These Are My Top TSX Stocks to Buy for 2025

Don’t let your TFSA collect dust. Invest in these stable TSX stocks and make bank again and again.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 21, 2025 8:00 pm EST

As we sail into 2025, the TSX offers a treasure trove of investment opportunities for those looking to build long-term wealth. While the market can be unpredictable, some stocks have demonstrated resilience, steady growth, and strong financial performance. Among the standout performers are Granite Real Estate Investment Trust (TSX:GRT.UN), Waste Connections (TSX:WCN), and Hydro One (TSX:H). Each of these TSX stocks operates in a sector that is fundamental to the economy, providing investors with both stability and growth potential as they navigate the year ahead.

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Granite

Granite has been a solid choice for investors seeking reliability in the real estate sector. The TSX stock focuses on high-quality industrial and logistics properties across North America and Europe. Benefiting from the increasing demand for warehousing and distribution centres. In the third quarter of 2024, Granite reported a net income of $111.59 million, a significant jump from $33.13 million the previous year.

This strong financial performance reflects not only its strategic acquisitions but also its ability to maintain high occupancy rates and stable rental income. Analysts are optimistic about its future, with a consensus price target of $89.69, suggesting a potential upside of over 30% from its current trading price. With a portfolio of essential real estate assets and a reliable dividend payout, Granite remains a compelling option for investors looking for steady income and long-term capital appreciation.

Waste Connections

Waste Connections continues to prove that waste management is a lucrative business. The TSX stock has a strong presence across the U.S. and Canada, focusing on non-hazardous waste collection, recycling, and disposal. Waste Connections operates in an industry that is largely recession-proof, as waste services remain in demand regardless of economic conditions.

With a trailing price-to-earnings (P/E) ratio of 79.37 and a forward P/E of 24.81, Waste Connections demonstrates solid earnings potential. Its operating margin stands at 20.76%, highlighting its efficiency and strong cash flow generation. The TSX stock has also been expanding through acquisitions. Strengthening its market position and ensuring a steady revenue stream. As sustainability and environmental concerns drive demand for responsible waste management solutions, Waste Connections is well-positioned to capitalize on this trend, making it an attractive choice for long-term investors.

Hydro One

Hydro One remains a staple for investors looking for stability in the utilities sector. As Ontario’s largest electricity transmission and distribution company, Hydro One plays a crucial role in delivering power to millions of customers. Utilities are known for their defensive nature, providing steady cash flow and dividends even during market downturns.

In the third quarter of 2024, Hydro One reported a net income of $1.14 billion, reaffirming its financial strength. With a forward annual dividend yield of 2.80%, the TSX stock offers investors a reliable income stream while maintaining the potential for gradual share price appreciation. The company’s ongoing investments in infrastructure modernization and grid reliability position it well for future growth. As Ontario’s energy demands evolve, Hydro One remains a key player, benefiting from stable regulatory frameworks and increasing investments in clean energy initiatives.

Bottom line

While past performance provides a strong indicator of a TSX stock’s potential, it’s always important to consider broader market trends, economic conditions, and personal financial goals before making investment decisions. A well-balanced portfolio that includes real estate, waste management, and utilities can provide diversification and reduce overall risk. Granite REIT offers exposure to industrial real estate with growing rental income, Waste Connections capitalizes on essential services with strong profitability, and Hydro One provides a stable, dividend-paying investment backed by a crucial infrastructure network.

Investing in these three TSX stocks could be a smart move heading into 2025, offering a mix of capital appreciation and dependable dividend income. The Canadian market continues to present opportunities for investors who prioritize steady growth, strong financials, and long-term potential. Whether you’re looking to build a tax-efficient portfolio in a Tax-Free Savings Account or seeking stability in your Registered Retirement Savings Plan, these companies stand out as some of the best choices for the year ahead.