To The Moon

Hey investors! 🔥 Want a portfolio that holds strong when markets drop AND surges when they rally? Today I’m breaking down a Canadian stock strategy built for exactly that — defensive, growth-ready, and designed to outperform in chaos. Perfect for anyone tired of choosing between safety and gains!

With geopolitical tensions flaring and commodity prices swinging wildly, Canada’s stock market has been on a rollercoaster ride. On one side, threats from Iran to block the Strait of Hormuz have sent crude oil soaring, lifting energy stocks. On the other, inflation fears and slowing growth have pushed investors out of risky assets and into defensive sectors.

Many Canadian investors now face a dilemma: Should they sell everything and hide out in utilities, or bet on resource stocks for explosive upside?

True investing wisdom isn’t about choosing one or the other — it’s about building a balanced, all-weather portfolio that can defend and attack at the same time.

This article breaks down a nearly unbeatable Canadian equity strategy: combining high-quality defensive and growth assets to achieve both downside protection and strong upside potential.

The Defensive Shield: Stability from Fortis and Waste Connections

Defensive stocks act as the anchor in any portfolio. They provide essential products and services, have stable demand through economic cycles, and generate consistent cash flow.

In Canada, $Fortis Inc.(FINCF)$ and $Waste Connections(WCN)$are standouts in this space.

$Fortis Inc(FTS)$

Fortis is a regulated electric and gas utility operating across Canada, the U.S., and the Caribbean. About 95% of its assets are low-risk, regulated transmission and distribution assets — creating a wide moat for profitability.

People and businesses need power and heat in booms and recessions alike, so revenue and cash flow are highly predictable.

Best of all:

• 52 consecutive years of dividend increases — one of the longest streaks among Canadian public companies

• A CAD 28.8 billion five-year capital plan

• Rate base expected to grow ~7% annually to CAD 57.9 billion by 2030

• Dividend growth targeted at 4%–6% per year

For income-focused investors, Fortis is a reliable safe haven in volatile markets.

$Waste Connections(WCN)$

Waste Connections is a leading North American waste management provider. Like utilities, waste collection, recycling, and disposal are essential services.

The company focuses on secondary and exclusive markets with limited competition, supporting strong margins.

Key strengths:

• ~100 acquisitions in the past five years, adding ~CAD 2.2 billion in annual revenue

• A healthy pipeline of potential acquisitions worth ~CAD 5 billion in total annual revenue

• Expanding renewable natural gas (RNG) and advanced recycling infrastructure

Its “organic growth + acquisitions” model has delivered ~16.2% average annual total return over the past decade — beating the broad market by a wide margin.

It offers defense and meaningful growth.

The Offensive Spear: Cyclical Upside from Sprott and Canadian Natural Resources

Defensive stocks limit downside; growth and cyclical stocks drive explosive returns when markets recover or commodities boom.

Sprott (TSX:SII) and Canadian Natural Resources (TSX:CNQ) are perfectly positioned in their current cycles.

$Sprott Inc(SII)$

Sprott is a leading asset manager focused on precious metals and critical materials.

Geopolitical stress, supply chain restructuring, and energy security efforts are lifting prices of gold, silver, uranium, copper, lithium, and more. As a result:

• Assets under management (AUM) are surging

• Physical bullion trusts and ETFs attract steady inflows

• Management fees and performance income are rising sharply

The stock is up 62% so far this year.

Looking ahead:

• Ongoing Middle East tensions support safe-haven demand

• Western competition for critical minerals drives demand for specialized investment vehicles

• Sprott offers ETFs for uranium, copper, nickel, lithium, and cobalt

With strong macro tailwinds and continued inflows, Sprott’s earnings and share price still have room to run.

$Canadian Natural Resources(CNQ)$

CNQ is one of Canada’s largest independent oil and gas producers — a direct beneficiary of today’s high oil prices.

But its appeal goes far beyond short-term oil spikes:

• High-quality, low-cost asset base

• Consistent free cash flow even at low oil prices

• Strong balance sheet and disciplined capital allocation

• Long-term dividend growth and strategic acquisitions

• Vast undeveloped conventional land with low capital requirements and fast ramp‑up timelines

In a high-oil environment, earnings and cash flow jump. When prices pull back, its efficient operating model keeps it competitive.

CNQ isn’t just a short-term oil trade — it’s a high-quality energy stock built to outperform across cycles.

The Portfolio Formula: Balance to Survive and Thrive

An all-weather portfolio relies on balance between offense and defense:

• Defensive Shield (Fortis, Waste Connections):

  Stable cash flow, dividend growth, and downside protection during selloffs.

• Offensive Spear (Sprott, Canadian Natural Resources):

  Commodity upside and cyclical growth to outperform during rallies.

You can adjust weights based on your risk tolerance:

• Conservative: 70%+ in defensive stocks for steady dividends

• Aggressive: 50/50 split for higher growth and cyclical exposure

These four stocks operate in different sectors, with proven business models. By diversifying across them, you reduce single-industry risk while aiming for both stability and strong returns in volatile markets.

All investments involve risk, but a well-constructed portfolio helps you navigate storms with confidence.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.