a bit more of a growth jolt, though, NA stock is still worth a closer look, especially once the group starts to tread water again.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) might be dipping again, now down over 6%, but compared to the rest of the quick-serve restaurant scene, Restaurant Brands is holding its own rather well. Indeed, after the latest quarter, Restaurant Brands looked more like a king and less of a fast-food firm that’s succumbing to consumer-facing pressures.
It’s not just excelling with the value proposition, though. The fast-food titan knows how to get diners excited again with menu innovation investments. The company is spending big money to make bigger money. And now that Tim Hortons and Burger King are showing their resilience, I do think it’s time to give QSR the benefit of the doubt. It’s a best-in-breed fast-food firm right now, and I don’t expect that to change anytime soon, especially as the value perception continues to improve.
With a fantastic 3.4% dividend yield and a slightly hefty, but still reasonable 24.5 times trailing P/E multiple, I’d not be afraid to pick up shares on the latest 6% drop, one that’s completely unwarranted given the firm’s wonderful latest quarter and how it’s starting to stand out from the pack.
