Three Canadian Stocks Built to Weather Any Storm

When it comes to building a long-term portfolio, some investors focus on predicting which stocks will soar next year. However, when market conditions change, even the most promising companies can struggle.

A more reliable approach is to identify businesses with staying power, those that can withstand recessions, inflation, and market crashes. Three Canadian stocks that fit this description are Loblaw, Brookfield Infrastructure, and Royal Bank of Canada.

Loblaw operates the country's largest food retail business, including Shoppers Drug Mart and Pharmaprix in Quebec. This gives it a defensive foundation that many other businesses lack, Canadians need groceries and prescription medications regardless of economic conditions.

The company's PC Optimum loyalty program adds another layer to its competitive advantage, encouraging customer return while generating valuable data for improved marketing and supply-chain efficiency. Loblaw's financial results show consistent revenue growth from 2015 to 2025, with adjusted earnings per share increasing at a roughly 11% compound annual growth rate.

Brookfield Infrastructure offers exposure to essential infrastructure worldwide, spanning utilities, transportation, energy, and data infrastructure across 25 countries. Its geographic and business diversification reduces dependence on any single economy while creating significant barriers to entry. The company has an important inflation hedge, with about 85% of 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, its valuation is the highest in at least 20 years, making it a less attractive entry point for some investors.