The protectionist trade stance of former American leader, Donald Trump, has considerably altered the investment field. Nations affected by his tariff impositions retaliated with similar moves, initiating a trade conflict. Canada, a neighbor and long-standing commerce partner of the U.S., was also caught up in this throes. This new landscape forces Canadian investors to be more discerning with their stock options. As we scrutinize the Toronto Stock Exchange, a triumvirate of stocks stands out for their potential to weather trade war turbulence whilst ensuring investors’ capital protection.
AltaGas, an energy infrastructure behemoth valued at $11.15 billion, showcases some degree of immunity against U.S. tariffs. In the initial quarter (Q1) of 2025, this firm boasted impressive fiscal results and an unprecedented export volume of 119,241 barrels per day of liquefied petroleum gases. A glance at the first quarter ending March 31, 2025, reveals an 8.6% revenue increase year-over-year to $3.97 billion. However, the net income saw a small dip of 3.9%, landing at $392 million in comparison to Q1 2024.
AltaGas has successfully implemented measures to de-risk its operations and streamline its assets while persistently exploring avenues for growth. These actions aim to ensure persistent value for shareholders. To date, its stock performance has seen a +12.25% uptick. Stocks are priced at $37.27 per share, providing an attractive 3.38% dividend yield to interested parties.
AltaGas’s diversified operations and robust contract portfolio, largely comprising long-term contracts, equip it to ride out significant market swings and provide consistent returns. Around 85% of its normalized EBITDA stems from cost-of-service, take-or-pay, and fee-for-service contracts. Furthermore, should tariffs persist, AltaGas has strategies in place to target non-U.S. export markets.
Hydro One presents itself as a stable and low-risk investment, irrespective of the macroeconomic climate. As Ontario’s leading electricity transmission and distribution service entity, the $29.8 billion company seamlessly merges electricity transmission with local distribution. However, it does not house power generation assets. A review of Q1 2025 shows revenues and net income climbing by 11.2% and 22.2% to $2.4 billion and $358 million respectively.
The vigorous quarterly results mirror in the stock performance of Hydro One. Current investors have reaped +12.91% gains year-to-date atop a substantial 2.68% dividend at a stock price of $49.66 per share. Recently, the company successfully reinstated power in Central and Eastern Ontario following a historic icestorm.
Hydro One is committed to continual investment in Ontario’s electricity transmission and distribution schemes. This will not only boost reliability and performance but also address concerns related to old power system infrastructure.
Amid the turmoil induced by tariffs, Great-West Lifeco demonstrates robustness. The financial stock is exhibiting stronger than average annual performance on the TSX, recording +8.83% against the TSX’s +5.03%. Current stock price stands at $51.29 per share, and a handsome 4.67% dividend yield adds to the appeal.
Great-West Lifeco, a diversified financial services corporation valued at $47.7 billion, has established global client franchises without ill effects from trade disruptions or U.S. tariffs. In the first quarter of 2025, base earnings edged up by 5.3% year-on-year to reach $1 billion. However, net earnings from continuing operations saw a 17% reduction to $860 million compared to the prior year.
Despite this dip, the company’s primary business remains sturdy. Intriguingly, the U.S. sector continued to be a top growth contributor throughout the quarter.
So far, 2025 has been a profitable year for AltaGas, Hydro One, and Great-West Lifeco, outperforming market expectations. These three stocks display the qualities sought after by cautious investors – reliable returns and adequate safeguards against capital erosion amidst an ongoing trade war.
While the trade policy may have shaken the investment terrain, these stocks rise above the fray, offering investors a steady path amidst the rough seas of international trade politics. The combination of their dividends, price appreciation, and overall resiliency proves that careful selection can still result in promising options, regardless of wider concerns.
The performances of these companies in the face of a trade war shouldn’t be surprising, given their strategic business models and commitments to long-term value creation. They’ve shown that even in a turbulent trade environment, opportunities for growth and wealth protection can still be found.
Hence, for investors seeking to protect their wealth against the capricious currents of the global economy, these stocks may present a favorable port in the storm. Their demonstrated resilience and ongoing performance point towards a promising future, despite the unsettled winds of international trade.
Moving forward, their roles in their respective sectors – AltaGas in energy infrastructure, Hydro One in power transmission and distribution, and Great-West Lifeco in financial services – position them well to handle future market volatilities. Their proven adaptability to changing circumstances serves as a testament to their robust business models and investment potential.
In conclusion, while trade wars can prompt serious contemplations among investors, the success stories of AltaGas, Hydro One, and Great-West Lifeco underscore the fact that with careful selection and prudent management, one may still find sound investment options – ones not only able to withstand the current storm but also thrive regardless of prevailing tariffs.
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