Rising interest rates have become the new reality most investors are getting adjusted to. Of course, with rising rates comes increased economic risks, setting a backdrop of uncertainty for most investors.
For those seeking stability, holding equities and other investments that can withstand rising rates is important. Indeed, if a recession is around the horizon, it’s likely that only a handful of ultra-stable companies will be in a position to provide investors with gains.
Thus, for those seeking ultra-stable Canadian stocks to invest in, here are three great options.
Barrick Gold (TSX:ABX) is a Canadian mining and exploration company that deals in the production and sale of copper and gold. Notably, Barrick Gold has beaten analysts’ consensus estimates in its first-quarter (Q1) 2023 performance. Its quarterly earnings per share reached US$0.14, beating the market estimate of US$0.11 for each share handily.
Moreover, over the last four quarters, this company has been consistently beating earnings-per-share estimates. This shows the stock’s growth potential and ability to generate returns better than the benchmark.
Backed by its world-class infrastructure, Barrick is also ramping up the output of its current projects. The organization has increased the throughput at its Pueblo Viejo expanded plant, converted to carbon-in-leach from resin-in-leach at its Goldstrike autoclave and completed maintenance of the Nevada Gold Mine processing plant. These achievements will help the Canadian mining company to stay on track to hit its 2023 targets, and surge higher over time as the price of gold increases.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is among the leading Canadian banks, with an international focus. Notably, Scotiabank is among the leading financial institutions investors focus on for its dividend, which was recently declared at $1.06 for the current quarter.
This dividend equates to a whopping yield of 6.4% for interested investors. Accordingly, from an income standpoint, BNS stock is among the best options in this space I think is worth considering now.
Over time, I expect the company will be able to maintain its relatively high dividend yield via growth. The lender’s focus on international markets is one of the key reasons for this view. Scotiabank’s growth will likely continue to be led by its Latin American expansion, and existing network outside of Canada. For those bullish on lenders with a more global focus, this is a top stable and high-yield pick to consider.
Fortis (TSX:FTS) is a Canadian international diversified gas and electric utility holding organization. The company’s recent results in early May showed excellent growth for Q1 2023.
However, it’s not the company’s top line that made investors so bullish on this stock. Rather, Fortis’s net earnings came in at US$437 million (US$0.90/common share), which was a big jump from last year’s US$350 million (US$0.74/common share). Additionally, Fortis has decided to sell its ownership interest in its British Columbia-based Aitken Creek Natural Gas Storage Facility. This should provide additional balance sheet room for investors concerned about the company’s debt profile.
Additionally, this move will help the company stay on track with its US$4.3 billion investment plan. As more capital is deployed in its income-generating business model, investors can bank on continuously rising dividend payouts over time. Fortis hasn’t missed the opportunity to raise its dividend for five decades, and I don’t expect that to change anytime soon.