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Source: Getty Images <\/p>\n Source: Getty Images <\/p>\n
Written by Amy Legate-Wolfe<\/a> at The Motley Fool Canada<\/p>\n Canada doesn\u2019t look like it\u2019s falling off a cliff. Yet the economy looks slower, pricier, and more fragile than it did a few years ago. The Bank of Canada expects moderate growth as the country adjusts to U.S. tariffs, while Ottawa\u2019s spring update points to private-sector forecasts of just 1.1% real gross domestic product growth in 2026. That\u2019s not a disaster, but it doesn\u2019t leave much room for error if consumers pull back, oil shocks linger, or trade tensions get worse.<\/p>\n That\u2019s where defensive TSX stocks can earn a place on a watch list. They won\u2019t make a recession painless, and can still fall if the market sells off. Yet some businesses sell what people keep buying, while others collect premiums and fees from long-term financial needs. Metro (TSX:MRU<\/a>) and Great-West Lifeco (TSX:GWO<\/a>) fit that idea in different ways. Together, they give investors something useful: exposure to basic household spending and long-range financial planning, rather than just another bet on a booming economy.<\/p>\n MRU <\/p>\n Metro shows grocery demand doesn\u2019t disappear when households tighten budgets. People may trade down, skip restaurant meals, and watch flyers more closely. Yet they still need food, pharmacy products, and everyday essentials. Metro operates grocery banners such as Metro, Super C, Food Basics, Adonis, and Jean Coutu pharmacies. That mix gives it exposure to both discount shopping and steady pharmacy traffic.<\/p>\n Its latest quarter showed why investors often view this stock as a defensive compounder. In the second quarter of fiscal 2026, Metro\u2019s sales rose 4.1% to $5.1 billion, while adjusted earnings per share (EPS) climbed 8.8% to $1.11. Those aren\u2019t surging numbers, but steadier ones, and steadiness can look pretty attractive when recession fears rise.<\/p>\n Metro also gives investors a modest dividend<\/a>, recently yielding about 1.8%, with a quarterly payout of $0.4075. The payout ratio leaves room for reinvestment, buybacks, and future dividend increases. The catch is valuation. Metro trades around 19 times trailing earnings<\/a>, so investors don\u2019t exactly get a bargain. Labour costs, food inflation, theft, and competition can also pressure margins. Still, if Canada slows, Metro\u2019s basic business should hold up better than many cyclical names.<\/p>\n GWO <\/p>\n Great-West Lifeco brings a different kind of recession defence. It owns Canada Life and operates across insurance, retirement, wealth, and asset management. Those businesses don\u2019t avoid economic cycles. Markets affect fee income, credit losses can rise, and lower rates can change investment returns. But life insurance and retirement savings remain long-term needs, not impulse buys.<\/p>\n The company\u2019s latest results looked strong. In the first quarter of 2026, GWO stock reported double-digit growth, with base return on equity above 19%. Its Canada segment delivered $352 million in base earnings, up 11% from last year. GWO stock also reported EPS of $1.37, ahead of expectations, and investors now collect a forward dividend yield around 3.3%.<\/p>\n True, a 3%-plus yield won\u2019t make anyone rich overnight, but it can soften the ride if the market gets choppy. GWO stock also lifted its dividend by 10% earlier this year after reporting record 2025 base earnings. That signals confidence, though investors should still respect the risks. GWO stock has already had a strong run, with a trailing price-to-earnings ratio near 17. That looks richer than its own longer-term average. A deeper recession could also hit markets, employment, group benefits, and wealth-management assets, so these are all points to watch moving forward.<\/p>\n Bottom line <\/p>\n So, could a recession hit Canada? Yes. A shallow one wouldn\u2019t shock anyone in this environment. But investors don\u2019t need to hide in cash and hope for the best. Metro offers everyday-demand resilience, and GWO stock offers exposure to long-term insurance and retirement needs. All while collecting some income even with $7,000.<\/p>\n COMPANY<\/p>\n RECENT PRICE<\/p>\n NUMBER OF SHARES<\/p>\n ANNUAL DIVIDEND<\/p>\n ANNUAL TOTAL PAYOUT<\/p>\n FREQUENCY<\/p>\n TOTAL INVESTMENT<\/p>\n MRU<\/p>\n $89.97<\/p>\n 77<\/p>\n $1.63<\/p>\n $125.51<\/p>\n Quarterly<\/p>\n $6,927.69<\/p>\n GWO<\/p>\n $79.70<\/p>\n 87<\/p>\n $2.56<\/p>\n $222.72<\/p>\n Quarterly<\/p>\n $6,933.90<\/p>\n Neither stock looks risk free. Yet both could help investors stay invested if Canada\u2019s economy gets colder. That\u2019s the first real opportunity: staying calm before everyone else starts to panic.<\/p>\n The post Could a Recession Hit Canada? 2 TSX Stocks to Consider<\/a> appeared first on The Motley Fool Canada<\/a>.<\/p>\n Should you invest $1,000 in Great-West Lifeco right now? <\/p>\n Before you buy stock in Great-West Lifeco, consider this:<\/p>\n The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026\u2026 and Great-West Lifeco wasn\u2019t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.<\/p>\n Consider MercadoLibre, which we first recommended on January 8, 2014 \u2026 if you invested $1,000 in the \u201ceBay of Latin America\u201d at the time of our recommendation, you\u2019d have over $18,000!*<\/p>\n Now, it\u2019s worth noting Stock Advisor Canada\u2019s total average return is 94%* \u2013 a market-crushing outperformance compared to 85%* for the S&P\/TSX Composite Index. Don\u2019t miss out on our top 10 stocks, available when you join our mailing list!<\/p>\n Get the 10 stocks instantly<\/a><\/p>\n * Returns as of April 20th, 2026<\/p>\n More reading<\/p>\n Fool contributor Amy Legate-Wolfe<\/a> has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy<\/a>.<\/p>\n 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Getty Images Written by Amy Legate-Wolfe at The Motley Fool Canada Canada doesn\u2019t look like it\u2019s falling…\n","protected":false},"author":2,"featured_media":62502,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[693,17,7146,2292,21341,3976,13029,10780],"class_list":["post-62501","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-bank-of-canada","tag-canada","tag-canada-life","tag-fool-canada","tag-great-west-lifeco","tag-investors","tag-metro","tag-stock"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/62501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=62501"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/62501\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/62502"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=62501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=62501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=62501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}