A safe Canadian stock is one you can hold with confidence. One investors know will keep paying, keep growing, and keep standing strong no matter what the market does. And when it comes to safety, there are two sectors that offer it in spades: utilities and food. These are items no one can live without, which makes these two some of the top Canadian stocks on the TSX today.
CU
Canadian Utilities (TSX:CU) is one of the safest places you can put $7,000 right now. Its entire business sits on a foundation of regulated, contract-backed revenue. It delivers electricity and natural gas across Canada and Australia under long-term agreements that guarantee stable, inflation-linked returns. That structure means CU earns predictable cash flow every single year, no matter what the market is doing.
The real magic of Canadian Utilities is its dividend reliability. CU holds the record for the longest streak of consecutive dividend increases in Canada at more than 50 years and counting. That’s the result of a business built on essential infrastructure, conservative financial management, and a commitment to returning cash to shareholders. Even better, CU’s payout comes from real earnings, supported by a healthy balance sheet and a steady rate base that continues to expand.
Yet now is an attractive moment to consider CU because utilities have spent the last couple of years under pressure from high interest rates. This pushed valuations down even though nothing changed about the underlying stability of the sector. As rate cuts begin and borrowing costs ease, dividend-heavy, low-volatility stocks like CU often see their pricing recover. Right now, investors can grab hold of the Canadian stock with a 4.3% dividend yield, trading at just 21.6 times earnings.
NWC
North West Company (TSX:NWC) is another of the safest Canadian stocks you can buy, as it thrives in places where competition is almost nonexistent. NWC operates grocery and general merchandise stores in remote Northern communities, along with parts of rural Alaska, the Caribbean, and the South Pacific. These are regions where residents rely heavily on the company for everyday essentials, and those essentials don’t stop selling when the economy slows down.
Another safety factor lies in NWC’s conservative management style. The Canadian stock avoids aggressive expansion and focuses instead on operational efficiency, supply-chain strength, and community-based partnerships that keep costs predictable. Its balance sheet remains healthy, and it hasn’t chased risky debt-fuelled growth like some other retailers. Even during periods of high inflation and supply-chain challenges, it continued to deliver dependable results.
What makes NWC especially appealing now is how resilient its margins and cash flow have remained despite inflation and higher transportation costs. Because it serves remote areas, the company has strong pricing power. Simply put, customers don’t have multiple alternatives, and NWC’s logistics network is unmatched in the communities it serves. That gives it a competitive moat that’s hard for other retailers to crack. Its consistent profitability supports a reliable dividend, which has grown steadily over the years and remains well covered by earnings. Today, you can grab it with a dividend yield of 3.4%, trading at 16.8 times earnings.
Bottom line
For long-term investors, CU and NWC offer exactly what safety looks like: essential services, low competition, stable margins, and a dividend backed by steady demand. Right now, here is what $7,000 could bring in for each Canadian stock.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CU | $42.42 | 165 | $1.83 | $301.95 | Quarterly | $6,999.30 |
| NWC | $47.94 | 145 | $1.64 | $237.80 | Quarterly | $6,943.30 |
Altogether, you aren’t buying hype or volatility; you’re buying a durable business that is likely to keep doing so for decades.
