To elect Canadian utilities (TSX:CU) and Kinross Gold (TSX:K) for your next $2,500 is not a gamble, but a smart way to earn defensive income and hedge against inflation or geopolitical risks. The former is a dividend knight, while the latter is a safe haven when markets get rough.
Income anchor
How can you not love Canadian Utilities? The top company stock has a 54-year track record of dividend increases. Your benefits are capital protection and reliable, recurring income streams. At $43.28 per share, the TSX’s first dividend knight pays a hefty 4.26% dividend, with a quarterly payout.
This latest increase indicates that the board is confident in the financial stability and long-term cash flow profile of the company within the sector in which it operates. Although utility stocks are interest rate sensitive, they stand out for their attractive returns and low volatility.
The $11.5 billion diversified energy infrastructure company gets roughly 90% of its revenue from regulated utilities and long-term asset contracts. For this reason, CU is also called a bond proxy.
In the third quarter (Q3) of 2025, 95% of capital expenditures of $402 million went to regulated utilities. Canadian Utilities CEO Bob Myles said the company is on track with its growth plans. For 2026, the focus is on major gas transmission and power line projects, the Yellowhead Pipeline for gas and Central East Transfer-Out (CETO) for power.
The Yellowhead Pipeline, a $2.8 billion natural gas project, would boost Alberta’s energy infrastructure. According to the management, construction of the 230 km natural gas pipeline will start this year. Meanwhile, the in-service date for the $280 million CETO project, an 85 km, 240 kV power line to integrate renewable energy in Alberta, is the second quarter of 2026.
Canadian Utilities expects total investments of $6.1 billion in regulated utilities between 2025 and 2027 to increase the interest base of $15.9 billion and contribute significant revenues and cash flows.
Volatility buffer
Metals and mining stocks, including Kinross Gold, are benefiting from rising gold and silver prices. Both precious metals reached record prices as early as January 2026, driven by geopolitical and economic uncertainty.
At the time of writing, Kinross is trading at $46.30 per share and paying a modest 0.67% dividend after growing 17% annually. In 2025, the total return of the gold stock was +192%. It also ranked 12th on the TSX30 list, an annual ranking of Canada’s 30 best-performing stocks.
The $55.2 billion senior gold mining company operates mines in the United States, Brazil, Chile and Mauritania. The world-class Great Bear Project in Red Lake, Ontario, supports a large, sustainable mining complex and has long-term production prospects.
In the third quarter of 2025, free cash flow (FCF) reached a record $686.7 million, bringing total free cash flow after three quarters to more than $1.7 billion. CEO J. Paul Rollinson said: “Looking ahead, we are excited about the progress in our growth pipeline.”
Defensive combination
You can split your next $2,500 (50/50) between Canadian Utilities and Kinross Gold. The defensive combination can weather economic turbulence in 2026.
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