Intact Financial Poised for Success in Higher-Rate Environment

With inflation lingering and the Bank of Canada still on pause, investors are left wondering what's next. While rate hikes seem like the obvious choice, things are complicated by the employment picture not being as bright.

Staying on pause could be the move, which would bode well for big bank stocks that have been hot lately. In fact, some think rate hikes are less likely in the second half of 2026 unless a commodity shock adds fuel to inflation.

Even with higher hopes for a peaceful resolution and oil prices taking a dip, monitoring the situation and reacting after the fact seems like the best approach. Long-term investors shouldn't time the Bank of Canada, inflation, or anything else - it's wasted effort according to some.

A top dividend growth stock to consider in this environment is Intact Financial (TSX:IFC), a property and casualty insurer that could continue its bull run even with rate hikes. The stock trades at 15.7 times trailing price-to-earnings, which seems too cheap for a premier Canadian insurer of this caliber.