Banks
The Canadian Imperial Bank of Commerce (TSX:CM) is in a good spot for 2026 because the country can still grow even if the Canadian economy continues to muddle along. It manages Canadian personal banking, commercial banking and wealth, a U.S. commercial arm and capital markets. In the fourth quarter of 2025, revenue grew to $7.6 billion and delivered adjusted net income of $2.2 billion, or $2.21 in adjusted diluted earnings per share (EPS) with a CET1 ratio of 13.3%.
CIBC also gave income investors a very direct signal heading into 2026. It increased its quarterly dividend from $0.97 to $1.07. Meanwhile, it trades at 15 times earnings, with a solid dividend yield of 3.3% at the time of writing. All told, it’s reasonable for a dividend stock.
EQB (TSX:EQB) gives you a different kind of bank bet for 2026. It plays the role of challenger through EQ Bank, plus it runs a sizable alternative lending platform. Recent news also gave it a new growth angle: it announced an acquisition of PC Financial and a strategic partnership with Loblaw.
In the fourth quarter of fiscal 2025, EQB reported adjusted revenue of $308.1 million, adjusted net income of $63.5 million and adjusted diluted earnings per share of $1.53. It also reported a CET1 ratio of 13.3% and a book value per share of $81.31. Today it trades at about 16.5 times earnings, with a yield of 2%. However, the risk remains real. EQB is more sensitive to housing and financing conditions than the largest banks, so results could still change in 2026.
REITs
CT REIT (TSX:CRT.UN) provides a calmer feel for REIT investors who want more stability than drama. It owns Canadian retail properties and relies heavily on them Canadian band as anchor tenant. In the third quarter of 2025, it delivered adjusted funds from operations (AFFO) of $75.4 million and AFFO per diluted unit of $0.317, while distributions paid in the quarter were $0.237 per unit. It also reported a committed occupancy rate of 99.4%.
Valuation and returns help explain why CT REIT can feel overlooked. The dividend stock currently offers a dividend yield of 5.7% while trading at just 10 times earnings. The big risk lies in the obvious place: concentration of tenants. If Canadian Tire ever hits a rough patch, CT REIT will sense it quickly, so you buy it for reliability and not for unlimited benefits.
Then there is RioCan REIT (TSX:REI.UN), which offers more upside potential if interest rate cuts occur as the market tends to revalue larger retail REITs when borrowing costs decline. It also leaned toward operational execution in 2025. In the third quarter of 2025, it posted diluted FFO per unit of $0.46, grew net operating income (NOI) from commercial properties by 4.6%, and maintained store occupancy at 98.4%. It also reported an FFO payout ratio of 61% and pointed to $1.1 billion in liquidity, supporting flexibility. It led to 2025 FFO per unit of $1.85 to $1.88, giving investors a clear benchmark for 2026 expectations.
Income investors also get paid to wait. Although the dividend stock trades at 88 times earnings, it offers a yield of 5.9%. The risks are still important. Higher interest rates would continue to put pressure on the entire REIT group, and any slowdown in tenant demand would quickly hit sentiment, even if the properties continue to perform.
In short
Put it together and you get a neat 2026 “underrated” case with different flavors. This is essentially what $5,000 per dividend share can earn.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CM | $129.21 | 38 | $4.28 | $162.64 | Quarterly | $4,909.98 |
| EQB | $111.69 | 44 | $2.16 | $95.04 | Quarterly | $4,914.36 |
| CRT.UN | $16.41 | 304 | $0.95 | $288.80 | Monthly | $4,988.64 |
| REI.UN | $19.42 | 257 | $1.16 | $298.12 | Monthly | $4,990.94 |
If 2026 brings even a modest rate cut, these four could look a lot less “undervalued” in a hurry.
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