As the year comes to a close, investors start reviewing their portfolios — and tax loss selling becomes a popular move. It’s all about turning those red numbers into a silver lining by offsetting gains with losses. The idea is simple: sell underperforming stocks to lock in a capital loss, and use that loss to reduce your tax bill. The catch? You can’t rebuy the same stock for at least 30 days or you’ll trigger the “superficial loss” rule.
To stay invested in the market, many investors swap out losing stocks for similar ones in the same sector. That way, you don’t lose your exposure — just the losing position. Let’s look at two timely tax-loss pair trades that could be smart in December 2025.
Table of Contents
Telecom
Sell: Telus
Buy: Quebecor
Telus (TSX:T) hasn’t been having a great run. Sure, it’s only down 4% year to date, but look further back and it’s down 17% over the past year and nearly 27% over five years. That’s rough for a telecom giant. Its dividend yield is sitting near 9%, which sounds tempting — but when yields get that high, it’s often a warning sign that the market thinks the dividend isn’t safe.
Telus is juggling some serious issues. There’s rising competition, especially from Quebecor’s aggressive push into Western Canada. Plus, Telus is weighed down by debt and its cash flow hasn’t been meeting expectations. All of this makes it a strong candidate for a tax-loss sale.
Now, here’s where Quebecor (TSX:QBR.B) comes in. It’s been rapidly growing its market share thanks to Freedom Mobile and Fizz. It now controls around 10% of the Western Canadian wireless market — and that could double over the next few years. Quebecor’s financials look solid, with a manageable debt load and a sustainable 2.8% dividend yield. If you want to stay in telecom but ditch a struggling stock, this is a solid switch.
Here’s a quick comparison:
| Company | YTD Return | 5-Year Return | Dividend Yield | Market Trend |
|---|---|---|---|---|
| Telus (T) | -4% | -27% | 9% | Declining |
| Quebecor (QBR.B) | +5% | +22% | 2.8% | Growing |
Engineering
Sell: WSP Global
Buy: Stantec
WSP Global (TSX:WSP) is one of those names that long-term investors love. It’s built a strong business through smart acquisitions and international expansion. But even the best companies hit rough patches. WSP is down 6% in 2025 and has slipped 13% in the past six months.
Despite posting a strong quarter with improved margins, organic growth has slowed — and the market didn’t like that. If you’re sitting on a paper loss, this might be the perfect time to sell and bank the loss.
Instead of staying on the sidelines, think about switching into Stantec (TSX:STN). It’s had a better 2025, up 16% overall, although it recently pulled back 9%, which could be a great entry point. Like WSP, Stantec has a strong platform built through acquisitions, and it’s well-positioned to benefit from new infrastructure projects across Canada.
Its recent correction makes it more attractive, especially since it’s in the same sector. You’re not losing exposure to engineering and consulting — you’re just taking a tax-smart detour.
Let’s compare the two:
| Company | YTD Return | Recent Pullback | Sector | Outlook |
|---|---|---|---|---|
| WSP Global (WSP) | -6% | -13% (6M) | Engineering | Stable, short-term headwinds |
| Stantec (STN) | +16% | -9% (6M) | Engineering | Strong upside potential |
Tactics
Tax loss selling isn’t just about cutting your losses. It’s a calculated move to improve your tax situation while keeping your investment strategy on track. The key is finding swaps — stocks that give you similar exposure but without running afoul of CRA rules.
If you still like the stock you’re selling, no problem. You can always buy it back after 30 days. Just mark your calendar. In the meantime, a substitute stock can help you stay invested and even outperform the original.
Whether it’s Telus vs. Quebecor or WSP vs. Stantec, the main idea is to stay smart with your money. Don’t hold on to losers just to wait for a turnaround that may never come. Use those losses wisely.
Tax-loss season is also a great time to evaluate your portfolio’s overall health. Look for other laggards, consider sector shifts, and don’t forget to think long term. The goal isn’t just saving taxes — it’s building a stronger, leaner portfolio for 2026 and beyond.
Here’s the bottom line: tax-loss selling isn’t just a chore. It’s an opportunity. Use it wisely, and your future self will thank you.
FAQs
What is tax loss selling?
It is selling loss-making stocks to reduce taxable capital gains.
Can I rebuy the stock after selling it?
Yes, but only after 30 days to avoid the superficial loss rule.
Why sell Telus now?
Due to high debt, weak cash flow, and dividend sustainability concerns.
Is Quebecor a good alternative?
Yes, it offers lower debt, steady growth, and a sustainable dividend.
What is a good alternative to WSP?
Stantec provides similar exposure with stronger near-term momentum.
