Canadian buyers seeking to defend their portfolios from volatility as commerce tensions between the U.S. and Canada escalate might discover solace in proudly owning three defensive shares proper now. Defensive shares, these anchored in resilient sectors like retail actual property, utilities, and shopper staples, supply a lifeline, combining stability with dependable dividends. These resilient low-volatility shares thrive on home demand, insulating them from cross-border disruptions. Let’s discover three vital sectors and spotlight standout candidates in every class. Whether or not you’re searching for regular earnings or capital preservation, these commerce battle shares may fortify your portfolio towards financial storms.
Dollarama inventory: Discounting tariff dangers
Low cost shops operator Dollarama (TSX:DOL), although not a conventional grocer, dominates the worth section with 90% of gross sales from common merchandise, consumables like snacks, and family staples largely priced below $5. Its pricing energy and near 1,600-store footprint in Canada guarantee regular demand, at the same time as budgets tighten.
Dollarama is a budget-friendly necessities supplier that may cushion Canadian households if commerce wars set off a recession. Its inventory has soared 23% year-to-date to print new all-time highs in 2025, defending investor portfolios from tariff-war-induced volatility.
DOL inventory is a darling of the TSX inventory market proper now. The Canadian defensive inventory may present shelter to shoppers if tariff wars set off a recession within the close to time period. The low cost retailer big additionally owns a big stake in South America’s Dollarcity.
That mentioned, buyers pays a big premium to get Dollarama inventory’s commerce battle insurance coverage cowl. Buying and selling at a historic price-earnings a number of (P/E) of 41.5, DOL inventory isn’t low cost. However different defensive shares from the identical business aren’t low cost both, given an business P/E of 37.
SmartCentres REIT: Important retail actual property for regular returns
Canadian retail actual property funding trusts (REITs) with open-air strip centre codecs loved robust, sustained occupancy charges in the course of the pandemic. They may survive a commerce battle too.
SmartCentres Actual Property Funding Belief (TSX:SRU.UN) is a resilient retail REIT that sustained month-to-month distributions in the course of the previous flash recession. Its robust tenant base (largely grocery shops and important providers suppliers) stays resilient, and the REIT reported a robust 98.7% occupancy price going into 2025.
The Canadian retail REIT is executing a multi-year mixed-use property improvement technique that’s bringing extra shopper populations onto its 195 present properties, creating new metropolis centres that will thrive and enrich unitholders. The REIT’s improvement pipeline may develop its asset base by 14% because it provides condos, flats, townhomes, and self-storage areas onto its properties, intensifying foot site visitors in its “sensible” centres.
The belief pays month-to-month distributions that yield a juicy 7.3%. The payout remained totally coated by recurring money circulate in 2024 with a 91.7% payout price on adjusted funds from operations (AFFO), which improved from 93% in 2023.
Buyers may pocket high-yield month-to-month paycheques from SmartCentres REIT whereas watching a commerce battle play out.
Hydro One: A utility inventory powering portfolios by means of uncertainty
Canadian utilities’ earnings visibility and low money circulate volatility make them a marvel in periods of heightened financial uncertainty. Buyers assured in Ontario’s sustained demand for steady electrical energy provide even by means of recessions might discover consolation in proudly owning the province’s largest energy distributor: Hydro One (TSX:H) inventory by means of a commerce battle.
Hydro One operates Ontario’s largest transmission and distribution community and stays a vital provincial monopoly considerably insulated from commerce dangers. The electrical utility is reinvesting money circulate and partnering with fairness companions to develop its asset e book and price base in 2025.
With a 2.4% dividend yield and 7 consecutive years of dividend raises, buyers may view Hydro One inventory as a financially steady utility with investor-friendly capital budgeting insurance policies and a defensive inventory to carry pricey throughout an unsure commerce battle.
Investor takeaway
In turbulent instances, anchoring your long-term oriented portfolio in sectors pushed by home requirements can present peace of thoughts. These three defensive shares to purchase now supply a mix of yield, stability, and resilience – qualities each investor ought to prioritize as commerce winds rage.
