When it comes to investing, there’s no question that certain environments make things a lot more difficult. And right now, with geopolitical tensions rising significantly due to the conflict in the Middle East, finding safe TSX stocks that can anchor your portfolio is more important than ever.
With the Strait of Hormuz disrupted and a meaningful portion of global oil supply impacted, energy prices have surged, and that’s creating ripple effects across the entire global economy. Inflation, which investors were already concerned about, is starting to pick up again, and volatility has surged.
Environments like these are perfect reminders of why it’s so important to not just invest for the long haul, but to ensure the stocks that you are committing to own for years are safe and reliable enough to weather these storms.
Finding safe-haven investments means looking for businesses to own that can continue generating steady, predictable cash flow regardless of what’s happening globally.
These are typically companies that operate essential infrastructure, have reliable business models, and can continue earning a profit even if the economy worsens for months.
So, if you’re looking for stocks to help anchor your portfolio in this environment, here are three top TSX picks to consider right now.
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One of the best energy producers to buy and hold for the long haul
Although the energy sector is the main headline for investors every day while the conflict in the Middle East wages on, Canadian Natural Resources (TSX:CNQ), a massive $140 billion energy producer, has long been one of the top TSX stocks to buy to help anchor a long-term portfolio.
Canadian Natural Resources isn’t just any oil producer, though. The dividend stock owns a massive portfolio of long-life, low-decline assets in one of the safest jurisdictions in the world.
But what really makes the stock compelling right now is its financial position. The company hit its net debt targets just as this latest wave of geopolitical tension began, which means it’s now in a position to return essentially all of its free cash flow back to shareholders, through either buybacks or its dividend.
On top of that, the company just announced its 26th consecutive dividend increase, bringing its forward yield to roughly 3.8%.
So, if you’re looking for a safe-haven energy stock that can anchor your portfolio in 2026 and beyond, Canadian Natural Resources is a top pick.
One of the safest stocks on the TSX
If you’re looking for a safe and reliable TSX stock to buy and hold with confidence, there might not be a more reliable business than Fortis (TSX:FTS).
Fortis is one of the best and safest companies in one of the most defensive industries of our economy. It operates regulated utility assets across North America, providing essential services like electricity and natural gas to millions of customers. These are services people rely on every single day, regardless of what’s happening in the global economy.
That’s what makes Fortis so reliable. Its earnings are highly predictable, largely decoupled from global events, and generate a consistent cash flow that funds its ever-growing dividend.
In fact, in addition to its reliable operations and ultra-low-volatility share price, Fortis has increased its dividend every year for more than five decades, making it one of the most consistent dividend growth stocks in Canada.
A safe and reliable investment offering exposure to Canadian banks
Another option to consider, especially if you’re looking to maximize the yield that your core investments generate, is BMO Covered Call Canadian Banks ETF (TSX:ZWB).
While individual bank stocks are typically some of the most reliable dividend payers in Canada, the exchange-traded fund (ETF) provides exposure to Canada’s largest banks while using a covered call strategy to generate additional income.
In fact, while a simple, equal-weight Canadian bank ETF may offer a yield of less than 3% today, the ZWB ETF’s forward yield currently sits at roughly 5.5%.
Therefore, not only do you lower your risk by gaining instant diversification, but in addition, utilizing a covered call strategy is especially effective in volatile or sideways markets, which is exactly what we’re seeing right now.
So, if you’re looking for a reliable investment that can anchor your portfolio throughout 2026 and beyond, there’s no question the ZWB ETF is a top choice.
