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When the housing market heats up, investors often chase builders, developers and mortgage lenders. But when cracks start to form—whether it’s from high interest rates, affordability pressures or slowing demand—it’s smart to look elsewhere. The good news is, not all stocks fall with the housing sector. Some are built on steadier ground. On the TSX, three such stocks are TransAlta (TSX: TA), The North West Company (TSX: NWC), and Granite Real Estate Investment Trust (TSX: GRT.UN). If the housing market starts to slide, these are three companies to consider holding.
TransAlta is one of Canada’s largest power producers, and it isn’t tied to how many new homes go up. It generates electricity through a diversified mix of wind, hydro, gas and solar. In its most recent earnings report for the first quarter of 2025, TransAlta posted revenue of $758 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $270 million. Free cash flow came in at $139 million. The company also reaffirmed its full-year guidance, expecting adjusted EBITDA between $1.26 billion and $1.41 billion. What stands out is that even as merchant power prices in Alberta dropped compared to last year, TransAlta still delivered solid earnings. It maintained its quarterly dividend of $0.065 per share, offering a yield close to 2.3%.
Next up is The North West Company. Unlike big-box retailers that rely on urban sprawl, North West serves communities in northern Canada, rural areas and underserved markets. It operates stores under banners like Northern and NorthMart, providing groceries, clothing and general merchandise. In its first quarter of fiscal 2025, the company reported sales of $641.4 million, up 3.9% from a year ago. Net income was $25.8 million, and earnings per share were $0.64 versus C$0.55 last year. The board declared a quarterly dividend of $0.40, which at a recent share price near $54.29 yields about 2.9%.
The third stock to consider is Granite Real Estate Investment Trust. This REIT focuses on industrial and logistics properties, not residential buildings. Its tenants are often involved in e-commerce, distribution and warehousing. In the first quarter of 2025, Granite posted revenue of $154.7 million and reported funds from operations per unit of $1.46, up from $1.30 the year before. Its occupancy rate remained at 94.8% and its payout ratio stood at roughly 55%, giving it more cushion for future growth or volatility. The trust pays a monthly distribution of $0.267 per unit, which works out to an annual yield of about 4.7%.
Each of these companies comes from a different corner of the market, but they share one thing in common—they don’t rely on home prices to stay profitable. TransAlta powers homes and businesses regardless of how many new subdivisions are built. North West sells everyday goods in places where few others operate. Granite earns rent from industrial tenants who need space to store and ship products, not build houses.
While it’s easy to get caught up in the housing market roller-coaster, these three TSX stocks offer something different. They provide essential services, generate dependable cash flow and pay attractive dividends. If the housing market does crack, they could be just the kind of investments that keep your portfolio steady.
