3 Steady TSX Stocks to Buy in September

Here are three of the most defensive TSX stocks to buy for your portfolio in the current market environment.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With markets selling off all year and volatility continuing to pick up as we head into the fall, some of the best TSX stocks to buy in September are steady and reliable businesses.

The more robust a company is, the lower the risk of investment, and the lower the volatility of the stock.

Another reason steady TSX stocks are some of the best to buy is that almost all of them pay an attractive dividend and reward investors with passive income.

So, if you’re looking to shore up your portfolio in this uncertain environment, here are three reliable TSX stocks to buy now.

Utility stocks are some of the safest companies on the TSX

If you’re looking for steady TSX stocks to buy, some of the best businesses to start with are utility stocks such as Fortis (TSX:FTS)(NYSE:FTS).

Utility stocks are universally known to be some of the safest investments you can make because their revenue is highly predictable, and the industry is regulated by governments.

This makes these stocks extremely low risk, especially since the services they offer are essential and feel little impact from recessions or soaring inflation.

Plus, because their revenue and cash flow are so predictable, these stocks are also some of the best companies to buy for consistent dividend increases. In fact, Fortis, which currently pays a healthy 3.75% dividend, has increased its payout to investors for 48 years straight.

So, if you’re looking for steady TSX stocks to buy in September, Fortis or any other top utility stock should be some of the first you consider.

A highly robust energy infrastructure stock

Another steady TSX stock to buy in September is Enbridge (TSX:ENB)(NYSE:ENB). Enbridge is one of the safest stocks to buy for many of the same reasons as utility stocks. Plus, Enbridge actually owns a massive utility business itself.

As one of the largest midstream companies in North America, it also owns a vast array of vital infrastructure including oil pipelines, natural gas pipelines, energy storage and transportation assets, and wind and solar farms.

Unlike utilities, the majority of its operations are unregulated, but since they are so essential to the economy, its revenue and cash flow are also highly predictable.

This makes Enbridge a much steadier stock than almost every other company in the energy sector. Plus, it too makes for an excellent passive income generator.

Enbridge’s dividend currently offers a juicy yield of roughly 6.3%, and it too has a lengthy dividend growth streak of more than a quarter century.

Therefore, if you’re looking for steady TSX stocks that can pay you a significant dividend, Enbridge is a top choice.

Real estate stocks are excellent long-term investments

In addition to utility and infrastructure stocks, another sector where you can find highly reliable and steady TSX stocks is real estate. And while there are several to consider, one of the best for stability is CT REIT (TSX:CRT.UN), which is largely owned by Canadian Tire.

Because of the success and strength of Canadian Tire, CT REIT is a low-volatility option. In fact, roughly 90% of its revenue comes from Canadian Tire. This allowed the REIT to weather the recession much better than its retail REIT peers who were among the most negatively impacted real estate businesses.

In addition to Canadian Tire, many of CT REIT’s other tenants are high-quality as well. As such, there is little risk in owning the REIT for the long haul, and you can count on its ability to pay distributions. Plus, CT REIT’s development pipeline means it’s an investment that has years of growth potential ahead of it.

While the stock trades off its highs (albeit not by much due to its incredible stability), it’s one of the top TSX stocks to buy now. Furthermore, at this price, the REIT offers a compelling yield of roughly 5.3%, providing investors with passive income in this uncertain environment.

Should you invest $1,000 in Enbridge right now?

Before you buy stock in Enbridge, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $19,624.59!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 34 percentage points since 2013*.

See the Top Stocks * Returns as of 11/20/24

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 Daniel Da Costa has positions in ENBRIDGE INC. The Motley Fool recommends Enbridge and FORTIS INC. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Energy Stocks

canadian energy oil
Energy Stocks

Is Baytex Energy Stock a Good Buy?

Baytex just hit a 12-month low. Is the stock now oversold?

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is South Bow Stock a Buy After its Split From TC Energy?

Let’s see if South Bow stock's current valuation makes sense.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Enbridge Stock a Good Buy?

Enbridge is up 24% in 2024. Are more gains on the way?

Read more »

ETF chart stocks
Energy Stocks

1 Top High-Yield Dividend ETF to Buy to Generate Passive Income

A high-yield ETF with North America’s energy giants as top holdings pay monthly dividends.

Read more »

oil pump jack under night sky
Energy Stocks

1 Energy ETF to Buy With $1,000 and Hold Forever

This Hamilton energy ETF is diversified across North America and pays a 10% yield.

Read more »

engineer at wind farm
Energy Stocks

1 Canadian Utility Stock to Buy for Big Total Returns

Let's dive into why Fortis (TSX:FTS) remains a top utility stock long-term investors may want to consider right now.

Read more »

Canadian dollars in a magnifying glass
Energy Stocks

The Smartest Energy Stocks to Buy With $200 Right Now

The market is full of great growth and income stocks. Here's a look at two of the smartest energy stocks…

Read more »

Top TSX Stocks

A 6 Percent Dividend Yield Today! But Here’s Why I’m Buying This TSX Stock for the Long Term

Want a great stock to buy? You will regret not buying this TSX stock and its decades of growth and…

Read more »