Although the Canadian stock market continues to reach new heights in 2025, macroeconomic uncertainties, including rising geopolitical tensions, sticky inflation, and unpredictable interest rate policies, remain a concern for investors. In such an unpredictable environment, protecting capital becomes just as important as growing it.
That’s why, if I had $7,000 to invest right now, I’d take a defensive approach. This doesn’t mean sacrificing returns. Instead, it simply means focusing on dividend-paying stocks with stable earnings, strong balance sheets, and a proven ability to weather economic turbulence.
In this article, I’ll highlight a top TSX-listed stock that could act as a safe investment in today’s market and why it deserves a spot in a well-balanced portfolio.
Image source: Getty Images
A solid defensive bet to consider now
In this environment where caution matters, I believe Emera (TSX:EMA) will fit the defensive profile perfectly. This utility company, based in Halifax, serves over 2.6 million customers across Canada, the U.S., and the Caribbean with regulated electric and natural gas services.
After rallying by nearly 27% over the last year, EMA stock is currently trading at $61.84 per share with a market cap of $18.4 billion. For income-focused investors, it offers a steady 4.7% annualized dividend yield, paid quarterly.
Interestingly, the stock is just about 2% off its 52-week high, showing consistent investor confidence. That’s no surprise, considering its diversified operations, regulated earnings, and strong profitability.
Strong financials powered by utility and energy segments
There are clear reasons behind EMA stock’s recent strong momentum. The company posted its strongest first quarter in its history this year. For the quarter, its adjusted earnings jumped 68% YoY (year over year) to $1.28 per share. Similarly, Emera’s adjusted quarterly net profit also jumped by 75% to $379 million with the help of better earnings from Tampa Electric, Nova Scotia Power, and its gas utilities. Even Emera Energy Services delivered a solid boost due mainly to higher gas prices and weather-driven volatility.
More importantly, the company’s operating cash flow in the quarter jumped by 37% from a year ago, clearly showcasing that its core businesses are not just performing well on paper but also generating real, usable cash. That’s critical when you’re looking for a top defensive stock to buy with attractive dividends.
Long-term plans that look just as steady
Besides its strong financial growth trends, another key factor that makes Emera look really attractive for long-term investors is its clear and disciplined growth plan. Notably, the company plans to deploy $3.4 billion in capital this year and $20 billion over the next five years. These investments primarily focus on grid modernization, storm hardening, and renewable energy integration, especially solar, and storage systems in Florida and Nova Scotia. Moreover, Emera is working on managing affordability by phasing investments smartly while targeting 5% to 7% adjusted earnings growth per year through 2027. That kind of stable growth, supported by regulated earnings and an expanding rate base, makes Emera a top defensive stock to buy, not just for the moment but for years to come.
