Most market sectors remain on track to conclude 2024 on a strong note, with the TSX Composite trading with solid 18% year-to-date gains just before the final session of the year. However, this market optimism could face challenges in 2025 due to persistent inflation, uncertainties about interest rate cuts, and expected U.S.-Canada trade concerns.
In such an uncertain environment, it makes sense for long-term investors to balance their portfolios with safe, reliable stocks. Fortunately, there are many great stocks available in the Canadian market that combine stability, long-term growth potential, and affordability, all for under $200 per share. Let’s look at two of these no-brainer safe stocks that are perfect for investors seeking long-term security without breaking the bank.
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Dollarama stock
Dollarama’s (TSX: DOL) excellent track record of yielding positive returns in 14 out of the last 15 years makes it stand out among Canadian stocks as a safe and reliable investment. In 2024, DOL stock has risen 46.4% to currently trade at $139.82 per share with a market cap of $39.1 billion.
As you might already know, this Mont Royal-headquartered company operates a large chain of discount retail stores across Canada, catering to value-conscious consumers. In the quarter ended in October 2024, the company’s total store count reached 1,601 locations, a significant increase from 1,541 stores just a year earlier. The company’s sales for the quarter rose 5.7% YoY (year over year) to $1.56 billion due to increased store count and a 3.3% comparable store sales growth.
In addition, Dollarama recently raised its long-term Canadian store target to 2,200 by 2034, up from its previous goal of 2,000 by 2031, signalling the management’s confidence in its sustainable growth strategy. To support this expansion, the company plans to establish a new logistics hub in Calgary by 2027, which is expected to optimize its operations further and improve service for Western Canadian markets.
As its low-cost products appeal to shoppers looking to save money, Dollarama’s business model thrives in both strong and weak economic environments. This factor, coupled with its strong financial outlook, makes Dollarama one of the safest stocks you can buy for under $200 right now.
Brookfield Renewable stock
Another safe Canadian stock you can consider is Brookfield Renewable Partners (TSX: BEP.UN). After sliding by 5% in 2024, its stock currently trades at $32.95 per share with a market cap of $9.4 billion. The company also offers an attractive 6% annualized dividend yield at the current market price.
Despite the broader market rally, weakness in Brookfield stock could mainly be attributed to investors’ concerns about its increasing losses in recent quarters. In the September 2024 quarter, the company reported a net loss of US$181 million, primarily due to non-cash depreciation expenses and the mark-to-market impact of hedging instruments.
While these temporary factors affected its latest earnings, we shouldn’t forget that they might not affect its long-term growth potential. In fact, Brookfield Renewable continues to deliver robust operational performance, with funds from operations rising 11% YoY to US$278 million in the same quarter.
Besides its operational strengths, Brookfield Renewable’s consistent focus on advancing its massive 200,000-megawatt development pipeline and delivering sustainable energy solutions make it one of the safest long-term bets on the TSX.
