Amid solid retail sales numbers and lower jobless claims in the United States, as well as Canadian government initiatives to strengthen its ties with emerging markets and protect local sectors, the Canadian equity markets have continued their upward trend. The S&P/TSX Composite Index reached a new all-time high yesterday. However, concerns persist over tariffs and their impact on global growth. Meanwhile, investors concerned about the uncertain outlook can fortify their portfolio with the following three Canadian stocks, which are likely to deliver solid performances in any economic environment.
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Fortis
Fortis (TSX: FTS) operates 10 regulated utility assets in Canada, the United States, and the Caribbean, serving 3.5 million customers by meeting their natural gas and electricity needs. With approximately 93% of its assets involved in the regulated, low-risk transmission and distribution business, its financials are less prone to economic cycles and generate reliable cash flows. Supported by these healthy cash flows, the utility company has increased its dividend payments for the past 51 years. Its quarterly payout of $0.615/share translates into a forward dividend yield of 3.7%.
Moreover, electricity demand continues to rise amid the electrification of transportation, the development of data centres to support the growing use of artificial intelligence, and rapid urbanization. Meanwhile, the company plans to invest $26 billion between 2025 and 2029, which could increase its rate base at an annualized rate of 6.5%. Along with these expansions, favourable customer rate revisions and improvements in its operating efficiency could support its financial growth in the coming years. Amid these growth prospects, Fortis’s management aims to increase its dividend by 4–6% annually through 2029. Considering all these factors, I believe Fortis is an all-weather stock.
Dollarama
Dollarama (TSX: DOL) is a Canadian discount retailer that operates 1,638 stores across Canada. Its superior direct-sourcing business model and efficient logistics have enabled it to reduce its expenses and offer a wide range of consumer products at attractive price points. Therefore, the company enjoys healthy same-store sales even during a challenging macro environment.
Meanwhile, the discount retailer continues to expand its store network and anticipates reaching a store count of 2,200 by the end of fiscal 2034. Given its capital-efficient business model, lower store network maintenance expenses, and quick sales ramp-up, these expansions could boost both its top and bottom lines. Furthermore, the company is in the process of acquiring The Reject Shop, which operates 390 discount stores across Australia.
Dollarama also owns a 60.1% stake in Dollarcity, which operates 644 retail stores in Latin America. Meanwhile, Dollarcity is expanding its business and expects to hike its store count to 1,050 by the end of fiscal 2031. Additionally, Dollarama can also raise its stake in Dollarcity to 70% by exercising its option by the end of 2027. Considering its growth prospects and solid same-store sales, I expect Dollarama’s financial uptrend to continue, thereby supporting its stock price increases.
Waste Connections
Waste Connections (TSX: WCN) would be my final pick due to the essential nature of its business. It collects, transfers, and disposes of non-hazardous solid waste across the United States and Canada. With the company operating primarily in secondary and exclusive markets, it also enjoys healthy margins. The Toronto-based waste management company continues to focus on organic growth and strategic acquisitions to drive its financials.
As of April 23, WCN had acquired assets that can add $125 million to its annualized revenue. Given its solid financial position and healthy cash flows, the management expects above-average acquisition activity this year. Furthermore, the company is developing 12 renewable energy facilities, expected to become operational in 2026. Once these facilities become fully operational, they can contribute $200 million to WCN’s annualized EBITDA (earnings before interest, taxes, depreciation, and amortization). The company is also witnessing improvement in employee retention and safety parameters. Considering all these factors, I believe the WCN could continue to report financial growth, thereby driving its stock price.
