TSX:5401 7 December 2025

March 22, 2026, 10:53 AM EDT. Canadian investors face a turbulent 2026 marked by Middle East conflict and rising oil prices. Air Canada (TSX:AC) emerges as a notable pick despite short-term energy pressures, reporting a net income turnaround to $296 million in Q4 2025 from a loss the year prior. The airline's strong market position suggests potential for significant gains as markets stabilize. Meanwhile, Diversified Royalty Corp. (TSX:DIV) offers a defensive option. This $679 million market cap royalty company keeps earnings steady by collecting royalties from diverse North American businesses, delivering a 13.6% net income increase in early 2025. With its consistent dividend payout, DIV provides income and some resilience against volatility. Investors with $10,000 to deploy might consider a blend of both stocks to balance growth and risk in uncertain conditions.