In an environment where the stock market swings from record highs to sudden corrections, having a few low-risk, all-weather stocks in your portfolio is really important. Fortunately, the TSX has several high-quality stocks that offer both stability and long-term growth potential, regardless of short-term economic conditions. Such businesses could perform well even when inflation is persistent, interest rates are high, or global uncertainty is mounting.
In this article, I’ll spotlight two low-risk Canadian stocks that could offer peace of mind and consistent returns in any market cycle.
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Dollarama stock
The first all-weather stock that you can consider is Dollarama (TSX:DOL), a value retail giant that continues to grow no matter what the market throws its way. Known for its fixed-price model and focus on everyday essentials, Dollarama runs more than 1,600 stores across Canada and also holds slightly over 60% stake in Dollarcity, which is growing fast in Latin America.
In fiscal year 2025 (ended in January), Dollarama’s sales climbed by over 9% YoY (year over year) while net profit went up nearly 17%. During the fiscal year, the company also opened 65 new stores, repurchased more than $1 billion worth of its own shares, and raised its dividend by 15% YoY. Going forward, it’s also planning to build a new logistics hub in Western Canada, which should help support its future expansion.
DOL stock is up nearly 39% over the past year and has gained more than 290% over the last five years. Currently, it trades at $171.84 per share with a market cap of $47.6 billion.
Besides its stock’s solid performance, another factor that really makes Dollarama worth holding for the long term is its ability to grow in just about any economic setting. Whether inflation stays sticky or interest rates take time to ease, this discount retailer knows how to keep customers walking through its doors. And over time, that kind of staying power often pays off well.
Fortis stock
The second safe Canadian stock worth a closer look amid ongoing market volatility is Fortis (TSX:FTS), a stable utility stock that many long-term investors trust during all kinds of market cycles.
The company mainly runs regulated electric and gas utilities across North America, serving millions of customers in Canada, the U.S., and the Caribbean.
It recently reported a solid start to the year, with its first-quarter net earnings rising to $499 million with the help of consistent rate base growth and a boost from currency exchange. In its latest earnings report, Fortis also confirmed it’s moving full steam ahead on its $5.2 billion capital plan for 2025, aiming to support its long-term infrastructure growth.
FTS stock currently trades at $66.74 per share with a market cap of $33.3 billion and offers a quarterly dividend that yields an attractive 3.7% annually. Over the past year, Fortis stock has gained more than 19%, showing that slow and steady can still reward investors.
With a five-year growth plan to lift its rate base from $39 billion to $53 billion, Fortis continues to look like a solid fit for long-term, low-risk portfolios.
