The TSX Index’s momentum could carry into this new year, especially as more global investors look to prioritize value over growth. As a relatively value-heavy index, I do think the Canadian stock market remains a strong bet, especially when paired alongside the S&P 500. Given that many passive Canadians own both indices at the core of their portfolios, I do think that the path ahead could continue to be rewarding, provided one can handle bigger waves of volatility, which, I’m sure you’d agree, is certainly overdue.
So, how should investors seek to ride out a big wave before it has a chance to arrive?
The lower-multiple, lower-beta stocks seem like great places to be, especially if there are big dividends to collect every month or quarter. In this piece, we’ll look at two names that I think could be great buy-and-hold plays for the next 18 months.
If the next correction proves broad and vicious, though, no stock, even the non-tech value plays, could be safe havens. At the end of the day, lower-risk stocks does not mean free from risk, and low betas do not guarantee things cannot get stomach-churningly volatile, especially should investor sentiment shift from euphoric to fearful.
Without further ado, consider shares of Agnico Eagle Mines (TSX:AEM), which sports a nice 0.88% yield alongside a 0.63 beta, as well as Royal Bank of Canada (TSX:RY), with its 2.8% yield and 1 beta.
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Agnico Eagle Mines
Agnico Eagle Mines is coming off one of its best years, with shares more than doubling up for 2025 due to soaring gold prices. Undoubtedly, the stock has gotten choppier since the fourth quarter of 2025 due to choppiness (and even the feeling of toppiness) in gold.
Of course, increased choppiness might not be an early warning that the gold bull market is coming to a crashing end. Instead, it might be a normal round of profit-taking that creates another opportunity for dip-buyers to jump in. Personally, I think a name like Agnico Eagle is a better way to play gold, given its amplified rewards potential.
Indeed, miners have leverage and the means to really move higher as gold inches higher due to a broad range of macro tailwinds. As central bank buying continues and the miners continue producing efficiently, I see a path higher for names like AEM. Of course, the dips could be scary, but if you’re a long-term investor, I think it’s time to give the name a closer look, given the growth spurt and relative value to be had.
Royal Bank of Canada
Royal Bank of Canada shares are also quite hot after gaining nearly 35% in the past year. Despite the hot surge and the relatively small dividend yield (2.8% is the lowest I’ve seen it in a long time), I still see Royal Bank as getting its growth groove back, especially as interest rates fall and the bank looks for some of its tech-driven investments to pay off.
At 16.7 times trailing price-to-earnings (P/E), the $330 billion banking titan goes for a premium, but it’s one worth paying, in my view, for those seeking the best of the best. With a 1. beta, shares are about as volatile as the market. Between the TSX Index and RY shares, though, I’d rather go with the latter, given the potential runway ahead and the robust momentum behind the shares.
