Some investors sit on the sidelines when market volatility increases, as we have seen so far in 2026. However, those who will stick around despite the uncertainties can counter the negativity with a misguided plan.
Anchor your stock portfolio in high-quality, resilient companies that are built for the long term. Your holdings could consist of four top Canadian stocks that can play a specific role: stability, income, defense and high growth.
Stability
Income-oriented investors know this Bank of Montreal (TSX:BMO) is synonymous with stability. Canada’s banking sector is a bedrock of stability, but the country’s oldest and third-largest financial institution is the dividend pioneer of TSX. The $136.2 billion bank began paying dividends in 1829, a track record of 196 years.
BMO recently announced a 5% dividend increase following impressive fiscal 2025 financial results. At the time of writing, the share price is $192.17, while the dividend offer is 3.48%. For the twelve months ended October 31, 2025, net income rose 19% year-over-year to $8.7 billion.
The acquisition of Bank of the West expanded its US presence to 32 states, including a strong base in the luxury market in California. In the fourth quarter (Q4) of fiscal 2025, BMO’s U.S. banking segment net income increased 187.2% to $807 million compared to the fourth quarter of 2024.
Income
Enbridge (TSX:ENB) is a dividend growth stock and an income engine. The $159.9 billion energy infrastructure giant has raised dividends for 31 years in a row. For $73.30 per share you can participate in the lucrative 5.29% dividend (quarterly payout). In 2025, total profits attributable to common shareholders increased 39.2% to $7.1 billion compared to the full year 2024.
According to CEO Greg Ebel, Enbridge’s low-risk commercial framework delivered predictable results despite the rate war and geopolitical risks. With new projects coming online, he expects 2026 to be another year of steady and predictable growth.
Defensive
North West Company (TSX:NWC) dominates hard-to-reach markets in northern Canada, Alaska and the Caribbean. This more than 350-year-old company is the lifeline of consumers in remote communities. The $2.6 billion-plus retailer enjoys monopoly status due to a lack of competition.
NWC’s allied businesses include logistics and aviation, financial services and healthcare products and services. The Commercial Sales division processes large volumes from local authorities, hospitals and schools. Extreme weather events can impact sales, although NWC reported consistent profitability over the past four financial years (2022-2025).
Diversified companies in particular support profitability and support dividend payments. At $54.73 per share, the dividend yield is 3%.
High growth
Hammond power solutions (TSX:HPS.A) is among the high-flyers in 2026, even surpassing other players in the best-performing basic materials sector. At $210.89 per share, year-to-date gains are 32.2%, compared to +4.3% in the broad market. HPS.A ranked first on the 2024 TSX30 list and third in 2025. The industrial stock’s five-year return is a whopping +2,422.11%.
The $2.5 billion company operates in Canada, the US, Mexico and India, supplying high-quality dry transformers and products. By 2026, building AI infrastructure and hyperscale data centers will be a powerful tailwind for Hammond. Net income has increased every year since 2021.
Protection against downward movements
Dividing capital among four top Canadian stocks with defined roles in your portfolio provides downside protection. The combination also serves as a basis for long-term wealth creation.
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