The Canadian stock market has been nothing short of impressive in 2025. As we near the end of the year, we can see how the S&P/TSX Composite Index has reached new heights. As of this writing, the Canadian benchmark index is up by almost 20% year-to-date. The index was higher until a few weeks ago, but persistent inflation, trade tensions, and geopolitical factors continue posing a risk to markets worldwide.
If you consider yourself a more conservative investor but don’t want to compromise long-term growth and income, there are good ways to keep your money in the market. Today, I will discuss two high-quality TSX stocks that you can remain invested in, regardless of short-term market volatility.
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Enbridge
Enbridge Inc. (TSX: ENB) is one of the most popular Canadian stocks and a staple in plenty of investment portfolios. The $144.5 billion market-cap company headquartered in Calgary owns extensive midstream assets that transport hydrocarbons across Canada and the US. The energy company also owns a portfolio of utility assets that offer stable cash flows while injecting lower risk into its revenue streams.
Enbridge also boasts a growing portfolio of renewable energy assets, a move that is setting the company up for a better future in an increasingly greener energy industry. ENB has been a top dividend stock, boasting an over 30-year track record for increasing shareholder payouts.
As of this writing, Enbridge stock trades for $66.24 per share, and it pays $0.9425 per share, each quarter, translating to a 5.7% dividend yield that you can lock into your portfolio today.
Hydro One
Hydro One Ltd. (TSX: H) is the smaller of the two dividend stocks that I will discuss in this piece, but not one that you should shrug aside. The $31.3 billion market-cap company does not diversify into other sectors. Instead, it focuses only on the utility sector, specifically, the transmission of electricity in Ontario.
Hydro One is the region’s largest regulated company providing electricity transmission. The company also boasts a small telco business, but it accounts for less than 1% of its revenue. Being a utility-focused business, Hydro One enjoys safety from volatile commodity prices, and its financial performance is largely safe from the impact of market volatility and market cycles.
Electricity demand will only increase over the years, and Hydro One is set to benefit from the growing demand. As of this writing, it trades for $52.11 per share and pays $0.3331 per share each quarter, translating to a 2.6% dividend yield.
Foolish takeaway
When investing during uncertain times, it is a good idea to seek stocks that have resilient business models, solid dividend track records, and other defensive qualities. Even if market volatility leads to short-term downturns, these are the kind of businesses that can emerge stronger on the other side when the dust settles.
To this end, Enbridge stock and Hydro One stock offer the kind of resilience that can make them excellent long-term holdings to consider for your self-directed investment portfolio.
