Market conditions are shaky following the Bank of Canada’s recent rate hike and the prospect of further tightening of its monetary policy. Policymakers fear an inflation breakout, necessitating preventive action. Businesses, on the other hand, believe that an upward rate adjustment is one of the downside risks to the Canadian economy.
Economic uncertainty might prompt many investors to hold their cash rather than invest. However, hesitation can actually be more costly over time. Inflation erodes purchasing power, and generating investment income can help offset its impact.
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The resilient TSX
Canada’s primary stock market remains resilient despite dire economic forecasts. The TSX has gained 0.5% since the rate hike in late October 2026 and remains up nearly 15% year to date. Only 2 of 11 primary sectors – communications services and real estate – have posted negative returns. Meanwhile, heavyweight sectors such as energy (+42%) and financial services (+23%) continue to drive overall index performance.
Why wait for a rosy economy to start investing? The TSX’s resiliency proves a clear point. Established, high-quality companies can endure massive economic headwinds and continue delivering long-term value.
Get paid in a waiting game
There is beauty in investing in blue-chip, large-cap stocks. You don’t miss out on returns while waiting for the market to stabilize because you get paid along the way. Out of fear of short-term market noise, many investors forego a steady income stream by keeping their cash idle.
Instead, you can build an investment portfolio around Canadian Imperial Bank of Commerce (TSX: CM) and Canadian Natural Resources Limited (TSX: CNQ). Both dividend stocks have delivered strong shareholder value despite persistent economic headwinds, including an oil supply crisis and interest rate shocks.
Classic anchor stock
CIBC is a classic example of an anchor stock built for uncertain times. This $149.6 billion lender, one of Canada’s vaunted Big Six banks, has paid continuous dividends for 158 years. While dividend hikes were suspended during the COVID-19 pandemic, no quarterly payout was ever withheld from shareholders.
Today, trading at $164.24 per share, CM has posted a nearly 35% year-to-date gain versus the broad market’s plus-14% return. The annual dividend is 2.6%, paid quarterly. Look beyond the below-market-average yield. You’re prioritizing payout sustainability and proven total return resilience against economic uncertainty.
Built to last and endure
Calling Canadian Natural Resources resilient is an understatement. The $138 billion independent crude oil and natural gas producer has endured the industry’s inherent volatility for over 53 years. Its 26-year dividend growth streak is an even more remarkable feat.
CNQ is up 51.4% year-to-date, outpacing the sector’s plus-43.6%. If you invest today, you can partake in the 3.7% dividend. The energy major continues to benefit from the ongoing oil crisis. After three quarters in 2026, net earnings surged 60.4% year-over-year to $8.8 billion, and free cash flow (FCF) generated in Q3 2026 reached $3.1 billion.
President Scott Stauth credits the strength of CNQ’s well-balanced and diverse portfolio for the strong financial and operational results. By achieving its $13 billion net debt target in Q3 2026, the company is prepared to allocate 100% of FCF to share repurchases.
No reason to worry
Investors are happy, not worried, with the performance of CIBC and Canadian Natural Resources in 2026. Dire economic forecasts will not stop both companies from keeping investors whole on dividend payouts. You could lose more trying to time the market or waiting for normalcy to return.
