Resource stocks have taken a well-documented beating of late, bringing the Canadian market down with them. However, there is a collection of stocks from other sectors that have shrugged off this resource-centric meltdown and merrily gone about their business.
Shoppers Drug Mart (TSX:SC) faced some selling pressure earlier in the year when provincial governments agreed to cap the price on six of Canada’s most popular generic drugs. This sell-off was short-lived and the shares have rallied by 8% since to sit within a whisper of their 52-week high. Shoppers pays a healthy dividend and provides a great place to hide for beleaguered resource investors.
BCE Inc. (TSX:BCE,NYSE:BCE) is another name that has a dominant market position and hasn’t skipped a beat during the Canadian market’s decline. Like Shoppers, BCE pays a healthy dividend and can be expected to hang-in nicely as shell-shocked resource investors seek out the relatively few safe havens that exist in our market.
Another collection of names that has provided investors with a security blanket during this time of need is the grocers (or at least grocery related). Though they have levelled off of late, Metro (TSX:MRU) shares had a great past year, knocking down a near 22% return. Loblaw (TSX:L) owner George Weston (TSX:WN) achieved a similar return over this period. Loblaw itself is another valid option for those seeking shelter. Expect these grocery stocks to play a similar safe haven role as Shoppers and BCE if investors continue their stampede out of resources.
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Fool contributor Iain Butler does not own shares in any of the companies mentioned at this time. The Motley Fool has no positions in the stocks mentioned above.
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