Key Takeaways
- Market volatility is inevitable, but investors can reduce anxiety by focusing on companies with proven stability across economic cycles.
- Manulife Financial (TSX:MFC) offers diversification through insurance, wealth management, and asset‑management businesses spanning North America and Asia.
- The insurer posted steady core earnings growth (up 3% YoY to $7.5 billion in 2025) and returned $5.4 billion to shareholders via dividends and buybacks.
- Choice Properties REIT (TSX:CHP.UN) concentrates on necessity‑based retail, industrial, and mixed‑use assets, providing a defensive real‑estate income stream.
- The REIT’s net operating income rose 4.7% YoY in Q4 2025, supported by higher occupancy and positive leasing spreads, while maintaining a disciplined debt‑to‑EBITDA ratio of 7×.
- Both companies deliver attractive, regular payouts—Manulife’s 3.7% quarterly dividend and Choice Properties’ 5.1% monthly distribution—making them suitable for income‑focused, risk‑averse portfolios.
- Although the Motley Fool Canada’s 2026 top‑10 list omitted Choice Properties, the firm’s overall track record suggests its stock picks have historically outperformed the TSX Composite.
- Investors should weigh these stable candidates against their own goals, risk tolerance, and the broader market outlook before allocating capital.
Introduction: Market Volatility and Defensive Investing
If market swings make you uncomfortable, you’re not alone—volatility can unsettle even seasoned investors. Rather than reacting to short‑term noise, a more effective strategy is to allocate capital to businesses that have demonstrated resilience through varying economic conditions. This article highlights two Canadian stocks that are built to weather turbulence: Manulife Financial, a diversified insurance and financial‑services giant, and Choice Properties REIT, a real‑estate trust focused on essential‑need properties. By examining their operations, financial metrics, and growth initiatives, we can see why they may serve as defensive anchors in a portfolio.
Manulife Financial Overview and Global Diversification
Manulife Financial (TSX:MFC) ranks among Canada’s largest insurance and financial‑services providers, with a strong footprint across North America and Asia. Its business model spreads risk across three core pillars: insurance, wealth management, and asset management. This diversification creates multiple earnings streams that can offset weakness in any single segment. As of the latest data, MFC trades at $52.92 per share, boasting a market capitalization of roughly $88 billion and a quarterly dividend yield of 3.7%. The company’s global reach and varied product suite are key reasons it is viewed as a stabilizer during market downturns.
Manulife’s Financial Performance and Capital Strength
Manulife’s underlying numbers underline its durability. In 2025 the firm reported core earnings of $7.5 billion, a 3% increase year‑over‑year, while net income reached $5.6 billion. On a per‑share basis, core earnings grew 8% to $4.21, reflecting consistent profitability even amid a mixed macro‑environment. Capital‑wise, Manulife ended the year with a life‑insurance capital adequacy test ratio of 136%, comfortably above regulatory thresholds, and generated $6.4 billion in remittances. This strong capital base enabled the firm to return $5.4 billion to shareholders in 2025 through a combination of dividend hikes (up 10.2%) and ongoing share repurchases, underscoring its commitment to shareholder value while maintaining financial prudence.
Manulife’s Growth Initiatives and Future Outlook
Beyond its current earnings power, Manulife is actively pursuing growth avenues that could sustain its stability. The company is expanding into emerging markets such as India, where rising middle‑class demand for insurance and wealth‑management services presents a long‑run opportunity. Simultaneously, it is bolstering its asset‑management platform through strategic acquisitions and deploying artificial‑intelligence tools to enhance customer experience and operational efficiency. These initiatives aim to drive organic growth while preserving the defensive qualities of its core insurance business, positioning Manulife to continue delivering steady results even when broader markets face headwinds.
Choice Properties REIT Overview and Property Focus
For investors seeking stability through real estate, Choice Properties Real Estate Investment Trust (TSX:CHP.UN) offers a compelling alternative. The REIT concentrates on necessity‑based retail, industrial, and mixed‑use properties across Canada, with a significant portion of its portfolio anchored by grocery and essential‑service tenants. These tenants tend to exhibit resilient demand during economic slowdowns, providing a steady cash‑flow foundation. Choice Properties’ shares currently trade at $15.32 each, giving it a market capitalization of about $5 billion and a monthly dividend yield of 5.1%, a payout frequency that can be attractive for income‑oriented investors.
Choice Properties’ Financial Metrics and Tenant Base
The REIT’s financial performance mirrors the defensive nature of its assets. In the fourth quarter of 2025, net operating income rose 4.7% year‑over‑year, driven by higher occupancy rates and positive leasing spreads—indicators that tenants are willing to pay prevailing rents and that space is being filled efficiently. This consistent demand underscores the strength of its tenant mix, which leans heavily on businesses that provide everyday goods and services. By focusing on properties that meet essential needs, Choice Properties mitigates the cyclicality often associated with discretionary retail or office assets, thereby supporting stable income generation.
Choice Properties’ Balance Sheet Discipline and Capital Strategy
Financial prudence is another pillar of Choice Properties’ stability. The REIT maintains an adjusted debt‑to‑EBITDA ratio of approximately 7 times, a level considered manageable for a real‑estate entity and reflective of a conservative leverage stance. Additionally, the company employs a capital‑recycling strategy—selling non‑core assets and reinvesting proceeds into higher‑quality or development‑ready properties—while advancing ongoing development projects that could boost future cash flows. This disciplined approach to balance‑sheet management and capital allocation helps safeguard the REIT’s ability to sustain its monthly distributions even amid fluctuating market conditions.
Comparative Takeaways: Why These Stocks Suit Volatile Markets
Both Manulife Financial and Choice Properties REIT share common traits that make them appealing during periods of market turbulence. Each benefits from diversified revenue streams—Manulife across insurance, wealth, and asset management; Choice Properties across essential‑need real estate—reducing reliance on any single economic driver. Their financial statements reveal solid earnings growth, robust capital positions, and a track record of returning capital to shareholders through dividends and, in Manulife’s case, share buybacks. Moreover, both companies are actively investing in growth—whether through geographic expansion and AI‑driven efficiencies at Manulife or through strategic acquisitions and development at Choice Properties—suggesting that their defensive foundations are not static but capable of evolving with changing market dynamics.
Considerations and Caveats: Motley Fool’s Top‑10 List and Investment Advice
While the two stocks appear stable, readers should note the article’s brief mention of the Motley Fool Canada’s 2026 top‑10 TSX stock list, which did not include Choice Properties REIT. The newsletter highlights that its historical picks have generated an average return of 94%, outpacing the TSX Composite’s 85% average, though past performance does not guarantee future results. The piece also includes a hypothetical example showing that a $1,000 investment in MercadoLibre, recommended years ago, would have grown to over $18,000—a reminder of the potential upside of growth‑oriented stocks. Investors should therefore weigh the defensive appeal of Manulife and Choice Properties against their own return objectives, time horizon, and risk tolerance, possibly allocating a portion of their portfolio to such stable names while reserving room for higher‑growth opportunities if suited to their strategy.
Conclusion: Building a Resilient Portfolio
Market volatility is an inevitable aspect of investing, but it need not provoke panic. By anchoring a portfolio in companies with proven stability—such as Manulife Financial, with its global diversification and strong capital returns, and Choice Properties REIT, with its essential‑tenant real‑estate focus and disciplined financial posture—investors can create a buffer against short‑term swings. Both firms offer attractive, regular dividends and possess clear pathways for continued growth, making them suitable candidates for the defensive slice of a well‑balanced investment approach. As always, thorough due diligence and alignment with personal financial goals remain essential before committing capital.