In a climate where the stock market fluctuates between historic peaks and abrupt downturns, it’s crucial to include a handful of low-risk, resilient stocks in your investment portfolio. Thankfully, the TSX boasts numerous top-tier stocks that provide both steadiness and the promise of long-term expansion, irrespective of brief economic shifts. These companies might thrive even under circumstances like enduring inflation, elevated interest rates, or increasing worldwide instability.
In this piece, I’ll highlight two low-risk options.
Canadian stocks
This could provide mental tranquility and steady earnings regardless of market fluctuations.
Dollarama stock
The initial all-season stock that you might want to look at is
Dollarama
(
TSX:DOL
), a leading discount retailer that consistently expands regardless of market conditions. Renowned for its fixed-price strategy and emphasis on basic necessities, Dollarama operates over 1,600 outlets throughout Canada and owns just above 60% of Dollarcity, a rapidly expanding business in Latin America.
For the fiscal year ending in January 2025, Dollarama experienced an increase of over 9% in yearly sales compared to the previous period. The net income for the same timeframe saw a rise of almost 17%. Throughout this time frame, the corporation launched 65 additional store locations, acquired more than $1 billion worth of its stock back from investors, and increased dividends by 15% when measured against the prior year. Moving ahead, they plan to construct a fresh logistics center in Western Canada aimed at facilitating their growth ambitions.
The DOL stock price has increased by almost 39% in the past year and has risen over 290% in the last five years. It is currently trading at $171.84 per share.
market cap
of $47.6 billion.
Apart from its strong stock performance, one key reason why Dollarama remains a worthwhile long-term investment is its resilience across various economic conditions. Regardless of whether inflation persists or interest rates remain high, this discount store successfully attracts shoppers. Over the years, such consistent appeal typically leads to favorable returns.
Fortis stock
The second secure Canadian equity worthy of further examination amidst continuing instability
market volatility
is
Fortis
(
TSX:FTS
), a stable
utility stock
that numerous long-term investors rely on through various market phases.
Primarily, the firm operates controlled electric and gas utilities throughout North America, catering to millions of consumers in Canada, the United States, and the Caribbean.
The company has announced strong performance at the beginning of this year, with its first-quarter net earnings increasing to $499 million, thanks to steady increases in its rate base and favorable foreign exchange gains. According to their most recent financial statement, Fortis reaffirmed its commitment to pushing forward with its ambitious $5.2 billion capital program set for completion by 2025, which aims to fuel ongoing expansion of essential infrastructure projects.
The FTS stock is presently trading at $66.74 per share, carrying a market capitalization of $33.3 billion, and provides an appealing annual dividend yield of 3.7%. In the last twelve months, shares of Fortis have appreciated over 19%, proving that consistent growth continues to benefit shareholders.
Fortis has a five-year expansion strategy aimed at increasing its asset base from $39 billion to $53 billion, making it appear as a reliable choice for long-term, low-risk investment portfolios.
The post
2 Low-Risk Canadian Equities Poised for Success Regardless of Market Conditions
appeared first on
The Motley Fool Canada
.
Is it a good idea to put $1,000 into Dollarama at this moment?
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More reading
- Value, Income, and Growth: 3 Canadian Equities That Are Thriving in Every Aspect
- Recession-Proof Holdings: 3 Dividend Stocks to Keep During Economic Downturns
- RRSP Assets: 3 Top TSX Dividend-Growth Stocks to Hold Long-Term
- 3 Safety Stock Options for a Protective Team Setup
- Why 2025 Requires You to Expand Your Investment Portfolio
Fool contributor
Jitendra Parashar
holds stakes in Dollarama. The Motley Fool endorses Fortis. The Motley Fool maintains a
disclosure policy
.
