As tariff terrors begin to settle and investors start looking to the wreckage for some bargains, the TSX Index may have what it takes to pick up where it left off before the U.S. markets sank into a correction. Indeed, it’s never comfortable to be a net buyer of stocks when there’s so much in the way of fiscal uncertainty. While attempting to predict what comes next on tariffs or trade wars is never a good idea, I think that positioning your portfolio (Tax-Free Savings Account or Registered Retirement Savings Plan) in a spot where it can withstand a sudden uptick in volatility is a wise move. That way, you can concentrate on what to buy rather than what to pare as you look to derisk or rotate at a time that may not entail the best bang for your buck.
In this piece, we’ll check in on two unstoppable Canadian stocks that still have a good amount of momentum behind them. Though a continued sell-off is very much possible, as the Monday morning calm potentially paves the way for a more turbulent Tuesday, I’d be inclined to keep on buying with the long-term horizon in mind. At the end of the day, tariffs are scary today, but they may not mean as much over the next 10, 15, or even 20 years.
In any case, here are two names worth checking out for investors looking to invest for at least the next decade.
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Waste Connections
Waste Connections (TSX:WCN) is one of those defensive stocks you can feel confident buying at any time. Whether we’re in a roaring bull market led by a revolutionary industrial shift or if we’re winding down for a potential recession, Waste Connections has a cash flow stream that’s pretty much untouchable.
With the firm coming off solid fourth-quarter results, I’d not sleep on shares as they come in again. The stock is down around 3.6% from its recent high, and while a cheaper multiple could be in the cards, I view its defensive growth profile and growth-by-acquisition strategy as one that’s more than worth paying a lofty premium for.
Longer-term investors shouldn’t sleep on the name, especially if recent market turbulence drags the name closer to the $250 per share level. Of course, WCN shares are one of those high-quality defensive growers that seldom goes for too lofty a discount. With a 0.80 beta, the name is less likely to be rattled on those truly horrific days for the TSX Index.
Fortis
Fortis (TSX:FTS) is another steady defensive stock to stash away for decades at a time. The utility firm is in the process of breaking out past the $65 level after spending a number of years in a rut. Indeed, if you’re heavy in FTS shares, you probably didn’t notice all too much turbulence this March as tariffs and trade war worries dominated the headlines. In any case, the steady utility has one of the most predictable earnings growth rates. And with that, one of the most reliable dividend-growth promises.
Every year, you can expect a mid-single-digit dividend hike from the Steady Eddie, which now goes for a modest 19.9 times trailing price to earnings. Add the 3.81% dividend yield into the equation, and the low-volatility (0.24 beta) name looks like a fantastic way to cut some choppiness out of your TFSA.
