George Weston Stock And Other Defensive Dividend Picks For Higher Rates

Interest rate questions, choppy bond markets and easing oil concerns are putting a spotlight on large, reliable dividend payers. When policy signals are mixed and expectations for quick rate cuts cool, many investors look more closely at companies that already produce steady cash flows and regular income. This is where large-cap defensive dividend stocks can matter. They often sit in parts of the market that tend to be less sensitive to economic swings and short term sentiment. This article looks at 3 stocks from that screener that appear positively exposed to the latest Fed and bond market news.

George Weston (TSX:WN)

Overview: George Weston is a Toronto based holding company that owns Loblaw, a major Canadian grocery and pharmacy retailer, and Choice Properties, a real estate trust focused on necessity based retail and logistics properties, giving it broad exposure to everyday consumer spending and rent income.

Operations: George Weston generates about CA$64.5b in revenue from Loblaw and CA$1.4b from Choice Properties, with operations concentrated in Canada at roughly CA$65.1b in total revenue.

Market Cap: CA$39.3b

George Weston operates in a higher for longer rate backdrop, and its core businesses are tied to groceries, pharmacies and necessity retail, areas that often see steadier demand when growth stocks are under pressure. Earnings growth has recently improved, as Q1 2026 EPS and net income were ahead of the prior year. At the same time, the stock trades on a relatively high P/E and carries meaningful debt, so pricing and balance sheet risk are important considerations. The rising dividend, active buyback program through 2027 and long tenured management team provide additional factors for investors to weigh when evaluating how it might fit into a defensive dividend strategy.

George Weston’s earnings momentum, dividend growth and buybacks may be telling a richer story than the headline P/E suggests. See how the latest forecasts, valuation work and payout assumptions line up in the analyst forecasts for George Weston

Metro (TSX:MRU)

Overview: Metro is a Montreal based food and pharmaceutical retailer that runs supermarkets, discount and neighbourhood grocery stores, and pharmacy banners across Quebec and Ontario, combining in house food manufacturing with a wide range of private label and generic drug products.

Operations: Metro generates about CA$22.2b in revenue from grocery retail in Canada.

Market Cap: CA$19.6b

Metro operates in the Consumer Staples segment, with grocery and pharmacy spending that tends to be steadier when borrowing costs and bond yields keep pressure on more cyclical sectors. The company is working on store upgrades, supply chain automation and a growing online channel. Private label and loyalty programs help keep value focused shoppers engaged as promotions remain intense. At the same time, Metro faces headwinds from discount competitors expanding in its core regions, rising operating costs and a planned CEO transition in 2026 that investors may wish to monitor. Metro combines relatively stable cash flows and dividend income with execution risks that may warrant closer analysis.

Metro’s automation push, private label focus and loyalty ecosystem may be masking an earnings profile that differs from what headline numbers imply. See how the analysis report for Metro reframes the stability story and highlights what might surprise markets next

Drax Group (LSE:DRX)

Overview: Drax Group is a UK based renewable power company that runs biomass and hydro power stations, flexible gas plants and an energy supply business that sells electricity to commercial customers. It also produces and sells biomass pellets, including using waste products, which feed its own generation fleet and third party demand.

Operations: Drax Group generates most of its £5.4b in revenue from Biomass Generation at £4.4b and Energy Solutions at £2.6b, partly offset by intra group eliminations of £2.8b, with additional contributions from Pellet Production at £0.9b and Flexible Generation at £0.2b.

Market Cap: £2.5b

Drax Group sits at the intersection of dependable UK utility cash flows and newer revenue streams from flexibility services and biomass. This combination can appeal when higher for longer interest rates keep investors focused on defensive dividend stocks. Government backed support for low carbon dispatchable generation, long dated capacity payments on new OCGT plants and a 3.87% dividend yield are key features, especially after the FCA closed its biomass sourcing investigation with no further action. At the same time, earnings have been volatile, revenue is forecast to decline and pellet margins face pressure in a market that could see oversupply. Investors who want to understand how that balance between stability, growth potential and policy risk plays out may find the detailed Drax Group story worth a closer look.

Drax Group’s mix of biomass, pellets and flexible generation could be masking a very different risk and reward profile than a simple utility label suggests. See what the 3 key rewards and 3 important warning signs reveals about the next phase of this story

The three dividend stocks in this article are just a starting point, since the full Large-Cap Defensive Dividend Stocks screener surfaced 31 more companies with equally compelling income and resilience stories in sectors like consumer staples, utilities and infrastructure through the Large-Cap Defensive Dividend Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, dividend profiles and risk factors that matter most to you so you can focus on the highest conviction ideas in this group.

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Curious To Seek Alternatives Beyond Dividends

Fresh stock ideas do not stay under the radar for long. Before momentum really builds and ideal entry points get caught in the rush, review these curated screeners and act now.

• Target steadier balance sheets and fewer nasty surprises by scanning the curated list of solid balance sheet and fundamentals (11 results), which filters for financial strength while it still flies under the radar for now.
• Ride potential breakout trends in automation and manufacturing by assessing companies in the hand picked 34 robotics and automation stocks before the crowd chases the next wave of momentum.
• Position ahead of possible infrastructure spending surges by reviewing under the radar for now utilities and grid specialists surfaced in the focused 34 power grid technology and infrastructure stocks to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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