The S&P/TSX Composite Index suffered a 73 point drop on Wednesday, April 26. Canadian markets built solid momentum in the beginning of the spring season, but there have been some shaky signs in recent days. Some experts continue to call for a mild recession that investors may have to tangle with in the months ahead. Today, I want to target a top defensive stock that might be worth holding in this uncertain environment.

Canadian National Railway (TSX:CNR)(NYSE:CNI) is a Montreal-based company that is engaged in the rail and related transportation business. Shares of this defensive stock have dropped 2.2% in 2023 as of close on April 26. The stock is up 2.5% year over year.

This company released its first quarter fiscal 2023 earnings on April 24. CNR management lauded its first quarter performance and provided an updated 2023 guidance in response to the results. In Q1 FY2023, CNR posted revenue growth of 16% to $4.31 billion. Meanwhile, operating income increased 35% to $1.66 billion. Free cash flow jumped 4% to $593 million.

For fiscal 2023, CNR now projects adjusted diluted earnings per share (EPS) growth in the mid single digits compared to the 2022 fiscal year. Shares of this defensive stock currently possess a middling price-to-earnings ratio of 21 at the time of this writing. Meanwhile, it offers a quarterly dividend of $0.79 per share. That represents a modest 1.9% yield.