4 TSX Stocks to Buy When Investors Flee Risk

When markets get shaky, these four TSX names offer “boring strength” through everyday demand and sticky recurring revenue.

Key Points
  • Dollarama tends to win when shoppers trade down, but the stock’s valuation is still rich.
  • Loblaw sells essentials like groceries and pharmacy, making demand steadier even in a weak economy.
  • Thomson Reuters and George Weston add subscription-style stability and diversified defensive exposure through food and property.

When investors flee risk, they usually want one thing above all else: predictability. That often means businesses people keep using in good times and bad, with steady cash flow, pricing power, and enough scale to handle a shaky economy. These stocks are not bargain-bin moonshots, but the kind of companies people tend to lean on when markets get jumpy.

woman holding steering wheel is nervous about the future

Source: Getty Images

DOL

Dollarama (TSX: DOL) remains one of the clearest “risk-off” ideas as it thrives when shoppers get cautious. The retailer keeps winning with low prices, fast inventory turns, and a business model that still works whether consumers feel flush or stretched. Over the last year, the big headline was its move into Australia through the acquisition of The Reject Shop, while Dollarcity kept expanding in Latin America and even opened more stores in Mexico.

In its latest reported quarter, fiscal 2026 Q3, sales jumped 22.2% to $1.9 billion, Canadian comparable-store sales rose 6%, and diluted earnings per share climbed 19.4% to $1.17. Management also raised its Canadian same-store sales outlook for fiscal 2026. The catch is valuation. With Dollarama stock recently around $180 and trading near 39 times trailing earnings, investors are paying up for quality. Even so, when fear rises, a premium business that keeps growing can still look worth it.

L

Loblaw (TSX: L) fits the same theme from a different angle. Canadians still need groceries, pharmacy items, and household basics, and Loblaw gives them all three through a wide national network. Over the last year, Loblaw stock kept leaning into discount banners, e-commerce, and convenience, while also announcing a deal for EQB to acquire PC Financial and a major 2026 investment plan tied to stores, supply chain, and jobs.

In Q4 2025, retail revenue rose 11.3% to $16.4 billion, adjusted diluted earnings per share (EPS) increased 21.8% to $0.67, and e-commerce sales climbed 19.6%. For the full year, retail revenue hit $63.9 billion and adjusted diluted EPS reached $2.43. The risk is that Loblaw stock no longer looks cheap, with the shares around $62 and a trailing price-to-earnings (P/E) around 29. Still, for investors running from risk, dependable food and pharmacy demand can justify paying a bit more.

TRI

Thomson Reuters (TSX: TRI) may not look defensive at first glance, but it sells mission-critical information and software to legal, tax, accounting, and corporate customers who cannot easily cut out those tools. That sticky recurring revenue becomes very attractive when markets get messy.

Even with that debate, the latest results were strong. Fourth-quarter revenue rose 5% to US$2 billion, adjusted EPS came in at US$1.07, and management forecast 2026 organic revenue growth of 7.5% to 8%. It also noted recurring revenue made up 84% of total revenue and raised the annual dividend by 10%. The stock has pulled back sharply this year, which makes the valuation look more reasonable at roughly 28 times trailing earnings. That’s not cheap, but it’s easier to accept for a company with sticky customers and strong margins.

WN

George Weston (TSX: WN) gives investors a two-in-one defensive setup through its major stakes in Loblaw stock and Choice Properties. That mix brings grocery stability plus real estate cash flow, which can feel comforting when risk appetite dries up. In the latest quarter, revenue rose 11.2% to $16.5 billion, adjusted diluted EPS increased 15.2% to $1.21, and net asset value per share climbed 29.3% to $115.86 for the full year.

Management pointed to customer gains at Loblaw stock and solid tenant demand at Choice. The obvious risk is that the shares have already had a strong run, and some valuation measures now look less forgiving. Even so, for investors seeking shelter, Weston still offers exposure to two steady businesses under one roof.

Bottom line

If investors keep fleeing risk, these four TSX names look built for that kind of market. Dollarama and Loblaw stock bring everyday demand. Thomson Reuters brings sticky subscription revenue. George Weston adds a sturdy mix of food and property. None are dirt cheap, so that’s the trade-off. But when the market starts acting dramatic, boring strength can suddenly look pretty exciting.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama and Thomson Reuters. The Motley Fool has a disclosure policy.

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