The 4 Best Low-Risk Investments for Canadians 

Are you looking for safety? You don’t have to get out of the stock market. Instead, consider these safe, low-risk stocks for your portfolio.

| More on:
money cash dividends

Image source: Getty Images

Today, we’re not looking for risk. We aren’t looking for high growth that could lead to high losses. We want stability, and we want it now. This is why I’m going to go over the four best low-risk investments Canadians should consider.

To do that, we’re going to look at four sectors and the stocks that offer the best long-term hold. So, let’s get into it.


Utility companies typically provide essential services like electricity, water, and gas, making them relatively stable investments. They tend to have consistent cash flows and pay dividends regularly, making them attractive for risk-averse investors.

One example of this is Fortis (TSX:FTS). Fortis stock operates as a regulated utility company primarily involved in the generation, transmission, and distribution of electricity and natural gas. Regulated utilities typically have stable revenue streams because they operate in regions where government regulators set rates, ensuring a reasonable return on investment. This regulatory framework provides predictability and reduces the company’s exposure to market fluctuations.

Furthermore, Fortis stock  has a long history of paying dividends and increasing them consistently over time. The company’s reliable cash flows and financial stability support its ability to pay dividends, making it an attractive investment for income-oriented investors seeking steady income streams.

Consumer staples

Next, companies that produce everyday consumer goods like food, beverages, and household products are considered defensive investments. Demand for these products tends to remain stable even during economic downturns, making the sector less susceptible to market volatility.

One proven stock in this sector is Coca-Cola (NYSE:KO). Coca-Cola is a global beverage company known for its iconic soft drink brands, including Coca-Cola, Diet Coke, and Sprite. Beverages are a staple in many consumers’ diets worldwide, providing Coca-Cola with a stable revenue base. Additionally, the company has been expanding its portfolio to include healthier beverage options to adapt to changing.

And, despite facing challenges such as changing consumer preferences and health concerns related to sugary beverages, Coca-Cola has demonstrated resilience and maintained stable financial performance over the years. The company generates significant revenues and profits, supported by its strong brand, diversified product portfolio, and global presence.


Another strong industry is healthcare. It’s a defensive sector that tends to perform well regardless of economic conditions. Companies involved in pharmaceuticals, medical devices, and healthcare services often generate steady revenues supported by demographic trends and ongoing healthcare needs.

Of these, Extendicare (TSX:EXE) is a strong company to consider. The company operates long-term-care homes, retirement communities, and home healthcare services across Canada. Similar to Sienna Senior Living, Extendicare stock benefits from the increasing demand for senior care services driven by demographic trends.

As the population ages, the demand for senior care services is expected to increase steadily. And, Extendicare often benefits from long-term contracts with government agencies or private payers for the provision of senior care services. These contracts typically provide a predictable stream of revenue, enhancing the company’s financial stability.


Granted, telecommunications has been having problems. But overall, telecommunication companies provide essential services such as internet, phone, and television, making them relatively resilient during market fluctuations. These companies often have predictable revenue streams and strong cash flows, which can translate into consistent dividends for investors.

Despite these issues, Telus (TSX:T) continues to be a strong and growing option. Telus is one of the largest telecommunications companies in Canada, with a significant market share in wireless, internet, and television services. Its strong brand presence, extensive network infrastructure, and large customer base contribute to its competitive advantage and stability. It also benefits from recurring revenue streams from subscription-based services, such as wireless plans, internet subscriptions, and television packages. Plus, it has a track record of stable dividend payments.

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 Fortis and TELUS. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A close up image of Canadian $20 Dollar bills
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

Are you looking for dividends each and every month? This stock is the right "choice" for you, providing stable passive…

Read more »

Dividend Stocks

Dividend Investors: Top Canadian Utility Stocks For June

Here are three of the top Canadian utilities stocks long-term investors may want to consider as portfolio staples moving forward.

Read more »

data analyze research
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Two stocks paying monthly dividends are excellent options for income-focused investors looking to increase their passive-income streams.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Invest $7,000 in This Dividend Stock for $519 in Passive Income

A $7,000 investment in this top dividend stock could generate over $519 annually in passive income.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These three stocks are not only primed to increase their dividends again this year; they are three of the best…

Read more »

Dividend Stocks

Add These 6 Undervalued Stocks to Your TFSA Before Prices Pick Back Up

These six undervalued stocks are perfect for those seeking massive passive income for your TFSA, and prices are about to…

Read more »

Golden crown on a red velvet background
Dividend Stocks

The Dividend Kings: Stocks Every Canadian Investor Should Own

Dividend Kings have the status for a reason. They're stable, growing companies that will provide dividends to investors for decades.

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye On

Income investors may want to keep an eye on two high-yielding stocks but should be conscious about the inherent business…

Read more »