Market turbulence may keep heightened for the remainder of 2026. In fact, a uneven January and the beginning of February don’t essentially imply buyers are in for extra wooziness. With some big-name market strategists’ warnings in regards to the potential for a dip, although, there are causes to proceed ahead with warning, particularly as buyers develop warier of fats AI spending plans and nervous about corporations that may be caught flat-footed amid the rise of agentic platforms.
When you think about the recent run we’ve had (particularly with the TSX Index), it feels prefer it’s time to hit the pause button, perhaps promote just a few shares, and go away for a short time, maybe as soon as the mega-cap tech titans present indicators of management once more. Within the meantime, I believe the rotation may get much more vicious as buyers dump tech, AI, beta, and development for worth, defensiveness, low betas, and dividends.
On this piece, we’ll verify in on a pair of low-cost revenue shares that Canadian buyers may want to add to their watchlists as tech rocks the broad markets whereas pushing some to get again into the boring names, which are literally doing an important job of holding up the broader markets.
Financial institution of Nova Scotia
Financial institution of Nova Scotia (TSX:BNS) could very nicely be the final of the Large Six financial institution shares to command a yield north of the 4% mark. And whereas shares have been heating up, I nonetheless wouldn’t look to dump the inventory to lock in an enormous revenue. Why? The dividend continues to be poised to develop as earnings march increased. And as issues lookup for worldwide banking, I believe there’s room for Financial institution of Nova Scotia to shut the valuation hole (no less than by a bit) with a few of its bigger friends that aren’t as internationally diversified.
In fact, time will inform when the worldwide banking enterprise can transfer into excessive gear. Both manner, shares look pretty priced at 18.2 instances trailing price-to-earnings (P/E). Whereas Financial institution of Nova Scotia isn’t my favorite huge financial institution, I do discover the yield to be a fundamental attraction. In comparison with most different 4%-yielders, lots of which lack upside momentum, BNS shares actually do stand out.
Enbridge
The TSX Index exploded increased final 12 months, crushing the S&P. However Enbridge (TSX: ENB) was a comparatively delicate performer, chopping in each instructions going into 2026. Extra just lately, shares have been heating up, gaining near 7% 12 months to this point, or round 13% from January’s lows. Might the most recent spike be the beginning of a sustained march to $100 per share? It’s arduous to inform, however the firm has the suitable catalysts in place.
In fact, shares are a tad on the frothy facet now at greater than 27 instances trailing P/E. Regardless of the delicate premium, I’m an enormous fan of the rising 5.55%-yielding dividend. It’s not solely outsized, nevertheless it’s additionally positioned for severe (possible double-digit proportion) development over the foreseeable future. Arguably, the pipeline play is one of the best dividend development play to stash away for many years, given it all the time finds a strategy to transfer the needle increased on money flows over time.