Top Investments To Hedge Against Inflation in Canada 2025

The stock price shot up to $71.3 from a price of $20, in Feb-2021 after dropping back to previous trading price levels. Since the oil prices are on the rise, we can expect more positive growth drivers for the company. Therefore, during the current inflation period, Exxon Mobil is a great buy. Inflation is the continuous increase in process of commonly used goods and services.

TSN stock has returned over 858% total return over the past 20 years and increased its dividend by more than 1,000% during the past decade. Meanwhile, surging inflation can also be a problem if you’re an investor. However, you can tackle the effects of high inflation by investing in the best commodities and assets.

Twilio’s losses widened by $225 million to $457 million in the third quarter while revenue climbed by 33% to $983 million. Signify Health offers healthcare payment programs to governments, employers, health systems, health plans, and physicians to millions of people. Its major customers include the U.S. government’s Medicare program. The company announced in September that it would be acquired by CVS Health for about $8 billion, with the transaction expected to close early in 2023. For Q3, Signify had a net loss of $225 million and a 30% decline Best stocks for inflation 2022 in revenue to about $140 million. Occidental Petroleum was the top stock of 2022 in a list loaded with energy firms, while Affirm Holdings led losers a more diverse bottom five.

• If you want to skip reading about the performance of cyclical stocks during different economic cycles, you can go directly to 5 Best Cyclical Stocks for Inflation.
• Analysts see more than 60% upside potential out of JD shares in 2022, making it potentially one of the best international stocks to invest in – but extreme caution is warranted.
• In the year 2021, the stock has appreciated by 26% and the stock continues to grow further.
• Real estate is another investment that does a good job of keeping up with inflation, particularly real estate investment trusts (REITs).
• Inflation is a normal and regular phenomenon — and a smart investor can purchase strategic investments to hedge against it.

Best Canadian Dividend Stocks – July 2025

And there are wildcards in oil markets that could drive prices higher. The company has increased sales and earnings every year since 2010. Appreciating this fact requires stepping back a bit from the noise that can be created in quarterly reporting. With that in mind, here are five of the best inflation-proof stocks. We wrote about the stocks below as good inflation hedges back in August, and here we check in on them again. The companies have continued to perform well, even if in some instances the stocks have not.

• The company was founded in 2007 and is headquartered in Vancouver, British Columbia.
• An increased focus on green energy projects across the world means increasing demand for copper wire.
• BMO Capital analyst Phillip Jungwirth is among 14 of 18 analysts covered by TipRanks who have issued a positive opinion on the stock over the past three months.
• The eponymous chain features branded and private-label goods, generally at a $1.25 price.

So, this could reduce the amount of spending and eventually lower inflation. This company runs discount stores in Canada and the United States. In 2022, it had a 48.1% increase in earnings per share and a 19.2% lift in gross profit. So, if you want the best stock to invest in when inflation is on the rise, Newmont Corporation deserves a spot in your portfolio.

Ten best inflation-proof investments

Next year, B2Gold is forecasting total gold production between 990,000 and 1.1 million ounces at an all-in cost of production between $1,010 per ounce and $1,050 per ounce. Currently, it is anticipating adjusted earnings per share (EPS) of 38 cents and $1.8 billion in revenue for the full year – which would be modest improvements over 2021. Moore and Asato both say that certain sectors — and certain types of stocks — do better than others during inflationary periods. Here’s what advisors say about investing during periods of high inflation, and how to find the best stocks for inflation.

But if you have a long investing timeline and can afford to take on more risk, buying stocks has the potential for much higher returns. Treasury Inflation-Protected Securities (TIPS) are another good investment during periods of high inflation. These government-backed bonds increase in value as the Consumer Price Index rises, so the value rises with inflation. TIPS can help you reduce volatility in your portfolio, but they aren’t as attractive once inflation returns to normal levels. Higher inflation isn’t necessarily bad for stocks, and inflation rates between 1% and 3% are considered to be good for the stock market.

Look for stocks with pricing power

RBC, TD, National Bank and the Canadian National Railway, as well as many of Canada’s energy stocks are the best canadian dividend stocks for inflation – probably. Keep in mind that predicting inflation is quite difficult if not not impossible. What you can do is hedge against inflation risk by making sure your net worth is invested in assets such as stocks – and not becoming devalued in a savings account somewhere. They have proven time again to be very safe, and very effective at passing costs on to an accommodating Canadian consumer base. If prices go up at that rate for 12 months, our inflation rate for the past year will be 5%.

High inflation hurts investors in a couple of different ways, according to financial advisors. But it also affects some stocks less than others, and it can even be good for certain sectors of the market. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. We dive into why the stock market might be negatively impacted during periods of high inflation and how you can find the best stocks for inflation.

That effect reflects the market’s tendency to rise during the last five trading days in December and the first two days that the market is open in January. Copper’s impact on Barrick Gold’s bottom line is growing, CEO Mark Bristow stated during the company’s fourth-quarter 2021 conference call. This additional hedging might be advantageous during times of excessive inflation. Stag Industrial’s dividend growth has slowed to a crawl during 2018, totaling just under 3 percent.

Devon Energy

PepsiCo stock shares many attributes with Coca-Cola, but it enjoys an added inflation advantage that KO lacks. The company owns strong consumer brands that will remain attractive even if inflation bites, but there’s more. Although real estate and precious metals seem profitable during inflation, fine wine tends to be more worth it. That’s because the fine wine market is less volatile and usually outperforms most stocks. According to the grim quarterly earnings report, most retail stocks performed poorly during the inflationary period in 2022.

Merck & Company is a pharmaceutical giant that develops drugs to treat everything from cancer to shingles. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. While in absolute terms, these are good numbers, notable was the improvement in the gross and operating margins.

“Both are experiencing strong FFO growth, neither should be classified as highly cyclical, in our view, and overall industry trends likely to play out in the next few years remain positive.” “Shareholder returns also continue to impress,” adds Truist analyst Neal Dingmann (Buy), “with an even higher base dividend and an incremental $500mm in non-core asset sales expected.” That doesn’t mean you can afford to fall asleep on PDBC’s tax consequences. That 13%-plus yield comes in the form ordinary income – so rather than the favorable long-term capital tax rates that qualified dividends face, this income is taxed at higher ordinary tax rates. So the smart play here is to hold PDBC in a tax-advantaged account like an IRA or Roth IRA. Oil isn’t alone – many commodities also enjoy a boost during periods of accelerating consumer prices.

So they’re actively managing it to attack that problem,” Moore says. Even when oil prices are high, consumers still need gas and buy it, sometimes choosing to cut spending in other areas. You may also want to take advantage of traditionally low-risk investments, like Treasury bonds, certificates of deposit (CDs) and high-yield savings accounts. These investments are unlikely to build long-term wealth by themselves, but they’re less volatile than investing in the market. They’re especially attractive in high-interest-rate environments.

In addition to sustained production levels, the mining company announced plans to invest $108 million to investigate the feasibility of an underground mine below the existing open pit at Kennecott. In addition to it, the company also declared a special dividend of $1.85 per share for the same period. The best energy stocks will change from year to year, but if you want to leverage oil’s strength as one of the best inflation-proof investments, the pros say Diamondback Energy (FANG, $145.17) is one of your top options. We like the United States 12 Month Oil Fund LP (USL, $35.82) – a fund we listed among our best energy ETFs this year.