Amid hopes that the United States and Iran are nearing a deal to end the war, global equity markets rose yesterday, with the S&P/TSX Composite Index rising 1.2%. However, concerns remain about the specifications and the deal’s outcome.
Given this uncertain outlook, I believe investors should consider strengthening their portfolios with these three all-weather stocks that are less prone to macroeconomic factors.
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Hydro One
Hydro One (TSX:H) is a pure-play electricity transmission and distribution company with no exposure to power generation. Since nearly 99% of its operations are rate-regulated, the company enjoys highly stable and predictable financial performance that is largely insulated from broader market volatility. Hydro One has steadily expanded through self-funded organic growth initiatives, which have supported consistent increases in its rate base, earnings, and share price.
Over the last five years, the stock has delivered total returns of approximately 128%, representing an annualized return of 17.9%. Meanwhile, the company has increased its dividend at an annualized rate of 5.2% over the past eight years and currently offers a forward dividend yield of 2.3%.
At the same time, rising electricity demand driven by economic expansion, transportation electrification, and the rapid development of AI-ready data centres is creating strong long-term growth opportunities for Hydro One. To capitalize on these trends, the company continues to advance its $11.8 billion capital investment program, which could expand its rate base to $32.1 billion by the end of 2027.
Given its regulated business model, dependable dividend growth, and strong long-term growth visibility, I believe Hydro One is an attractive investment in the current uncertain environment.
Waste Connections
Waste Connections (TSX:WCN) provides non-hazardous solid waste collection, transfer, and disposal services across North America. The company primarily operates in secondary and exclusive markets, where competition is relatively limited, allowing it to maintain stronger margins and generate stable cash flows. In addition to steady organic growth, WCN has significantly expanded through strategic acquisitions, completing more than 100 deals over the last five years that collectively contributed approximately $2.3 billion in annualized revenue. Backed by the essential nature of its operations and consistent execution of its growth strategy, the company has generated total returns of more than 290% over the past decade, representing an annualized return of 14.7%.
Meanwhile, WCN continues to strengthen its growth platform through ongoing expansion initiatives. After bringing six renewable natural gas (RNG) facilities into service, the company plans to commission several additional facilities by the end of this year. Supported by robust cash flows and a healthy balance sheet, management also expects to continue pursuing acquisitions, with multiple private-company opportunities currently in the pipeline.
At the same time, the company is focusing on improving operational efficiency through disciplined execution and increased adoption of technological advancements. Its declining voluntary employee turnover, along with stronger employee engagement and improved safety metrics, could further support its margin expansion.
Given its defensive business, consistent execution, and strong long-term growth prospects, I believe WCN is one of the most reliable Canadian stocks to own in the current market environment.
Dollarama
Dollarama (TSX:DOL) operates 1,691 discount stores across Canada and 402 stores in Australia, offering a broad assortment of consumer products at compelling price points. The company’s efficient logistics network and superior direct-sourcing model help keep costs low, enabling it to maintain strong margins while delivering value to customers. Its affordable product offerings have also supported healthy same-store sales growth, even amid a challenging macroeconomic backdrop.
Meanwhile, Dollarama continues to expand its footprint and expects to increase its Canadian store count to 2,200 and its Australian store count to 700 by the end of fiscal 2034. Supported by its capital-efficient business model, rapid sales ramp-up, and relatively low maintenance requirements, these expansion initiatives could drive strong long-term revenue and earnings growth.
The discount retailer could also benefit from the growing contribution of its investment in Dollarcity, which currently operates 732 stores across Latin America. Dollarcity plans to expand its network to 1,050 stores by the end of fiscal 2031. In addition, Dollarama has the option to increase its ownership stake in Dollarcity from 60.1% to 70% by the end of next year, which could further strengthen its long-term growth profile.
Considering its multiple growth drivers, resilient business model, and consistent execution, I believe Dollarama is an attractive stock to buy right now.
