8 Steady & Under-the-Radar Stocks

We shine a spotlight on “boring” and under-the-radar stocks—companies that may not be flashy, but offer solid, dependable returns. These are businesses with repetitive revenues, sticky business models, and essential services that quietly power the economy. Let’s uncover how boring can be sexy when investing!

You’ll Learn

Why Boring Stocks Deserve Your Attention
Boring doesn’t mean bad—it often means reliable, recession-resistant, and essential. These companies don’t rely on hype or rapid innovation but provide critical services we all depend on. From payroll systems to waste disposal, these businesses calm market chaos.

Automatic Data Processing (ADP): The Payroll Powerhouse

Bull Case: Offers essential payroll and HR solutions, generating recurring revenue. A trusted name with strong client retention and a near-perfect dividend triangle.
Bear Case: Vulnerable during economic downturns as layoffs reduce payroll volume; competition from nimble tech-driven firms.

Thomson Reuters (TRI.TO) (TRI): Quiet Legal Giant

Bull Case: Provides critical legal, tax, and corporate research tools. Clients are highly dependent, making it a sticky and cash-flow-stable business.
Bear Case: Multi-year contracts didn’t scale well with inflation; growth is modest and vulnerable to disruptive AI-driven solutions.

TMX Group (X.TO): The Stealthy Stock Exchange

Bull Case: Runs the Toronto Stock Exchange and sells high-margin data services. Strong recurring revenue and high barrier to entry.
Bear Case: Faces competition from U.S. giants; risk of declining trading volumes; must invest heavily to remain competitive.

Fastenal (FAST): The Boutique of Bolts & Nuts

Bull Case: Embedded with industrial clients through on-site stores and vending machines. Steady, recurring sales in essential components.
Bear Case: Margin pressure from large clients; slower EPS growth despite rising revenues.

Waste Connections (WCN.TO) (WCN): Trash With Class

Bull Case: Essential waste and recycling services with long-term contracts and landfill scarcity. High recurring revenue and strong pricing power.
Bear Case: High valuation; growth depends on acquisitions; rising regulatory pressure to reduce waste.

McCormick (MKC): Spice King of the Grocery Aisle

Bull Case: Leader in spices and seasonings with strong R&D and marketing. Constant cash flow from repetitive consumer purchases.
Bear Case: Limited growth potential; margin pressure from large retailers; not an exciting sector.

Hydro One (H.TO): Ontario’s Reliable Utility

Bull Case: 99% regulated operations, strong relationship with the Ontario government, and predictable cash flows. Investing heavily in infrastructure.
Bear Case: Political uncertainty; economic reliance on Ontario; growing debt load to finance CapEx.

A.O. Smith (AOS): The Water Heater Winner

Bull Case: Dominates U.S. water heater market with expansion in China and India. Offers products essential to modern living.
Bear Case: Vulnerable to trade wars and tariffs; tight margins outside U.S.; tied to construction and economic cycles.

Can You Build a Portfolio with Only Boring Stocks?
While tempting, it’s not enough. Boring stocks are a solid foundation but must be complemented by growth, innovation, and diversified exposure. Not all boring companies are good investments—some struggle or stagnate despite having low volatility.