The Canadian stock market has shown remarkable resilience and growth as we approach the end of 2025, with the TSX Index displaying impressive gains. Analysts are expectant that a potential Santa Claus rally could propel the Index to a 30% annual increase, needing only around 3.5% of growth to achieve this milestone.
The current resurgence in the market has largely been driven by robust performances in the banking, materials, and energy sectors. As investors contemplate switching their focus from U.S. stocks back to Canadian equities, there are promising opportunities for those seeking dividend growth. Notably, two Canadian stocks appear particularly attractive as the year draws to a close.
Enbridge (TSX:ENB), despite gaining just over 4% year to date, presents a compelling investment opportunity. The stock’s performance has been relatively stagnant since January 2025, suggesting a period of consolidation after a significant rise the previous year. Current share prices are more appealing than their September peak, making it a potential bargain for value-seeking investors. With a robust 6% dividend yield and a track record of consistent dividend increases—even during industry turmoil—Enbridge is expected to thrive. The company’s upcoming pipeline projects are set to further its growth, and a recent dividend hike reflects management’s confidence about future cash flow growth.
Barrick Mining (TSX:ABX) offers another intriguing option, trading just over $60 per share. Although gold mining stocks are typically more volatile than gold bullion itself, they also offer higher upside potential in a bullish gold market. Factors such as the weakening U.S. dollar and ongoing central bank purchases are likely to elevate gold prices, benefitting miners like Barrick. The stock currently boasts a 1.6% dividend yield and is reasonably valued at 13.1 times its forward price-to-earnings (P/E) multiple, indicating it merits attention for potential growth in 2026.
As investors weigh their options, it’s crucial to note that while Barrick is noted for its growth potential, it was not among the 15 best stocks recommended by The Motley Fool’s Stock Advisor Canada analyst team—a list that has historically outperformed the broader market.
As the Canadian market looks toward a promising end to 2025, savvy investors might consider adding Enbridge and Barrick Mining to their portfolios, especially for those seeking dividend growth and exposure to potentially lucrative market trends.
