When markets take a dip, it’s easy to get caught up in the panic. But sometimes, that’s exactly when the best investment opportunities appear. While headlines shout about rising unemployment and economic slowdowns, savvy investors look for resilient companies, those that can power through the storm and come out stronger. Two such stocks on the TSX that stand out right now are Waste Connections (TSX:WCN) and Stantec (TSX:STN). Both offer stability, growth, and a track record that makes them worth holding through thick and thin.
Don’t panic!
Canada’s latest economic headlines have been anything but calm. The Bank of Canada recently held its key interest rate at 2.75%, reflecting a wait-and-see approach as inflation slows but job losses rise. Unemployment in May rose to 7%, the highest in almost a decade.
Consumer sentiment remains fragile, with Canadians worried about everything from housing affordability to potential global trade risks. Despite these concerns, there are pockets of opportunity, especially in Canadian stocks that deliver essential services. That’s where Waste Connections and Stantec come in.
WCN
Waste Connections is a waste management company with operations across North America. It handles solid waste, recycling, and environmental services for municipalities and businesses. The beauty of this business is its consistency. Garbage doesn’t take a break during a recession, and cities don’t stop collecting waste. In fact, waste volume often stays steady even when consumer spending slows. That makes Waste Connections a defensive stock with stable cash flows.
The company’s most recent earnings report confirms that stability. In the first quarter of 2025, Waste Connections reported revenue of US$2.2 billion, up 7.5% from the same quarter a year ago. Adjusted earnings per share (EPS) rose to US$1.48, and its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin held firm at 32%.
The Canadian stock also completed a series of acquisitions that added US$125 million in annualized revenue. With a current share price around $270, it’s not cheap, but for good reason. This is a high-quality name with a consistent track record.
STN
Stantec is another steady performer, offering engineering and design services for infrastructure, energy, and environmental projects. Based in Edmonton, it works with governments and companies across the globe to design bridges, water systems, schools, and energy grids. It’s a business that benefits from long-term contracts and repeat work, making revenue predictable even when the economy hits a rough patch.
In the first quarter of 2025, Stantec posted strong numbers. Revenue rose 13.3% year over year to $1.1 billion. Net income came in at $96.7 million, with EPS of $0.81, slightly ahead of expectations. More importantly, the Canadian stock reported a record backlog of $7.9 billion. That means a healthy pipeline of future work.
Operating cash flow also increased by 136%, giving the Canadian stock plenty of financial flexibility. To strengthen its balance sheet, Stantec announced a $425 million refinancing deal, which will lower debt costs moving forward. The stock trades around $145 and offers a modest dividend near 0.6%, but its strength lies in capital growth and business durability.
Bottom line
Both Canadian stocks offer something critical in today’s investing climate: resilience. Waste Connections earns steady revenue from a non-discretionary service. Stantec’s work is tied to infrastructure needs that don’t disappear in a slowdown. While short-term pressures may hit many industries, these two names are better positioned than most to ride out economic turbulence. And together, they would bring in $63 annually in dividend income!
| COMPANY | RECENT PRICE | SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTED AMOUNT |
|---|---|---|---|---|---|---|
| WCN | $270 | 18 | $1.75 | $31.50 | Quarterly | $4,860.36 |
| STN | $139.82 | 35 | $0.90 | $31.50 | Quarterly | $4,893.70 |
Canadian markets may remain volatile for a while. Inflation is easing, but not gone. The job market is softening. Interest rate cuts may be on the horizon, but they’re not here yet. That uncertainty can make it tempting to pull back. But history shows that staying invested in strong Canadian stocks during a correction can lead to big gains when the recovery begins.
