Investing During a Trade War? Sure, With These 3 Blue-Chip Stocks

Here’s why these three blue-chip stocks are not just ideal stocks to buy during a trade war; they’re stocks you’ll want to own for years.

Key Points
  • Fortis for Reliable Utilities and Growth: Fortis (TSX:FTS) offers stability with its regulated utilities and plans to expand infrastructure, targeting 7% annual rate base growth and 4% to 6% dividend growth through 2030, making it a solid choice amid trade tensions.
  • Waste Connections for Essential Services: Waste Connections (TSX:WCN) provides essential waste management services with limited competition and diverse growth opportunities, ensuring steady cash flow despite uncertain trade environments.
  • Loblaw for Resilient Retail Operations: Loblaw (TSX:L) adapts to rising costs and changing consumer behavior with diverse grocery strategies and expanding discount stores, complemented by pharmacy growth, securing its position as a resilient blue-chip stock.

There’s no question that a trade war creates a tonne of uncertainty for investors, especially when the tariffs keep changing. Even blue-chip stocks can get caught up in the selling when tariffs raise costs or people worry about what might happen next.

However, that doesn’t mean you need to stop investing until trade tensions disappear. With that said, these environments can be an excellent reminder that the best stocks to buy and hold for years are businesses that already generate reliable cash flow and have operations that can continue growing even if the economy slows.

That’s especially true now that Canada’s new counter-tariffs on certain U.S. goods have taken effect. Rather than trying to predict the next announcement, it’s far better to look for companies whose long-term growth doesn’t depend entirely on goods moving across the border.

So, if you’re looking for blue-chip stocks that you can continue to buy during a trade war, here are three of the best to buy and hold for years.

Warning sign with the text "Trade war" in front of container ship

Source: Getty Images

Two blue-chip stocks to buy through the uncertainty

There’s no question that some of the most defensive stocks you can buy, especially in the current trade war, are high-quality utility stocks. And while there are several top-notch utility stocks to choose from, Fortis (TSX: FTS) is undoubtedly one of the best.

Fortis owns nine regulated utilities serving roughly 3.5 million electricity and natural gas customers across Canada, the U.S., and the Caribbean. That already makes it a dependable business.

However, as defensive and reliable as Fortis is, it’s not just a stock to own because its customers will keep using power. It also has a $28.8 billion plan to build and upgrade its infrastructure between 2026 and 2030.

As those projects enter service, they expand the base of assets on which Fortis can earn regulated returns. Management expects that rate base to grow by roughly 7% annually and is targeting dividend growth of 4% to 6% a year through 2030.

Tariffs could potentially make some equipment more expensive. However, they don’t change the need to maintain and expand electricity and gas networks, which is why Fortis is easily one of the most reliable blue-chip stocks to consider buying today.

Another high-quality Canadian blue-chip stock to consider in the current environment is Waste Connections (TSX: WCN), which collects and disposes of waste for roughly nine million customers across Canada and the United States.

Waste management is an essential service, and much of Waste Connections’s business is local, often in markets where it has exclusive service rights or limited competition.

It also owns landfills and transfer stations, so it can handle more of the waste it collects rather than relying entirely on someone else’s facilities.

That gives Waste Connections several ways to grow, whether by adding customers to routes it already runs, raising prices where its contracts allow, or buying smaller waste businesses that fit into its existing network.

A retailer with plenty of ways to adapt

Finally, in addition to Fortis and Waste Connections, a consumer staples stock like Loblaw (TSX: L) is another high-quality blue-chip stock to consider buying in the current environment.

Loblaw has several ways to respond when costs rise and Canadians become more careful with their spending.

For example, the company has been marking tariff-affected products, helping shoppers find Canadian alternatives, and continuing to add suppliers. It also has its own brands and discount stores, including No Frills and Maxi, so customers looking to spend less can still shop within Loblaw’s network.

And Loblaw is continuing to expand that network. It now expects to open roughly 75 new locations in 2026, with much of its grocery expansion focused on discount stores.

Furthermore, its pharmacies and healthcare services give it another source of long-term growth beyond groceries.

So, while higher import costs could still put pressure on its margins, Loblaw has the size, scale, and supplier relationships to continue adapting as the environment changes, which is why it’s certainly one of the best blue-chip stocks Canadians can buy today.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Waste Connections. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Investing

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Energy Stocks

Why Canadians Love Dividend Stocks (and What Beginners Should Know)

Canadian stocks like Enbridge are prime examples of the many benefits of dividend stocks, such as reliability and income.

Read more »

Two seniors walk in the forest
Dividend Stocks

Can Dividends Replace a Paycheque in Retirement?

Can dividends in retirement replace your paycheque? Explore how Scotiabank, RioCan REIT, and Fortis can help build a steady retirement…

Read more »

Sliced pumpkin pie
Dividend Stocks

The Fees That Quietly Eat Into a Small Investment

Many funds charge outrageous fees, but broad market index funds like the iShares S&P/TSX Capped Composite Index ETF (TSX:XIC) usually…

Read more »

Warning sign with the text "Trade war" in front of container ship
Stocks for Beginners

Trade Wars Are Reshaping Canada’s Export Map: This Railway Stock Could Benefit

CPKC could benefit as Canadian exporters seek new trade routes, but new destinations need to produce profitable freight.

Read more »

dividends grow over time
Dividend Stocks

The U.S. Dollar is Rising Again: Here’s What VFV Investors Should Know

VFV investors receive both U.S. equity returns and currency translation.

Read more »