The S&P/TSX Composite Index is beginning to show the indicators of the market volatility anticipated to hit the Canadian inventory market amid ongoing and rising tensions within the Center East. After a strong begin to March 2026, the Canadian benchmark index abruptly dipped. As of this writing, the index is down by 4.2% from its March 2, 2026 degree.
The continued state of affairs impacts all the world, particularly by way of oil provide disruptions. In gentle of those circumstances, buyers should take into account how they need to allocate their funding capital to guard themselves from the affect of this geopolitical disaster. My finest wager is to establish firms with strong free money stream and steadiness sheets with resilient enterprise fashions. Listed here are my high three picks.
Supply: Getty Photos
Fortis
Fortis Inc. (TSX:FTS) is a staple in lots of investor portfolios. The $39.9 billion market-capitalization firm owns and operates a number of electrical and pure fuel utility companies throughout Canada, the US, and the Caribbean. It gives important companies to thousands and thousands of consumers, primarily by way of long-term contracted property in rate-regulated markets.
The corporate’s enterprise mannequin permits it to generate predictable money flows, permitting administration to comfortably fund capital applications and improve its quarterly payouts. Fortis inventory has elevated payouts to buyers for over 50 consecutive years. Regardless of short-term volatility available in the market weighing on its funds, the inventory has a dependable observe file that buyers love.
As of this writing, FTS inventory trades for $78.59 per share and pays buyers $0.64 per share every quarter, translating to a 3.3 % annualized dividend yield.
Rogers Sugar
Rogers Sugar Inc. (TSX:RSI) is one other important enterprise, nevertheless it has nothing to do with offering utility companies. RSI is a $851.1 million market capitalization firm within the enterprise of refining and promoting sugar and maple syrup in Canada. Sugar and maple syrup won’t seem to be essentially the most thrilling area when it comes to speedy capital features. Nevertheless, it’s a shopper staple that provides a defensive attraction to RSI inventory.
A stormy market would possibly in any other case devastate most shares available on the market. Nevertheless, Rogers’ merchandise are one thing individuals want of their each day lives, enabling the enterprise to generate strong money flows in periods when most different companies can’t. As of this writing, RSI inventory trades for $6.64 per share.
RSI inventory pays buyers $0.09 per share every quarter, translating to a 5.4 % annualized dividend yield which you can lock into your self-directed portfolio immediately.
Canadian Pure Assets
Canadian Pure Assets Ltd. (TSX: CNQ) is one other important enterprise which may even profit from the continued geopolitical disaster. CNQ is a $131.3 billion market-cap big within the Canadian vitality trade. The oil and pure fuel manufacturing firm can profit from a possible shift in oil provide chains because of disruptions within the Center East.
Whereas it would face the affect of the state of affairs impacting international oil provide, CNQ inventory is the least weak to the Strait of Hormuz being closed. Increased oil costs can enhance margins for the oil producer with cost-effective operations. Decrease working prices, mixed with larger vitality costs, can ship its share costs hovering.
As of this writing, CNQ inventory trades for $62.96 per share and pays buyers $0.625 per share every quarter, translating to a 4% annualized dividend yield.
Silly takeaway
There isn’t a solution to inform how lengthy the present sell-off will proceed. Investing in shares of companies that supply important items and companies generally is a secure wager to contemplate. Companies that may proceed producing income in unsure market environments can present comparatively safer returns than non-essential companies. To this finish, FTS inventory, RSI inventory, and CNQ inventory may be strong holdings in your self-directed portfolio.