The state of the economy continues to perplex policymakers, as multiple interest rate hikes both north and south of the border over the last year and a half have yet to cool the economy as intended. Therefore, investors in Canada continue to shore up their portfolios by looking for safe and resilient stocks to buy.
A highly anticipated recession has yet to materialize, but most economists believe it’s only being delayed and not avoided altogether.
And in Canada, it’s clear that the economic environment continues to weaken, with recent reporting showing that 48% of Canadians are losing sleep due to financial worries in 2023, up from 43% in 2022 when inflation was surging.
If you’re looking to shore up your portfolio and buy some of Canada’s top safe and reliable stocks, here are three of the best picks for July 2023.
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A top Canadian real estate stock to buy and hold long term
If you’re looking for high-quality investments that you can have confidence buying and holding for years, safe stocks that you know can also grow your capital considerably, some of the best stocks to buy are in the real estate sector, such as Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT is the largest residential REIT in Canada, owning over 55,000 rental units across the country. It’s one of the best ways to gain exposure to the real estate sector, especially if you don’t have a tonne of cash to buy a rental property yourself.
Residential real estate is an ideal industry to invest in, especially if you’re looking for safe stocks to buy, because it’s highly defensive but also offers incredible growth potential over the long run.
And with CAPREIT’s massive portfolio of properties, investors can have confidence knowing that CAPREIT’s revenue and operations are well diversified, plus its occupancy rate is consistently higher than 95%.
Furthermore, in addition to CAPREIT’s resiliency and the fact it’s a highly defensive stock, it’s also a dividend-growth stock, which is not surprising given the amount of cash flow that residential real estate stocks earn.
And today, CAPREIT offers a yield of roughly 2.8%. So, if you’re looking for safe stocks to buy and ones that can grow your capital significantly over the long haul, CAPREIT is certainly one of the best investments you can make today.
An unbelievably safe stock to buy, with a yield of more than 5.1%
In addition to CAPREIT, another top pick for investors that are looking for safe stocks to buy is Emera (TSX: EMA), the impressive utility stock.
Like residential real estate, utilities are an ultra-defensive industry, making utility stocks some of the very best stocks to buy if you’re looking for an investment that’s safe.
The services that Emera offers, for example, are essential and, therefore, see very little fluctuation in demand, whether the economy is growing rapidly or facing significant headwinds. It doesn’t matter if interest rates are rising or falling; residential and commercial customers still need electricity and gas.
Plus, with the decades-long shift to cleaner energy now ongoing, Emera has plenty of long-term growth potential, as we continue to demand more electricity in the coming years.
And just like CAPREIT, Emera is one of the best stocks to buy for a safe and growing dividend. In fact, it has a dividend-growth streak of 16 years, and today its dividend offers a yield of more than 5.1%.
A massive blue-chip stock with excellent long-term potential
Lastly, on top of these two top defensive stocks, another safe investment to buy is the blue-chip stock Thomson Reuters (TSX: TRI).
Thomson Reuters has a massive and well-diversified portfolio of segments offering business information services. From legal to tax and accounting solutions to its news agency, Thomson Reuters operates in over 75 countries worldwide.
Plus, in addition to having a massive and well-respected business all over the world, roughly 80% of its revenue is recurring, which is another reason why it’s such a low-risk, low-volatility stock.
If you’re worried about the state of the economy and looking for safe investments to help shore up your portfolio, Thomson Reuters is certainly one of the best stocks to buy in July 2023.
