When markets get jittery, and whispers of a recession grow louder, it’s tempting to step back and wait for calmer days. But some of the best investment opportunities can actually show up when things feel the most uncertain. Buying the dip doesn’t mean scooping up any stock that’s fallen; it means finding solid, recession-resistant companies that have temporarily lost their shine. These are the companies that keep humming along, no matter what the economy is doing. In Canada, three TSX-listed names fit this description: Hydro One (TSX:H), Waste Connections (TSX:WCN), and Metro (TSX:MRU).
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Hydro One
Hydro One is a name many Ontarians are familiar with, whether they realize it or not. It’s the province’s largest electricity transmission and distribution company, responsible for delivering power to homes and businesses across Ontario. That kind of core service doesn’t just go away during a downturn. In fact, the company often sees stable demand regardless of the broader economy.
In its most recent earnings report for the first quarter (Q1) of 2025, Hydro One reported net income of $358 million, up from $293 million the year before. Earnings per share (EPS) rose to $0.60, and the company rewarded shareholders by boosting its quarterly dividend to $0.3331 per share. With a regulated business model and reliable cash flow, Hydro One is the definition of a defensive stock. It’s a rare find, both low-risk and income-generating, which makes it a great fit when markets are uneasy.
Waste Connections
Waste Connections is another powerhouse in the world of recession-resilient stocks. It might not be flashy, but garbage collection is one of those services that doesn’t stop just because the economy slows down. Waste Connections operates across North America, offering solid waste collection, recycling, and disposal. It’s grown steadily through a mix of acquisitions and organic growth.
In the first quarter of 2025, it reported revenue of US$2.228 billion, up 7.5% from the year before. Net income rose to US$241.5 million, or US$0.93 per diluted share. It’s the kind of business that operates in the background but generates dependable cash. Investors looking for consistency and long-term value can count on Waste Connections to deliver, even when other sectors are struggling.
Metro
Metro rounds out the trio with its combination of grocery stores and pharmacies. This is a company that truly shines during a downturn. No matter how tight household budgets get, people still need food and medicine. Metro owns and operates more than 950 food stores and over 650 pharmacies, primarily in Quebec and Ontario. It’s a quiet giant that’s been growing year after year, helped by strong customer loyalty and efficient operations.
In Q2 2025, Metro posted sales of $4.91 billion, a 5.5% increase year over year. Adjusted net earnings came in at $226.6 million, or $1.02 per diluted share, up 12.1% from last year. The company has also been increasing its dividend, making it a reliable choice for income-focused investors.
Bottom line
Together, Hydro One, Waste Connections, and Metro offer a powerful trio for building a recession-proof portfolio. Each business focuses on essential services, and all three have proven they can perform in both strong and weak economies. That’s the kind of balance that can help smooth out volatility and provide a reliable income stream. It’s also a reminder that investing doesn’t need to be high risk to be rewarding.
So, remember, buying the dip isn’t about chasing the biggest bounce; it’s about finding companies with solid foundations that have been pulled down temporarily by broader market fears. When you focus on companies like these, you’re putting your money into businesses that people depend on every day. That kind of reliability never goes out of style. So, if you’re looking for a place to park your cash while everyone else is panicking, these three stocks are worth a closer look. These won’t promise overnight riches but do offer something better: peace of mind and long-term growth.
