3 Defensive Dividend Stocks to Hold in the Face of New Tariff Threats

Just last week, the United States congress voted against tariffs on Canada. Likewise, the Supreme Court struck the President Trump’s tariffs down as illegal. While that is a positive symbolic move, the president can (and likely will) find ways to create new tariffs.

Even with tariffs being ruled unlawful, they appear to be a major thesis in Trump’s presidential plans. His administration is likely to still find ways to use them as a weapon (or at least as a negotiating tool) for some time.

If you are worried about new tariffs, these dividend stocks could be safe

No Canadian business has been exempted from the trade war. Whether a company is affected directly, or a customer is affected, tariffs have made things harder for most companies and individuals.

Yet, there are a few businesses that have been relatively unscathed by tariffs. If you are worried about further tariff threats, these three stocks should be safe to hold.

Granite REIT: A solid dividend bet

Granite Real Estate Investment Trust (TSX:GRT.UN) is a nice stalwart to hold in the storm. Its service is providing high-quality real estate for industrial and logistics end-markets. It really doesn’t have any direct tariff threats at all.

Certainly, its largest tenant, Magna International, does. However, many of its Magna facilities are in Europe and not directly exposed to American tariff aggression.

Granite’s portfolio is diversified across Canada, the U.S., and Europe. It has 98% occupancy and leases that are over six years in length on average. It has very good insight into what future cash flows will be in 2026 and beyond.

Granite will likely grow by 7-8% in 2025 and should deliver similar results in 2026. This stock earns a 4% yield and has a great record of regularly growing its distribution.

Fortis: A dividend stock for a lifetime

Fortis (TSX:FTS) strong year over year performance has just demonstrated its resilience through uncertainty. It is up 23% in the past year. Investors have flocked to this low-volatility stock decade after decade during times of unrest.

Its 52 consecutive years of dividend growth demonstrate its resilience and progression over time. The company has nine utilities across North America. This provides diversified exposure to different end markets and regulators. It also allows it unlock growth opportunities across its broad portfolio.

Fortis is targeting 7% annual rate base growth for the coming five years. It expects to keep growing its dividend annually, albeit at a lower rate than the rate base. This strategy allows its payout ratio to continue to decline while self-funding further growth opportunities ahead.

This dividend stock is not going to knock the lights out from a return perspective. However, there is nothing wrong with a steady 3.5% dividend and 4-6% annualized capital appreciation.

Chartwell: A safe stock from tariffs

Chartwell Retirement Residences (TSX:CSH.UN) is another real estate investment trust worth holding during times of global tariff uncertainty. If there is one certainty, it is that Canada’s population is rapidly aging, and there is a wave of retirees that will need a variety of care and living options.

Chartwell is the largest provider of seniors’ retirement living communities in Canada. Today, it is sitting with 95% occupancy, which is near full occupancy given normal suite turnover.

High interest rates and elevated building costs mean that long-term demand will heavily outweigh supply for seniors housing. With its large portfolio and development partnerships, Chartwell is best positioned to grow organically, by acquisition, and through development.

This dividend stock yields 2.8% and pays out monthly. Management has noted that they will likely revisit a dividend-growth trajectory in 2026.

The post 3 Defensive Dividend Stocks to Hold in the Face of New Tariff Threats appeared first on The Motley Fool Canada.

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More reading

• Are Canadian REITs Finally Turning the Corner?
• What to Know About Canadian Utility Stocks in 2026
• TFSA: 4 Ways to Make Bank, With Stocks to Match
• 3 Canadian Dividend Stocks for Passive Income That Keep Growing
• The Ideal Canadian Stocks to Buy and Hold Forever in a TFSA

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.