Buy Canadian: 1 TSX Stock Will Outperform Global Markets in 2026

It’s true that some Canadian stocks could outperform global markets next year. Many of the country’s strongest sectors are perfectly positioned for the themes shaping 2026, including rising resource demand, massive infrastructure spending and a potential recovery. Add to that the fact that some top TSX Stocks are still undervalued after years of lagging behind US technology, and you get a situation where even modest improvements can lead to outsized profits. For investors, it’s a rare opportunity to see these stable, gritty Canadian names take center stage. But most of all, I would go and watch Nutrients (TSX:NTR).

NTR

Nutrien is the world’s largest provider of crop inputs and agricultural services, created through the merger of Agrium and PotashCorp. It produces and distributes the three most important fertilizer nutrients: potash, nitrogen and phosphate, as well as operating one of the largest agricultural retail networks in the world. This gives Nutrien a unique position in the food supply chain. It serves farmers in more than a dozen countries, offering everything from crop protection products to digital agronomy tools. And because global population growth and rising food demand require ever higher crop yields, Nutrien benefits from a stable long-term demand base that supports stable cash flow.

The dividend stock is also highly vertical, controlling both manufacturing and retail. This provides strong efficiency improvements and cushions revenues when fertilizer prices fluctuate. Nutrien’s integrated model allows it to leverage margins across the entire value chain, making it more resilient than pure commodity producers. Fertilizer markets should tighten over the next decade due to supply constraints and geopolitical issues. Therefore, Nutrien’s global scale, access to resources and logistics footprint position the company as a central player in the drive to sustainably increase global food production.

In income

In its latest earnings results, Nutrien reported strong performance thanks to higher fertilizer volumes and improved prices in key nutrient segments. The dividend stock generated approximately $1.7 billion in net income and $4.8 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first nine months of 2025. This reflects robust global demand and operational efficiency. Potash sales were a highlight, benefiting from increased production and cost benefits. The nitrogen segment has also made a meaningful contribution, supported by strong global energy dynamics that have improved margin competitiveness against international producers.

Nutrien’s retail division continued to deliver stable results, expanding margins thanks to improved input costs and increased demand for proprietary crop solutions. Management also highlighted strong cash flow generation, which allowed the company to return approximately $1.2 billion to shareholders through dividends and share buybacks in the third quarter. The dividend stock reaffirmed its focus on capital discipline, continued network optimization and cost control, factors that strengthen its 2026 outlook.

Looking ahead

Nutrien is now poised to outperform global markets next year. It is central to one of the world’s most sustainable megatrends: the increasing need for food production. As geopolitical instability disrupts fertilizer supply chains, extreme weather impacts crops and the world’s population continues to rise, farmers must increasingly rely on high-quality, consistent fertilizer inputs to boost yields. Nutrien’s unparalleled production scale, especially in potash, gives the company pricing power when markets tighten. If fertilizer prices continue to stabilize or increase, Nutrien’s earnings power could translate into meaningful benefit for shareholders.

The dividend stock should also outperform as its integrated model allows it to capture growth not only from fertilizer pricing, but also from the expansion of retail services, digital farming and value-added crop solutions. This creates multiple routes for profit growth. Growth that is independent of commodity cycles, something that most global peers cannot match.

In short

With strong cash flow, a shareholder-friendly capital return strategy and a valuation that remains attractive relative to long-term earnings potential, Nutrien offers a strong combination of stability and upside potential. But even now, investors can trade it at 16 times earnings, with a yield of 3.7%. Here’s what $7,000 could get you right now.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
NTR	$82.66	84	$3.07	$257.88	Quarterly	$6,944.64

If global markets experience volatility while agricultural demand remains strong, NTR could easily become one of the TSX’s top performers in 2026.