The Canadian Companies Thriving During Trade Tensions

Not every Canadian stock is feeling the heat of rising trade tensions. Here are two businesses that continue to deliver strong growth despite the uncertainty.

Key Points
  • Trade tensions continue to rise, but some reliable Canadian stocks are still delivering strong growth and expanding with confidence.
  • Quebecor (TSX:QBR.B) is growing its wireless business, boosting profits, and strengthening its balance sheet despite the uncertain trade backdrop.
  • Hydro One (TSX:H) is benefiting from rising electricity demand and major infrastructure projects that could support steady long-term growth.

Trade tensions have become part of everyday life for Canadian businesses. Since returning to the office, U.S. President Donald Trump has introduced, delayed, and expanded several rounds of tariffs. Trade pressure intensified again recently, when he announced new 50% tariffs on specific Canadian goods, with no exemption for products that comply with the Canada-United States-Mexico Agreement.

Still, not every Canadian company depends heavily on cross-border goods trade. Some businesses earn most of their money from essential services at home.

In this article, I’ll highlight two Canadian dividend stocks that continue to grow despite the trade uncertainty.

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Source: Getty Images

Quebecor stock

The first Canadian company built to handle this difficult trade environment is Quebecor (TSX: QBR.B).

Based in Montréal, this telecommunications and media company has mobile, internet, television, news, and entertainment operations. After jumping by nearly 70% over the last year, its stock currently trades at $66.98 per share with a market cap of about $15 billion, and offers a 2.4% annualized dividend yield.

That solid momentum in Quebecor stock has been backed by its strong operating and financial results. In the March 2026 quarter, the company’s revenue rose 3.9% year-over-year (YoY) to nearly $1.4 billion. On the profitability side, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 4.9% from a year ago to $576.6 million.

Its telecommunications business remained the main growth driver. Mobile service revenue climbed 8.8% YoY, internet revenue rose 3.2%, and the company added 28,800 mobile connections during the quarter. With all this, Quebecor’s adjusted net profit also jumped 18.6% YoY to $219.5 million.

Meanwhile, the telecom firm is strengthening its position through Freedom Mobile, new nationwide plans, faster internet services, and disciplined debt reduction. Because most of its growth comes from Canadian telecom services, Quebecor offers investors a strong domestic business that is less directly exposed to tariffs on physical exports.

Hydro One stock

Another attractive Canadian stock that could keep growing through trade tensions is Hydro One (TSX: H). It mainly operates Ontario’s electricity transmission and distribution system and serves about 1.5 million customers. Following a 22% surge over the last year, its stock now trades at $59.08 per share with a market cap of $35.5 billion and a 2.4% annualized dividend yield.

In the first quarter, Hydro One posted a 10% YoY increase in its total revenue to about $2.6 billion. Its net profit attributable to common shareholders also rose 9.2% YoY to $391 million, while earnings improved to $0.65 per share from $0.60.

These gains came mainly from Ontario Energy Board-approved rates and higher peak electricity demand. Lower operating, maintenance, and administration costs also helped, although higher financing and depreciation expenses offset part of the improvement in the latest quarter.

Notably, Hydro One recently invested $715 million and placed $484 million of assets into service. It was also selected to develop major transmission projects in Greenstone, Red Lake, and between Sudbury and Barrie.

These projects should support its long-term earnings growth as Ontario’s electricity needs expand. Since Hydro One earns regulated revenue from essential provincial infrastructure, its business is not closely tied to exports or tariff-sensitive goods.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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