The Canadian equity market has experienced heightened volatility in recent weeks, driven by geopolitical tensions in the Middle East, high inflation, and ongoing trade-related uncertainties. These macroeconomic headwinds have created a challenging investment environment, making stock selection and portfolio diversification important before investing.
For investors with $1,000 to put to work, diversifying across growth-oriented companies, dividend-paying businesses, and defensive stocks can help generate solid total returns amid uncertainty. Also, focusing on fundamentally strong stocks that have pulled back from their highs presents a solid buying opportunity.
With these factors in mind, here are three Canadian stocks to buy right now.
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Best Canadian stock #1: Celestica
Celestica (TSX: CLS) stock presents an attractive investment opportunity at current price levels. Its stock has come under pressure and is trading more than 51% below its 52-week peak. While profit booking following a sharp rally and broader selling in artificial intelligence (AI) stocks has weighed on CLS, the company’s prospects remain strong and support the bullish outlook.
Celestica’s growth is primarily driven by its Connectivity & Cloud Solutions (CCS) segment, which benefits from rising investments in data centres and AI computing. In the third quarter, CCS revenue jumped 102% year over year. Networking revenue grew 68%, while compute and storage revenue surged 242%, reflecting strong demand from hyperscale customers and AI-related projects.
Celestica’s Advanced Technology Solutions (ATS) segment also performed well, with revenue increasing 23% to $957 million.
More importantly, management raised its 2026 revenue forecast to $21 billion and adjusted EPS guidance to $11.55. Looking ahead, the company expects 2027 revenue to reach $40 billion, with adjusted EPS of $21.50.
Overall, its solid growth prospects, notable price correction, and easing valuation concerns make Celestica stock a buy right now.
Best Canadian stock #2: Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD) is a solid stock to buy now for income and growth. TD is one of Canada’s leading banks and a top dividend payer and grower. Its annual dividend has grown at an average rate of around 8% over the past decade. Moreover, it is well-positioned to keep growing its dividend in the years ahead.
TD offers a quarterly dividend of $1.12 per share, yielding over 2.5%. While its yield remains low, TD’s consistent dividend growth and sustainable payouts make it a compelling investment.
TD is well-positioned to benefit from diversified revenue streams, healthy loan quality, and ongoing efforts to improve operational efficiency. Growth in its Canadian Personal Banking, Wealth Management, and Insurance businesses could further support earnings, while cost-control measures may help improve profitability.
Overall, TD’s solid dividend payment history, diversified revenue base, focus on improving efficiency, and sustainable payout ratio make it an attractive investment.
Best Canadian stock #3: Fortis
Fortis (TSX: FTS) is a compelling defensive investment opportunity, offering income and solid long-term growth potential. Its regulated utility operations generate relatively predictable cash flows across varying economic conditions. At the same time, its emphasis on electricity transmission and distribution reduces exposure to the earnings volatility associated with power generation.
The utility company recently raised its quarterly dividend by 4%, extending its record of annual dividend increases to 53 consecutive years. Management anticipates maintaining dividend growth of 4–6% annually through 2031, driven by stable operating cash flows and a growing asset base.
Fortis plans to invest $32.2 billion by 2031, targeting an expansion of its rate base to $63.9 billion. This investment is expected to strengthen its earnings capacity and provide a foundation for sustained dividend growth.
Additionally, rising electricity consumption, driven by data centre expansion, electric vehicle adoption, and broader industrial electrification, creates favourable long-term opportunities. Investments in grid modernization and transmission infrastructure should further support demand for its services.
Overall, Fortis’ defensive earnings, dependable dividend growth, and infrastructure-led expansion position it well to deliver attractive long-term shareholder returns.
