Written by Karen Thomas, MSc, CFA at The Motley Fool Canada
Anchor stocks are stocks that have performed well in the long-run. They have a strong long-term outlook and they demonstrate price stability in all stock market scenarios. Simply put, they are the defensive stocks that can be relied upon for their strength and stability. In this article, I’ll go over three of the best Canadian defensive stocks to buy now for stability and strength in your portfolio.
Stocks to “anchor” your portfolio and provide defensiveness for the good and bad times.
CCL Industries Inc. (TSX:CCL.B) is a Canadian defensive stock that investors may not be all that familiar with. So let me fill you in.
At first glance, CCL Industries seems like a boring stock in a boring industry. Yet, CCL continues to grow, drive efficiencies, and create shareholder value. Established in 1951, CCL is the global leader in pressure sensitive and specialty extruded film materials for consumer packaging. The company has an extensive list of clients, diversified across geographies and industries.
In the five years ended December 2024, CCL’s revenue has grown by almost 40% to $7.2 billion, and its net income has grown almost 60% to $843 million. Also, the company generated operating cash flow of $1 billion in 2024. In the three months ended September 31, 2025, CCL’s revenue increased 7.9% to almost $2 billion and its earnings per share (EPS) increased 12% to $1.20.
As you can see from its stock price graph above, this Canadian stock has provided stability for its shareholders for many years. In the last 10 years, the stock has risen 126.5% – all while maintaining stability. This is what we’re after, and this is what CCL delivers.
Another anchor stock to buy now that provides its shareholders with stability is Fortis Inc. (TSX:FTS). Fortis is a leading North American utility company with a stable and predictable revenue and earnings profile. This is made possible due to the company’s defensive industry as well as the fact that its revenue is regulated.
Fortis’ track record of 52 years of consecutive dividend increases is a reflection of this stability and the defensiveness of the business. As you can see from Fortis stock’s price graph below, it’s the picture of stability and strength over the long term.
Looking ahead, Fortis is in the process of fulfilling its five-year capital spending plan. This plan will increase Fortis’ rate base from $39 billion in 2024 to $53 billion in 2029. Importantly, this capital investment plan is low-risk and easily achievable. In fact, nearly all of the spending is related to regulated growth and only 23% of it is on major projects. This plan supports further stability for Fortis, its stock price, and its dividend.