Sell-Off Fears? These 2 Canadian Stocks Are Built to Withstand Any Crash

Are you worried about a downturn? Keep your portfolio safe with these two top Canadian stocks.

Amy Legate-Wolfe

Author Bio 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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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. Social Media 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 March 20, 2025 3:30 pm EDT

Market sell-offs can shake investor confidence. Seeing the stock market dip can feel unsettling. But not all companies are hit equally. Some businesses are built to withstand downturns, making these reliable choices when fear takes over the market. Instead of panicking, savvy investors look for companies that continue to generate profits, hold strong financials, and provide essential services. And among Canadian stocks, Waste Connections (TSX: WCN) and Royal Bank of Canada (TSX: RY) fit that description.

a person watches a downward arrow crash through the floor — Source: Getty Images

Waste Connections

Waste Connections operates in the waste management industry. No matter what happens in the economy, garbage still needs to be collected. This makes the Canadian stock highly resilient, even in recessions. It has a strong presence across North America, serving municipalities, businesses, and industrial sites. Unlike some other waste management firms, it focuses on secondary and rural markets, giving it a competitive edge and allowing it to operate without heavy competition.

The Canadian stock’s recent earnings reflect its strength. In its fourth-quarter 2024 report, Waste Connections posted revenue of $2.3 billion, up 13.3% from the previous year. Its net income reached $300.6 million, with earnings per share (EPS) of $1.16. That’s an increase from $1.11 per share the year before. This kind of steady growth is what makes Waste Connections a solid defensive stock. Even when consumers cut back on spending, waste disposal remains a necessity.

Another key strength of Waste Connections is its commitment to environmental initiatives. It invests in recycling programs, landfill gas-to-energy projects, and sustainability efforts that align with global trends in waste reduction. As governments push for stricter environmental regulations, Waste Connections is well-positioned to benefit from contracts and incentives that reward companies for reducing their carbon footprint. Its ability to maintain profitability while investing in sustainability makes it an even stronger long-term choice.

Royal Bank

While Waste Connections keeps things clean, Royal Bank of Canada ensures financial stability. RBC is the country’s largest bank, and with a history spanning more than 150 years, it has weathered countless economic cycles. Banking stocks tend to be sensitive to market conditions. Yet RBC’s scale, diversified revenue, and strong balance sheet make it one of the safest financial institutions in Canada.

In its latest earnings report for the first quarter of 2025, RBC posted net income of $5.1 billion, a 43% increase from the prior year. Its diluted EPS rose to $3.54, up 42%. These strong results were driven by solid performance across all divisions, including personal and commercial banking, wealth management, and capital markets. One of the most notable highlights was RBC’s acquisition of HSBC Bank Canada, which contributed $214 million to its earnings. This expansion helped the Canadian stock grow its customer base and expand its market presence, giving it even more stability in the long run.

One of RBC’s greatest strengths is its conservative approach to risk. It maintains a strong capital position, with a common equity tier-one (CET1) ratio of 13.2%, well above regulatory requirements. Thus, the Canadian stock has a significant cushion to absorb financial shocks.

Dividends are another reason RBC remains attractive during sell-offs. Investors often turn to dividend stocks when markets are down because they provide a steady income stream. RBC has a long history of paying and increasing dividends, making it a favourite among income-focused investors. Even in times of market uncertainty, the bank continues to reward shareholders, proving its reliability.

Bottom line

Both Waste Connections and RBC are excellent examples of stocks that can withstand a market crash. Waste management and banking are essential services, and both Canadian stocks demonstrated financial strength, stable earnings, and strong business strategies. When investors are fearful, these are the types of stocks that provide reassurance.

Sell-offs can create opportunities for long-term investors. Instead of reacting with panic, it’s worth looking at Canadian stocks that continue to perform even when the market dips. Waste Connections and RBC fit that category, offering a mix of stability, growth, and resilience. For investors seeking shelter from market volatility, these two companies are worth considering.