Why I’d Allocate $8,000 to These 3 Low-Volatility TSX Stocks for Steady Returns

Low-volatility TSX stocks like Fortis can offer investors some predictability and shelter in this wildly volatile market.

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The volatility in today’s markets is a real stress for many of us who are watching our savings being tossed around like a rag doll. With no signs that the tariff games will be ending soon, it’s probably a good idea to seek out some lower-volatility TSX stocks to shelter our savings.

Here are three low-volatility TSX stocks to consider.

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CGI

CGI (TSX: GIB.A) is one of Canada’s leading and most respected information technology (IT) companies. In fact, it’s a leading, global $33 billion IT and business consulting services firm. It’s not as well known as other tech stocks, but this does not mean that it isn’t as valuable.

In the last 20 years, CGI’s stock price has risen more than 2,000%. As you can see from the graph below, its ascent has been pretty steady and consistent, with little volatility. It’s safe and reliable.

Let’s look at some of the company’s characteristics that play a part in this performance. CGI has a global presence that’s diversified across different geographies and market segments. This diversification helps the company deliver steady results. Also, CGI’s history includes a growth strategy that leans on organic growth as well as growth via acquisitions. The company has used this strategy to grow into the leader it is today.

Looking ahead, the IT services industry remains highly fragmented. This is good for CGI, as the company plans to continue to be the consolidator. What has worked so well in the past seems destined to continue as the company continues to see strong acquisition opportunities.

Fortis

Take a look at Fortis’s (TSX: FTS) stock price graph below.

The first thing that you’ll probably notice is the stability of this graph. This is because Fortis is in the ultra-defensive utilities business. This has been reflected in steadily rising financial results, predictability, and shareholder value creation in the form of both capital gains and dividends.

As another reflection of Fortis’s stability, we can look to its dividend. In fact, Fortis has an impressive 51-year history of not only paying a dividend but also growing it every year. Looking ahead, Fortis is forecasting a 4-6% annual dividend-growth rate to the year 2029.

A strong balance sheet, strong cash flows, and continued electricity demand will drive continued strength at Fortis. I think we can expect Fortis stock to continue its low-volatility performance in the future.

Intact Financial

Intact Financial (TSX: IFC) is another TSX stock that has a remarkably steady stock price performance. As you can see from its stock price graph below, the lack of volatility is quite impressive.

 Over the last many years, Intact has grown by consolidating its industry. In fact, it’s now the largest provider of property and casualty insurance in Canada. The company has made countless acquisitions over the years, which has led to a steady rise in revenue and the realization of cost synergies. For example, since 2019, the company’s annual revenue increased 134% to $26.5 billion in 2024.

This low-volatility performance is matched by a reliable and steadily growing dividend. In fact, Intact’s annual dividend has risen steadily to the current $1.33 per share for a yield of 1.82%.

Fool contributor Karen Thomas has a position in CGI. The Motley Fool recommends CGI, Fortis, and Intact Financial. The Motley Fool has a disclosure policy.

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