If there’s one thing that the market has shown us in 2025, it’s that volatility remains at the forefront. Fortunately, there’s no shortage of great safety stocks that can provide a defensive moat that minimizes that volatility.
Here’s a look at some of the best safety stocks to bolster your portfolio’s defensive appeal.
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Defensive appeal is off the charts with this stock
One of the first safety stocks for investors to consider is Fortis (TSX: FTS). Fortis is one of the largest utility stocks on the continent, and it’s that size and reliable business model that make it a great pick.
That reliability stems from the sheer necessity of the business. Unlike retail stocks or even telecoms, consumers cannot simply trade down or reduce their utility service. This means that Fortis, with its decades-long regulated contracts, generates a reliable, recurring revenue stream.
That revenue stream allows the company to invest in growth and pay a handsome dividend.
As of the time of writing, Fortis’s quarterly dividend works out to 3.71%. This means that a $20,000 investment in Fortis will generate an income of just over $740.
Long-term investors should note that’s enough to generate nearly a dozen shares each year through reinvestments. And that’s not even the best part.
Fortis has an established tradition of providing investors with annual increases to that dividend going back over 50 consecutive years.
That fact alone makes Fortis not only one of the safety stocks your portfolio needs but a top pick for any portfolio.
This energy infrastructure stock can be a lucrative addition
Most investors are familiar with Enbridge (TSX: ENB), but few realize just how defensive of an investment the stock could be.
Enbridge is best known for its pipeline business, which includes both natural gas and crude elements. Those segments transport massive amounts of both each day, including a whopping one-third of all North American-produced crude.
Interestingly, Enbridge charges for the use of that network and not based on the price of the commodity being hauled. This means that Enbridge generates a reliable and recurring revenue stream from the segment, irrespective of how oil prices move.
Enbridge also operates a natural gas utility and a renewable energy business, which offers even more defensive appeal to this safety stock.
The renewable energy segment alone boasts 40 facilities across North America and Europe, generating a recurring revenue stream backed by the same regulated model that traditional utilities follow.
Factor in a juicy quarterly dividend, which currently pays out a respectable 5.96% yield, and you have one of the best defensive safety stocks on the market.
Invest in a big bank with big potential
It would be hard not to mention one of Canada’s big bank stocks as an addition to any defensive safety stock portfolio. Bank of Montreal (TSX: BMO) is a unique option for long-term investors to consider right now.
BMO is the oldest of the big banks and has been paying out dividends to investors for two centuries. Today, that dividend pays out a yield of 4.46%, and the bank continues to offer annual bumps to that dividend.
BMO’s dividend isn’t the only appealing thing that makes it a stellar safety stock for investors. That’s because BMO’s domestic segment provides considerable defensive appeal, which is thanks to the well-regulated and mature Canadian market.
That appeal is furthered by BMO’s growing presence in international markets. Specifically, BMO’s international presence in the U.S. market is fueling the bank’s growth.
At the forefront of that growth shift is BMO’s 2023 acquisition of Bank of the West. That deal exposed BMO to 32 state markets, adding millions of new customers and billions in deposits.
Safety stocks can be a gamechanger
The trio of stocks mentioned above can offer investors considerable growth and income-earning potential over the longer term. Additionally, they each offer defensive appeal, making them ideal candidates for any portfolio
Throw in a juicy yield, which they all provide, and you have some of the best-paying long-term options on the market.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
