The uncertainty about the future trajectory of the global economy continues to limit the upside in stocks. However, a few corporations continue to perform well, regardless of the economic situation, making them worry-free investments for all market conditions.
If you can spare $500, consider investing it in the shares of such fundamentally strong Canadian companies that continue to defy the general market trend and deliver solid shareholders’ returns. I’ll discuss five such Canadian stocks in which investors can confidently invest.
Dollarama
Growing at a CAGR (compound annual growth rate) of over 25% in the last three years, shares of Dollarama (TSX:DOL) are must-haves in all portfolios for stability, income, and growth. Dollarama sells a variety of products at lower fixed-price points. This drives consumers to its stores, supports its financials, and makes it resilient to economic cycles.
Dollarama’s value pricing strategy, extensive network of domestic stores, and broad customer base will likely support its revenue and earnings that consistently increased at a double-digit rate. Furthermore, its growing global footprint will likely accelerate its growth and drive its stock price.
Alimentation Couche-Tard
My next pick is also from the consumer sector. I am bullish about Alimentation Couche-Tard (TSX:ATD), a convenience store operator. Thanks to recession-resilient business, coast-to-coast presence in Canada, expansion in the U.S., and a growing market share in several European markets, Couche-Tard has consistently delivered stellar sales and earnings. Further, it enhanced its shareholders’ returns through higher dividend payments.
Its strong balance sheet, accretive acquisitions, value pricing strategy, and cost optimization will likely support its growth and stock price. In addition, benefits from EV (electric vehicle) transition (it is expanding its EV charging infrastructure) will support its growth.
Telus
Next on this list is Telus (TSX:T), which provides communication services. Its services are deemed essential, thus making it relatively immune to economic cycles. Telus has managed to grow its customer base despite stiff competition. Moreover, it has delivered profitable growth and enhanced its shareholders’ return through solid dividend payments.
Telus’s growing consumer base, ability to drive average revenue per user, lower churn rate, expansion of 5G services, and continued investments in network infrastructure augur well for future growth. Besides capital gains, investors will likely benefit from the company’s multi-year dividend-growth program and share repurchases.
goeasy
goeasy (TSX:GSY) has been growing at a breakneck pace, regardless of the economic situation. The lender to subprime borrowers consistently delivered double-digit sales and earnings growth, which helped the company to multiply its shareholders’ wealth. Also, it boosts its investors’ returns through higher dividend payments.
Management sees its revenue growing at a double-digit pace. Its high-quality loan originations, a wide range of financial products, solid credit quality, and improving efficiency will likely drive its top and bottom line in the coming years. Leverage from higher sales and margin expansion could drive double-digit earnings per share growth.
Aritzia
Like goeasy, Aritzia (TSX:ATZ) has consistently delivered stellar sales and earnings growth, reflecting strong demand for its lifestyle apparel brand and growing boutique count. Thanks to its ability to increase sales and profit amid all market conditions, Aritzia stock has handily outperformed the broader markets over the past five years.
The company projects double-digit revenue growth through 2027, reflecting new boutique openings, strength in the e-commerce business, and expansion in the United States. At the same time, the company expects its earnings growth rate to exceed sales, which could drive its stock price higher.
