3 Canadian Stocks That Can Withstand Any Market

When building a long-term portfolio, investor Kay Ng of The Motley Fool Canada wants to focus on businesses that can withstand recessions, inflation, and market crashes. He identifies three Canadian stocks that fit this description: Loblaw (TSX:L), Brookfield Infrastructure Partners L.P. (TSX:BIP.UN), and Royal Bank of Canada (TSX:RY).

Loblaw has a straightforward investment case, operating the country's largest food retail business and owning Shoppers Drug Mart and Pharmaprix in Quebec. This gives it a defensive foundation that many other businesses lack. The company's PC Optimum loyalty program adds another layer to its competitive advantage.

From 2015 to 2025, Loblaw delivered consistent revenue growth, with adjusted earnings per share increasing at an 11% compound annual growth rate. While valuation is a concern, with shares trading around 25 times earnings, Ng argues that paying a reasonable price for an exceptional business is more important than chasing a bargain.

Brookfield Infrastructure Partners offers exposure to essential infrastructure worldwide, spanning utilities, transportation, energy, and data infrastructure across 25 countries. Its geographic and business diversification helps reduce dependence on any single economy while creating significant barriers to entry. The company has an inflation hedge, with about 85% of its cash flows directly indexed to inflation or supported by contractual escalators.

Royal Bank benefits from enormous scale, a powerful brand, and diversified businesses spanning personal and commercial banking, wealth management, and capital markets. However, Ng notes that the stock's valuation is high, with adjusted earnings per share jumping 18% in the first half of the fiscal year.