Honestly, the world is getting a little unpredictable, and the stock market feels exactly the same. If you’re looking for some safe bets that could still have some upside in 2026, here are two Canadian stocks that could soar.
Hard assets that help fuel the economy seem like a good place to invest right now. Once these assets are in place, they can last for decades and are unlikely to be disrupted by any computer algorithm.
Source: Getty Images
Pembina Pipeline: A Canadian infrastructure stock gaining momentum
Pembina Pipeline (TSX:PPL) The stock is at the crossroads of Canada’s energy supply chain. This Canadian company collects and transports oil and gas to processing plants and then to end markets. These are critical assets for customers. In many cases, Pembina is the only way producers can get their oil and gas to market.
With so much geopolitical disruption, the price of oil has risen (it’s up 15% this year). Likewise, natural gas prices should continue to rise as more LNG terminals come online and the Canadian gas market tightens.
An increase in commodity prices is always good for Pembina. About 15% of its revenue comes from its marketing activities. Even if this commodity thesis does not pan out, the remaining 85% of income will be shrunk. As it continues to bring new assets to market, those contracted revenues will increase.
Pembina has one of the few LNG terminals under construction in Canada. It is scheduled for completion in 2028. Once that comes online, it could provide a nice revenue boost.
Pembina shares are already up 15% this year. If commodities continue to behave well, there could be even more upside potential for this undervalued Canadian infrastructure stock.
Granite: The recent rise could continue
Real estate has been a challenging stock to own in recent years. Fortunately, things seem to be changing.
Granite Real Estate Investment Trust (TSX:GRT.UN) is up 30% in the past year. However, this Canadian stock could still enjoy upside potential in 2026. Granite has steadily delivered approximately 7% compound annual capital from unit operating growth over the past five years. Yet the shares are only neutral during that period.
Granite’s portfolio has improved significantly during that period. It currently extends across Canada, the United States and Europe. The occupancy rate is 98% and the weighted average rental term is over five years.
Granite has been managed very sensibly. It has one of the best balance sheets among its peers. It can deliver consistently good returns in most economic environments.
Granite yields a return of 4%. The company has grown its payout for 15 years in a row and recently increased its dividend faster than before.
If you want a mix of high-quality assets, a strong operating platform and a nice revenue stream, this stock is a perfect choice. It may not be the most exciting business, but it’s not likely to be disrupted by AI.
Granite appreciation remains below private market value, so at today’s price you are still getting a good bargain. With a recent stock market rally and economic uncertainty, this could be a great Canadian stock to weather the storm.
#Canadian #stocks #poised #soar