1.Magna International
MG.TO (TSX)
Magna International stands out as a leading Canadian automobile parts manufacturer, focusing on electric components and drivetrains that support the growing electric vehicle market. With a solid dividend yield of nearly 4%, this company offers investors a reliable income stream while benefiting from strategic partnerships that enhance its position in the EV transition. Analysts maintain a positive outlook, with a B+ rating and consistent evaluations of "Equal Weight" from firms like Barclays and Wells Fargo, reflecting the company's stable prospects in a rapidly evolving industry.
Pros:
- Strong dividend yield
- Positive 1-year return
Cons:
- Negative 5-year return
- High beta indicating volatility
2.NFI Group
NFI.TO (TSX)
NFI Group stands out as a leading Canadian manufacturer of zero-emission buses, specializing in electric and hydrogen transit solutions for public transportation. With a solid backlog and a dividend yield of 2.86%, the company is positioned well for future growth, though its one-year return of nearly 30% contrasts sharply with a 42% decline over the past five years. Analysts currently rate the stock as a D+, reflecting concerns over its high net debt to EBITDA ratio, despite some long-term buy signals.
Pros:
- Strong 1-year return
- Leadership in zero-emission vehicles
Cons:
- Negative 5-year return
- High net debt to EBITDA ratio
Final Words
As you consider investing in electric vehicle stocks this February 2026 in Canada, remember to evaluate your options carefully. Take time to compare potential investments like Magna International and conduct thorough research to make informed decisions that align with your financial goals.
Frequently Asked Questions
As of January 2026, Magna International has a one-year return of 21.93% and a three-month return of 14.46%. However, it has experienced a year-to-date return of -3.05%.
Magna International offers a dividend yield of approximately 3.96%. The next dividend payment is scheduled at $0.6806, distributed quarterly.
Magna International operates within the consumer cyclical sector, specifically in the auto parts industry. The company specializes in electric components and drivetrains for electric vehicles.
Over the last five years, Magna International has seen a return of -18.55%. Despite recent challenges, it has achieved a maximum return of 198.32% since its inception.
When investing in electric vehicle stocks, consider the company's market position, partnerships, and technological advancements. It's also important to assess the overall market trends and regulatory environment affecting the EV sector.
Investing in electric vehicle stocks can be risky due to market volatility, competition, and regulatory changes. It's essential to conduct thorough research and diversify your investments to mitigate these risks.
