Yesterday, the Canadian benchmark index, the S&P/TSX Composite Index, rose 0.72% amid optimism surrounding ongoing efforts to achieve a breakthrough in peace talks between the United States and Iran. The benchmark index is now up 8.5% year-to-date and trades just 0.4% below its all-time high. However, concerns over persistent inflation and ongoing geopolitical tensions continue to cloud the global economic outlook.
Given this uncertain environment, I believe investors should maintain a balanced portfolio that includes quality growth, dividend, and defensive stocks to help optimize long-term returns. Against this backdrop, here are my three top picks.
Source: Getty Images
Celestica
Celestica (TSX:CLS) is an attractive growth stock to consider for a long-term portfolio, supported by its strong financial performance and promising growth outlook. The provider of data centre infrastructure and advanced technology solutions delivered impressive first-quarter results in April, with revenue and adjusted earnings per share (EPS) rising 53% and 80%, respectively. The strong performance was driven primarily by robust demand from cloud and AI infrastructure customers within its Connectivity & Cloud Solutions (CCS) segment.
Meanwhile, hyperscalers continue to expand their infrastructure capacity to meet the growing need for computational power as AI adoption accelerates across industries. To capitalize on this favourable trend, Celestica is investing in new product launches and expanding its manufacturing capabilities. The company is also planning to establish a manufacturing footprint in AllianceTexas in Fort Worth, Texas, which should strengthen its ability to meet rising global demand for next-generation data centre infrastructure and advanced technology solutions.
Supported by these favourable growth trends, Celestica’s management has raised its 2026 guidance. The company now expects its 2026 revenue and adjusted EPS to increase by 53.2% and 67.8%, respectively. Management has also projected even stronger performance in 2027, backed by improving demand visibility and additional program wins. Given its strong execution and expanding market opportunities, Celestica appears well-positioned to continue generating solid shareholder returns over the long term.
Fortis
Second on my list is Fortis (TSX:FTS). The defensive regulated utility serves more than 3.5 million customers across the United States, Canada, and the Caribbean. Thanks to its regulated asset base and low-risk transmission and distribution operations, the company generates stable and predictable earnings that are less sensitive to market volatility and broader macroeconomic pressures. Its expanding asset base and improving operating efficiency have also supported steady financial growth and share price appreciation, enabling Fortis to increase its dividend for 52 consecutive years. The company currently pays a quarterly dividend of $0.64 per share, yielding 3.3% on a forward basis.
Meanwhile, Fortis continues to strengthen its long-term growth outlook through its $28.8 billion capital investment plan, which extends through 2030. These investments could grow its rate base at an annualized rate of 7% through the end of the decade, providing a solid foundation for future earnings growth. Supported by these expansion plans, management expects to increase its dividend by 4%–6% annually through 2030, making Fortis an appealing long-term investment for income-focused investors.
Enbridge
My final pick is Enbridge (TSX:ENB), a high-quality dividend stock. It has increased its dividend for 31 consecutive years and currently offers an attractive forward dividend yield of 4.9%. Thanks to its contracted and regulated business model, the company generates stable, predictable cash flows that are less exposed to commodity price swings and broader macroeconomic uncertainty, enabling it to deliver consistent dividend growth over time.
In addition, the energy infrastructure giant continues to expand its asset portfolio to meet the growing demand for its services amid rising oil and natural gas production and consumption across North America. It expects to invest $10-$11 billion annually to advance its growth projects and strengthen its long-term earnings base. Supported by these expansion initiatives, management expects adjusted EPS and distributable cash flow per share to grow at approximately 5% annually through 2030.
Given its dependable business model, resilient cash flows, and attractive long-term growth prospects, I believe Enbridge remains well-positioned to continue increasing its dividends, making it an appealing choice for income-focused investors.
