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4 Inflation-Proof Stocks on the TSX Today

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Royal Bank of Canada recently reported that it expects inflation to rise by 2.4% in 2021. Beyond that, in 2022, it should come down to about 2.2%. That’s quite the jump given that 2019 may have been 1.9%, but 2020 was merely 0.7%. So, how can Canadians use the TSX today to fight back against inflation?

Here are the Motley Fool, we believe investing in stocks is one of the best ways to fight inflation. If you have a large portfolio of diverse assets that bring in conservative growth of 7%, you’ve moved far beyond worrying about inflation. So, instead of putting your cash in a savings account bringing in about 1% interest, use these four stocks and start investing today.

A top tech stock

It’s been a long climb back to greatness for BlackBerry (TSX:BB)(NYSE:BB). But the company still has a long way to go. Luckily, most of that climb should be upwards now — especially since BlackBerry stock hitched its wagon to the growth of electric vehicles (EV).

Shares in BlackBerry stock are up 111% in the last year alone after coming down from 52-week highs around $36 per share. Granted, as fellow Motley Fool writer Vineet Kulkarni recently wrote, “It does not make any sense to jump into the rally merely because a stock is popular on social media.” Instead, look at the company’s fundamentals.

BlackBerry stock is a strong company that’s set up for decades of growth thanks to EVs. If a similar trend happens this year alone, it’s one of the best stocks on the TSX today to battle inflation.

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Flying high…er

Investors have been waiting patiently for Air Canada (TSX:AC) to climb back from the brink, and 2021 might be the year. In fact, it could be September that we finally see shares of Air Canada stock near those $50 share prices we saw back in January 2020. That would represent an 85% increase in the stock, almost doubling it.

Whether this growth would be sustainable is the thing, as Air Canada stock has tended to focus on long-haul flights before the pandemic. Yet it was in a strong financial position before the crash, so it should be able to support quick growth should leisure tourism explode like many predict it will by the holidays.

Shares in Air Canada stock are up 71% in the last year and 10% in the last month. With more growth on the way, this would be one of the best stocks recommended by Motley Fool writers to fight inflation.

Energy for the future

These last two stocks are likely to see a lot of growth in the next year. However, I’d now like to focus on long-term holds. First, there’s Enbridge (TSX:ENB)(NYSE:ENB). As oil and gas continues to rebound, investors would be wise to pick up this stock and hold for decades.

The company recently announced it reaffirmed its 2021 outlook looking at around $14 billion in revenue for the year. On top of that, it’s on course to complete $10 billion in growth projects for the year, and it’s supported by its long-term contracts. Analysts looking at the TSX today give the stock a potential upside of 30% for the next year. That could soar even higher as the years go on. Plus, you get a guaranteed dividend of 7.28% as of writing. So, you’ll battle inflation from two fronts from this stock.

Can-do cannabis

The can-do attitude of Canopy Growth (TSX:WEED)(NYSE:CGC) was on display during its latest earnings report. WEED stock reported another major loss of $617 million, but management stated it believes it’s on track to 2022 profitability. That puts it well behind a lot of its major competitors, however.

Yet where WEED stock believes it will thrive is through U.S. expansion. The company is poised to make a comeback through increased production, coupled with acquisitions coming online with decriminalization of marijuana. Fellow Motley Fool writer Rajiv Nanjapla believes “investors should utilize the steep correction in the company’s stock price to accumulate the stock to earn superior returns.”  I tend to agree — especially if looking to hold this stock for decades, as the cannabis industry expands. It alone could fend off inflation for years to come.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns shares of AIR CANADA, Canopy Growth, and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BlackBerry and BlackBerry.

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