3 TSX Superstars Poised to Outperform the Market in 2026

2026-03-11 20:15:00 ET

I’m of the view that there are plenty of top-tier TSX superstars for investors to choose from right now. As it happens, I’ve got my eye on three blue-chip dividend stocks I think can provide investors with the sort of long-term total returns they’re after.

For those looking for reasonably consistent double-digit total returns in 2026 (and for the long haul), these three names are worth considering, in my view.

Toronto-Dominion Bank

Toronto-Dominion Bank ( TSX:TD ) is among the best “Big 5” Canadian banks, for a number of key reasons.

I think TD Bank remains one of the most compelling blue-chip bargains on the TSX. That’s in part due to the fact that this leading Canadian financial institution combines scale, diversification, and a dividend that pays you to wait.

TD generates the bulk of its earnings from relatively stable retail banking and wealth operations in Canada and the U.S., giving it a wide, defensible earnings base that should benefit as credit conditions normalize and loan growth gradually recovers. The bank has historically produced attractive returns on equity while maintaining a conservative payout ratio, leaving room for continued dividend increases and opportunistic buybacks as capital builds.

Trading at a modest earnings multiple relative to its own history and that of U.S. peers, investors today are effectively getting a best?in?class North American bank franchise at a discount. For those seeking a reliable 3.3% dividend yield with plenty of room for future dividend growth over the long term, this is a top name to consider right now.

Canadian National Railway

Another defensive pick, but one with material upside this year and over the long term, Canadian National Railway ( TSX:CNR ) is one top TSX superstar I continue to pound the table on.

Why? Well, CN Rail is the kind of boring compounder that often gets overlooked when markets are chasing flashier themes. That said, the company’s fundamentals tell a very different story.

CN Rail operates an irreplaceable rail network spanning key North American trade corridors. This gives the company a structural cost advantage over trucking and a powerful, long-term volume tailwind from industrial production and trade.

Perhaps more importantly, CN Rail has a long track record of double?digit dividend growth, supported by consistent free cash flow generation and disciplined capital allocation. These distributions also include share repurchases that steadily shrink the share count over time.

Operationally, CNR has been relentless about improving its operating ratio and driving productivity, which means that even modest revenue growth can translate into outsized earnings growth. I’m of the view that this 2.5% yielding name is one investors should be jumping on right now.

Enbridge

Finally, for a company with a truly juicy dividend yield (and one that’s also seen considerable price appreciation of late), consider Enbridge ( TSX:ENB ).

Enbridge may not be a market darling right now. However, that’s exactly why I think it deserves a hard look from long?term, income?focused investors who want to beat the index on a total?return basis.

The company owns one of the largest and most diversified energy infrastructure networks in North America. This business model derives most of its cash flow from long?term, regulated or contracted assets rather than volatile commodity prices. That cash flow profile underpins a hefty dividend yield that sits well above what you’ll find on the broader TSX.

With a multi?decade history of dividend growth and a payout that management has repeatedly guided as sustainable, I think Enbridge’s 5.3% dividend yield is one that could support consistent double-digit total returns over the long haul. At the end of the day, that’s what most investors are after, really.

The post 3 TSX Superstars Poised to Outperform the Market in 2026 appeared first on The Motley Fool Canada .

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway and Enbridge. The Motley Fool has a disclosure policy .

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