Best Stock Investments this May 2026 in Canada

Canadian Natural Resources stands out as a low-cost energy producer and is recommended for those seeking stability in their investment portfolio for 2026. With a robust dividend yield of 3.54% and impressive returns of 48.39% over the past year and 232.73% over the last five years, this stock is supported by strong analyst ratings, including "Buy" from Goldman Sachs and "Outperform" from RBC Capital.

Shopify stands out as a high-growth technology champion from Canada, capitalizing on expanding international tech trends. With a solid one-year return of 26.22% and a five-year return of 20.16%, it maintains strong potential for long-term investors. Analysts are optimistic, with ratings ranging from Overweight to Buy, reflecting confidence in its continued growth trajectory.

SHOP is currently rated as a Hold stock, having increased 338.04% since its addition to the Focus List at $29.94 per share. Analysts have slightly raised their earnings estimate for fiscal 2026 to $1.78.

With a robust dividend yield of 3.72%, Royal Bank of Canada stands out as a strong choice for investors seeking reliable income and consistent, compounding returns. Over the past year, RBC has delivered an impressive total return of 54.44%, reflecting its solid position within the financial sector. Despite mixed analyst ratings, RBC's financial health and commitment to dividend growth make it a compelling option for long-term investors.

The Royal Bank of Canada (RY) has a total return of 54.44% over the past 12 months and 123.86% over the last five years.

Dollarama stands out as a promising Canadian retail stock for 2026, catering to value-oriented shoppers while demonstrating robust market performance. With a notable five-year return of 193.38% and a modest dividend yield of 0.25%, it is an attractive choice for investors seeking growth in resilient retail sectors. Analyst ratings reinforce this outlook, with firms like BMO Capital and National Bank Financial maintaining an "Outperform" stance on the stock.

The 7% rule is a risk management strategy where investors set a stop-loss order to sell a stock if its price falls 7% below the purchase price, helping to limit potential losses.

Analysts predict Dollarama's revenues will reach CA$8.10 billion by 2027, indicating a 12% increase compared to the last 12 months.

Canadian National Railway presents a solid investment opportunity, characterized by its stability and reliable returns in the transportation sector. With a current dividend yield of 2.47%, the company has delivered impressive returns of 17.57% over the past year and 17.04% over the last five years. Analysts are favorably rating the stock, with a recent upgrade to "Buy" from Bank of America and positive long-term growth forecasts, indicating strong potential moving forward.

Yes, CNR has mostly positive signals from both short and long-term moving averages, indicating a favorable forecast for the stock.

CNR is expected to grow earnings by 72.5% and revenue by 4.1% annually, with an EPS growth forecast of 64.8% and a return on equity of 14.7% in three years.

Yes, Canadian National Railway increased its dividend to $0.915 per share, up from $0.89, with the ex-dividend date on March 10th.

Bill & Melinda Gates Foundation Trust is the largest shareholder of CNR, owning 8.7% of the outstanding shares.

Brookfield Infrastructure Partners stands out as a compelling investment option, with its growth closely aligned with increasing global infrastructure demands and megatrends. Currently offering a dividend yield of 4.52%, the company has delivered impressive returns of 22.89% over the past year and 10.41% over five years. Notably, a discounted cash flow analysis indicates that BIP is undervalued by 79%, and analyst ratings show a mix of optimism, with Morgan Stanley upgrading to Overweight and Jefferies maintaining a Hold.

Brookfield Infrastructure Partners is currently undervalued by 79% according to our Discounted Cash Flow analysis.

The consensus price target for BIP ranges from $31.00 to $57.00, with an average target suggesting a 16.88% upside from the current price of $36.04.

BIP is considered a safe dividend stock, providing stability and strong performance across various market conditions due to its ownership of long-life infrastructure assets.

Aritzia stands out as a luxury fashion retailer with exclusive brands and a devoted clientele, evidenced by an impressive 356.23% return over the past five years and a remarkable 200.29% increase in the last year. Currently, the stock is viewed as overvalued, trading at C$137.95 compared to an intrinsic value of C$85.90, which may prompt investors to tread carefully. Analysts maintain a positive outlook, with ratings ranging from "Outperform" to "Buy," indicating strong confidence in Aritzia's growth potential.

The average price target for Aritzia (ATZ) is C$139.92, with a forecasted upside of 0.07% from the current price of C$139.82.

Aritzia's intrinsic value is estimated at C$85.90, indicating the stock is currently overvalued by 38% compared to its market price of C$137.95.

The average price target for ATZ is C$152.82, with a high of C$162.09 and a low of C$142.20, representing a potential increase of 10.79% from the last price of C$137.93.

AT&T (T) has a consensus rating of Buy from 16 analysts, with 38% recommending Strong Buy, 38% recommending Buy, and 25% suggesting Hold.