The Bank of Canada has been holding interest rates steady at 2.25%, all while warning that the economy still faces pressure from trade uncertainty, inflation risks, consumer debt, and global instability. It’s not the kind of backdrop where investors want to chase every stock that has fallen, but instead seek out quality over quantity.
That’s why today we’re digging into Toronto-Dominion Bank (TSX: TD), Waste Connections (TSX: WCN), and Hydro One (TSX: H). Each one gives investors a different kind of defence during this period of uncertainty. So, let’s get into it.
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TD Bank
TD stock has a large Canadian banking franchise, a major U.S. platform, wealth management, insurance, and wholesale banking. That diversification gives it more ways to earn than a smaller lender tied to one region or one product.
In the second quarter of 2026, TD stock reported adjusted net income of $4.168 billion, up from $3.626 billion a year earlier. Adjusted diluted earnings per share (EPS) rose to $2.38 from $1.97. TD stock also remains well capitalized. Its second-quarter results showed a common equity tier-one (CET1) ratio of 14.3%, giving TD stock a strong buffer if credit losses rise.
The dividend gives investors another reason to be patient with TD stock trading at 20 times earnings while offering a 2.6% dividend yield. Of course there are still risks. TD stock continues to work through the consequences of its U.S. anti-money-laundering failures, and credit quality could weaken if Canadian households come under more pressure. But for investors who want a large, profitable Canadian bank with capital strength, TD stock looks built to get through more than one rough patch.
Waste Connections
Waste Connections is a very different kind of defensive stock. The company provides solid waste collection, transfer, disposal, and recycling services across the United States and Canada. It describes itself as a leading solid waste services provider in 46 U.S. states and six Canadian provinces, focused on exclusive and secondary markets.
That business model fits uncertain times because garbage collection does not disappear during recessions. Households, businesses, municipalities, construction sites, and industrial customers still need waste services. This showed up in the first quarter of 2026. Waste Connections reported revenue of US$2.371 billion, up 6.4% year over year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8% to US$769.5 million, while adjusted EBITDA margin improved to 32.5%.
The valuation reflects the quality, with WCN stock trading at 41 times earnings and offering a small 0.8% dividend yield. Yet that’s the main risk: it’s a premium stock. If growth slows, acquisitions disappoint, or margins come under pressure, the share price could pull back. But investors worried about uncertain times may still want a business tied to a service that customers cannot simply stop using.
Hydro One
Hydro One may be the most straightforward defensive stock on this list. The company is Ontario’s largest electricity transmission and distribution utility distributing electricity to nearly 1.5 million customers and generates 99% of revenue from regulated business.
In the first quarter of 2026, Hydro One made capital investments of $715 million and placed $484 million of new assets in service. The dividend is also moving higher. Hydro One declared a quarterly dividend of $0.3531 per share for June 2026, up from $0.3331 earlier in the year now at a 2.4% yield trading at 25.5 times earnings.
That’s not cheap, and utilities remain sensitive to interest rates and regulation. Higher borrowing costs can pressure valuations, and Ontario Energy Board decisions can affect allowed returns. Still, Hydro One’s regulated model gives investors a level of visibility that many companies cannot match.
Bottom line
Uncertain times do not require investors to stop investing. They require better filters. TD stockoffers banking scale and capital strength. Waste Connections offers essential-service resilience. Hydro One offers regulated electricity income and grid investment.
Investors looking beyond the next headline may find that these three Canadian stocks are built less for perfect conditions and more for the real world.
