3 Strong Dividend Stocks to Brace for Trump Tariff Turbulence

After closing 2025 with a solid 28.2% gain, the S&P/TSX Composite Index has started 2026 on a mixed note as it rose by only 0.7% in the first month of the year. The recent market volatility could partly be attributed to renewed U.S.-Canada trade tensions, including Donald Trump’s warnings of a potential 100% tariff on Canadian goods if trade relations shift toward China.

In uncertain moments like this, well-established dividend players can help you stay grounded and continue building wealth — even if the stock market temporarily turns volatile. In this article, I’ll highlight three Canadian dividend stocks that could help you brace for tariff turbulence.

Canadian Utilities stock

When tariff turbulence threatens cross-border trade, regulated utilities like Canadian Utilities (TSX:CU) could provide a strong base to your portfolio. It runs regulated electricity and natural gas transmission and distribution assets across multiple regions.

Following a 29% rally over the last 12 months, CU stock currently trades at $43.87 per share, giving it a market cap of about $9 billion. With this, it offers an attractive annualized dividend yield of roughly 4.2%.

In the September 2025 quarter, the company’s adjusted earnings rose nearly 6% to $108 million due mainly to its stable regulated operations rather than export demand.

Meanwhile, Canadian Utilities’s focus on capital allocation continues to favour its long-life infrastructure. The company recently invested $402 million, with most spending directed toward regulated utilities. Moreover, projects like the $2.9 billion Yellowhead Pipeline and the CETO electricity transmission line add visibility to its future cash flows, which should keep its dividends stable even if tariffs disrupt trade-exposed sectors.

Atco stock

Beyond pure utilities, businesses with multiple infrastructure revenue streams often handle tariff turbulence better, and ATCO (TSX:ACO.X) offers that broader exposure. It’s a Calgary-based diversified infrastructure business spanning utilities, modular structures, logistics, and energy systems.

After witnessing a 27% run over the last year, ATCO stock now trades near $58 per share with a market cap of roughly $5.9 billion. It currently has an annualized dividend yield of about 3.5%, paid on a quarterly basis.

In the third quarter of 2025, the company’s adjusted earnings rose to $103 million with the help of contract wins at ATCO Structures and continued investment in regulated utility assets. And more importantly, these earnings are less dependent on direct export volumes.

In the long run, ATCO is likely to benefit from infrastructure tied to essential services. Modular housing contracts, defence-related logistics eligibility in the U.S., and regulated energy projects could limit its downside from tariff turbulence, making its dividend very durable.

Premium Brands stock

Even as trade risks rise, people still buy food, and that stable demand makes Premium Brands Holdings (TSX:PBH) a top dividend stock to consider. It mainly produces and distributes specialty food products across Canada and the United States.

After rallying by around 21% in the last year, PBH stock trades at $95.14 per share with a market cap close to $5 billion. At the current market price, it has an annualized dividend yield of about 3.6%.

In the September quarter, the company’s revenue rose about 19% YoY to a record $2 billion. Meanwhile, its profitability also improved despite higher beef costs. This growth was primarily driven by strong organic volume gains in its U.S. protein, sandwich, and baked goods segments.

While tariffs could influence the company’s input costs, Premium Brands continues to manage pricing and procurement to minimize those impacts. With a payout ratio near 55% and steady consumer demand, this dividend player could continue to thrive even amid tariff turbulence.

The post 3 Strong Dividend Stocks to Brace for Trump Tariff Turbulence appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar 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.