Like most investors, I don’t enjoy watching my portfolio lose value during a market pullback, but trying to predict exactly when the next dip will happen could force me to sit on the sidelines for too long. Markets can remain expensive longer than expected, and quality stocks could continue rallying while investors wait for a lower price that never arrives. With $1,000 to invest, I’d rather focus less on forecasting the next market correction and more on finding a company whose fundamentals give me confidence through one.
In this article, I’ll explain which Canadian stocks I’d put $1,000 into today and why their long-term fundamentals matter more to me than waiting for the next dip.
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Alimentation Couche-Tard stock
The first stock I’d want on my watch list before the next market dip is Alimentation Couche-Tard (TSX: ATD). Its recent pullback looks especially interesting when you compare it with the strength of its underlying business.
This global convenience and mobility retailer has a big portfolio of strong brands such as Circle K and Couche-Tard. After climbing 22% over the last year, ATD stock currently trades at $84.27 per share with a market cap of $77.4 billion. At this market price, it offers a 1% annualized dividend yield.
Interestingly, Couche-Tard ended fiscal 2026 (ended in April) with strong business momentum. In the final quarter of the fiscal year, its total revenue jumped nearly 20% year-over-year (YoY) with the help of higher fuel selling prices, acquisitions, favourable currency translation, and organic growth in its convenience business.
The retailer’s total gross profit also climbed about 19% YoY in the latest quarter. Meanwhile, the company’s adjusted net earnings surged 51.2% to roughly US$667 million. Stronger road transportation fuel margins and organic convenience growth were some of the key contributors.
During its fiscal 2026, Couche-Tard opened or rebuilt 130 stores and had another 34 stores under construction at year-end. Along with that, the retailer raised its annual dividend by 10.5% and repurchased 30 million shares during the year.
Overall, Couche-Tard currently offers strong earnings growth, expansion opportunities, and solid shareholder returns I’d want from a long-term investment. Its recent weakness already makes ATD stock look undervalued before another broader market dip creates an even better entry point.
Intact Financial stock
For my second pick, I’d balance Couche-Tard’s retail growth potential with Intact Financial (TSX: IFC), a large insurer whose shares have already cooled recently.
As a major property and casualty insurer, its operations span Canada, the United States, the United Kingdom, Ireland, and Europe. After sliding 7% year-to-date, IFC stock currently trades at $266.14 per share with a market cap of $46.9 billion. It also offers a 2.2% dividend yield.
Intact faced some challenges in the latest quarter due largely to elevated catastrophe and large losses. In the second quarter, its underwriting income fell 61% YoY to $305 million. Still, there were some important positives beneath that decline. The company’s operating direct premiums written grew 4% YoY to roughly $7.3 billion, mostly reflecting continued strength in personal insurance lines. Its book value also climbed 13% YoY to $111.73 per share.
Despite temporary challenges, the insurer maintained a strong 17% operating return on equity and finished the latest quarter with a strong $3.8 billion total capital margin. Meanwhile, it remains focused on exceeding the industry’s return on equity by 500 basis points and growing net operating income per share by 10% annually over time.
With a strong balance sheet, healthy returns, and shares already below their recent highs, Intact is another quality business I’d definitely be comfortable buying with a long-term mindset before the next market dip.
