The Canadian equity markets have staged a healthy recovery this month, with the benchmark S&P/TSX Composite Index gaining 1.4%. However, the outlook remains uncertain, as elevated bond yields, persistent inflation, shifting trade policies, and ongoing geopolitical tensions continue to weigh on investor sentiment. In this environment, investors should consider diversifying their portfolios across growth, defensive, and dividend-paying stocks to balance wealth creation opportunities with stability and income generation.
Against this backdrop, let’s explore three Canadian stocks that I believe are worth considering right now.
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Celestica
Celestica (TSX: CLS) has staged a strong recovery, gaining more than 30% from last week’s lows. The rebound in AI-related stocks appears to have driven this recovery. Despite the recent rally, the stock still trades about 45% below its 52-week high, offering investors an opportunity to gain exposure to its growth potential at a discount.
Meanwhile, Celestica delivered impressive third-quarter results last month, with revenue and adjusted earnings per share (EPS) surging 83% and 109%, respectively. Following this strong performance, management raised its 2026 financial guidance, now projecting revenue growth of 69.5% and adjusted EPS growth of 90.9%.
Looking further ahead, Celestica’s management remains optimistic about sustaining its growth momentum, supported by increasing investments in AI infrastructure by hyperscalers. The company has also provided an encouraging outlook for 2027, forecasting revenue growth of 90.5% to approximately $40 billion. Further, management expects operating margins to improve to 9% and adjusted EPS to increase by 86% to $21.50.
Considering its impressive financial performance, strong growth outlook, and significant exposure to the expanding AI infrastructure market, Celestica appears well-positioned to deliver further earnings growth. With the stock still trading substantially below its 52-week high, I believe it could be an attractive opportunity for growth-oriented investors.
Fortis
Fortis (TSX: FTS), a reliable defensive stock, is my second pick. The utility provides essential electricity and natural gas services to approximately 3.5 million customers across Canada, the United States, and the Caribbean. Given the essential nature of its services, regulated asset base, and significant exposure to low-risk transmission and distribution operations, Fortis generates stable, predictable cash flows, making its financial performance relatively resilient to macroeconomic uncertainty and market volatility.
Supported by this resilient business model, Fortis has delivered an impressive total shareholder return of approximately 550% over the last 20 years, translating into an annualized return of 9.9%. Furthermore, the utility has rewarded shareholders with 53 consecutive years of dividend increases and currently offers a forward dividend yield of 3.2%.
Looking ahead, Fortis continues to expand its rate base to capitalize on rising demand for electricity and natural gas. After investing $4.2 billion during the first nine months of the year, the company remains on track to deploy approximately $6 billion in capital investments this year. Moreover, Fortis has outlined a new $32.2 billion capital investment plan, which could grow its rate base at an annualized rate of 7.5%, reaching $63.9 billion. Supported by these investments and its predictable cash flows, management expects to increase dividend payouts by 4–6% annually through 2032.
Given its defensive business model, regulated asset base, consistent dividend growth, and substantial investment pipeline, Fortis appears well positioned to deliver steady long-term returns.
TC Energy
My third pick is TC Energy (TSX: TRP), an established dividend-paying company that has increased its dividend for 26 consecutive years and currently offers a forward yield of 3.8%. The company operates an extensive natural gas pipeline network across North America, transporting natural gas under long-term, take-or-pay contracts. In addition, it owns seven power-generating facilities with a combined capacity of 4.3 gigawatts, with most of the electricity generated sold under long-term power purchase agreements (PPAs).
Notably, approximately 98% of TC Energy’s earnings come from rate-regulated assets and long-term take-or-pay contracts. This business mix reduces its exposure to commodity price fluctuations and economic cycles, supporting stable financial performance and predictable cash flows. These resilient fundamentals have enabled the company to maintain its impressive dividend growth record while continuing to invest in its business.
Looking ahead, TC Energy has a substantial growth pipeline, with approximately $30 billion in sanctioned projects and projects awaiting approval, alongside more than $40 billion in early-stage development opportunities. These investments should support its asset base expansion and strengthen its long-term earnings potential. Reflecting its growth prospects, management expects adjusted EBITDA to increase at an annualized rate of 5–7% through 2031. The company also anticipates maintaining annualized dividend growth of 3–5% in the near term.
