TORONTO – December 5, 2025 — The Canadian stock market has quietly turned into one of the world’s standout performers this year. The S&P/TSX Composite Index is up roughly 26.5% year to date to around 31,160, powered by strength in mining and a handful of huge winners like Celestica (up about 220% YTD) and Aritzia (up over 100%). [1]
At the same time, a new Reuters poll suggests the Bank of Canada is likely done cutting rates, with the policy rate expected to stay at 2.25% at least until 2027 after 275 basis points of reductions, as inflation stabilizes and GDP growth runs around 2.6%. [2] Lower rates support equities and rate-sensitive sectors like banks, pipelines and real estate, but they also mean investors must work harder to find attractive risk‑adjusted returns.
Below are seven TSX-listed stocks that currently stand out based on fresh earnings, analyst forecasts, dividend news and price action as of December 5, 2025. These are ideas to research further, not one‑size‑fits‑all recommendations.
Important: This article is for information and education only, not personalized investment advice. Always consider your own goals, risk tolerance and tax situation, and do your own due diligence or speak with a registered advisor before buying any stock.
How we picked these “best Canadian stocks to buy today”
To build this list, we focused on TSX‑listed companies that currently show at least one of:
- Fresh positive news or guidance in late November or early December 2025
- Reasonable or improving valuations relative to growth and cash flows
- Strong dividend growth history or newly increased payouts
- Structural growth drivers (AI, logistics, energy infrastructure, consumer recovery, e‑commerce)
We also cross‑checked recent analyst ratings, price targets, and fundamental data from sources including company press releases, Reuters, MarketBeat, DividendMax, and other specialist outlets as of December 5, 2025. [3]
1. Royal Bank of Canada (TSX: RY) – Blue‑chip anchor with record earnings and a fresh dividend hike
Royal Bank of Canada (“RBC”) is Canada’s largest bank and a core holding for many long‑term Canadian investors. In early December, RBC reported record fiscal 2025 results:
- 2025 net income of C$20.4 billion, up 25% year over year
- Diluted EPS of C$14.07, also up 25%
- Return on equity (ROE) of about 16.3–16.7% for the year [4]
Reuters notes that Q4 earnings beat expectations thanks to 45%+ profit growth in capital markets and a 32% jump in wealth management income, even as provisions for credit losses rose to about C$1 billion amid a still‑soft housing market. [5]
RBC also boosted its dividend again. On December 3, its board declared a quarterly common share dividend of C$1.64, up C$0.10 (about 6%), payable February 24, 2026 to shareholders of record January 26. [6]Based on recent market data, that works out to a forward dividend yield of roughly 2.7–2.8%, with a payout ratio in the low‑40% range. [7]
On the valuation side:
- MarketBeat shows a consensus “Moderate Buy” rating from 14 analysts
- The average 12‑month price target is about C$224.23, essentially in line with the recent close around C$224.06 [8]
- A separate discounted cash‑flow analysis from Excess Returns still pegs RBC as roughly 26–27% undervaluedrelative to intrinsic value, even after the 2025 rally. [9]
Why RY looks like a top pick now
- Quality + resilience: A dominant position in Canada’s oligopolistic banking system plus growing U.S. exposure
- Earnings momentum: Record profits and premium ROE with tailwinds from capital markets and wealth management [10]
- Dividend growth: A long stretch of regular increases, with the latest 6% hike signalling confidence in forward earnings [11]
Key risks
- Rising unemployment and a still‑fragile housing market could pressure credit quality and loan growth. [12]
- Banks are sensitive to regulatory changes and the Bank of Canada’s rate path, which now looks flat into 2027. [13]
For investors building a core Canadian portfolio, RBC remains one of the most compelling “sleep‑at‑night” blue chips.
2. Canadian Natural Resources (TSX: CNQ) – Oil‑sands cash engine with rising volumes and a strong dividend
Canadian Natural Resources (CNQ) remains one of the go‑to Canadian energy names for long‑term dividend investors.
In its November Q3 update, CNQ reported that total corporate production jumped about 19% versus Q3 2024, adding around 257,000 BOE/d, helped by accretive acquisitions and increased activity across its asset base. [14]Management then raised 2025 production guidance to a range of 1.56–1.58 million BOE/d, while keeping the 2025 capital budget steady at about C$5.9 billion. [15]
On the income side, CNQ’s board declared a quarterly dividend of C$0.5875 per share payable January 6, 2026, to shareholders of record December 12, 2025. [16] DividendMax data show:
- A trailing dividend yield around 4.9%
- Four regular dividends per year
- Dividend cover of roughly 2.0x earnings [17]
A recent Canadian dividend‑stock survey highlights CNQ as a top dividend growth name, noting a 23‑year dividend‑increase streak, 5‑year revenue growth of about 16%, and 5‑year dividend growth above 20%, albeit with the caveat that recent oil‑price strength may not be fully sustainable. [18]
Why CNQ stands out today
- Production growth + flat capex: Higher output guidance without a bigger capex budget supports future free cash flow. [19]
- Attractive, growing dividend: Near‑5% yield with a long history of increases. [20]
- Leverage to energy prices: Still well‑positioned if oil stays structurally supported by underinvestment and geopolitical risk.
Key risks
- Highly sensitive to crude oil and natural gas prices.
- Environmental and regulatory pressures on oil‑sands producers.
For income‑oriented investors comfortable with commodity cycles, CNQ remains one of the best Canadian energy stocks to research today.
3. Enbridge (TSX: ENB) – High‑yield pipeline giant with 31 straight years of dividend growth
Enbridge is Canada’s pipeline and energy‑infrastructure heavyweight and a cornerstone holding for many dividend portfolios.
In early December, Enbridge announced a fresh 3% dividend increase, boosting its quarterly payout to C$0.97 per share (C$3.88 annually) starting March 1, 2026. That marks 31 consecutive years of dividend growth and implies a current yield around 5.6%. [21]
Alongside the dividend hike, Enbridge issued 2026 financial guidance that calls for:
- Distributable cash flow (DCF) per share of C$5.70–C$6.10, up about 3.5% at the midpoint versus 2025 guidance
- A dividend payout ratio within its targeted 60–70% range
- A growing backlog of about C$37 billion of secured growth projects through 2033 [22]
A separate analysis of Canadian oil stocks from Sure Dividend currently ranks Enbridge as the #1 Canadian oil & gas stock by expected total return, estimating about 6.7% annualized returns driven by its combination of yield and modest DCF growth. [23]
Why ENB looks attractive now
- Big, reliable income: A yield in the mid‑5% range backed by regulated and long‑term contracted assets. [24]
- Visible growth pipeline: Billions in capital projects coming online across liquids, gas transmission, gas utilities and renewables. [25]
- Dividend culture: A three‑decade record of annual dividend increases underscores management’s commitment to income investors.
Key risks
- Highly sensitive to interest rates and credit markets because of its leverage and capital‑intensive model.
- Regulatory and political risk around large pipeline projects.
For investors seeking steady, inflation‑beating income, Enbridge is one of the best TSX dividend stocks to consider today.
4. Celestica (TSX: CLS) – High‑octane AI data‑centre winner (with high risk)
If 2023–2024 belonged to U.S. AI giants, 2025 has been Celestica’s year on the TSX.
Recent coverage of 2025’s best‑performing TSX stocks notes that Celestica is up roughly 220% year to date, helping drive the S&P/TSX Composite’s strong 26.5% advance and firmly establishing the stock as one of the index’s standout AI hardware plays. [26]
Industry and analyst reports highlight that:
- Celestica’s stock is up around 270% in 2025, fuelled by surging demand for its data‑centre and AI infrastructure products, and the company has raised its 2025 guidance. [27]
- Management has increased its outlook to about US$12.2 billion in 2025 sales and US$5.90 in adjusted EPS, with 2026 sales targets around US$16 billion, signalling confidence in multi‑year AI demand. [28]
- Even after its massive run, one recent analysis calls Celestica a “soaring Canadian AI stock” that still trades at about a 33% discount to consensus price targets, and notes that shares are roughly 14% below recent all‑time highs as of early December. [29]
Why CLS is compelling (for aggressive investors)
- Direct play on AI infrastructure: Celestica provides complex hardware and systems for cloud and AI data centres – sectors seeing explosive capex. [30]
- Upgraded guidance: Higher revenue and EPS targets show management’s confidence in demand and execution. [31]
- Potential upside vs. targets: Despite big gains, some valuation work still suggests upside relative to analyst price targets. [32]
Key risks
- After a 200–270%+ run, volatility is extreme; pullbacks of 20–30% would not be unusual. [33]
- AI and data‑centre spending is cyclical; any slowdown from hyperscalers could hit orders hard.
Celestica deserves a spot on watchlists for growth‑oriented investors who are comfortable with big swings and want a Canadian‑listed AI infrastructure play.
5. Aritzia (TSX: ATZ) – Fashion comeback story with strong momentum
Aritzia, the Vancouver‑based fashion retailer, has staged a dramatic recovery after a tough 2023–2024 stretch.
Performance data show that Aritzia has returned about 108% year to date and roughly 126% over the past 12 months, vastly outperforming the broader market. [34] Shorter‑term momentum is also strong, with a roughly 61% gain over six months. [35]
A recent AI‑driven technical analysis from StockInvest:
- Upgraded ATZ from “Hold” to a “Buy candidate” on the back of positive short‑term signals
- Notes a closing price of C$111.28 on December 4, 2025, with a predicted fair opening price of C$111.33 for December 5
- Highlights a 52‑week high of C$112.80 and low of C$36.51, underscoring how far the stock has rebounded [36]
A MarketBeat alert from December 1 reports that nine equity analysts currently rate Aritzia a Buy, with a consensus price target around C$96.09 and a P/E near 46x, indicating that the stock now trades above many published targets and at a growth‑style valuation. [37]
Other commentary attributes Aritzia’s strong move to a turnaround in fundamentals, including improved quarterly results and renewed investor confidence in its North American growth strategy. [38]
Why ATZ is interesting now
- Powerful earnings and sentiment turnaround after a reset year. [39]
- Strong price momentum with technical models turning more positive. [40]
- Attractive growth story in U.S. expansion and digital, if management continues to execute.
Key risks
- Valuation is rich (mid‑40s P/E) and the stock trades above average analyst price targets, which raises the bar for future earnings beats. [41]
- Consumer discretionary spending is cyclical and could weaken if economic conditions deteriorate.
Aritzia fits best as a higher‑beta growth holding rather than a defensive core position.
6. Descartes Systems Group (TSX: DSG) – Consistent compounder riding supply‑chain digitization
Descartes Systems Group, a logistics and supply‑chain software provider, has quietly become a Canadian SaaS success story.
The company recently reported record Q3 2026 results, including:
- Revenue of about US$187.7 million, up roughly 11–11.2% year over year
- Gross profit of about US$145 million, up ~15–16%
- Operating profit of US$56.6 million, up more than 23% [42]
Zacks and other coverage highlight that Descartes’ Q3 revenue and EPS both beat consensus estimates, with EPS of US$0.50 vs. around US$0.456 expected, reflecting high‑margin, recurring revenue growth from its cloud‑based logistics platform. [43]
In parallel, the company announced a CFO transition plan and a normal‑course issuer bid (share buyback), signalling confidence in its balance sheet and long‑term outlook. [44]
On the TSX, Descartes is getting noticed. A daily market recap today notes that DSG shares jumped about 14.4% to C$132.45, making it the top‑performing TSX stock on December 5, 2025. [45]
Why DSG looks appealing
- High‑quality recurring revenue business in logistics software, a sector benefiting from ongoing supply‑chain optimization. [46]
- Consistent double‑digit revenue growth with rising margins and earnings beats. [47]
- Capital returns via share buybacks alongside organic growth investments. [48]
Key risks
- Shares often trade at a premium SaaS valuation, making them vulnerable in growth sell‑offs.
- Logistics volumes and trade flows can be cyclical.
For investors seeking a steady Canadian software compounder, Descartes is a strong candidate for further research.
7. Shopify (TSX: SHOP) – World‑class e‑commerce platform, priced for growth
Shopify remains the flagship Canadian tech name, even though many investors primarily follow its U.S. listing.
A December 5 MarketBeat alert reports that TD Securities has upgraded Shopify to “Hold”, while a long list of brokers – including Needham, Bank of America, Morgan Stanley and JPMorgan – maintain Buy or Overweight ratings with targets generally in the US$179–$192 range. [49] Overall, MarketBeat notes:
- Consensus rating: “Hold”
- Consensus 12‑month price target: about US$166.53
- Recent price: around US$162.31
On fundamentals, Shopify’s latest earnings show:
- Q3 2025 revenue of roughly US$2.84 billion, ahead of the ~US$2.75 billion consensus
- EPS of US$0.27, topping expectations of US$0.24
- Net margin around 16.7% and ROE near 11.7%
- Analysts forecasting about US$1.12 EPS for the full year [50]
Valuation, however, is demanding:
- P/E ratio around 120x
- PEG ratio near 5.9
- A 12‑month trading range from roughly US$69.84 to US$182.19 [51]
Why SHOP still makes the list
- One of the few global‑scale platform businesses headquartered in Canada.
- Strong earnings momentum with profitable growth and a robust balance sheet. [52]
- Beneficiary of secular trends in e‑commerce, creator‑led brands, and AI‑driven personalization.
Key risks
- Valuation leaves little room for disappointment; growth slowdowns can trigger steep drawdowns. [53]
- Highly competitive space with giants like Amazon and emerging AI‑driven commerce platforms.
Shopify is best suited to long‑term, high‑risk‑tolerant investors who can handle volatility and are focused on the next decade, not the next quarter.
Bonus defensive picks: Fortis and Canadian National Railway
If you want a couple of steadier, lower‑volatility TSX names to complement the higher‑growth stocks above, two standouts from a recent dividend‑growth survey are worth flagging:
- Fortis (TSX: FTS) – A regulated North American utility with a 51‑year dividend‑increase streak and a yield around 3.5%. Five‑year revenue and EPS growth both hover around 5%, supporting mid‑single‑digit dividend growth going forward. [54]
- Canadian National Railway (TSX: CNR) – One of North America’s premier railroads, with a 28‑year dividend‑increase streak, yield about 2.6%, and 5‑year EPS growth near 10%. [55]
Both are classic “buy‑and‑hold forever” style Canadian blue chips for conservative investors.
How to use these Canadian stock ideas
Here are a few ways to think about putting this all together:
- Build your core around durable blue chips like RBC, Enbridge, CNQ, Fortis, and CNR – companies with strong cash flows and dividend track records. [56]
- Add select growth names like Celestica, Aritzia, Descartes, and Shopify in sizes that match your risk tolerance. [57]
- Remember that 2025’s big winners can be 2026’s laggards – momentum is powerful, but mean reversion is real.
- Consider dollar‑cost averaging rather than going all‑in at once, especially into volatile AI and tech names.
Above all, treat any “best stocks to buy now” list – including this one – as a starting point for your own research rather than a shopping list.
References
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