Safe Stocks to Buy in Canada for November 2023

These safe stocks offer sustained growth, even during this last turbulent year, so hope onto them on the TSX today!

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 30, 2023 3:45 pm EDT

Fall seems to be exactly the right word for the time of year we’re currently experiencing. Ever since the season started, it’s exactly what the market has been doing: falling. The TSX today is trading near or at 52-week lows as of writing. And that’s something that can be incredibly stressful if you’re looking for safety and security.

There are some safe stocks out there — ones that remained stable and steady, and even growing, even in all this mess. So, here are three I would consider.

A red umbrella stands higher than a crowd of black umbrellas. — Source: Getty Images

Constellation Software

It might seem odd to look at software stocks as safe stocks. But I’m just looking at one, and that’s Constellation Software (TSX:CSU). Constellation stock has decades of growth behind it, and what’s more, that growth has been completely and totally stable!

Shares of Constellation stock are up 24% year to date as of writing, but look back, and there has been even more growth to consider. In fact, in the last 10 years alone, it’s grown by 1,343%! That stable growth continued to climb further and further, no matter what the market did.

This is because the company has a management team that knows exactly how to pick software companies needing an upgrade. But these upgrades are for software companies that are essential to our everyday lives.

So, even though shares trade at 86.51 times earnings, I would still consider picking this up among safe stocks for a long-term hold today.

Great-West Lifeco

Another of the top safe stocks to consider these days is Great-West Lifeco (TSX:GWO). GWO stock is both an insurer as well as an asset manager and continues to expand its operations. The company, like Constellation stock, has been an acquisition powerhouse. It now is the umbrella company over a large amount of Canadian insurance and finance management companies.

This has been incredibly lucrative for GWO stock, and that was seen during its most recent earnings report. The company surged past earnings estimates, after closing major acquisitions and seeing earnings rise. Base earnings rose 2% from a year ago, with “strategic actions” taken to continue sustainable long-term growth.

Now that GWO stock has a 5.58% dividend yield and trades at 15.75, it certainly looks like a safe long-term buy — especially as shares among safe stocks have risen at a stable 15% year to date as of writing.

Alimentation Couche-Tard

Finally, companies that continue to be on a stable climb upward have been convenience store stocks. This includes Alimentation Couche-Tard (TSX:ATD), one of the safe stocks that plummeted during the pandemic only to climb right back up.

This comes from being a strong stock that brings in cash flow from its various locations all around the world. Cash that comes not just from its retail convenience stores but from its gas locations as well. Furthermore, it recently announced a strategic plan to achieve substantial growth in the next five years.

Couche-Tard aims to achieve US$10 billion in earnings before interest, taxes, depreciation, and amortization by the full year 2028. This is almost double its US$5.8 billion for the full year 2023. With that, its current share price, up 21% year to date, looks like a steal among safe stocks — especially while it trades at 17.58 times earnings as of writing.