Steady Performers: 3 Safe Stocks for Investors as Interest Rates Rise

Rising interest rates and general market volatility have led many to seek comfort in safe stocks for investors. Fortunately, the market provides many options to consider investing, even in times that are easy.

Here are three safe stocks for investors to consider buying now, even in the face of rising interest rates.

This stock provides a solid defensece

During times of uncertainty, investors look for defensive stocks that can move the market. And that defensive appeal is just one of a few reasons why Fortis (TSX:FTS) is one of the safe stocks for investors to consider.

Fortis is one of the largest utilities in North America. The company boasts 10 operating regions with operations across the US, Canada, and the Caribbean. That geographic diversity coupled with a profitable business model makes Fortis one of the most defensive stocks in the market.

In short, utilities provide services backed by long-term regulated contracts that last for decades. This translates into a recurring and stable revenue stream, which the utility uses to invest in growth and pay dividends.

In the case of Fortis, that dividend works out to a respectable 4.02%. Fortis has also given investors a solid 49 consecutive years of dividend hikes and is on track to hit the 50-year milestone.

While this stock provides growth

Some stocks provide growth only at certain times of the year. Fortunately, Alimentation Couche-Tard (TSX:ATD) is one of the growth-oriented safe stocks that investors can buy all year.

Couche-Tard is one of the largest convenience store and gas station operators on the planet. That’s one part of the market that investors often dismiss, despite the general stickiness of the business model. In fact, Couche-Tard has been one of the best performing stocks in the market over the past decade, up more than 500%.

In the following 12-month period, the stock rose 30%.

So, what makes this a safe stock for investors to consider? Besides the defensive appeal of its business, Couche-Tard takes an aggressive stance towards growth, from acquisition and evolution.

In fact, earlier this year Couche-Tard acquired nearly 2,200 gas stations across Europe in a $3.3 billion deal. And that’s just the beginning.

Couche-Tard continues to evolve its traditional gas station and convenience model to accommodate market shifts – in particular, the introduction of EV charging stations and services for customers who charging.

Couche Tard has already established a 200-site EV charging network in North America, following similar developments in Europe. The network is scheduled to be fully operational next year.

This stock can provide income

Another safe stock for investors to consider buying now is Bank of Montreal (TSX:BMO). BMO is Canada’s oldest bank and boasts nearly two centuries of dividend payments without fail. Now, that yield works out to a juicy 4.95%, making it a great addition to any well-diversified portfolio.

But what makes BMO a safe stock to consider given the rapidly rising interest rates we’ve seen? That comes down to some important points.

First, we have the potential to grow. Earlier this year, BMO acquired California-based Bank of the West. The deal expands BMO’s US footprint to 32 state markets, adding hundreds of branches and billions in deposits and loans.

The deal also propels the bank into position as one of the largest lenders in the US market.

Second, we have the BMO dividend. In addition to the juicy yield mentioned above, BMO has provided annual or better bumps in that dividend for more than a decade. Prospective investors with $20,000 to invest in BMO can expect to generate an income of around $1,000 in the first year.

And perhaps best of all, investors who aren’t ready to take that income can still choose to reinvest those earnings, allowing them to grow until needed.

Line your portfolio with safe stocks for investors

No investment is without risk, and that includes the trio of stocks mentioned above. Fortunately, the above stocks have significant defensive appeal that can help turn the market around in time.

In my opinion, one or all of the above stocks should be part of any well-diversified portfolio.