Crucial Investment Theme in 2026: Income vs. Growth
Written by Christopher Liew, CFA at The Motley Fool Canada
The crucial investment theme in 2026 is either income or growth. Growth investing is a dominant theme because of the gold rush and AI trend in 2025. On the other hand, tariff and inflation risks could prompt investors to seek capital protection and create passive income to hedge against inflation.
If you’re rebalancing your portfolio, consider taking positions in Fortis (TSX:FTS) and DPM Metals (TSX:DPM). The former will deliver high-quality income streams while the latter has a long-term growth pipeline and benefits from the strong demand for gold.
Fortis operates in the utility sector is thus a safe choice for income investors regardless of the economic environment. The $36.7 billion electric and gas utility company is a dividend king. In addition to the 52-year dividend streak, almost 100% of its assets are regulated. The low-risk, essential services generate predictable earnings.
If you invest today, FTS trades at $72.56 per share (+26% year-to-date) and pays a 3.5% dividend. The dividend champion’s annual dividend growth guidance through 2030 is 4% to 6%. Expect higher quarterly payouts over the next five years.
On November 4, 2025, Fortis announced its new $28.8 billion five-year capital plan. the largest ever. According to David Hutchens, President and CEO of Fortis, the plan is not only executable but also extends the robust rate base growth. It supports management’s annual dividend growth target for shareholders.
In Q3 2024, net earnings increased 6% year-over-year to $2.9 billion, although net earnings declined 2.6% to $409 million. On a year-to-date basis (nine months ending September 30, 2025), profit rose 7% to $1.3 billion from a year ago.
“During the third quarter, our utilities delivered earnings growth and executed capital investments in line with expectations,” Hutchens said. “We remain focused on low-risk, regulated utility growth, and our recent decisions to sell assets further support our funding plan and strengthen the balance sheet.”
Fortis commits to continue enhancing shareholder value through the execution of its capital plan. The company believes in the balance and strength of its diversified regulated utility businesses. Beyond the five-year capital plan, further expansion of the U.S. electric transmission grid will follow.
Dundee Precious Metals, or DPM Metals, has rewarded investors with substantial capital gains this year. At $35.91 per share, the year-to-date gain is 177.5%. Had you invested $7,000 at year-end 2024, your money would have grown to $19,425.80 today. An added bonus is the modest 0.66% dividend.
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