Lower-than-expected inflation has raised hopes of rate cuts by the Federal Reserve and also eased recession fears, driving the global equity markets. The S&P/TSX Composite Index has bounced back strongly to trade 4.5% higher than this month's lows. However, a few economists remain cautious and are skeptical about the recent bounceback. If you also believe the equity markets will be volatile in the coming quarters, here are three top defensive stocks you should buy now.

Dollarama

Dollarama (TSX:DOL) is a Canadian discount retailer that offers various consumer products at attractive prices through its superior direct sourcing and efficient logistics. It operates 1,569 stores at convenient locations across the country. Given the retailer's value offerings and a broad assortment of consumable products, the company has enjoyed healthy same-store sales even during a challenging macro environment.

Further, management expects to expand its footprint to 2,000 stores by the end of fiscal 2031. Given its cost-effective business model, quick sales ramp-up, and a lower average payback period, these expansions could boost its top and bottom lines. Further, the discount retailer has raised its stake in Dollarcity, a retailer with extensive presence across Latin America, from 50.1% to 60.1%. Meanwhile, Dollarcity hopes to increase its store count from 547 to 1,050 by fiscal 2031. The increased stake and growing stores could boost Dollarcity's contribution towards Dollarama. Besides, it has also raised its dividends 13 times since 2011.

Considering Dollarama's solid underlying business and healthy growth prospects, I believe Dollarama would be an excellent buy at these levels.

Fortis

Fortis (TSX:FTS) operates 10 highly regulated utility assets across the United States, Canada, and the Caribbean. So, its financials are less susceptible to macro factors, delivering stable cash flows and allowing it to raise its dividends for 50 consecutive years. Given its capital-intensive business, the company has witnessed healthy buying over the last few weeks amid rate cuts by the Bank of Canada. Its stock price has increased by around 15% compared to its June lows. Despite the recent surge, the company's valuation looks reasonable, with its price-to-book multiple at 1.4.

Further, Fortis has adopted a five-year plan to make a capital investment of $25 billion from 2024 to 2028. These investments could grow its rate base at an annualized rate of 6.3% from $37.1 billion to $49.4 billion by 2028. With the company generating around 66% of these investments from the cash generated from operations and equity offerings, its debt levels would not substantially increase. Meanwhile, management expects these growth initiatives to boost its cash flows and hopes to raise its dividends by 4-6% annually. Considering all these factors, I believe Fortis would be an attractive buy at these levels.

Waste Connections

Another top defensive stock that you should buy would be Waste Connections (TSX:WCN). This waste management company operates in exclusive and secondary markets across the United States and Canada. It is expanding its operations through organic growth and acquisitions. Year-to-date, the company has made 18 acquisitions, which can contribute $500 million to its annualized revenue. Meanwhile, management expects its M&A (merger and acquisitions) activities to continue in the second half of this year. Overall, the contribution from these acquisitions could increase to an annualized revenue of around $700 million by the end of this year.

Waste Connections is also constructing several renewable natural gas and resource recovery facilities, which could become operational in the coming years. Its financial position also looks healthy, with liquidity of $1.3 billion and a debt-to-adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 2.7. Moreover, the company has raised its dividends at an annualized rate of 14% since 2010.