If there were a single word to define how the market is performing in 2026, that word would be volatile. The best way to prepare a portfolio to withstand market volatility is to invest in everyday stocks.
Defensive stocks tend to outperform during volatile periods because their revenue is tied to essential services that remain in demand regardless of economic conditions.
These are essential-service stocks that provide the services that people rely on irrespective of how the market fares. The steady revenue that these services generate leads to predictable earnings, growing dividends, and sizable defensive moats.
For investors looking to smooth returns and build a more resilient portfolio, three everyday stocks stand out as core defensive holdings. Utilities, waste management, and grocery retail each defend wealth in different ways, creating a layered form of protection when combined in a single portfolio.
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Regulated utility stability
Fortis (TSX:FTS) is one of the largest and most reliable regulated utilities in North America. Utility stocks like Fortis operate under a lucrative business model that generates a recurring revenue stream stemming from its electric and gas utility facilities.
Fortis has operations across Canada, the U.S., and the Caribbean with facilities bound by long-term regulated contracts that span decades. The sheer necessity of the utility service that Fortis provides makes it one of the most defensive options on the market.
Because Fortis operates under regulated frameworks, its earnings are largely insulated from economic cycles and tied instead to approved rate structures.
That stability has allowed Fortis to provide a stable and growing dividend with over 50 consecutive years of dividend increases. As of the time of writing, Fortis’ quarterly dividend boasts a yield of 3.2%.
With predictable cash flow, a strong capital program, and a focus on regulated assets, Fortis acts as a defensive anchor in any portfolio. Even when volatility spikes, Fortis is often one of the few everyday stocks that continues to deliver consistent performance.
Essential services and steady growth
Waste collection is one of the most recession‑resistant industries in the market, and Waste Connections (TSX:WCN) is a leader in the space. The company benefits from recurring revenue and long‑term municipal contracts. It also benefits from the sheer reality that waste collection is essential and doesn’t slow down during economic downturns. That fact alone makes this a worthy addition to any portfolio of everyday stocks.
Waste management demand is remarkably stable, with collection volumes changing very little even during recessions or periods of high unemployment.
In addition to that defensive appeal, Waste Connections offers steady growth, which includes a series of well-executed acquisitions. That growth has extended the company’s footprint across North America while also maintaining high margins and strong cash flow.
This combination of essential‑service stability and consistent growth has made Waste Connections one of the lower‑volatility performers in the industrial sector.
Everyday defensive retail essentials
Loblaw (TSX:L) is Canada’s largest grocer and pharmacy operator. Loblaw’s business is built around the core essential products that people buy in every economic environment. That includes food, household essentials, and pharmacy services that remain in demand whether markets are booming or contracting.
Grocery spending tends to remain steady across economic cycles, making the sector one of the most reliable sources of defensive cash flow.
This gives Loblaw a natural defensive advantage. That’s also one of the reasons why Loblaw stock has soared over 35% over the past year.
Adding to that appeal is Loblaw’s growing private-label brands. Those brands enjoy a strong following that drives foot traffic to stores as well as the potential for cross-selling in last-mile retail.
Loblaw also generates strong cash flow and has delivered consistent dividend growth over time. The company’s quarterly dividend currently works out to a yield of 0.89%, and Loblaw has provided an annual bump to that dividend going back years.
For investors seeking a defensive retail stock with everyday relevance, Loblaw remains a top choice.
Build a defensive core with everyday stocks
The trio of stocks mentioned above represent a mix of essential services that provide stable, recurring revenue streams and steady demand. Most investors treat everyday defensive stocks as core holdings that help stabilize returns when broader markets become unpredictable.
Together, Fortis, Waste Connections, and Loblaw create a defensive backbone that protects wealth, stabilizes returns, and keeps portfolios resilient through any market environment.
