3 Low-Volatility Stocks for Smoother Sailing

These TSX stocks are all low-volatility options, but each are in their own wheelhouse so investors can find the perfect one for their portfolio.

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The market remains an incredibly volatile place right now. TSX stocks continue to jump and fall. Although short sellers love a falling stock, most investors choose the latter option again and again. Yet it looks like there could be some hope on the horizon.

After the TSX neared 52-week lows last week, shares are already climbing back up again. This comes as it looks there will be an end to rate hikes around the world. Furthermore, tech earnings are coming in strong. Yet this doesn’t mean you should dump TSX stocks offering lower volatility. It could, in fact, mean that investors start picking up these first to get back in the market. So here are three I would consider on the TSX today.

Constellation Software

It might seem weird to start off with a tech stock if you’re looking for lower volatility. The thing is, however, that Constellation Software (TSX:CSU) remains a strong and growing long-term option thanks to a hugely successful management team.

Constellation stock has broken the code to finding software companies that are essential to everyday life. The company acquires these companies and puts them under its name, pushing them out and increasing revenue again and again.

This has brought in growth of 11,554% since coming on the market, as of writing! And what’s more, that is stable growth. We haven’t seen the enormous dips in share price that other tech stocks have experienced. So it’s certainly one of the low volatility TSX stocks to consider.

CCL Industries

Now if you’re a little wary about tech stocks (though when it comes to Constellation stock, you shouldn’t be), then perhaps get into something tangible. This might be CCL Industries (TSX:CCL.B), a creator of packaging and labelling that continues to be a low-risk option during this volatile market.

Analysts continue to recommend the stock as it has seen steady results year after year. However, with rate hikes ending and inflation falling, there could be a bull market coming for CCL stock. The more product purchased, the more that is shipped. And that all raises demand for CCL stock.

That’s why it’s still a highly valuable company among TSX stocks. Especially with earnings just around the corner. For now, it trades at a valuable 15.4 times earnings, with a 1.95% dividend yield as well to consider.


Again, if you’re still nervous about these TSX stocks, then it’s time to get to the least volatile of them all. That would be Fortis (TSX:FTS), a utility company that also grows through mainly acquisitions. However, its organic growth in the last few years has certainly helped it become the utility powerhouse it is today.

Fortis stock also recently joined the likes of just one other stock on the TSX today, becoming a Dividend King. This means it has increased its dividend for the last 50 consecutive years! That’s a very low volatility stock that’s only likely to continue being so in the future.

That’s due to its industry. Utilities are necessary, and the company has figured out just how to grow in a stable way, increasing dividends along its path to greatness. Those utilities will remain necessary in all its global locations. So certainly consider FTS among your TSX stocks as well.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CCL Industries, Constellation Software, and Fortis. The Motley Fool has a disclosure policy.

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