When markets turn defensive, the goal usually shifts from chasing the fastest grower to owning businesses that can keep earning through a wobblier stretch. That often means companies tied to groceries, insurance, essential consumer products, or services people do not drop just because sentiment sours. Right now, that mindset makes sense. With the Bank of Canada holding rates steady, now is the time to consider these top TSX stocks.
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WN
George Weston (TSX:WN) looks built for this kind of backdrop. Through Loblaw and Choice Properties, it gives investors exposure to groceries, pharmacy, and necessity-based real estate, which is about as defensive as the TSX gets. Over the last year, Loblaw kept investing in growth, including a planned $2.4 billion spend in 2026 to expand stores and supply chain capacity, while George Weston also disclosed a deal to sell PC Financial to EQB. That is not flashy, but it does show an underlying business still moving forward.
The numbers stayed strong. In the fourth quarter of 2025, George Weston reported adjusted net earnings available to common shareholders of $468 million, up 12.8%, while adjusted diluted earnings per share rose 15.2% to $1.21. The TSX stock carries a market cap of about $36.6 billion and a price-to-earnings (P/E) near 36.8 so it is not cheap in the usual sense. But that premium reflects just how steady its core businesses are. If investors keep getting more cautious, a defensive heavyweight like this can still fit.
SAP
Saputo (TSX:SAP) is a quieter defensive pick, but that is part of the appeal. Dairy is not an exciting industry, yet it tends to hold up when investors get picky because people still buy milk, cheese, and other staples. Over the last year, Saputo renewed its normal course issuer bid and announced a deal to divest a majority stake in its Argentina operations, which suggests management is still tightening the portfolio and leaning toward more disciplined capital allocation. Trade fights around dairy also remain part of the backdrop, but Canada’s supply-managed system still gives domestic producers a layer of stability.
Its latest results were solid enough to support the case. In the third quarter of fiscal 2026, Saputo reported revenue of $4.1 billion, up 5.2%, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $431.1 million and net earnings climbed to $209.8 million. The stock’s market cap is about $17.3 billion and its P/E is roughly 27.3. That is not a bargain multiple, but it is fair for a consumer staple with improving execution and a business that should stay relevant even if the market mood darkens.
IAG
Then we have iA Financial (TSX:IAG), and this is the financial name here, but it still works as a defensive idea because insurance and wealth management can produce dependable earnings even when the market gets nervous. Over the last year, iA made a bigger move by acquiring RF Capital, adding to its wealth platform and giving it another lever for growth. That deal shows the TSX stock is not just playing defence. It is still expanding while keeping a strong capital position.
The earnings picture looked healthy. iA’s corporate presentation for year-end 2025 showed fourth-quarter core EPS of $3.10, quarterly earnings per share (EPS) of $1.97, quarterly annualized core ROE of 17.1%, and net premiums of $5.9 billion. The TSX stock’s market cap sits around $13.8 billion and its P/E is about 13.3, which makes it the cheapest-looking name of the three on a plain earnings basis. For a company still growing, still buying, and still producing strong returns, that feels like a sensible defensive pick.
Bottom line
If markets do get more defensive, these three all bring something useful. George Weston offers everyday essentials, Saputo brings consumer-staples stability, and iA adds financial strength without an extreme valuation. None is a moonshot, and that is exactly the point. When investors get nervous, boring can start to look pretty brilliant.
