The investment environment in the second quarter of 2026 may be more turbulent than the first quarter, with the S&P/TSX Composite Index and other global benchmark stock indices facing sustained extreme pressure due to regional instability.
Against this backdrop, two Canadian stocks have shown strong fundamentals that position them to withstand current geopolitical shocks. Imperial Oil (TSX: IMO) and Barrick Mining (TSX: ABX), hailing from the leading energy and basic materials sectors respectively, could even see upside in 2026.
A Strong Moat
Imperial Oil directly benefits from rising oil prices and the oil crisis triggered by the Middle East conflict. This $86.5 billion market cap integrated company possesses a unique structural advantage when crude oil volatility intensifies—its operations span the complete value chain from oil sands extraction to refining and marketing, creating a natural buffer against price fluctuations.
To date, Imperial Oil’s stock price has rallied nearly 38% year-to-date. Currently trading at $178.93 per share, this large-cap energy stock pays a modest but safe 1.9% dividend (with a payout ratio of 44.4%). Its dividend payment record spans over 100 years, and the company has increased its annual dividend for 31 consecutive years, with the most recent hike being 20%.
Imperial Oil is not only a major crude oil producer but also Canada’s largest petroleum refiner. Chairman, President, and CEO John Whelan stated: “Looking ahead, we are confident in our plans to deliver profitable growth, increase production, lower unit cash costs, and advance our turnaround program, while maintaining our focus on safety and operational excellence.”
A Safe Haven
Barrick Mining has surged 129.5% over the past 12 months. This $101 billion market cap global mining company is a geopolitical safe haven, operating high-quality, long-life assets in favorable mining districts. Gold is also the ultimate hedge against economic uncertainty. Currently trading at $60.27 per share, Barrick Mining pays an attractive 3.8% dividend.
President and CEO Mark Hill is highly encouraged by Barrick’s outstanding performance in 2025. The fourth quarter achieved gold and copper production guidance, record quarterly cash flow, and successful execution of the annual operating plan.
For the full year 2025, revenue and free cash flow increased by 31% and 194% year-over-year, reaching $17 billion and $3.9 billion, respectively. Net earnings rose 133% from 2024 to $5 billion. Gold prices surged significantly in the second half of last year. Its copper exposure is also advantageous, as copper is a critical mineral required for AI and green energy infrastructure development.
Barrick Mining plans to spin off its North American assets into a new independent entity called NewCo. The IPO of this pure-play gold company is tentatively scheduled for late 2026. Reducing exposure to high-risk jurisdictions and prioritizing investment in Tier 1 assets are part of this portfolio reshaping.
Hill added: “We are well-prepared to sustain our current momentum into 2026 and continue unlocking value from our high-quality asset portfolio.”
Summary
Imperial Oil and Barrick Mining are two crisis-defensive stocks offering stability in a conflict-ridden environment. The immense scale of both companies’ operations will enable them to withstand downside pressures. For investors seeking steadiness in the potentially turbulent market of 2026, these two Canadian stocks from the energy and gold sectors are worth watching.
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