Last year, it seemed like almost any TSX stock you bought was bound to go up. The TSX Index soared by an incredible 18.5% in 2024. Unfortunately, things don’t appear to be nearly as easy in 2025.
Every day, news from the U.S. president’s office seems to rock markets and stocks. Obviously, threats about tariffs create new worries about the Canadian economy. It is spooking investors.
Canadians might want to take a more cautious investment approach, given this dynamic. If you are wondering how to invest $3,000, these stocks might be safe bets.
Loblaw: A safe TSX grocery stock
Loblaw (TSX:L) operates one of Canada’s largest grocery networks. It offers both regular and discount grocery offerings. This just means that it can cater to Canadians regardless of their socio-economic context.
It has scale and pricing power. It can quickly react if tariffs occur or if the economy drastically weakens. While revenues have only grown by about 5% per year over the past five years, earnings per share have risen by four times that rate.
If you want a hedge against inflation, just buy a TSX stock like Loblaw. It has successfully navigated some very challenging economic environments. It should continue to do so ahead.
Fortis: A boring utility for capital preservation
Another very safe TSX stock to hold in this environment is Fortis (TSX:FTS). Undoubtedly, this is not a stock to hold if you want the prospects of big gains. Its stock is only up 8.4% in the past five years.
Fortunately, when you add in its dividends, its total returns rise to 30% in that time. Basically, you have preserved your capital and collected a nice dividend. If that is good enough for you, this stock is a worthy hold.
Fortis has very safe, regulated utility operations across North America. It is growing its rate base by about 6% a year.
Fortis has increased its dividend for 51 consecutive years. It is likely to keep growing its dividend by a low- to mid-single-digit rate. This TSX dividend stock yields just under 4% right now.
Topicus.com: A resilient TSX software stock
If you need a better growth profile, Topicus.com (TSXV:TOI) is the TSX tech stock to hold right now. If you want limited Canada or U.S. exposure, Topicus is a great stock. It operates solely in Europe (with some expansion into Southeast Asia and South America).
It owns many small, niche software businesses. These tend to be specifically crucial to their customers. They earn highly recurring revenues and tend to generate strong profit margins.
Given how diverse Europe is, there are a plethora of software niches. It means a long opportunity for Topicus to continue consolidating the segment.
Topicus has a very strong management team, a great balance sheet, and the backing of massive software conglomerate Constellation Software. If it can continue to deploy capital at a strong rate, there could still be great upside for this TSX stock in 2025.
The Foolish bottom line
If you are worried about the current political and economic environment, you can find a mix of safety and growth. Take a diverse approach to markets and you can probably weather the storm very effectively.
