When you’re looking to put your hard-earned cash to work in this environment, it can be tempting to chase the hottest growth stocks or the most exciting opportunities. And while those stocks can deliver big returns in the short term, they often come with significant volatility and increased risk. That’s why finding safer Canadian stocks to buy is so important, especially if you’re just starting to build your portfolio or want peace of mind knowing your capital is well-protected.
Investing doesn’t have to be exciting. In fact, some of the best and safest investments on the TSX are stocks that generate billions in cash flow, own high-quality assets, and have proven track records of growing steadily for years.
These types of businesses can provide both resilience during market downturns while still offering long-term growth potential when the economy is doing well.
Plus, in addition to their reliability and resiliency, another advantage of finding safer Canadian stocks to buy is that they often pay attractive dividends.
These consistent dividend payments not only provide you with income but also allow you to reinvest your profits immediately and compound your wealth faster over time. That’s why dividend-paying, lower-volatility companies are often the core stocks in successful long-term portfolios.
So, if you’ve got $1,000 to invest today, here are two safer Canadian stocks to consider adding to your portfolio right now.
One of the best defensive growth stocks Canadian investors can buy now
There’s no question that one of the best and safest stocks Canadian investors can buy right now is Brookfield Infrastructure Partners (TSX:BIP.UN).
Brookfield is one of the best stocks on the TSX because it owns and operates a global portfolio of infrastructure assets, ranging from utilities and transportation networks to data centres, energy pipelines, and telecom towers. These are the types of essential assets that people and businesses rely on every single day, regardless of the state of the economy.
Therefore, because Brookfield’s assets generate steady, inflation-linked cash flows that keep revenues and earnings resilient across difficult economic conditions, it’s one of the safest and most reliable stocks Canadian investors can buy.
However, what truly sets Brookfield apart is that in addition to its defensive operations, it also employs a growth strategy.
For example, management constantly looks to sell off its mature assets at premium valuations and reinvest the profits into expanding the portfolio.
Plus, in addition to the capital it’s consistently spending to expand operations and grow profitability, Brookfield is also constantly returning cash to investors.
In fact, the stock currently offers a yield of more than 5.1%, providing investors with attractive passive income while they wait for long-term growth to unfold.
Therefore, with Brookfield Infrastructure trading roughly 10% off its 52-week high and offering a yield upwards of 5%, it’s easily one of the safest Canadian stocks to buy now.
A top health and wellness stock
In addition to Brookfield Infrastructure, another reliable Canadian stock to buy now is Jamieson Wellness (TSX:JWEL).
Most Canadians have probably heard of Jamieson. It’s a leading producer of vitamins, minerals, and supplements, and has built one of the most recognized health and wellness brands in the country. In addition, it’s an impressive growth stock with a tonne of long-term potential, especially as it continues to successfully expand its operations internationally.
The health and wellness company is a top pick just like Brookfield because it’s also a defensive growth stock. For example, demand for health and wellness products tends to remain strong in all economic conditions. So, although consumers may cut back on discretionary spending when times are tough, typically, spending on health and wellness products remains resilient.
Furthermore, in addition to its defensiveness, Jamieson has also proven its ability to grow consistently. With the company having such a dominant position in Canada, it’s now expanding internationally, particularly into the United States and fast-growing Asian markets.
So, if you’ve got cash that you’re looking to put to work today, a high-quality defensive growth stock like Jamison is certainly one of the best investments Canadians can buy now.
