Navigating Volatility: 3 Canadian Stocks to Buy Now

Backed by robust business fundamentals, strong financial performance, and encouraging long-term prospects, these three Canadian stocks offer stability and resilience, making them well-suited to help investors navigate the current market uncertainty.

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Key Points

  • Enbridge, Fortis, and Waste Connections are high-quality Canadian stocks offering stability, strong dividend growth, and resilience amid market volatility.
  • Enbridge’s robust yield and steady cash flows, Fortis’s consistent dividend increases, and Waste Connections’ strategic growth make them compelling long-term investments.

Although the S&P/TSX Composite Index climbed 0.85% on Friday, helping the market recover some lost ground, Canadian equities remained highly volatile throughout the week. Rising concerns about stretched valuations following sharp market rallies, coupled with growing unease over a potential AI (artificial intelligence) bubble, kept investor sentiment on edge. Consequently, the S&P/TSX Composite Index ended the week down 0.5%. Amid heightened market volatility, investors may consider bolstering their portfolios with these three high-quality Canadian stocks, well-positioned to deliver stability and resilience in uncertain conditions.

Enbridge

Enbridge (TSX:ENB) remains one of the most reliable dividend stocks to help investors navigate periods of heightened volatility. Its highly contracted business model, strong history of dividend growth, and attractive yield make it a dependable choice. The energy infrastructure giant generates roughly 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from regulated assets and long-term take-or-pay contracts. It also has minimal exposure to commodity price fluctuations, while a significant portion of its earnings is indexed to inflation, providing added protection against rising costs.

Backed by these stable financials, Enbridge has delivered an average annual shareholder return of 9.9% over the past decade. The company has also increased its dividend at a 9% annualized rate for 30 consecutive years and currently provides a solid yield of 5.6%. Looking ahead, Enbridge continues to expand its asset base with annual capital investments of $9–$10 billion. With these growth initiatives, management aims to reward shareholders by returning $40–$45 billion over the next five years, making the stock an appealing long-term buy at current levels.

Fortis

Fortis (TSX:FTS) is a leading electric and natural gas utility that serves 3.5 million customers through a predominantly regulated asset base. With most of its assets focused on low-risk transmission and distribution operations, the company generates stable and predictable cash flows regardless of broader economic conditions. Thanks to its resilient financial performance, Fortis has delivered an impressive annualized total shareholder return of 10.9% over the past decade. It has also increased its dividend for 52 consecutive years and currently offers a solid yield of 3.5%.

Moreover, Fortis continues to strengthen its growth outlook through capital investments. It deployed $4.2 billion in capital during the first three quarters and remains on track to meet its $5.2 billion investment target for the year. Looking ahead, Fortis has outlined a $28.8 billion capital expenditure plan for 2026–2030. These investments are expected to grow its rate base at a 7% annualized rate to $57.9 billion, supporting both earnings expansion and future dividend increases. Management also anticipates raising the dividend by 4–6% annually over this period, reinforcing Fortis’s appeal as a top-quality long-term buy.

Waste Connections

Given the essential nature of its business and strong financial track record, Waste Connections (TSX:WCN) is my third pick. The waste management company has steadily expanded its business through a combination of organic growth and strategic acquisitions, thereby strengthening its financial performance and supporting long-term share price appreciation. Over the past decade, WCN has generated an impressive average total shareholder return of 20.5%.

Looking ahead, management expects to maintain its pace of acquisitions, supported by a solid balance sheet and robust cash flows. The company is also leveraging technological advancements to boost operational efficiency, enhance safety standards, and improve overall profitability. Improved employee engagement and better safety metrics have contributed to lower voluntary turnover, further supporting margin expansion. In addition, WCN has increased its dividend at a double-digit rate for 15 consecutive years and currently offers a yield of 0.79%.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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