3 Canadian Stocks That Could Win if Inflation Stays Hot

Inflation is proving stubborn again. These three TSX hard-asset stocks offer different ways to hedge rising costs.

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 June 3, 9:15 pm EDT

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Key Points

Barrick gives direct gold exposure (plus copper), but higher mining costs and geopolitical risk can hit results quickly.
Labrador Iron Ore Royalty offers iron-ore-linked royalties and potentially strong income, yet dividends swing with commodity prices.
Imperial Oil adds an energy hedge with dividends and integrated operations, but oil prices and refinery disruptions can pressure earnings.

When prices stay hot, investors often look for companies tied to hard assets. Gold, iron ore, and oil don’t make grocery bills cheaper, but they can help portfolios handle a world where costs refuse to cool. Canada’s consumer price index (CPI) rose 2.8% in April, up from 2.4% in March, so investors have reason to think about inflation protection. That’s why today, we’re going to take a look at three stocks that stand out.

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ABX

Barrick Mining (TSX:ABX) looks especially relevant when inflation nerves rise. Gold often attracts investors when money feels less powerful, interest-rate expectations wobble, or geopolitical risk climbs. Barrick stock gives investors direct exposure to that gold theme, with copper upside.

Barrick mines gold and copper across several countries, with assets in North America, Latin America, Africa, and the Middle East. In its latest quarter, the company produced 719,000 ounces of gold and 49,000 tonnes of copper. It also generated US$5.2 billion in revenue and strong free cash flow.

The catalyst here comes from gold prices. Barrick’s latest results benefited from a much stronger realized gold price, which helped offset lower production. The company also announced a large buyback, giving investors another source of value if cash flow stays strong.

Still, Barrick carries real risk. Mining costs can rise, governments can change rules, and higher-risk regions can create surprises. Gold stocks can also drop quickly when the metal cools. Even so, if inflation sticks around, Barrick stock offers one of the clearest TSX ways to play that fear.

LIF

Labrador Iron Ore Royalty (TSX:LIF) takes a different route. This stock can appeal to investors who want exposure to industrial inflation, infrastructure demand, and commodity cash flow without owning a traditional miner.

LIF owns an interest in Iron Ore Company of Canada and receives royalties tied to its operations. That gives shareholders exposure to high-quality iron ore, including pellets used in steelmaking. Steel demand can benefit when governments and companies spend on infrastructure and energy. Inflation keeps attention on hard-asset supply chains.

The near-term picture looks more mixed, though. In the first quarter of 2026, LIF reported net income of $0.21 per share, down from the year before. Equity results from IOC also weakened. So this isn’t a spotless momentum story, and investors need to remember that iron ore prices can swing hard, and LIF’s dividend can move with cash flow.

Still, the stock has a place in an inflation-aware portfolio. Its structure can produce attractive income when iron ore markets cooperate. It also gives investors a focused commodity royalty play. If infrastructure spending remains firm and iron ore pricing improves, LIF could look more interesting.

IMO

Imperial Oil (TSX:IMO) rounds out the list, in my opinion, with a familiar inflation hedge: energy. When fuel prices rise, consumers feel the pain right away. Energy producers, however, can see cash flow improve when oil prices stay strong. Imperial has oil sands assets, refining operations, and a disciplined capital plan. That mix matters in a choppy market.

The latest quarter showed both strength and limits. Imperial reported net income of $940 million, down from a year earlier, as weaker crude realizations and refinery disruptions hurt results. Upstream production held near 419,000 barrels of oil equivalent per day (boe/d), while refinery throughput dropped to 384,000 boe/d. Those numbers show why investors shouldn’t treat energy stocks as automatic winners.

Imperial has several advantages. It raised its quarterly dividend to $0.87 per share this year, and also plans to invest in high-return oil sands projects while keeping a tight focus on costs. If oil prices stay elevated, Imperial could keep rewarding shareholders through dividends. The risk comes from oil itself. Prices can fall fast when demand weakens or supply rises. Refining outages can also bruise earnings.

Bottom line

For investors worried about hot inflation, Barrick stock, LIF, and IMO all bring something useful. None of them removes risk completely, that would be impossible. But each connects to real assets, cash flow, and pricing power in a world where inflation still has teeth.