Markets can get gloomy quick, and a technical recession could make calm traders really feel twitchy. Canada just lately slipped into one after gross home product (GDP) fell at a 0.1% annualized tempo within the first quarter of 2026, following a revised 1% drop within the fourth quarter of 2025. That doesn’t imply each firm all of the sudden weakens, nevertheless it does imply traders might want shares with actual money movement, important demand, and balance-sheet energy to journey by way of weak point.
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SLF
Solar Life Monetary (TSX:SLF) seems to be like a primary place to begin. The corporate gives life insurance coverage, wealth administration, group advantages, and asset administration throughout Canada, the U.S., Asia, and different markets. Folks nonetheless want insurance coverage, employers nonetheless want advantages, retirees and savers nonetheless want monetary merchandise, making it a steady funding even throughout a recession.
The most recent quarter wasn’t good, nevertheless it confirmed the energy of the franchise. Solar Life reported underlying internet earnings of $1.1 billion within the first quarter of 2026, roughly flat from final yr. Underlying earnings per share (EPS) rose 4% to $1.89. Belongings beneath administration climbed to $1.6 trillion, whereas the LICAT ratio got here in at a powerful 143%.
That offers Solar Life a stable defensive profile. Its dividend additionally helps. The corporate raised its widespread share dividend to $0.96 per quarter, giving traders a yield close to 3.7%. The danger is that reported internet earnings dropped sharply, and asset-management outcomes can really feel strain when markets weaken. Nonetheless, Solar Life’s scale, capital place, and international attain make it value holding when the temper turns cautious.
CP
Canadian Pacific Kansas Metropolis (TSX:CP) brings a special form of resilience. It doesn’t provide an enormous dividend, or look low cost on a easy yield display. However railways can maintain up higher than many cyclical companies as a result of they transfer items the financial system nonetheless wants. Grain, vitality, potash, automotive merchandise, and client items nonetheless must journey, even when development cools.
CP inventory additionally has a novel community after the Canadian Pacific and Kansas Metropolis Southern mixture. It now hyperlinks Canada, the U.S., and Mexico by way of one rail community. That may assist as North American provide chains shift and firms search for environment friendly methods to maneuver freight throughout borders.
Within the first quarter of 2026, CP inventory reported income of $3.7 billion, diluted earnings per share (EPS) of $0.94, and core adjusted diluted EPS of $1.04. These outcomes missed some market expectations, however nonetheless confirmed a worthwhile, important infrastructure enterprise. The danger is clear. A recession can hit freight volumes, and tariff uncertainty may also create complications. But CP inventory has the community, pricing energy, and lengthy runway to stay engaging for affected person traders.
T
TELUS (TSX:T) gives the best earnings of the three, although it additionally carries the obvious debt and payout questions. The telecom supplies wi-fi, web, TV, well being, and enterprise providers. In a recession, clients could delay telephone upgrades or search for cheaper plans, however they don’t often cancel connectivity altogether. That makes telecom income extra steady than many client sectors.
Within the first quarter of 2026, TELUS reported consolidated working revenues and different earnings of $5 billion, in contrast with $5.1 billion a yr earlier. Service income nonetheless grew 1%, however decrease cellular gear income and different earnings weighed on the full. The dividend is what attracts traders. TELUS declared a quarterly dividend of $0.42 per share, placing the yield close to 9.7%.
Traders shouldn’t ignore the warning signal. TELUS paused dividend development till its share value and yield higher replicate its development prospects. That tells traders administration is aware of the payout wants self-discipline. Nonetheless, for earnings traders keen to just accept threat, TELUS can present money movement whereas the market waits for stronger free money movement development.
Backside line
Collectively, Solar Life, CP inventory, and TELUS don’t provide recession-proof returns. No inventory does. However they do give traders publicity to insurance coverage, rail infrastructure, and telecom providers, three areas with endurance. In a technical recession, that form of sturdiness can matter greater than a flashy development story.
