1.Loblaws
L (TSX)
Loblaws, a leading grocery and pharmacy retailer known for its resilience during economic downturns, offers a solid investment opportunity with a 1.52% dividend yield. With impressive returns of 33.69% over the past year and a remarkable 288.83% over the last five years, the stock has garnered an "A" rating from analysts, who project an average price target of C$113.50, highlighting its strong market positioning.
Pros:
- Essential grocery and pharmacy retailer
- Strong historical performance
Cons:
- Market competition
- Economic sensitivity
2.National Bank
NA.TO (TSX)
National Bank stands out as a preferred choice among Canadian banks, particularly for those seeking growth potential within Quebec. With a modest P/E ratio of 11.71 and a solid dividend yield of 2.71%, this stock has delivered impressive returns, boasting a 1-year gain of 24.50% and a remarkable 5-year return of 119.93%. Recognized with a B- analyst rating, it’s backed by TD Securities maintaining a 'Hold' recommendation, reinforcing its position for investors looking for stability and growth.
Pros:
- Growth potential
- Low P/E ratio
Cons:
- Exposure to economic downturns
- Market volatility
3.Fortis
FTS.TO (TSX)
Fortis Inc. stands out as a reliable utility provider, boasting a solid 3.44% dividend yield and an impressive track record of 50 years of dividend growth. Over the past year, the stock has delivered a notable return of 16.99%, making it an appealing choice for investors focused on consistent income from financially healthy companies. Analysts maintain a cautious outlook, with RBC Capital rating it as Sector Perform and Credit Suisse giving it a Neutral stance, suggesting a stable yet measured approach to its performance.
Pros:
- Reliable earnings
- Impressive 50-year dividend growth history
Cons:
- Market volatility risk
- Dependence on regulatory environment
4.Canadian National Railway
CNR.TO (TSX)
Canadian National Railway stands out as a defensive investment option, providing a reliable 2.62% dividend yield with a remarkable 27-year history of consistent payouts. Despite a recent 1-year return of -10.99%, the stock has demonstrated resilience during economic downturns, making it especially appealing for investors seeking stability. With strong analyst ratings, including a "Buy" from Citigroup and an "Outperform" upgrade from CIBC, CNR remains a solid choice among rail transport stocks.
Pros:
- Defensive stock with stable demand
- 27-year dividend streak
Cons:
- Recent negative returns
- Market competition
5.Alimentation Couche-Tard
ATD.TO (TSX)
Alimentation Couche-Tard stands out as a robust convenience store operator, benefiting from steady consumer traffic and a commendable dividend yield of 1.09%. With an impressive 13-year history of recession resistance, the company's stock has delivered an 87.82% return over the past five years, making it an appealing choice for investors seeking stability and growth. Analysts rate the stock as a Moderate Buy, with a favorable consensus price target suggesting room for further appreciation.
Pros:
- Steady consumer traffic
- Recession resistance
Cons:
- Recent negative returns
- Market competition
Final Words
As you consider investment options this February 2026, remember that recession-proof stocks like Fortis can provide stability and reliable returns. Take time to compare these options and conduct your own research to make informed decisions that align with your financial goals.
Frequently Asked Questions
Fortis is regarded as a top recession-proof stock due to its stable earnings, strong market position in the utilities sector, and a history of dividend growth. The company has a reliable 4.00% dividend yield, which adds to its attractiveness for investors seeking consistent income during economic downturns.
Fortis has shown strong performance with a 1-Year Return of 16.99%, a 3-Year Return of 33.19%, and a 5-Year Return of 41.49%. This consistent growth highlights its resilience and reliability as an investment option.
Fortis offers a dividend yield of 3.44%, distributed quarterly. This yield is an attractive feature for investors looking for income through dividends, alongside potential capital appreciation.
Over the past decade, Fortis has delivered an impressive 10-Year Return of 87.19%. This long-term performance, coupled with its strong dividend growth history, makes it a solid choice for long-term investors.
Investors should focus on companies with stable earnings, consistent cash flow, and a strong history of dividend payments. Utility companies, like Fortis, are often considered recession-proof due to their essential services and regulated nature.
While utility stocks often provide stability, they can be affected by regulatory changes, rising interest rates, and economic downturns. Investors should assess these risks and their own financial goals before investing.
