The Economy Is Slowing: 2 TSX Stocks I’d Still Buy Today

The economy is slowing, but these two TSX stocks offer defensive strength, long-term growth, and reasons to keep buying today.

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Key Points
  • Despite economic slowdown, Fortis (TSX:FTS) remains a strong buy due to its reliable utility services and 52 years of consecutive dividend increases.
  • Canadian National Railway (TSX:CNR) offers long-term growth potential with its expansive rail network and a history of 30 years of dividend growth.
  • Both Fortis and Canadian National are recommended as core holdings for a well-diversified portfolio, providing defensive growth and stability.

There are growing signs in the economy that things are slowing down. GDP growth has remained roughly flat for much of 2026. Interest rates have held steady. Business investment has also come under pressure. In short, there are multiple layers of uncertainty across the market. For investors, that slowdown doesn’t apply to all TSX stocks equally.

In fact, there are more than a few great TSX stocks that I would continue to buy, even as the economy continues to slow. Those are companies that keep generating predictable cash flow regardless of how the economy moves.

Here are the two TSX stocks that are at the top of my list to continue buying right now.

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Get defensive growth from Fortis

The first of those TSX stocks to buy now is Fortis (TSX: FTS). Fortis is one of the largest utility stocks in North America. The company boasts operations across the U.S., Canada, and the Caribbean.

Those operations include providing essential electricity and gas services to millions of customers.

That fact alone makes Fortis a strong defensive holding. That’s because even during a slowdown, people still need electricity and natural gas.

Perhaps more importantly, that business is regulated, providing Fortis with a reliable and predictable revenue stream. This gives Fortis a consistent revenue stream from which it can invest in growth initiatives while paying out a quarterly dividend.

Fortis’s massive capital plan is the primary driver for growth. The current five-year plan comprises a $28.8 billion capital plan, focused on improving facilities and transitioning others to renewables. Fortis expects to increase its rate base to $57.9 billion by 2030, representing compound annual growth of nearly 7%.

That growth will also help Fortis to continue paying and increasing its quarterly dividend.

As of the time of writing, Fortis offers a yield of 3.1%. The company has also provided investors with annual increases to that payout for 52 consecutive years.

That consistency alone makes Fortis one of the better TSX stocks to own, especially during a weaker market.

Canadian National Railway is built for the long haul

Another one of the great TSX stocks to buy and hold for the long-term is Canadian National Railway (TSX: CNR). Like Fortis, Canadian National commands a huge defensive moat, but unlike the utility stock, Canadian National is economically sensitive.

Canadian National hauls everything from automotive parts and chemicals to precious metals, manufactured products, crude oil and wheat to markets and factories across the continent.

Canadian National’s rail network is one of the largest on the continent, extending to three different coastlines. That network has grown over time, and communities have sprung up around those tracks across the continent.

Each year, the railroad moves over $250 billion worth of goods across its network.

This also means that if a competitor were to emerge to challenge Canadian National’s position, it would require billions in investments and decades of construction. Thus, the defensive moat.

Turning to dividends, Canadian National offers investors a quarterly dividend that carries a yield of 2.1%. While that’s not the highest yield on the market, the payout is well-covered and growing.

Earlier this year, Canadian National announced a 3% increase to that dividend, reflecting 30 consecutive years of dividend increases.

That dividend growth, coupled with the sheer necessity of the business, makes Canadian National one of the best TSX stocks to own for the long term.

These TSX stocks still make sense

Both Fortis and Canadian National offer investors different, yet attractive options among the TSX stocks to buy today.

Fortis provides a predictable utility cash flow with 52 years of annual increases. Canadian National offers exposure to essential infrastructure and a wide moat, along with three decades of increases.

While no stock is without risk, both of these TSX stocks are great long-term picks that should, in my opinion, be core holdings in any larger, well-diversified portfolio.

Fool contributor Demetris Afxentiou has positions in Canadian National Railway and Fortis. The Motley Fool recommends Canadian National Railway and Fortis. The Motley Fool has a disclosure policy.

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