4 Top Canadian Stocks to Buy Amid Rising Volatility

These four safe Canadian stocks could strengthen your portfolios.

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Over the last few weeks, the global equity markets have become volatile. Concerns over rising inflation and bond yields, expectations of sooner-than-expected rollback of expansive monetary policies, and expensive valuation have made investors jittery, increasing volatility in the market. So, amid rising volatility, investors can strengthen their portfolios by buying the following four Canadian stocks.

NorthWest Healthcare

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is one of the top stocks to buy in this volatile environment, given its highly diversified and defensive healthcare portfolio. Given its government-backed tenants and long-term contracts, the company enjoys high occupancy and collection rate. Along with organic growth, it also relies on strategic acquisitions to drive growth. In the second quarter alone, the company had made acquisitions of $321.1 million.

Meanwhile, NorthWest Healthcare had strengthened its financials by raising around $200 million in June. Supported by these cash inflows, the company looks to increase its footprint in Australia and Europe. Additionally, the company pays a monthly dividend, with its dividend yield standing at an impressive 6.12%.

Waste Connections

Another safe bet would be Waste Connections (TSX:WCN)(NYSE:WCN), an integrated solid waste services company.  The easing of restrictions has increased economic activities, driving the demand for the company’s services. The rising oil demand could also boost its revenue from the E&P segment.

Apart from organic growth, the company also makes strategic acquisitions to expand its geographical footprint and strengthen its competitive positioning. It has acquired 16 companies this year. Further, given its excellent financial position and stable cash flows, Waste Connections is well equipped to carry out its future acquisitions. The company has raised its dividend by over 10% for the last 10 years, which is encouraging.

BCE

Amid growing digitization and increased remote working and learning, there is a growing demand for fast and reliable internet service. Telecommunication companies have steady cash flows, as a higher percentage of their revenue comes from recurring sources. So, I have selected BCE (TSX:BCE)(NYSE:BCE) as my third pick. Amid the growing addressable market, the company has accelerated its capital spending to expand its 5G, fibre, and rural networks. Also, the improvement in economic activities and rising roaming revenue could boost the company’s financials in the coming quarters.

Notably, BCE’s financial position also looks healthy, with its liquidity standing at $5.3 billion. So, the company is well positioned to fund its growth initiatives. Also, the company pays a quarterly dividend, with its dividend yield currently standing at a juicy 5.51%.

Fortis

Fortis (TSX:FTS)(NYSE:FTS) operates 10 regulated utility assets, serving around 3.4 million customers. It earns most of its earnings from these low-risk, regulated assets, thus stabilizing its cash flows. Supported by these steady cash flows, the company has raised its dividends for the previous 47 consecutive years. Its forward yield is currently standing at a healthy 3.63%.

Meanwhile, Fortis expects to grow its rate base at a CAGR of 6% over the next five years, with an investment of $19.6 billion. Amid these investments and its strong underlying businesses, its management is optimistic about its future cash flows and has announced its plans to increase its dividend at a CAGR of 6%.

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.

The Motley Fool recommends FORTIS INC and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

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