The 2 Best TSX Stocks to Buy Before They Recover

The TSX continues to display powerful resilience amid heightened volatility. As of mid-April 2026, the index has climbed 7.7% year-to-date, with eight of 11 primary sectors now in positive territory. Buying opportunities are plenty, too, as many underperforming but high-quality stocks have clear paths to rise.

TELUS (TSX:T) and Propel Holdings (TSX:PRL) belong in the underperforming bunch, but both stand out as the best TSX stocks to buy before the next leg of the market recovery gets underway.

New dividend policy

TELUS has yet to fully recover from its 2024 slump. At $16.90 per share, the year-to-date loss is 4.4% following a nearly 9% slide in the last three months. The 9.97% dividend yield offsets the weakness, though some investors fear a dividend cut. On December 3, 2025, Canada’s second-largest telecommunications company announced a pause to its dividend-growth program, not a dividend cut.

The $26.4 billion will likewise step down its 2% Discounted Dividend-Reinvestment Plan (DDRIP) until the discount reaches zero in 2028. Net debt reduction is also part of the plan. The full-year 2025 financial results showed a 1% and 12% year-over-year increase in operating revenue and net income, respectively.

Notably, free cash flow (FCF) rose 11% to $2.2 billion compared to 2024. Its president and CEO, Darren Entwistle, said, “TELUS is advancing its capital allocation strategy, supported by strong business fundamentals and significant free cash flow generation.”

Entwistle expressed confidence that the strong financial momentum will enable TELUS to deliver FCF growth of at least 10% compounded annual growth rate through 2028. The telco reduced its leverage ratio to 3.4 times in 2025 and aims to reduce it further to three times by 2027.

Many believe that a dividend cut will follow the pause in semi-annual dividend increases. It could be a looming reality that significantly reduces capital costs and provides financial flexibility. Still, management will maintain its current quarterly dividend while it works to strengthen the balance sheet. Dividend growth will resume once it meets leverage targets.

TSX30 winner

Propel Holdings, an $854.2 million financial technology company, extends credit to underserved customers through its AI-powered online lending platform. The financial stock placed 6th in the 2025 TSX30 List, the flagship program for TSX’s 30 top-performing stocks. The ranking is based on the dividend-adjusted share price performance over a three-year period. It was +560% for PRL.

The current share price of $21.84 represents an 11.5% year-to-date loss. However, if you invest today, you can feast on the 3.71% dividend (38% payout ratio). In 2025, revenue and net income increased 31% and 28%, respectively, to US$589.8 million and US$59.5 million.

However, in Q4 2025, net income fell 49% to US$5.9 million versus Q4 2024, while provision for credit losses (PCLs) rose to 56% of revenues from 48% a year ago. Both factors caused the price decline.

The growth prospect stems from the official launch of FreshLine, an unsecured personal line-of-credit product, in March 2026. In addition, funding partners have committed up to US$150 million to fund a nationwide U.S. rollout. Propel Holdings projects $1.1 billion in revenue and $163.9 million in earnings by 2028.

Earn in two ways

Secure your positions in TELUS and Propel Holdings now before the strong rebound. Once the market stabilizes, prospective investors will have a dual path to profitability: price appreciation and dividends.