The threshold or so-called “red line” for crude oil has been US$100 per barrel, historically. Global crude prices spiked to US$120 per barrel in response to the Middle East war, sending shockwaves through equity markets. Right now, the international benchmark has temporarily dropped below US$80 due to the announced peace deal between the U.S. and Iran.
However, unless the truce proves real and successful, a breakout to US$100 again is highly possible. The current price dip is most welcome, although a 60-day negotiation will follow the cessation of hostilities. Meanwhile, investors can reposition towards defensive holdings before the next energy shock.
The trio of National Bank of Canada (TSX:NA), Canadian Natural Resources (TSX:CNQ), and Emera (TSX:EMA) forms a dynamic yet defensive portfolio. These three safer TSX stocks to buy have endured elevated market volatility ahead of the peace deal and can withstand a repeat.
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Top performer
National Bank of Canada, or NA, is the sixth in Canada’s vaunted Big Six banks. Its total five-year return of +182.55% is the best among this elite circle. Performance-wise, NA outperforms the TSX, up nearly 27% versus +10.8%. At $217.64 per share, the dividend yield is 2.43%.
The $83.8 billion bank reported more than 30% bottom-line growth in the second quarter (Q2) and full fiscal 2026. In the three and six months ending April 30, 2026, net income rose 38% and 31% year over year, respectively, to $1.2 billion and $2.5 billion. The board approved a 6.5% dividend increase as a result.
Laurent Ferreira, President and CEO of NA, said credit discipline, integration of Canadian Western Bank, and share buybacks supported the strong quarterly performance. He expects continued strong earnings growth, with NA maintaining robust capital levels.
Tactical shield
Canadian Natural Resources, or CNQ, benefits from rising oil prices. This industry titan served as a tactical shield already in 2026. The $124.7 billion premier conventional and oil sands producer is highly regarded as an effective and efficient operator. Its president, Scott Stauth, said, “Our ability to effectively allocate capital across our strong asset base provides us with a unique competitive advantage.”
CNQ boasts 26 consecutive years of dividend increases. According to Victor Darel, the chief financial officer of CNQ, the dividend-growth streak demonstrates the sustainability of the business model and the diverse, long-life, low-decline reserves and asset base.
At $59.77 per share, current investors receive a 4.12% dividend (quarterly payout). They also delight in the market-beating 29.7% year-to-date gain.
Stabilizer
Emera, a $22.4 billion energy and services company, operates in Canada, the U.S., and the Caribbean. The strictly regulated electricity and natural gas utilities insulate the stock from volatile commodity prices. EMA’s quarterly payouts have been steady, reinforced by a 19-year annual dividend-growth streak.
If you invest today, the share price is $73.11 (+10.4% year to date), while the dividend yield is 4.01%. Management’s dividend-growth guidance is a modest 1% to 2% hike annually through 2030.
Play safe now
The peace deal could be a temporary truce, not necessarily a permanent end to the war. It’s better to place safe now with three defensive holdings for capital protection and income generation.
