3 TSX Stocks That Could Thrive in a Slow-Growth Economy

Slow growth can still reward investors if you own financial stocks that keep earning and paying dividends.

Amy Legate-Wolfe

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. Before joining Motley Fool Canada, she 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. 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 May 25, 4:30 pm EDT

| More on: CMEQBMKP

Key Points

MCAN is a mortgage-credit lender with rising earnings and a high yield, but it’s sensitive to housing and credit stress.
CIBC offers big-bank stability with diversified earnings and a dependable dividend, though loan losses can rise in a downturn.
EQB is a faster-growing digital bank with room to take share, but it can be bumpier than the big banks.

10 stocks we like better than Canadian Imperial Bank Of Commerce

When the economy cools, investors look for companies that can keep earning, keep lending, and keep paying dividends while everyone else waits for the next upswing. Canada’s financial sector fits that setup well, but not every financial stock offers the same mix. Some depend too much on hot housing. Others need strong consumer spending. The better names can lean on recurring revenue, disciplined lending, and scale.

That makes MCAN Financial Group (TSX:MKP), Canadian Imperial Bank of Commerce (TSX:CM), and EQB (TSX:EQB) interesting. Yes, a weaker economy can pressure borrowers, lift credit losses, and slow loan growth. Yet each has a clear reason to hold up better than investors might expect.

MKP

MCAN looks relevant as housing does not need to boom for every mortgage business to work. The company operates as a mortgage investment corporation and focuses on residential mortgages, construction loans, securitization, and investments tied to Canadian real estate credit. That sounds cyclical, but MCAN also gives investors a direct income angle when many Canadians still need housing financing, even if sales volumes stay uneven.

Its latest quarter showed why the stock deserves attention. MCAN reported first-quarter net income of $23 million and earnings per share (EPS) of $0.57, up from $0.43 a year earlier. It also declared a $0.43 cash dividend now yielding 6.8% at writing. That combination of higher earnings and a healthy payout makes it useful for investors who want income while waiting for the economy to improve. The risk sits in the same place as the opportunity. If housing weakens or credit stress rises, MCAN could feel it quickly.

CM

CIBC brings a different kind of appeal. It’s not the flashiest Canadian bank, but that can help in a slow-growth economy. CIBC has a large Canadian personal and business banking base, a sizable wealth business, and capital markets exposure. That gives it several ways to earn, rather than leaning on one narrow engine.

The latest results looked strong. In the first quarter of fiscal 2026, CIBC reported revenue of $8.4 billion, up 15% from a year earlier, and reported net income of $3.1 billion, up 43%. Capital markets helped, but the broader message matters more. CIBC entered a shaky economy with momentum, a large customer base, and a dividend investors already understand. The bank declared a quarterly dividend of $1.07 per share, bringing its yield to about 2.7% at writing.

Still, CIBC carries classic bank risks. If unemployment rises, loan losses can climb. If housing weakens, its Canadian mortgage book could face more pressure. But for long-term investors, CIBC’s scale and dividend history make it one of the simpler ways to ride out a slower economy without stepping too far out on risk.

EQB

EQB stock may offer the most growth-minded option of the three. The company owns Equitable Bank and has built a strong position in alternative lending, digital banking, and deposits. In a slow-growth economy, that sounds risky at first. Alternative lenders can face pressure when borrowers struggle. Yet EQB stock has spent years building a more diversified, modern banking platform, and that could help it keep growing even when the broader economy feels sluggish.

Its first-quarter fiscal 2026 results showed both strength and caution. Adjusted revenue came in at $306.8 million, while adjusted diluted EPS reached $2.26, up 48% from the previous quarter but down from a year earlier. So yes, EQB stock still has growth potential, but investors should expect bumps. Meanwhile, they can still collect a dividend of 1.9% at writing.

The long-term case rests on its ability to win customers from larger banks while keeping credit quality under control. If it can do both, EQB stock could thrive as Canadians search for better rates, digital options, and flexible banking.

Bottom line

A slow-growth economy rewards patience. MCAN offers income tied to mortgage credit. CIBC offers scale and dividends. EQB stock offers growth-focused banking. And each offers up strong income even with $7,000 invested.