1. InPlay Oil (TSX:IPO)

Dividend yield: 12.4 percent
Debt-to-equity ratio: 0.61
Market cap: C$343.25 million

InPlay Oil is an oil and natural gas company with operations concentrated in West Central Alberta, Canada.

In its financial and operating highlights for its Q3 period ending September 30, 2025, the company reported that its average production for the quarter was above expectations at 18,970 barrels of oil equivalent per day (boe/d), more than double its average output of 8,206 boe/d in the third quarter of the previous year.

InPlay will pay a monthly dividend of C$0.09 per share on January 30, 2026, to shareholders of record as of January 15.

2. Meren Energy (TSX:MER)

Dividend yield: 11.3 percent
Debt-to-equity ratio: 0.41
Market cap: C$1.21 billion

Meren Energy is an full-cycle exploration and production oil and gas company with offshore assets in Nigeria, Namibia, South Africa and Equatorial Guinea. This includes interests in producing and development assets in Nigeria operated by oil majors.

For the period ending September 30, 2025, Meren reported average daily working interest and entitlement production of 31,100 boe/d and 35,600 boe/d respectively, which the company said was in line with its expectations.

Meren Energy paid a quarterly dividend of US$0.0371 per share on December 9, 2025, to shareholders of record at the close of business on November 21, 2025.

3. Alvopetro Energy (TSXV:ALV)

Dividend yield: 8.63 percent
Debt-to-equity ratio: 0.08
Market cap: C$236.92 million

Alvopetro Energy is an oil and gas exploration and production company with assets in Brazil and Canada.

In its financial and operating highlights for the period ending September 30, 2025, the company reported average daily sales of 2,343 boe/d. Its sales were up 11 percent from Q3 2024 and down 4 percent from Q2 2025.

Alvopetro Energy paid a base quarterly dividend of US$0.10 per common share and a special dividend of US$0.02 per common share on January 15, 2026, to shareholders of record at the close of business on December 31, 2025.

4. Parex Resources (TSX:PXT)

Dividend yield: 8.63 percent
Debt-to-equity ratio: 0.01
Market cap: C$1.72 billion

Parex Resources is the largest independent oil and gas exploration and production company in Colombia.

For the period ending September 30, 2025, Parex reported average oil and natural gas production of 43,953 boe/d, up 3 percent compared to the prior quarter and down 7.6 percent year-over-year. Production rose further in October, averaging 49,300 boe/d, which the company said supports it reaching its full year 2025 average production guidance of 43,000 to 47,000 boe/d.

Parex paid a quarterly dividend of C$0.385 per share on December 15, 2025, to shareholders of record on December 8, 2025.

5. Cardinal Energy (TSX:CJ)

Dividend yield: 8.54 percent
Debt-to-equity ratio: 0.24
Market cap: C$1.36 billion

Last on this list of top Canadian oil and gas dividend stocks is Cardinal Energy is an oil-focused company with operations centered on low-decline light, medium and heavy oil in Alberta and Saskatchewan, Canada. It also produces liquid and conventional natural gas.

Cardinal reported that its Q3 2025 production totaled 20,772 boe/d, down 2 percent from the same quarter in the previous year as the company continued to focus its capital on completing the Reford thermal project. The project has since entered production.

Cardinal Energy will pay a monthly dividend of C$0.06 per share on February 17, 2026, to shareholders of record on January 30, 2026.

Big Pharma ETFs

Many of these funds have diverse holdings across some of the most important sectors in the pharmaceutical industry, including pain therapeutics, oncology, vaccines and biotechnology. Data was gathered on January 15, 2026.

1. VanEck Pharmaceutical ETF (NASDAQ:PPH)

Total assets under management: US$1.2 billion
Expense ratio: 0.36 percent

Established in late 2011, the VanEck Pharmaceutical ETF tracks the MVIS US Listed Pharmaceutical 25 Index. It has the capacity to provide big returns, even though there are some risks attached to the ETF. An analyst report indicates that investors looking for ‘tactical exposure’ to the pharma sector might consider this ETF as an investment option.

The ETF has 26 holdings, with the top five being Eli Lilly (NYSE:LLY), Novartis (NYSE:NVS), Merck & Company (NYSE:MRK), Novo Nordisk (NYSE:NVO) and Bristol-Myers Squibb (NYSE:BMY).

2. iShares US Pharmaceuticals ETF (ARCA:IHE)

Total assets under management: US$959.17 million
Expense ratio: 0.38 percent

Created on May 5, 2006, the iShares US Pharmaceuticals ETF tracks some of the top US pharma companies. In total, the iShares US Pharmaceuticals ETF has 45 holdings, with the vast majority being large-cap stocks.

Of its holdings, Johnson & Johnson (NYSE:JNJ) and Eli Lilly are by far the largest portions in its portfolio, combining for about 45 percent, followed by Merck & Co, Bristol-Myers Squibb and Zoetis (NYSE:ZTS).

3. Invesco Pharmaceuticals ETF (ARCA:PJP)

Total assets under management: US$385.21 million
Expense ratio: 0.57 percent

The Invesco Pharmaceuticals ETF is primarily focused on providing exposure to US-based pharma companies. An analyst report states that this ETF chooses individual securities based on an array of investment criteria, some of which are stock valuation and risk factors.

This ETF was started on June 23, 2005, and currently tracks 31 companies. Its top holdings are Merck & Co, Johnson & Johnson, Eli Lilly, Pfizer (NYSE:PFE) and Abbott Laboratories (NYSE:ABT).

4. State Street SPDR S&P Pharmaceuticals ETF (ARCA:XPH)

Total assets under management: US$234.14 million
Expense ratio: 0.35 percent

The State Street SPDR S&P Pharmaceuticals ETF came into the market on June 19, 2006, and represents the pharmaceutical sub-industry sector of the S&P Total Market Index (INDEXSP:SPTMI).

This pharma ETF tracks 52 holdings, with relatively close weighting among its holdings, a fact that sets it apart from other entries on this list. XPH’s top five holdings are MBX Biosciences (NASDAQ:MBX), Mind Medicine (NASDAQ:MNMD), Organon & Co (NYSE:OGN), Axsome Therapeutics (NASDAQ:AXSM) and Liquidia (NASDAQ:LQDA).

5. KraneShares MSCI All China Health Care Index ETF (ARCA:KURE)

Total assets under management: US$86.81 million
Expense ratio: 0.65 percent

The KraneShares MSCI All China Health Care Index ETF was launched in February 2018 and tracks an index of large- and mid-cap Chinese stocks in the healthcare sector, all weighted by market capitalization.

The ETF tracks 50 holdings, and its top five are BeOne Medicines (NASDAQ:ONC), Jiangsu Hengrui Medicine (SHA:600276), WuXi Biologics (HKEX:2269), Innovent Biologics (HKEX:1801) and Akeso (HKEX:9926).

Geopolitics, trade friction and the push to rewire rare earths supply chains

Rising geopolitical tensions between China, the US and Europe are accelerating changes in global rare earths trade flows, with long-term implications for supply security as 2026 approaches.

“Whether rare earths are truly ‘critical’ for individual nations is almost beside the point,” the expert said. “We seem to have decided, politically, to weaken trade between major powers. If we’re going to do that with China, we need to be prepared for continued supply instability in rare earths.”

That instability leaves western economies with two broad options: rebuild China’s vertically integrated rare earths supply chain at home — at a higher cost — or reduce dependence on rare earths altogether via new technologies.

“Either we recreate the Chinese supply chain in miniature and accept higher prices, or we innovate our way out of the problem,” Hykawy said. “That question is still very much open.”

Technological change is already offering potential pathways. Hykawy pointed to advances in electric motor design, including axial flux motors developed by YASA, a subsidiary of Mercedes-Benz Group (ETR:MBG,OTCPL:MBGAF).

Unlike conventional cylindrical electric vehicle motors that rely heavily on rare earth permanent magnets, axial flux designs use magnets more efficiently and may, in some applications, replace them with electromagnets.

“These motors require better materials and more precise machining, but they use magnets far more efficiently,” he said. “In some cases, they may even eliminate the need for rare earth magnets altogether.”

The example highlights how innovation could soften demand growth for certain rare earths over time, though cost and scalability remain barriers. At the same time, Hykawy argued that western efforts to localize rare earths mining, processing and magnet manufacturing are realistic, but will take patience.

“We are only at the beginning of building a rare earth supply chain entirely outside of China,” he said. “There is absolutely nothing that prevents us from doing it except time and money.”

Contrary to popular belief, Hykawy said rare earths mining is not more environmentally damaging than other forms of mining, noting that deposits — including ionic clays rich in heavy rare earths — exist well beyond China’s borders.

“The real constraint is people,” he said. “We need experienced operators, engineers and processors, and there is no shortcut for the time it takes to build that expertise.”

As trade frictions persist, Hykawy expects supply diversification to continue, but warned that near-term volatility is likely to remain a defining feature of the rare earths market through 2026.

The 2026 rotation: Temporary blip or new regime?

The first weeks of 2026 have been characterized by what analysts are calling ‘the Great Rotation.’

As of January 14, the Russell 2000 Index (INDEXRUSSELL:RUT) had outperformed the Nasdaq Composite (INDEXNASDAQ:.IXIC) for 10 consecutive sessions, the longest streak since 1990.

In the first two weeks of 2026, the Russell 2000 surged nearly 7 percent, while the Nasdaq and S&P 500 (INDEXSP:.INX) remained largely rangebound, gaining only around 1 to 2 percent.

When asked if that means the laggards will finally start commanding a larger piece of the pie, Farias was realistic.

“We continue to believe the market will be dominated by a few stocks,” he noted. “It’s the nature of the internet boom moving into the AI boom … the profits will remain in the hands of a small list of companies.’

However, Farias acknowledged that the stock market rally is finally broadening.

While large-cap tech companies remain the engine, he pointed to scattered winners in non-AI sectors such as retail, which have shown resilience even as tech valuations have become stretched.

Has AI rewired capital flows?

The fundamental question for 2026 is whether AI has permanently diverted capital away from traditional sectors like industrials and consumer staples. Farias suggested the shift is practical rather than just speculative.

“A lot of companies are very focused on AI to reduce costs and automate as much as possible,” he said. “If that’s where you’re spending a lot of time, you’re spending less time on other areas. The money goes in the same direction.’

This rewiring is visible in the State Street Utilities Select Sector SPDR ETF (ARCA:XLU). Traditionally a defensive, low-growth play, it soared 21 percent last year, benefiting from the exploding energy appetite needed to run AI models. Despite its recent pullback, structural demand remains.

Measuring AI tilt and managing risk

With the S&P 500 currently trading at a price-to-earnings ratio of 31.37, many investors wonder if they are overexposed to a potential AI bubble. Farias uses a disciplined approach to measure AI tilt within portfolios.

“A simple way to do it is we look at days when AI stocks are down and look at how we’ve done,” he said. To manage concentration risk, his firm typically limits individual stock exposures to between roughly 5 and 6 percent.

The challenge for 2026 is that the top 10 companies now account for over 40 percent of the S&P 500’s total market cap. Farias argued that this concentration is somewhat justified by profitability.

The rebalance: Where is capital moving?

If an investor decides to trim their winners, where is that money likely to go in 2026?

Farias identified several ripple-effect sectors that could benefit from AI indirectly:

Looking for mispriced opportunities

While the AI frenzy has made most of the tech sector expensive, Farias sees a catch-up phase coming in the small-cap space, which has lagged for years, but is finally showing signs of a sustained reversal.

In contrast, he remains cautious on healthcare and energy.

“Healthcare is challenging … if you buy State Street Health Care Select Sector SPDR ETF (ARCA:XLV), you get too much large-cap exposure, which is somewhat stagnant,” he noted.

Instead, he prefers targeted plays like the iShares US Medical Devices ETF (ARCA:IHI). As for energy, while holding positions, he is “not particularly bullish” despite the recent rotation.

Balanced playbook for 2026

For Farias, the AI rally isn’t over, but it is changing shape. The winners-take-all dynamic of 2025 is giving way to a more complex 2026, where market breadth matters more than just momentum.

For investors seeking a balanced path, he and other analysts suggest a mix of AI offense and defensive value. This means staying tethered to the AI growth engine through low-cost ETFs like the Invesco ESG NASDAQ 100 ETF (NASDAQ:QQMG) or State Street SPDR Portfolio S&P 500 ETF (ARCA:SPYM), while capturing the rotation by selectively adding small caps and financials, which Farias said are emerging as an attractive area for 2026.