And while short-term price fluctuations are just part of investing, they often cause investors to make emotional decisions at exactly the wrong time. That’s usually when people sell quality stocks out of fear, only to see them rebound once volatility subsides.
That’s why owning the right stocks is more important than ever in times of increased uncertainty. For example, high-quality companies with predictable cash flow, strong balance sheets and sustainable demand tend to hold up much better when markets get rough. Their stock prices may still fall in the short term, but they are much more likely to recover quickly and continue to build your capital in the long term.
In fact, the safest stocks to buy are often companies that provide essential services, operate in defensive sectors, dominate their markets with proven business models, or all of the above. Most importantly, these are the types of companies that can continue to generate revenue, pay dividends and grow even when economic conditions are less than ideal.
So if you’re looking for safe Canadian stocks that you can buy now and hold with confidence despite market volatility, here are a few top picks worth considering for long-term stability.
Three of the best stocks Canadians can buy today
One of the benefits for investors looking for safety is that some of the best and safest Canadian stocks to buy and hold for the long term are also among the highest quality dividend growth stocks on the market.
That makes sense though. For a company to be a reliable dividend growth stock for years to come, it must be consistently profitable enough to both continue to invest in future growth and increase its dividend every year.
That’s why these are three of the best safe stocks for Canadian investors to buy right now Brookfield Infrastructure Partners (TSX:BIP.UN), Fortis (TSX:FTS) and Enbridge (TSX:ENB).
Brookfield Infrastructure is one of the safest stocks to own because the entire company is built around building a globally diversified portfolio of key infrastructure assets such as utilities, pipelines, data infrastructure and transportation networks.
These assets generate predictable cash flows under long-term contracts, often with inflation-linked prices. That stability allows Brookfield to continue to grow its cash flow and steadily increase its distribution, even during economic slowdowns or volatile markets.
Dividend growth series
Brookfield has been expanding its distribution for over a decade now and today offers a yield of 5.1%.
Meanwhile, Fortis is one of the hottest stocks Canadians want to buy if they want a safe company. It is easily one of the most reliable companies on the market TSX thanks to its fully regulated utility activities.
And because cash flow is regulated and largely insulated from economic cycles, it is incredibly predictable, meaning Fortis can continue to invest in growing its business and increasing its dividend year after year, regardless of what the broader market does.
That’s why Fortis’s dividend growth has continued for half a century, and still offers an attractive yield of 3.6% today.
Meanwhile, Enbridge is another major company providing essential infrastructure to the North American economy. The pipelines, storage assets and utilities generate stable cash flow that is largely independent of short-term commodity prices.
That reliability has allowed Enbridge to pay and grow its dividend for decades, making it a solid stock to own despite market volatility.
Enbridge’s dividend growth has been going on for thirty years and currently offers a yield of 6%.
So if you’re looking for safe Canadian companies to buy now, these dividend growth stocks are among the best to consider.
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