Trade wars and geopolitical uncertainty can pressure markets, disrupt supply chains, and weigh on corporate earnings. While many businesses struggle in this environment, some Canadian companies have shown the resilience to navigate these challenges and continue delivering consistent financial performance.
Backed by strong business models, stable demand, and solid fundamentals, these companies are well-positioned to weather prolonged market volatility while creating long-term value for investors.
With that in mind, here are some of the best Canadian stocks worth owning during a trade war.
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Top Canadian stock #1: Hydro One
Hydro One (TSX: H) is a strong stock to own during a trade war thanks to its defensive business model, reliable income, and long-term growth potential.
As a pure-play electricity transmission and distribution utility, Hydro One does not operate power generation assets, making its business less risky than many of its peers. Nearly all of its revenue comes from regulated operations under a five-year regulatory framework, providing stable and predictable cash flow regardless of economic conditions.
Thanks to its defensive business model and predictable cash flow, Hydro One has consistently rewarded shareholders with higher dividend payments. Moreover, its stock has steadily delivered attractive capital gains.
Since 2016, Hydro One has increased its dividend at a mid- to high-single-digit compound annual growth rate. Management expects its rate base to expand by roughly 6% annually through 2027, providing a solid foundation for future earnings and dividend growth.
Hydro One is well-positioned to sustain its growth momentum. Rising electricity demand, ongoing investments in grid modernization, a solid balance sheet, and a fully funded capital investment program position Hydro One to deliver steady earnings growth for years to come. For investors seeking a resilient, low-risk stock amid trade uncertainty, Hydro One stands out as an appealing long-term investment.
Top Canadian stock #2: Bird Construction
Bird Construction (TSX: BDT) is another Canadian stock that looks well-positioned to weather trade-related uncertainty. The construction and maintenance company continues to deliver impressive growth, supported by robust demand and a record project backlog, providing strong revenue visibility.
Supporting the company’s growth is its exposure to Canada’s long-term infrastructure and industrial investment boom. The ongoing investments in sectors such as defence, healthcare, liquefied natural gas (LNG), renewable power, nuclear energy, critical minerals, and transportation infrastructure by government and commercial enterprises support its future growth. These large, multi-year projects are driven by structural trends, providing Bird with a reliable pipeline of work.
Another emerging growth catalyst is the rapidly expanding data centre market. Through strategic partnerships and a growing presence in the sector, Bird has identified more than $20 billion in potential project opportunities, giving it another meaningful avenue for long-term expansion.
Financially, Bird Construction remains in a strong position. Its solid balance sheet and growing cash flow give it the flexibility to invest in organic growth, pursue selective acquisitions, and continue to reward shareholders through its dividend. Overall, strong industry tailwinds, its financial strength, and disciplined capital allocation make Bird Construction an attractive long-term investment.
