With markets on edge due to trade worries to dovish central banks, cautious investors are now looking for safety. However, in such a volatile market environment, safety doesn’t mean retreating from equities altogether but rather choosing wisely.
Fortunately, Canada’s market isn’t short on stalwart stocks, those time-tested companies that deliver consistency even when broader sentiment wavers. These companies may not make daily headlines, but they offer investors something far more valuable in the form of reliability, income, and a track record of resilience. Let’s take a closer look at two top Canadian stocks that combine defensive characteristics with long-term strategic value.
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Dollarama stock
The first reliable pick that has a long track record of standing strong amid market noise is Dollarama (TSX:DOL). This value-focused retailer runs over 1,600 stores across Canada, offering everything from everyday consumables to seasonal items, all priced up to just $5. Besides that, it also operates a fast-growing Latin American chain, Dollarcity, where prices are capped at around US$4.
Despite the broader market volatility, DOL stock has surged by more than 50% over the last year to currently trade at $172.21 per share with a market cap of $47.7 billion.
Dollarama’s most recent quarter shows that it’s still on a solid growth path. In the January 2025 quarter, the company’s sales jumped nearly 15% YoY (year over year) with the help of demand for consumables and strong seasonal performance. Its comparable store sales were up 4.9% from a year ago, with more customers walking in, even though their average spend dipped slightly. For the quarter, Dollarama’s adjusted net profit soared by 21% YoY to $391 million due to better margins and lower logistics costs.
Dollarama is currently focused on expanding its presence beyond borders with a planned move into Mexico through Dollarcity. Closer to home, it’s laying the groundwork for a major logistics hub in Western Canada to support its growing footprint. These moves are mainly about future-proofing the business, strengthening supply chains, and keeping prices low for consumers. For investors seeking stability and dependable returns, Dollarama could be a really amazing stock to hold for the long term.
Fortis stock
Another dependable pick you may want to consider right now is Fortis (TSX:FTS). This utility giant operates a network of regulated electric and gas utilities across Canada, the U.S., and the Caribbean.
After surging 26% over the last year, FTS stock is now trading at $67.64 per share with a market cap of $33.9 billion. While it’s not a high flyer, Fortis rewards patient investors with a steady 3.6% annualized dividend yield, paid quarterly.
In the fourth quarter of 2024, Fortis reported a 2.2% YoY revenue growth, hitting $2.95 billion, mostly due to higher energy demand and rate base expansion. Even better, the company’s adjusted net profit jumped 19% from a year ago to $416 million with the help of lower operational costs and improved margins.
Moreover, Fortis is steadily expanding its regulated asset base with planned capital investments for grid modernization and cleaner energy. For investors seeking safety and reliability, Fortis stock looks like a smart hold through all market moods.
