As the Federal Reserve prepares to announce its next policy decision, investors often feel a jolt of uncertainty. Markets can swing on a few words about interest rates or economic outlooks. For those seeking some stability, certain Canadian stocks offer resilient cash flows and potential upside if equity markets dip. Here are three names on the Toronto Stock Exchange to consider before the Fed moves the needle again.
WCN
Waste Connections (TSX:WCN) provides waste collection, recycling and disposal services across North America. Its business model centres on fee-based revenue that resets when contracts come up for renewal.
In its first quarter of 2025, Waste Connections reported revenue of $2.228 billion, up 7.5% from a year ago. Operating income was $390.2 million after absorbing transaction-related and other one-time costs, while adjusted net income came in at $293.1 million, or $1.13 per diluted share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $712.2 million. Those results underscore the company’s ability to grow even as fuel and labour costs climb.
GRT
Granite Real Estate Investment Trust (TSX:GRT.UN) owns and manages industrial, warehouse and logistics properties in Canada, the United States, and Europe. Its tenants include e-commerce and essential-goods companies with long leases and built-in rent escalators.
In the first quarter of 2025, Granite’s revenue was $154.7 million, up 11.4% from $138.9 million a year earlier. Funds from operations reached $91.0 million, or $1.46 per unit, compared with $82.4 million, or $1.30 per unit, in the first quarter (Q1) of 2024. Adjusted funds from operations totalled $88.4 million, or $1.41 per unit, reflecting sustained occupancy of 94.8% and same-property net operating income on a cash basis that jumped 4.7%. Those metrics demonstrate the strength of its industrial footprint.
ENB
Enbridge (TSX:ENB) operates one of North America’s largest energy infrastructure networks. It transports crude oil, natural gas and renewable energy across pipelines, storage facilities and distribution systems.
In its first quarter of 2025, Enbridge generated revenue of $10.46 billion and delivered adjusted earnings per share (EPS) of $1.03, beating consensus estimates. Its Mainline crude system set a first-quarter throughput record of 3.2 million barrels per day, and gas distribution earnings surged to $1.60 billion from $765 million a year earlier.
Distributable cash flow reached $3.8 billion, up 9% from the prior year. As a regulated utility with long-term contracts and tariff structures, it tends to be less sensitive to interest-rate volatility and offers a dividend yield north of 6%.
Considerations
Each of these TSX stocks shares a common thread. These deliver cash flow through recurring fees or rent. They operate in sectors that remain essential despite economic slowdowns. Further, these have shown the ability to grow earnings even as borrowing costs rise. That combination can help cushion portfolios when markets gyrate on Fed commentary.
Of course, no investment is without risk. Waste Connections can face higher fuel costs and labour shortages that squeeze margins. Granite must manage property valuations in a rising-rate environment and maintain high occupancy to hit its cash flow targets. Enbridge remains subject to regulatory decisions, project delays and commodity-price swings. Investors should weigh these factors against the potential benefits.
Timing matters, too. A Fed announcement can trigger knee-jerk moves, creating short-term buying opportunities for fundamentally sound companies. If higher rates spook markets, shares of Waste Connections, Granite, and Enbridge could pull back even if their underlying businesses remain intact. That dip can be the moment to add positions at more attractive valuations.
Bottom line
Before the Fed meets, take a look at these names. Waste Connections offers exposure to steady municipal services. Granite provides industrial real estate with inflation-linked rent. Enbridge delivers regulated energy infrastructure cash flows. Each has a track record of delivering results through rate cycles. Adding one or more of these stocks now may help investors navigate the next wave of market reactions without missing out on potential gains.
