Stagflation risks may be eroding now that hopes for a trade deal are higher. And while time will tell how hard of a punch Canada’s economy will take to the gut, long-term investors know that it’s worth it to stay invested, even when the rainy season starts. In this piece, we’ll check out a few low-cost “TSX champs” that can shield your wealth if the first quarter of volatility carries over into the second half of the year.
It’s easy to think that things can only get better on the tariff front. But things could take an unexpected turn, especially if the U.S. brings back triple-digit percentage tariffs for some reason or another. In any case, older investors should aim to invest with stability from volatility in mind.
In this piece, we’ll check out a few names that could continue to gain, even as the rest of the TSX Index consolidates after swiftly recovering from a spring slump on the back of Trump Liberation Day tariffs.
Of course, there’s no guarantee that rising inflation and pressured economic growth will set the stage for a stagflationary environment. Either way, being prepared for the worst isn’t a bad idea if you’re tossing and turning throughout the night, worried about recession or stagflation risks.
TD Bank
First, we have shares of TD Bank (TSX:TD), which recently made fresh, new 52-week highs, just shy of the $90 mark. Indeed, the lagging bank stock suddenly became a leader in 2025, with shares now up more than 17% year to date. The tides have turned significantly, and I think TD could continue to gain ground as it makes up for what has been a less memorable past few years.
At this juncture, it seems like investors have finally put the money-laundering fiasco hangover in the rear-view mirror. With the bank doubling down on high-tech efforts (a new NYC office dedicated to AI projects) with a new CEO at the helm who will allow the banking behemoth to have a clean slate alongside a new growth trajectory, there’s reason to stick with the year-to-date gainer as it looks to have an up year for a change.
The stock trades at 11.5 times forward price-to-earnings (P/E) with a fat 4.71% dividend yield. Of course, TD isn’t immune to stagflation. A sluggish economy dragged down by inflation will weigh on loan growth. Either way, I’m inclined to believe that TD Bank stock is cheap enough that analyst expectations are already relatively muted.
In my view, TD stands out as one of the best banks for your buck.
Alimentation Couche-Tard
Up next, we have Alimentation Couche-Tard (TSX:ATD), which, like TD, looks way too cheap to ignore after suffering a brutal 2024. The convenience store icon behind Circle K and Couche-Tard stores in Quebec appears to be getting close to inking a deal to acquire the great 7 & i Holdings.
Indeed, I’m a massive bull on the 7-Eleven deal, even though the sticker price could be a tad too much for the liking of many shareholders. With a non-disclosure agreement (NDA) signed by Couche-Tard amid ongoing negotiations, I think the odds of a successful deal are the highest since talks began last year.
With an offer under review and significant changes ahead, I think it’s time to buy the dip while Couche-Tard stock moves further into bear market territory. Now down over 20% with an 18 times trailing P/E multiple, I’m inclined to view ATD stock as a deep-value play.
