The S&P/TSX Composite Index is up roughly 12% so far in 2026. For anyone who has been sitting on the sidelines waiting for the right moment, that kind of run can feel like a missed opportunity.
But it isn’t entirely. The index has pulled back about 2% over the past month, and it closed at 35,582.07 on September 15, down 120.46 points on the day. Trade war concerns and elevated bond yields have cooled the rally, and many individual TSX stocks have fallen considerably more than the index itself. That kind of pullback is exactly when patient investors tend to find their best entries.
For someone buying their first stocks, the goal isn’t to time the market perfectly. It’s to own solid businesses at reasonable prices and let time do the rest. Here are three portfolio diversification TSX stocks worth considering.
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Fortis
Fortis (TSX: FTS) is about as close to a sleep-well-at-night stock as the TSX offers. The utility stock giant owns nearly $80 billion in assets across Canada, the United States, and the Caribbean, including power-generation facilities, electricity transmission networks, and natural gas distribution utilities. Nearly all of that revenue comes from rate-regulated assets, which means cash flow is predictable and dividends are well protected.
The stock trades near $74.46, down from its 52-week high of $83.75. At that price, the annual dividend of $2.56 per share translates to a yield of roughly 3.4%. Fortis has raised its dividend for decades, and management is targeting 4% to 6% annual dividend growth through 2030, supported by a $28.8 billion capital program.
For a first-time investor, Fortis offers something valuable: a business that keeps paying you regardless of what the broader market does.
MDA Space
MDA Space (TSX: MDA) is a different kind of investment entirely. The Brampton-based company builds satellites, space robotics, and geo-intelligence systems for customers around the world. It recently invested in two companies to expand its intellectual property and manufacturing capacity across North America and Europe.
The space economy is expanding rapidly, and MDA sits at the centre of it. The company reported $499 million in revenue in the second quarter of 2026, up 34% year over year, with adjusted EBITDA of $96 million. Its backlog stood at $4 billion at quarter-end, rising to $4.4 billion on a pro forma basis after the Telesat expansion.
The stock has pulled back sharply from its 52-week high of $67.90 and trades near $40.25. That discount gives new investors a rare chance to buy into a long-term growth story at a more reasonable entry point.
TFI International
TFI International (TSX: TFII) is Canada’s largest transport and logistics company, with operations spanning package and courier, less-than-truckload, truckload, and asset-light logistics services across North America.
The freight market has been difficult for more than two years, but TFI’s latest results suggest the worst may be behind it. In the second quarter of 2026, the company reported revenue of $3.2 billion, beating expectations by more than $100 million, and adjusted diluted earnings per share of $1.85, up 38% year over year. Net income rose 39% to $136.2 million.
TFI has used the downturn to right-size underperforming operations and clean up its fleet mix. The stock trades near $185.79, well below its 52-week high of $233.85, and at roughly 18 times forward earnings. For investors comfortable with some economic cyclicality, that combination looks attractive.
Foolish takeaway
Buying your first stocks can feel daunting in a bullish market. But the TSX is not a single entity, and plenty of quality businesses have pulled back even as the index sits near record levels.
Fortis offers dependable income and a decades-long track record of dividend growth. MDA Space provides exposure to a rapidly expanding industry at a meaningful discount to its recent highs. TFI International gives investors a well-run transport company trading at a reasonable valuation as its end markets recover.
None of these stocks are guaranteed winners, but for someone building a first portfolio, owning solid businesses at fair prices is a far better starting point than waiting for a perfect moment that never arrives.
