A Canadian stock can thrive in the electrification wave even if it’s not the most obvious choice. The key is that these companies offer assets that Canadians simply cannot live without. That can be anything from power poles to storage, utilities to roads.
In fact, Canada just launched consultations on a National Electricity Strategy aimed at doubling grid capacity by 2050, which could require about $1 trillion in investment. That’s the kind of number that makes infrastructure stocks hard to ignore.
But don’t jump towards the most popular tech stock. Instead, find the companies that support this demand for artificial intelligence (AI), electric vehicles (EVs) and more. That’s why today, we’re going to look at three to watch on the TSX today.
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AQN
Algonquin Power & Utilities (TSX: AQN) is now more of a regulated utility story than a renewable-growth story. AQN owns electricity, natural gas, water, and wastewater utilities across North America. It recently completed the sale of its non-regulated renewable energy business to LS Power in January 2025, excluding its hydro fleet. It’s also a turnaround angle, since AQN had to simplify the business, reduce debt, and rebuild investor trust after a rough stretch.
In the first quarter (Q1) of 2026, Algonquin reported net earnings of US$83.1 million, or US$0.11 per share, compared with US$92.8 million, or US$0.12 per share, a year earlier. Revenue still rose to US$792.4 million from US$692.4 million, helped by regulated electricity and natural gas distribution. With a 4.4% dividend yield trading at 22 times earnings, AQN could benefit from electrification without needing a risky growth-stock multiple.
FTS
Fortis (TSX: FTS) is the steadier, blue-chip pick. The company owns regulated electric and gas utilities across Canada, the United States, and the Caribbean. That makes Fortis stock a strong fit for electrification. Fortis stock already has a huge plan in motion. The company’s five-year capital plan totals $28.8 billion, supporting expected average annual rate-base growth of about 7% through 2030.
In Q1 2026, Fortis stock reported net earnings of $501 million, or $0.99 per common share. It also invested $1.4 billion in capital expenditures during the quarter, keeping its $5.6 billion 2026 capital plan on track. It won’t look cheap compared with battered stocks trading at 22 times earnings, but it offers a 3.3% dividend yield — a dividend that’s grown every year for over 50 years.
CPX
Finally, Capital Power (TSX: CPX) is the more direct power-generation pick. The Edmonton-based company owns and operates power-generation assets across Canada and the United States. If demand rises and grids need a dependable supply, Capital Power can benefit by selling electricity and securing long-term contracts. Recent news has centred on U.S. expansion, contracting success, and flexible generation, as electrification is unlikely to run on renewables alone.
In Q1 2026, Capital Power reported revenue and other income of $1.205 billion, up $217 million year over year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $404 million, up $37 million, while net cash flows from operating activities climbed to $312 million, up $102 million. Adjusted funds from operations (AFFO) fell to $154 million, down $64 million, mainly because of higher sustaining capital, financing costs, and taxes. Capital Power also reaffirmed 2026 guidance for adjusted EBITDA of $1.565 billion to $1.765 billion and AFFO of $890 million to $1.01 billion. So, while it’s pricey at 77 times earnings, a 4.3% yield lessens the blow.
Bottom line
The electrification wave won’t just reward companies with exciting slogans, but companies with real assets, capital plans, and grid exposure. So, if Canada really needs to double grid capacity by 2050, these three infrastructure stocks look built for the kind of spending wave investors shouldn’t ignore.
