Market uncertainty is unavoidable. Over the past few decades, Canadian investors have endured the dot-com bust in 2000–2002, the 2007–2009 global financial crisis, and the 2020 COVID-19 crash. Each episode produced sharp declines for different reasons, reminding investors that even strong portfolios can suffer when fear takes over.
But market crashes also highlight the value of owning durable businesses. Rather than trying to predict the next downturn, I’d prefer to own companies with resilient operations, dependable cash flows, and long-term growth potential. For Canadian investors, three solid blue-chip stocks are worth a look: Royal Bank of Canada (TSX:RY), Loblaw (TSX:L), and Brookfield Infrastructure Partners L.P. (TSX:BIP.UN).
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Royal Bank of Canada: A diversified financial leader
Royal Bank of Canada is built to withstand economic uncertainty. Its enormous scale and diversified operations reduce dependence on any single source of revenue. In fiscal 2025, roughly 30% of revenue came from personal banking, 13% from commercial banking, 34% from wealth management, and 22% from capital markets.
That diversification matters during downturns. While credit losses can rise when the economy weakens, RBC’s other businesses could help offset pressure. The bank also has a strong history of returning capital to shareholders, including dividend growth of approximately 7.6% annually over the past 15 years.
The main concern is valuation. At roughly 19 times earnings, RBC stock trades well above its historical average. I would still want to own it, but I’d build a position gradually and save some cash for a meaningful market correction.
Loblaw: Defensive growth when consumers tighten their belts
Loblaw may be even more defensive. Groceries and pharmacy services are necessities, meaning consumers continue spending on them even when the economy deteriorates. Its powerful banners, including Real Canadian Superstore, No Frills, and Shoppers Drug Mart, give it enormous scale and customer reach.
Loblaw is also well positioned when consumers become more price-conscious. Discount stores and private-label brands such as President’s Choice and No Name can attract shoppers looking for value. This supports relatively stable earnings and cash flow, while the stock has historically experienced less volatility than the broader market.
Shareholders have also benefited from consistent dividend growth. Loblaw’s 10-year dividend growth rate was approximately 8.3%, while its payout ratio of around 24% leaves room for continued increases.
Again, valuation is the drawback. At approximately 24.5 times earnings, the stock trades significantly above its long-term average. I’d therefore favour gradual buying rather than chasing the shares at elevated prices.
Brookfield Infrastructure Partners: Essential assets, global reach
Brookfield Infrastructure Partners offers another form of resilience. It owns essential infrastructure across utilities, transportation, midstream energy, and data infrastructure. These assets tend to generate stable cash flows because they provide services that businesses and consumers continue to need throughout economic cycles.
About 85% of its revenue is inflation-indexed, providing valuable protection when prices rise. Its 10-year distribution growth rate was about 7.3%, demonstrating its ability to raise passive income for its shareholders. Investors can start with a distribution yield of roughly 4.6% today.
BIP.UN is also undergoing a corporate restructuring, with Brookfield Infrastructure Partners and Brookfield Infrastructure Corporation being combined into a single corporate structure. The transaction is expected to be completed in the fourth quarter of 2026.
The bottom line
For an uncertain market, I’d rather own resilient businesses than speculate on when the next crash will arrive. RBC offers financial diversification, Loblaw provides defensive consumer exposure, and Brookfield Infrastructure adds essential global assets and inflation protection. Within the group, Brookfield Infrastructure appears to offer the best value today, so I’d buy a starter position today and for the other two blue-chip stocks, I’d consider building a position gradually and keep cash available for market selloffs.
