Top Canadian Dividend Stocks to Weather Market Turbulence

Market turbulence is expected to persist in 2026, driven by concerns over AI spending and the emergence of agentic platforms. As a result, investors are advised to exercise caution and consider shifting their focus towards value, defensive, and dividend stocks. Two Canadian dividend stocks that are considered undervalued are Bank of Nova Scotia and Enbridge. Bank of Nova Scotia offers a yield of over 4% and potential for dividend growth as earnings rise, while Enbridge boasts a 5.55% yield and is poised for double-digit dividend growth.

Both stocks have a history of paying consistent dividends, making them attractive to investors seeking stability and income in uncertain market conditions. Bank of Nova Scotia’s dividend yield is competitive compared to other 4%-yielders, and the stock has room to close the valuation gap with its peers. Enbridge’s outsized dividend yield and history of dividend growth make it an appealing long-term investment opportunity.

In addition to these two stocks, other undervalued Canadian companies include Power Corporation of Canada, Nutrien, and Alimentation Couche-Tard. Power Corporation is a holding company with stakes in major financial businesses, offering a 3.7% yield. Nutrien is a major player in the potash business and retail network, while Alimentation Couche-Tard has a long track record of improving margins and generating dependable free cash flow.