Sometimes, market volatility can make even seasoned investors question their next move. But a rough stretch does not always mean your portfolio needs major changes. In many cases, the better approach is to own dependable businesses that keep serving essential needs, generating cash, and paying dividends through changing conditions.
That is where defensive Canadian stocks could be useful. While they will not eliminate uncertainty, they could make it easier to stay focused when share prices move sharply.
In this article, I’ll highlight two such Canadian dividend stocks that I think are worth holding when markets become more unsettled.
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Emera stock
A utility stock could add a steadying influence to a portfolio, and Emera (TSX:EMA) offers that defensive appeal. The Halifax-based energy services company owns regulated electric and natural gas utilities across its broader operating network.
After climbing 14% so far in 2026, Emera stock currently trades at $76.81 per share with a market cap of $23.6 billion. Income investors also receive an annualized dividend yield of 3.8% at the current market price.
In the first quarter, Emera’s adjusted net profit improved by 9.5% year-over-year (YoY) to $415 million, while its adjusted earnings rose 7% to $1.37 per share.
Several parts of its business contributed to that improvement. For example, Emera Energy Services benefited from favourable natural gas prices and greater market volatility. Peoples Gas Systems posted higher earnings due to new base rates and stronger off-system sales. At the same time, its Tampa Electric business benefited from new base rates and off-system sales.
Emera deployed more than $870 million of its $4 billion 2026 capital plan in the first quarter itself. The company expects its adjusted earnings per share (EPS) growth to come in above its 5% to 7% guidance range in 2026 and continues to target average annual growth within that range through 2030.
Emera may not avoid every market pullback, but its business fundamentals give investors solid reasons to stay patient when markets become less predictable.
Metro stock
Another stock worth considering in a bumpy market is Metro (TSX:MRU). Its grocery and pharmacy operations are tied closely to everyday spending, giving the business a defensive quality that can remain valuable when investors become cautious.
After declining by 9% over the last year, Metro stock now hovers close to $95 per share, leaving the company with a market cap of $19.9 billion. At this price, Metro offers an annualized dividend yield of 1.7%.
Recent weakness in MRU stock could be linked mainly to the strike affecting Metro’s Laval produce distribution centre, transportation, and head office. The disruption reduced food same-store sales by 1.5% during the first 14 weeks of its fiscal third quarter (ended on July 4).
That pressure is meaningful, but it does not erase Metro’s long-term growth outlook and the strength shown in its second-quarter results (ended on March 14). The company’s second-quarter sales rose 4.1% YoY to $5.1 billion, helped by new store openings, same-store sales growth, and the shift of a significant pre-Christmas shopping day into the quarter. Food same-store sales inched up by 1.8%, while pharmacy same-store sales climbed 5.1%.
On the profitability side, Metro’s adjusted net earnings rose 4.4% YoY to $236.5 million, and adjusted diluted earnings per share advanced 8.8% to $1.11.
Meanwhile, the company continues to invest in areas that could support long-term growth. The retailer plans to open or convert about a dozen discount-banner stores during the current fiscal year.
While Metro may face a near-term challenge due to the strike, its essential business, steady sales growth, and expansion plans remain intact. For investors seeking a defensive dividend stock during rough markets, that combination makes Metro worth considering.
