The market has been selling off for months now, and while the performances have been different across sectors, the majority of Canadian stocks have lost value this year.
In the United States, the Nasdaq, an index predominantly tracing tech and other growth stocks, is down nearly 30% year to date. The S&P 500, the best gauge of the entire market, is down 17%, and the Dow Jones, an index of more reliable blue-chip stocks, is understandably the best performer of the three, down just 12%.
As Canadians, we typically want to compare ourselves to the TSX to make sure that we are outperforming the market. So far, the TSX is down just 4% year to date. However, keep in mind that the TSX is heavily weighted to energy stocks, which are some of the only companies that have gained value this year.
In addition to energy, though, some of the best and most reliable businesses have gained value as demand for top-notch companies has grown substantially.
So, while these stocks aren’t cheap, if you’re looking to find some of the most reliable Canadian stocks that you can own, here are five that have gained value so far year to date.
Large, blue-chip stocks are often not very volatile
The most volatile stocks are almost always smaller businesses, especially higher-risk companies in growth mode. Typically, large-cap stocks are much better investments to own during these periods, because they are less volatile and their operations are much more robust.
That’s why the Dow Jones is the least impacted index in the United States. It’s also why BCE, a massive and highly reliable telecom company, is one of the few Canadian stocks that’s gained value this year; it’s up just under 4%.
Utility stocks and other passive-income generators
In addition to these large-cap stocks, utility stocks and other predictable passive-income generators make excellent investments.
That’s why several utility stocks have gained value so far year to date. For example, Emera (TSX: EMA), an electric and gas utility with operations diversified across six countries in North America, is one of the few Canadian stocks that’s gained value this year.
That’s unsurprising, given how low risk the stock is. It’s well diversified, offers a dividend yield of 4.1%, and has already told investors it plans to increase that dividend by at least 4% every year through 2025.
But even high-quality defensive growth stocks like Northland Power have gained value. Northland is one of the best renewable energy stocks you can buy, so there’s no surprise it’s one of the few Canadian stocks that’s gained value in 2022.
Canadian stocks that can benefit from this environment are understandably gaining in value
Along with high-quality and reliable stocks, there are also some companies, such as businesses in the energy industry, which are benefitting from this environment and have, therefore, naturally gained in value.
No matter what the market environment is like, chances are there are always at least a few stocks benefitting. During the pandemic, for example, it was tech stocks and e-commerce businesses. Today, it’s stocks that benefit from inflation, a slowdown in the economy, or both.
That’s why one of the best Canadian stocks to buy and one of the best non-energy stocks to buy now is Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP).
Brookfield is one of the best to buy, because it owns tonnes of defensive assets that are diversified all over the world. In addition, much like Emera, a lot of its business is in utilities.
However, it’s also a stock that can benefit significantly from inflation, which is what most other companies are struggling with in this environment.
That’s why it’s no surprise that Dollarama, the discount retailer which can gain market share from inflation, is another one of the few Canadian stocks that have gained value year to date.
Bottom line
No matter what the investing environment is, there are always opportunities for Canadians to find stocks that you can buy and have confidence in. So, if you’re looking to add a high-quality business to your portfolio now, these five stocks are some of the best to start with.
