3 TSX Stocks to Be Greedy About — Not Fearful

These stable TSX stocks are perfect for Canadians worried about losses on the TSX today but want in on the growing action.

| More on:

There are a lot of Canadians out there who may be scared about the current market conditions. In fact, at the time of writing this article, the TSX today has started dropping after the Bank of Canada announced a 50-basis-point increase to the interest rate.

But it’s important that when a downturn like this happens, Canadians seek out opportunities. Now, I’m not saying you should buy up growth stocks. Far from it. If you’re nervous about investing, that’s certainly not for you.

Instead, look into strong companies you can buy cheap for quick returns — ones that will last decades. And luckily, I have three TSX stocks to recommend so you can be greedy, not fearful.

Fortis

A strong option to consider is Fortis (TSX:FTS)(NYSE:FTS), a utilities stock that offers stable returns as well as dividend increases. The company uses its revenue growth to support its dividend and further acquisitions, which then feed back into dividends and returns. It’s a stable business model that’s lasted half a century.

In fact, if you want stability, then TSX stocks like Fortis offer you that in spades. There has been rarely a dip in the share price, even during recessions. Today, shares are up 88% in the last decade. Meanwhile, you have access to a dividend yield of 3.31%. So, now is the time to pick up this stock if you want TSX stocks for defence in your portfolio.

CP Rail

If you’re a long-term investor, now is an excellent time to consider buying Canadian Pacific Railway (TSX:CP)(NYSE:CP). In the short term, the company has a lot of debt to manage thanks to the purchase of Kansas City Southern. But in the long term, it now has access to all the lines KCS has to offer. And that includes oil, grains, and shipping from Mexico.

That makes this one of the best stocks to buy, as it grows at a stable pace, with the potential to explode once debt comes down over the next few years. And it’s had astounding growth, rising 500% in the last decade. Plus, you can pick up a dividend of 0.84% as the company climbs.

Loblaw

Finally, one of the best TSX stocks you can buy are ones that deal with essentials. We learned that during the pandemic, and on the TSX today, it’s not any less true. That’s why Loblaw (TSX:L) remains a strong purchase for those seeking income from essential services.

Loblaw is now the umbrella company over drug stores, gas stations, and grocery stores. Even during a recession, it does well, with clients simply choosing No Frills over Loblaw locations. It’s this loyalty that comes direct from its ever-expanding President’s Choice points program.

Shares have done well over the last decade. During that time, they’ve climb 285% but are down a bit now, offering a significant deal for long-term investors. Plus, you get access to a 1.39% dividend yield at writing.

Bottom line

These TSX stocks are perfect for those seeking a deal, but don’t want a huge drop in returns over the next few years. Each provides stability for Canadian portfolios, while also offering a cheap share price during the market downturn.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Canadian Pacific Railway Limited and LOBLAW CO. The Motley Fool recommends FORTIS INC.

More on Stocks for Beginners

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

concept of real estate evaluation
Stocks for Beginners

2 No-Brainer Real Estate Stocks to Buy Right Now for Less Than $1,000

These two real estate sector-focused stocks have the potential to deliver strong returns on your investments in the coming years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »