U.S. president Donald Trump’s protectionist trade policy disrupted the investment landscape. Affected countries responded to his tariffs with reciprocal tariffs, resulting in a trade war. Its next-door neighbour, a long-time trading partner, was not given a reprieve.
Today, Canadian investors must choose their stock holdings wisely. Three TSX stocks are ideal options to navigate trade war risks and, more importantly, for wealth protection.
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Built-in protection
AltaGas (TSX:ALA) has built-in protection from U.S. tariffs. The $11.15 billion energy infrastructure firm reported strong financial results and record export volume (119,241 barrels per day of liquefied petroleum gases) in the first quarter (Q1) of 2025. In the three months ending March 31, 2025, revenue increased 8.6% year over year to $3.97 billion, although net income declined 3.9% to $392 million versus Q1 2024.
According to its president and CEO, Vern Yu, the company has de-risked the business, optimized assets, and will continue pursuing growth opportunities to deliver long-term shareholder value. Performance-wise, the utility stock is up +12.25% year to date. At $37.27 per share, you can partake in the 3.38% dividend.
The diversified business and strong contract profile (long-term contracts) enable AltaGas to overcome significant market volatility and deliver steady returns. Yu said the cost-of-service, take-or-pay, and fee-for-service contracts account for approximately 85% of normalized EBITDA. Also, AtaGas will target non-U.S. export markets if tariffs remain in force.
Defensive investment
Hydro One (TSX:H) is a defensive and low-volatile investment regardless of the economic environment. The $29.8 billion company is Ontario’s largest electricity transmission and distribution service provider. This premium large-scale utility combines electric transmission and local distribution but has no power generation assets.
In Q1 2025, revenues and net income rose 11.2% and 22.2% to $2.4 billion and $358 million. The strong quarterly results show in the stock performance. At $49.66 per share, current investors enjoy a +12.91% year-to-date gain on top of the decent 2.68% dividend. H hasn’t missed a quarterly dividend payment since Q1 2016.
Hydro One recently restored power in Central and Eastern Ontario after a generational ice storm. According to management, investments in Ontario’s electricity transmission and distribution systems will continue. It will ensure reliability and performance and address the aging power system infrastructure.
Solid financial performance
Great-West Lifeco (TSX:GWO) displays resiliency amid the chaos caused by tariffs. As of this writing, the financial stock outperforms the TSX year to date, +8.83% versus +5.03%. If you invest today, the share price is $51.29 per share, while the dividend offer is a lucrative 4.67%.
The $47.7 billion diversified financial services company builds client franchises globally. Fortunately, U.S. tariffs and trade disruptions haven’t adversely impacted financial performance. In Q1 2025, base earnings increased 5.3% year over year to $1 billion, while net earnings from continuing operations dropped 17% to $860 million from a year ago.
While market volatility is elevated, its president and CEO, Paul Mahon, said the core business continues to perform well. Interestingly, the U.S. segment remains the leading growth driver during the quarter. “Our growth ambitions remain well supported by our strong capital generation and balance sheet,” Mahon added.
Wealth protectors
AltaGas, Hydro One, and Great West Lifeco have market-beating returns thus far in 2025. They are safe bets for risk-averse investors seeking wealth protectors in the ongoing trade war.
