Since the start of the year, tech stocks have struggled. In fact, if you take a look at the most popular growth stocks of the past two years, it wouldn’t take you long to find out that many of these stocks currently trade at discounts of 30% or more. The question becomes, why is this happening? There are two main reasons.

First, interest rate hikes could hinder growth. This is because higher interest rates make it more difficult for companies to borrow money. As a result, many institutional investors are shifting capital away from growth stocks for the time being. Second, there continues to be conflict in Ukraine. As long as that remains unresolved, investors should expect to see a lot of market volatility.

With that said, there are great stocks that investors could buy today outside of the tech industry. In this article, I’ll discuss three of these companies.

Buy one (or more) of the Canadian banks

As mentioned previously, interest rates are increasing. However, that doesn’t spell trouble for companies in all sectors. In fact, it creates better conditions for companies in the financial sector. Historically, banks have seen a widening in their profit margins as interest rates increase. Because of this, investors should consider buying shares of one of the Canadian banks.

Of the Big Five Canadian banks, my top pick is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). I believe the company offers investors an excellent mix of growth and stability. In terms of growth, Bank of Nova Scotia is uniquely positioned as a very international company. With 2,000 branches and offices across 50 countries, it’s Canada’s most international bank. This geographic diversification could be a source of growth, as many of its international regions are expected to grow faster than the economies within the G7.

Bank of Nova Scotia is also an excellent dividend company. It has paid a dividend to shareholders for the past 189 years. In addition, its dividend has a strong history of growth. Bank of Nova Scotia is listed as a Canadian Dividend Aristocrat, which puts it among the elite in that regard.

Buy companies that operate in reliable industries

In addition to banks, investors should look for excellent companies that operate in reliable industries. By this, I mean industries that don’t experience significant slowdowns during periods of economic uncertainty. The two companies I’d like to bring forward are Metro (TSX:MRU) and Fortis (TSX:FTS)(NYSE:FTS).

Metro is a grocery company that operates in Ontario and Quebec. With nearly 1,000 locations, Metro is a massive company that consumers rely on for their everyday groceries. It operates its namesake Metro locations in addition to Food Basics, Super C, and Marché Richelieu stores. Year to date, Metro stock has gained nearly 5%. That outperforms the TSX, which has gained about 1% so far this year.

Fortis provides regulated gas and electric utilities to 3.4 million customers across Canada, the United States, and the Caribbean. This company is one of the most remarkable dividend stocks in Canada. It’s listed as a Canadian Dividend Aristocrat with a dividend-growth streak of 47 years. That gives Fortis the second-longest active dividend-growth streak in the country. As long as cities need to operate, Fortis will always have clientele. In addition, its revenue is highly stable and predictable. That makes it one of the most reliable stocks available.

The post 3 Stocks Outside the Tech Sector to Buy Today appeared first on The Motley Fool Canada.

More reading

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• This Beginner-Friendly Stock Could Outperform “Sexy Stocks” in 2022
• 1 Undervalued Stock to Buy as the Ukraine-Russia Crisis Worsens
• Fortis (TSX:FTS): A Boring Stock That’ll Have Your Back in a Bear Market
• What Lies Ahead? Corporate Credit Reaches $114 Billion Despite Higher Costs

Fool contributor Jed Lloren owns BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC.