3 Top Stocks to Recession-Proof Your Portfolio

Investors looking to diversify their portfolios with defensive stocks should consider adding BCE Inc. (TSX:BCE)(NYSE:BCE) and several other promising investments.

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While the market is still up impressively in 2019, there are increasing signs across a broad segment of the economy that a pullback could be coming at some point in the future. To counter that threat, investors often turn to defensive stocks that hold significant opportunity. Here are several such stocks worth a look at.

BCE (TSX: BCE)(NYSE: BCE) is one of the largest telecoms in Canada, with an impressive network that blankets the entire country in terms of coverage. As well, BCE also has a large media segment with interests in TV and radio stations. BCE’s wireless segment is by far the one area that prospective investors should be focusing on.

Wireless connections have become a staple of our modern society, and an influx of new applications and faster more capable devices is driving demand for users to consume more data, which in turn leads to a growing and stable source of revenue for BCE. This trend isn’t likely to change anytime soon.

Perhaps the most attractive reason that investors turn to BCE is the company’s quarterly dividend, which has been a staple of the company for well over a century. BCE’s current dividend provides a healthy 5.21% yield, which has seen annual or better hikes stemming back a decade.

Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) is an interesting pick that is a great defensive investment that also caters to growth and income-seeking investors. Algonquin is a utility with customers spread across multiple markets in the U.S., and thanks to an acquisition announced this week, into Bermuda as well.

The interesting thing about Algonquin is that it enjoys the benefits that come from operating a utility, such as that recurring flow of revenue thanks to regulated contracts that span decades, while also being a renewable energy company meaning that the company has significant growth potential. Adding to that is the fact that Algonquin, with its renewable energy portfolio, is in an advantageous position over its traditional peers that need to invest billions in developing or acquiring renewable energy facilities to remain current.

Finally, there’s Algonquin’s quarterly dividend, which provides an appetizing 4.82% yield. In short, this is a stock to buy and hold for decades.

Inter Pipeline (TSX:IPL) rounds out the list with an impressive business that includes a solid pipeline business (think of a revenue stream akin to a toll-road), a storage business (not unlike the rest stops along that toll road), coming together to provide investors with an incredible monthly dividend that carries an unbelievable — and stable — 8.30% yield that continues to rise.

If that isn’t reason enough to consider the stock, Inter Pipeline is in the process of building the Heartland Petrochemical Complex, which will take local propane and process it into a type of plastic used in a variety of manufacturing processes. Once the multi-billion dollar complex is complete within the next two years, Inter Pipeline will have yet another lucrative revenue stream to add to its portfolio.

Fool contributor Demetris Afxentiou owns shares of Algonquin Power & Utilities.

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