What are the best performing stocks on the TSX?

Top-performing TSX stocks change yearly. In recent years, energy stocks (Canadian Natural Resources, Suncor), banks (Royal Bank, TD), and technology (Shopify, Constellation Software) have been among the strongest performers. Shopify has been the top growth stock, while banks and pipelines dominate for total return including dividends.

What is the best Canadian stock to buy right now?

There is no single "best" stock — it depends on your goals, risk tolerance, and timeline. For most Canadians, a diversified TSX index ETF like XIC or ZCN provides exposure to all top Canadian stocks at minimal cost. If you want individual stocks, the Big 5 banks and Enbridge are popular long-term holds.

Has the TSX outperformed the S&P 500?

Over the past 10–20 years, the S&P 500 has generally outperformed the TSX due to the dominance of US tech giants. However, the TSX has outperformed in periods of strong commodity prices and offers higher dividend yields. Most advisors recommend holding both Canadian and US stocks for diversification.

Best Performing Canadian Stocks (2026 Review)

Top Performing TSX Stocks by Sector

Financials

Stock	Ticker	5-Year Return	Dividend Yield	Market Cap
Royal Bank of Canada	RY	~60%	~3.5%	$230B+
Toronto-Dominion Bank	TD	~25%	~4.5%	$155B+
Bank of Montreal	BMO	~40%	~4.5%	$90B+
Brookfield Asset Management	BAM	~80%	~3.5%	$100B+
Manulife Financial	MFC	~70%	~4.0%	$60B+

Energy

Stock	Ticker	5-Year Return	Dividend Yield	Market Cap
Canadian Natural Resources	CNQ	~120%	~4.0%	$90B+
Suncor Energy	SU	~90%	~3.5%	$65B+
Enbridge	ENB	~30%	~6.5%	$110B+
TC Energy	TRP	~15%	~6.0%	$65B+
Cenovus Energy	CVE	~150%	~2.5%	$45B+

Technology

Stock	Ticker	5-Year Return	Dividend Yield	Market Cap
Shopify	SHOP	~200%+	0%	$130B+
Constellation Software	CSU	~180%	~0.1%	$90B+
CGI Group	GIB.A	~70%	0%	$35B+
Descartes Systems	DSG	~100%	0%	$12B+
Kinaxis	KXS	~40%	0%	$5B+

Mining & Materials

Stock	Ticker	5-Year Return	Dividend Yield	Market Cap
Agnico Eagle Mines	AEM	~120%	~2.0%	$50B+
Barrick Gold	ABX	~30%	~2.0%	$40B+
Nutrien	NTR	~20%	~3.5%	$30B+
Franco-Nevada	FNV	~40%	~1.0%	$30B+
Teck Resources	TECK.B	~80%	~1.0%	$25B+

Utilities & Pipelines

Stock	Ticker	5-Year Return	Dividend Yield	Market Cap
Fortis	FTS	~25%	~4.0%	$30B+
Emera	EMA	~15%	~5.0%	$15B+
Algonquin Power	AQN	~-40%	~5.5%	$5B+
Hydro One	H	~50%	~3.0%	$25B+
Canadian Utilities	CU	~10%	~5.0%	$10B+

S&P/TSX Composite Sector Breakdown

Sector	TSX Weight	Key Characteristic
Financials	~32%	Banks, insurers — dividend income
Energy	~17%	Oil/gas — commodity-driven
Materials	~12%	Mining, gold — commodity-driven
Industrials	~13%	Transportation, construction
Technology	~8%	Shopify, CGI — growth
Utilities	~5%	Pipelines, power — stable dividends
Real Estate	~3%	REITs — income
Other	~10%	Consumer, telecom, healthcare

Historical TSX vs S&P 500 Returns

Period	TSX Composite	S&P 500 (in CAD)	Outperformer
1 year	~15%	~20%	S&P 500
5 years (annualized)	~9%	~14%	S&P 500
10 years (annualized)	~8%	~13%	S&P 500
20 years (annualized)	~7%	~10%	S&P 500

S&P 500 returns in CAD include currency effects. US tech dominance has driven outperformance.

What Drives Canadian Stock Performance

Factor	Impact on TSX
Oil prices	Energy stocks rise/fall with crude oil
Interest rates	Banks benefit from higher rates; utilities suffer
Gold prices	Mining stocks move with gold spot price
US dollar / CAD	Weak CAD boosts exporters; strong CAD hurts
Housing market	Banks and REITs sensitive to housing health
Commodity super-cycles	TSX outperforms during commodity booms

Building a Canadian Stock Portfolio

Approach	Description	Best For
TSX index ETF (XIC, ZCN)	Own all 230+ TSX stocks in one fund	Most investors — simple, diversified
Dividend portfolio	Pick 10–15 dividend stocks across sectors	Income-focused investors
Core + satellite	80% index ETF + 20% individual stock picks	Blend of passive and active
Sector ETFs	Target sectors you believe will outperform	Sector conviction bets

Why past performance does not predict future returns

The TSX stocks that topped the charts over the last 5 years are not necessarily the best bets for the next 5 years. Several factors explain why:

Reversion to the mean: Sectors that outperformed (energy in 2022, tech in 2023–2024) often underperform in subsequent cycles as valuations normalize
Survivorship bias: Lists of “best performers” exclude stocks that declined significantly or were delisted — creating the illusion that stock-picking is easier than it is
Timing dependency: A stock’s 5-year return depends heavily on the start and end date — the same stock can appear in best-performer or worst-performer lists depending on the measurement window

What the data actually says: Roughly 65–80% of actively managed Canadian equity funds underperform the S&P/TSX Composite Index over a 10-year period (SPIVA Canada). Most individual stock-pickers do no better.

Practical implication: For most Canadians, a low-cost Canadian equity ETF (VCN, XIC, ZCN) that captures all TSX stocks — including the big winners — without trying to predict them is the most reliable approach.