These are the types of stocks you always want to own. A truly top-tier company can provide investors with stability and peace of mind without sacrificing long-term growth potential.
Then there are defensive stocks, which take that reliability one step further. These are the stocks you buy specifically to strengthen your portfolio during uncertain or volatile markets.
Typically, these companies are large, highly capitalized companies. Their size often makes them so safe and reliable, but it also limits their advantage. They may never increase in value as much, but they are among the most reliable and consistent investments you can own.
The strongest portfolios usually have a combination of both. High-quality stocks with more growth potential and a little more risk, along with ultra-safe stocks that you can buy and hold with confidence for years to come.
So if you’re looking for safe stocks to buy now, here are two of the best Canadian picks to consider.
These ultra-safe utility stocks are one of the best investments you can buy right now
If you’re looking for a safe stock to buy and hold in your portfolio for decades to come, there’s no doubt Fortis (TSX:FTS) is one of the very best. In fact, it may be the lowest risk stock on the TSX.
Fortis is a regulated utility company that owns electricity and natural gas assets in Canada, the United States and the Caribbean. This means that returns are largely determined by regulators and that demand is extremely stable.
In other words, Fortis generates a very predictable cash flow every year, which makes it so safe. Not only does the company consistently make a profit, but it also continually grows its earnings, its dividend, and the money it invests in future growth.
So while Fortis never offers explosive growth, it is the safe and consistent performance that leads to significant improvement in the long term.
For example, even as one of the lowest risk stocks on the TSX, Fortis has delivered investors a total return of approximately 175%. That’s a compound annual growth rate of about 10.6%.
Moreover, Fortis not only has ultra-safe operations, as evidenced by its fifty-year dividend growth; it is also one of the least volatile stocks in Canada, with a beta of just 0.4.
So if you’re looking for a safe stock that you can buy now and hold for years, Fortis is easily a top choice; it trades around just $70 per share and offers a yield of approximately 3.6%.
A massive $140 billion energy infrastructure giant
Besides Fortis, there’s another safe stock you can buy right now for under $200 Enbridge (TSX:ENB).
Enbridge is a reliable investment because it operates one of the largest energy infrastructure networks in North America, including pipelines, storage facilities and natural gas distribution assets.
That means Enbridge provides essential operations, and most of its cash flow is generated through long-term asset contracts. So while Enbridge’s future earnings and cash flow aren’t as predictable as Fortis’s, the company is still incredibly resilient.
Furthermore, because of its defensive activities, contracted cash flow, and the fact that it keeps its payout ratio very safe, Enridge is easily one of the best dividend stocks you can buy.
Not only does it offer a yield of over 6%, but it has also increased its dividend every year for over thirty years. Furthermore, the 2026 payout ratio is estimated at only 64% to 68% according to the guidelines.
So if you’re looking for high-quality, defensive stocks to buy with attractive yields that are safe, Enbridge is easily one of the best choices on the TSX.
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