The TSX Stocks I’d Use to Anchor a More Defensive 2026 Portfolio

Over the last few years, investors have been reminded that markets don’t move in a straight line. Between elevated interest rates, geopolitical uncertainty, and concerns about the global economy, volatility has often become the norm rather than the exception. That’s why building a more defensive portfolio with high-quality TSX stocks can make a lot of sense heading into 2026.

When you own defensive businesses, not only are they often less volatile, but they’re also companies that give you the confidence to continue holding them through just about any market environment. And that can be especially valuable for managing your emotions during periods when fears of a recession or stock market selloff are running high.

Of course, being defensive doesn’t mean giving up on growth altogether. Instead, it’s about focusing on high-quality businesses that operate in essential industries, generate reliable cash flow, and have the ability to continue performing through different economic environments.

So, while these stocks may not deliver the most exciting growth year after year, it’s their consistency over the long haul that can make them key contributors to your portfolio’s long-term success.

With that in mind, here are three TSX stocks I’d use to anchor a more defensive portfolio for 2026.

A top industrial stock to buy and hold for years

If you’re trying to build a defensive portfolio for 2026, but are still looking for TSX stocks with compelling long-term growth potential, one of the top stocks to consider is Stella-Jones (TSX:SJ).

Stella-Jones isn’t a flashy company, but that’s exactly what makes it such an attractive long-term investment.

The company mainly supplies utility poles, railway ties, and other pressure-treated wood products that support critical infrastructure across North America. These aren’t discretionary purchases. Utilities still need to replace aging poles, and railways still need to maintain their networks regardless of what’s happening in the broader economy.

That creates steady demand for Stella-Jones’ products year after year, as it supplies essential materials to two of the most important industries in the economy.

Additionally, the company has also built an impressive track record of disciplined execution, consistently growing the business while rewarding shareholders with regular dividend increases, making it the ideal long-term growth stock to buy in a defensive portfolio.

A top TSX energy stock for defensive investors in 2026

It’s not uncommon for energy stocks to be more volatile businesses, especially the ones with high exposure to commodity prices.

So, if you still want exposure to energy, but you’re looking for a lower-risk investment as you build your defensive portfolio, Freehold Royalties (TSX:FRU) is one of the top TSX stocks to consider.

Unlike traditional oil and gas producers, Freehold doesn’t spend billions drilling wells or operating production assets. Instead, it owns royalty interests across a large portfolio of properties, collecting royalty income as oil and gas are produced.

That business model makes it far less capital-intensive than many companies in the energy sector, allowing it to return a significant amount of cash to shareholders.

And right now, with Freehold trading off its highs, the yield has risen back above 6.7%, making it one of the best energy stocks to buy if you’re looking to add higher income to a defensive portfolio.

One of the best defensive growth stocks on the TSX

Rounding out the list is Brookfield Infrastructure Partners (TSX:BIP.UN), a company built around owning essential infrastructure assets across the globe.

Its portfolio includes utilities, transportation networks, midstream energy assets, and data infrastructure spread across numerous countries and industries.

Many of those assets generate revenue under long-term contracts or regulated frameworks, helping create stable and predictable cash flow while supporting an attractive dividend that currently yields above 4.8%.

At the same time, Brookfield continues investing in new opportunities around the world, giving investors exposure to both reliable income and long-term growth.

Therefore, it’s undoubtedly one of the best stocks on the TSX to own in a defensive portfolio in 2026.

In fact, the company is built to be the exact type of business that provides stability during uncertain markets while continuing to compound value over the long haul.

So, if you’re looking to build a more reliable portfolio in 2026 without sacrificing growth, Brookfield Infrastructure is easily one of the best TSX stocks to consider.

The post The TSX Stocks I’d Use to Anchor a More Defensive 2026 Portfolio appeared first on The Motley Fool Canada.

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Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners and Freehold Royalties. The Motley Fool recommends Brookfield Infrastructure Partners, Freehold Royalties, and Stella-Jones. The Motley Fool has a disclosure policy.