In today’s dynamic financial landscape, maintaining a well-balanced investment portfolio is crucial for achieving long-term financial goals. Diversification across high-quality assets not only mitigates risk but also positions investors to capitalize on growth opportunities. For those focusing on Canadian stocks, the good news is that there are plenty of world-class companies to choose from.
For those seeking defensive growth in this current environment, here are three of my top picks right now.
Restaurant Brands
In the quick-service restaurant sector, Restaurant Brands (TSX:QSR) remains a world leader, managing well-known brands, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. In fiscal year 2023, Restaurant Brands reported diluted earnings per share (EPS) of $3.76, up from $3.25 in 2022, and net income of $1.718 billion, up from $1.482 billion the year before. This expansion demonstrates how well the business operates and how well it can adjust to changing market conditions.
The company’s strategic acquisitions and brand development activities demonstrate its dedication to growing its worldwide presence. Indeed, I think this is a top option for investors looking to gain exposure to the consumer discretionary sector because of its diverse brand portfolio and global reach, which offer a strong basis for long-term growth.
Alimentation Couche-Tard
With around 16,700 locations in North America, Europe, and Asia, Couche-Tard (TSX:ATD) is a major convenience store operator. The corporation recorded a $3.2 billion gross profit in the first quarter of fiscal year 2025, an 8.0% increase over the same time the year before. This stable performance demonstrates Couche-Tard’s sound business strategy and capacity to provide reliable cash flows.
A planned acquisition of Seven & I Holdings, the Japanese firm that owns 7-Eleven convenience shops, is one of the corporation’s major expansion goals. If successful, this action would bolster Couche-Tard’s position as a leading force in the convenience store industry and greatly increase its global footprint. These strategic initiatives show the company’s drive and long-term growth potential, which makes this a top highly attractive consideration for investors.
Fortis
A reputable utility firm with operations in the Caribbean, the U.S., and Canada is Fortis (TSX:FTS). The company is well-known for its steady and controlled profits, which are mostly from the operations of gas and electric utilities. Due to its solid dividend delivery history, Fortis appeals to investors who prioritize income.
The company’s strategic investments in renewable energy and infrastructure projects further strengthen its financial resilience. These programs complement worldwide trends toward greener energy while also promoting sustainable growth. Fortis’s dedication to sustainability and innovation places it in a favourable position within the utility industry, providing investors with a combination of growth potential and dependability.
