Canada-U.S. trade tensions have the potential to impact even the best Canadian stocks on the market. And now that new import restrictions are targeting Canadian products, businesses that are dependent on cross-border trade are now facing even more uncertainty.
Fortunately, there are still plenty of great Canadian stocks that can withstand, if not even thrive under a tense trading relationship.
These are established businesses with steady revenue streams and less dependence on any single market.
Here’s a look at a trio of options to consider.
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Canadian National Railway keeps North American trade moving
The first of three intriguing Canadian stocks to consider is Canadian National Railway (TSX: CNR). Canadian National operates a massive network that connects the three different coastlines of North America. That makes the railway critical infrastructure for continental trade, regardless of what market those goods are moving to.
And while tariffs and import restrictions could lead to reduced trade volumes, the diversified nature of Canadian National’s business ensures that a drop in one type of freight can be offset by gains in another.
Specifically, Canadian National transports everything from grain, intermodal containers, petroleum and chemicals to forest products, automotive shipments, and other goods. Those goods are still needed, even during a tariff war.
In total, the railway hauls over $250 billion worth of goods each year.
Prospective investors considering Canadian National as one of the Canadian stocks to buy now should also note the company’s quarterly dividend.
Canadian National offers a yield of 2.16% and has provided investors with annual bumps to that dividend for three consecutive decades without fail.
Fortis operates largely outside the tariff fight
Another one of the great Canadian stocks to own right now is Fortis (TSX: FTS). Fortis is one of the largest utility stocks in North America. And being a utility, Fortis offers an entirely different form of defensive appeal.
The utility operates nine regulated electricity and natural gas businesses that serve nearly 3.5 million customers. Fortis’s network includes operations across Canada, the U.S., and the Caribbean, and nearly 95% of its assets are focused on electricity and gas transmission and distribution.
In a tariff war, that leaves Fortis largely removed from the impact of tariffs on cross-border trade. Fortis’s customers need electricity and natural gas service regardless of whether tariffs rise, fall, or disappear altogether.
That stability also allows Fortis to invest in growth and pay a quarterly dividend.
As of the time of writing, Fortis pays a yield of 3.4%. The company has also provided investors with annual increases to that dividend for over 50 consecutive years.
That’s the second-longest dividend increase streak in Canada, and for long-term investors, may be reason enough to consider investing in Fortis.
Couche-Tard is Canadian, but its business is global
Wrapping up the trio of Canadian stocks to consider is Alimentation Couche-Tard (TSX: ATD).
Couche-Tard operates a global network of convenience stores and gas stations. This gives the company exposure to dozens of markets around the world, including a huge presence in the U.S.
The company has always taken an aggressive stance on expansion, and in recent years that’s included branching out into complementary businesses from its core. That includes building an EV charging network and building out its car wash network.
Not only do those provide an additional growing revenue stream for Couche-Tard, but they’re also defensive, just like the company’s core business.
The defensive appeal of gas stations and convenience stores often gets overlooked. The fuel, food, beverages, and everyday purchases made at Couche-Tard remain in demand even during a tariff war.
This is where Couche-Tard’s geographic reach and recurring customer demand give the company ways to manage pricing pressures.
While Couche-Tard does offer investors a dividend, the 1.07% yield offered isn’t the primary appeal of the company. The main appeal is the stock’s growth, which has provided 60% growth over the past five years.
Are you buying these Canadian stocks today?
The U.S.-imposed import rules add another challenge for Canadian businesses, but they won’t affect every company equally.
That’s where the trio of Canadian stocks mentioned above comes into play. Each brings something different to the table, while still offering long-term growth potential and a dividend.
Those advantages could make these three Canadian stocks worth holding as Canada-U.S. trade tensions continue.
