Written by Joey Frenette at The Motley Fool Canada
Maintaining optimism about the Canadian stock market has proven beneficial, as the TSX Index aims to build on its remarkable gains for 2025. To end the year with a 30% increase, the index seems to require a few significant jump days, potentially aided by a Santa Claus rally this year.
Regardless, the Canadian market’s resurgence—driven by strength in the banking, materials, and energy sectors—could lead to another year of positive outcomes. If you’re considering shifting investments from U.S. companies back to Canadian ones for better momentum or attractive valuations, here are two dividend growth stocks poised for success as the year concludes.
Enbridge (TSX:ENB) has shown modest performance, increasing slightly over 4% so far this year. After a significant rise last year, it might have been expected for its shares to stabilize.
With the stock having settled for some time and trading around levels seen in the latter half of January 2025, value investors might find it appealing to buy in at a relatively reasonable price compared to its peak in September. A dividend yield of 6% and a prior record of dividend increases amid sector challenges suggest that ENB stock deserves a higher premium, especially with declining interest rates becoming a reality.
Looking ahead, Enbridge’s management is optimistic about growth in the upcoming year due to new pipeline projects launching. Their recent dividend increase and anticipated cash flow growth position ENB stock as a noteworthy dividend payer in the midstream energy market. If you’re interested in steady cash flows and a shareholder-friendly management team, ENB stock might be worth considering following its eventful year.
Barrick Mining (TSX:ABX) has experienced substantial growth, and while it’s not too late to invest at just over $60 per share, gold mining stocks tend to be more volatile than gold itself. Despite this, miners offer a greater potential upside if gold prices continue to rise.
