Global stock markets have reacted negatively to U.S. tariff threats in 2025. The recent market pullback is a concern, especially for Tax-Free Savings Account (TFSA) investors.
However, if you’re de-risking your TFSA, Hydro One Limited (TSX: H) and Jamieson Wellness (TSX: JWEL) are suitable options in the current environment. You can use your available TFSA contribution rooms to invest in these Canadian value stocks for long-term wealth. Besides preventing or limiting capital loss, you’ll receive recurring passive income streams.
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The backbone of the economy
Hydro One is Ontario’s largest electricity transmission and distribution service provider. The $29.4 billion company’s corporate existence spans 110 years. It placed $2.5 billion of assets into service last year. Its President and CEO, David Lebeter, said, “Electricity is the backbone of our economy, and Hydro One is a trusted builder and operator of electricity infrastructure across the province.”
Performance-wise, the utility stock is up 11.6%-plus year-to-date despite the escalating trade war. At $49.07 per share, TFSA investors partake in the decent 2.6% dividend. The payout frequency is quarterly, and Hydro has consistently paid shareholders since 2016.
In the 12 months ending December 31, 2024, revenues and net income attributable to shareholders increased 8.2% and 6.5% year-over-year to $8.5 billion and $1.2 billion, respectively. The net cash from operating activities rose 5.2% to $2.53 from a year ago.
Hydro One’s investments to address the aging power system infrastructure and ensure reliable delivery of electricity are ongoing. Several projects, completed and under construction, should support the anticipated increase in electricity demand. The energized line from Chatham to Lakeshore Transmission Line announced in southwestern Ontario will add approximately 400 megawatts to the electricity network for the local agri-food and manufacturing supply chain.
According to Lebeter, the roughly 48% ownership stake in the East-West Tie Limited Partnership will also contribute to shared long-term prosperity in the region. The Ontario Energy Board (OEB) approves the regulated transmission rates. Hydro One charges customers based on monthly peak electricity demand across its high-voltage network.
High consumer demand
Jamieson Wellness trades at a discount (-15.5% year-to-date) but carries a buy rating from market analysts. Their 12-month average price target is $41.07, a 33.2%-plus upside from its current price of $30.80. If you invest today, the consumer defensive stock pays a 2.7% dividend.
The $1.3 billion company produces and provides high-quality natural health products for consumers globally. In 2024, revenue climbed 8.5% to $733.8 million versus 2023, while net earnings jumped 11.1% year-over-year to $51.1 million. In Q4 2024, cash flow from operating activities increased nearly 55% to a record $37.8 million.
Jamieson benefits from the high consumer demand for foundational health products and innovative natural solutions. Its President and CEO, Mike Pilato, said, “Global category tailwinds remain robust, and our strategic marketing investments are driving revenue growth, improved profitability, and sustained improvements in cash flow.
Put your money to work.
TFSA users with long-term investment horizons can still put money to work amid a bearish trend. Value stocks tend to outperform during bear markets and economic recessions. You’ll get more if they are dividend-payers like Hydro One and Jamieson Wellness.
