I’m of the view that this current market environment favours investors who are able to stay level-headed and invested in what could be a volatile 2026. Indeed, I’m seeing plenty of economic and geopolitical concerns surfacing that I think could lead to one of the bumpiest years in the market we’ve seen in some time. If the price action we’ve seen in recent weeks is an indicator of what’s to come, investors should be strapped in for some volatility ahead.
In my view, for those investors looking to stay invested through these periods of turmoil, owning blue-chip defensive stocks is the way to go. Here are two of my top picks for investors looking for exposure to TSX-listed stocks in this current environment.
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Fortis
Through previous crashes and turbulence, Fortis (TSX: FTS) has historically been one of the most consistent stocks in the Canadian market, and one I think actually could be an under-the-radar growth story heading into 2026.
The company’s status as a regulated provider of electricity and natural gas to millions of residential and commercial clients has created a cash flow growth profile that stands out among TSX companies. As such, this firm has been able to raise its dividend at an impressive clip, doing so each and every year for more than five decades.
That said, in addition to Fortis being a top dividend stock to consider over the long term for growing passive income, there’s also a growth story investors should be paying close attention to with this name.
The rise of artificial intelligence, machine learning, quantum computing and a host of other new and innovative technologies is fantastic. However, most investors and those analyzing these growth trends will note that there’s one key bottleneck for all companies in this space: procuring the power needed to support these technologies at the best price.
Fortis’s ability to provide the essential electricity companies require, and do so at some of the most reasonable rates in North America, could entice additional corporate investment over time. I’m of the view that this is a no-brainer pick to hold for the long term through whatever turmoil is headed our way.
Manulife Financial
In the financials sector, Manulife Financial (TSX: MFC) is another top pick of mine for investors looking for exposure to blue-chip dividend stocks right now.
The company’s 3.6% dividend yield is down considerably in recent months, driven in part by very strong price appreciation. Indeed, this is a top pick from a dividend angle I’d argue investors who took my advice in past years to consider this name would have benefited greatly from.
That said, I think Manulife’s core insurance and wealth management businesses provide among the most stable cash flows of any company in its sector. I like the company’s diversification, driven by these multiple revenue streams. However, I’m also focusing intently on Manulife’s growth profile, given its rapid expansion in key high-growth markets in Asia.
As Manulife continues to grow its overall assets under management and insurance portfolios, this is a company that should benefit in an outsized way from interest rates coming down. In terms of blue-chip exposure, Manulife looks like a juggernaut worth buying here.
