The TSX Composite Index saw a sharp pullback in March due to the US-Iran war. However, it quickly recovered, maintaining its 30% rally since June 2025. In this growth market, here are 10 stocks every Canadian should own to make the most of the second half of 2026.
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Energy and infrastructure stocks
Energy stocks were the biggest gainers in 2026. While oil and gas stocks corrected as prices normalized, energy infrastructure stocks continue to make new highs. This happens as the Canadian government accelerates sovereign artificial intelligence (AI) infrastructure. At the bottom of the five-layer AI infrastructure is energy.
Capital Power (TSX:CPX) builds and maintains power plants. In addition, it is investing large amounts in building capacity in the United States to power AI data centres. It was a dividend growth stock, but large capital spending could slow or put dividend growth on the back burner. With every new capacity addition, its stock price will grow as AI data centres absorb the new capacity.
Bird Construction (TSX:BDT) also saw revived growth triggered by Canada’s infrastructure push. After several years of slow construction, the policy push has boosted Bird’s order backlog to $11.1 billion in 2025 from $$7.7 billion in 2024. It is building a 300MW Saskatchewan AI Facility and Woodfibre LNG Facility. Both are scheduled to come online in 2027. The next two to five years could see growth spurts with new order wins amidst the infrastructure push.
AI trend
The other four layers of the AI infrastructure are chips, infrastructure, models, and applications. Celestica (TSX:CLS) will benefit from the chips segment as it has three hyperscaler clients. The company is designing and manufacturing Ethernet switches for enterprises and communications infrastructure. It is also expanding its facilities in Taiwan and the United States. The 20% June dip is a buying opportunity as AI IPOs saw some profit booking in other AI stocks.
The iShares NASDAQ 100 Index ETF (CAD-Hedged) (TSX:XQQ) is a good way to get exposure to the entire AI supply chain. Anthropic and OpenAI plan to debut on the Nasdaq in the coming few months. The XIT ETF can give you exposure to them. I would avoid a direct stock purchase as these IPOs will likely list at a premium. Understand that many venture capitalists and chip makers have invested billions in the above two companies. An IPO could be an exit strategy for them, considering that the billions in valuation have no profits to show for years.
The XQQ ETF will give you diversified exposure, helping you benefit from upside, while limiting downside risk.
Recovery stocks
Having all investments in AI-related stocks could be risky. Thus, diversify into value stocks that have taken a hit from external factors but have fundamentals to revive.
Descartes Systems (TSX:DSG) took a hit after the US tariffs affected trade volumes. Its supply chain management solutions are still in demand, but growth is slow. The company is using this weak trade environment to reduce costs, acquire companies for their technology or customers, and grow revenue. It has zero debt and is growing its cash reserve. With the right technology, exposure, and financial stability, Descartes is well placed to ride its seasonal second-half rally from e-commerce logistics demand.
Speaking of e-commerce, Shopify (TSX:SHOP) is a buy right now before it begins the holiday season rally. Shopify has attained consistent double-digit revenue and free cash flow growth. Its AI tools are also contributing to the revenue. A bull market and strong consumer demand create a favourable environment for a 40–50% seasonal rally.
Dividend and defensive stocks
Apart from the usual seasonal stocks, dividend stocks can bring stability to your portfolio.
A 6.2% yield from SmartCentres REIT can give assured monthly payouts as it earns 23% of its rent from Walmart. The REIT has been paying monthly distributions for 21 years without a dividend cut, making it an evergreen dividend stock to buy and hold. Cogeco Communications is among the stable dividend stocks in the telecom space. Its 30% dividend payout ratio and over 6% dividend yield make it an attractive dividend investment to earn inflation-adjusted passive income.
A small portion of your portfolio should be invested in defensive stocks like Lundin Gold and discount retailer Loblaw to balance downside risk.
