The recent dip in the stock market is reminding investors that volatility is part of the investing process.
As a result, some people might be evaluating their portfolios to make sure they aren’t overweight in stocks that have a tendency to make significant short-term moves in one direction or the other, depending on the market’s mood.
Let’s take a look at two boring, but relatively stable stocks to consider for your portfolio right now.
Waste Connections Inc. (TSX:WCN)(NYSE:WCN)
The garbage collection and disposal business might not be very sexy, but the sector is recession-resistant, and Waste Connections is one of the best names in the industry.
The company provides waste collection, transfer, disposal, and recycling services in the United States and Canada.
Adjusted net income in Q3 2017 was $0.60 per share, up from $0.48 per share in the same period the previous year. The company generates significant free cash flow, raising its dividend by nearly 17% in October.
If you want a stock that you can simply buy and forget for a couple of decades, this one should be on your radar.
Fortis Inc. (TSX:FTS)(NYSE:FTS)
Fortis own natural gas distribution, electric transmission, and power generation assets in Canada, the United States, and the Caribbean.
Essentially, the company is responsible for providing the bare necessities people need to turn on the lights, heat their homes, and cook their food.
Economic turbulence or international upheaval won’t have too much of a direct impact on this company, so investors should feel comfortable owning the stock through troubled times.
In addition, most of the revenue comes from regulated assets, so cash flow should be predictable and reliable.
Management plans to raise the dividend by at least 6% per year through 2022. Fortis has increased the payout every year for more than four decades, so investors can probably bank on the guidance.
The stock currently provides a yield of 4%.
Is one more attractive?
Both stocks should be solid buy-and-hold picks and give investors good exposure to the United States. Waste Connections is probably the safest pick, but Fortis offers a higher dividend yield.
If you’re looking to add some low-beta names to your portfolio, I’d probably split a new investment between the two companies.
For those searching for something more exciting, there are certainly other interesting opportunities on the radar.
