On this piece, we’ll test in on a couple of Canadian dividend shares that long-term buyers might want to think about choosing up as they give the impression of being to maintain the magic of long-term compounding going robust. Undoubtedly, in terms of the higher-yielding dividend shares, the important thing to maximizing the ability of compounding is to maintain reinvesting the dividends.
Positive, it is perhaps fairly tempting to spend the money dividends which can be coming in. However in case you’re a youthful investor who doesn’t want the additional earnings enhance on the finish of the quarter, maybe it’s a greater thought to place that cash again into your favorite dividend (progress) inventory.
Let’s take a look at two very totally different dividend shares that I view as premier candidates that can assist you compound your wealth, not solely in 2026, however over the following decade and past.
Canadian Tire
Canadian Tire (TSX:CTC.A) is one in all my prime picks to play the Canadian retail scene, which is in a little bit of a muted spot proper now. Both approach, Canadian Tire’s administration is doing a terrific job, and the dividend, at present yielding 4.1%, seems poised for progress within the new yr.
Within the newest (third) quarter, Canadian Tire reported an impressive quantity, seeing revenues rising shut to six%. After all, it’s too early to inform if the trace of power is the beginning of a pattern, however I do assume many buyers are discounting the strong outcomes. The massive story going into the brand new yr is whether or not the retailer can ship margin positive factors and excessive single-digit share gross sales progress. If it will probably, the inventory is perhaps value a far richer a number of than it’s at present commanding.
Any approach you take a look at it, I view Canadian Tire as extremely well-positioned to make up for misplaced time, and the inventory seems approach too low-cost at 12.3 instances trailing price-to-earnings (P/E), particularly because the “purchase Canadian” retail tailwind seems to energy the retailer for one more yr.
Agnico Eagle Mines
Agnico Eagle Mines (TSX:AEM) shares haven’t simply been overbought; they’ve been one of many hottest large-cap shares on all the TSX Index, thanks partially to gold’s historic rally, which could have room to the upside in 2026, as buyers develop anxious about mounting macro headwinds.
With the U.S. Federal Reserve’s independence being challenged and uncertainties over the destiny of Greenland, maybe it ought to come as no shock that gold and its miners surged larger on Monday’s session. Both approach, gold seems like a unbelievable hedge, even when it feels such as you’re chasing momentum right here.
After all, the momentum might reverse shortly, however given the forces which can be driving gold (central financial institution shopping for or rising macro nervousness), I definitely wouldn’t be shocked if AEM inventory and different premier miners have extra fuel left within the tank. Both approach, the most recent rally, I feel, has endurance. Although I’d be extra of a sluggish, incremental purchaser of gold performs, moderately than plowing a lump sum right into a single identify directly. Even gold, a safe-haven asset, carries its personal share of draw back dangers!
