Investors may be wondering how to invest in 2020 with a potential market downturn ahead. The markets are certainty tough to read, with everything from the coronavirus to sudden interest rate cuts adding uncertainty. Today we will consider two plays for upside even during a market crash.
Two names come up consistently when scouring the TSX for access to the top Canadian stocks in the green power and sports media.
A top Canadian stock for green power upside
Northland Power (TSX:NPI) shareholders have a potential 156% total returns to look forward to by 2025. This is a huge boon for a portfolio in these unsettled times, mixing income with high growth.
This top green power stock trades at 72.5% less than its fair value, and also has a low P/E. Northland Power’s price-to-earnings of 19 seriously undercuts the renewable average of 38.5. That’s great value for money with some big rewards.
This green economy pick also pays a 3.64% dividend yield, which is fairly rich for the sector. Its payout ratio is another plus: At 70%, there’s still room for growth.
A fairly good year is ahead, with earnings forecast to grow by 11.03%. This follows the past year’s boost by 15.9%, indicating a steadily improving business.
Northland Power satisfies a buy and hold strategy and is ideal for the long term. One of the best TSX stocks for offshore wind power access has defied a rough week on the TSX to gain 6.4% overall. Northland Power is therefore a top Canadian stock that taps the steep returns potential of the green economy.
Rogers Communications: Canada’s best sports stock
The market has been less kind to Rogers Communications (TSX:RCI.B)(NYSE:RCI) this week, which lost a couple of points. The top sports and wireless stock finished flat for the week, despite being solidly defensive.
Rogers is one of only a handful of Canadian telecoms worth owning, along with BCE and Telus. Sports and mass media its main buying points, though, plus a 3% dividend yield.
Rogers is a top Canadian stock for sports fans. The dividend stock is a buy merely for exposure to some of our top teams. In fact, there are precious few TSX stocks that big bring names like Toronto Blue Jays, Maple Leafs, or the Raptors to a portfolio.
This type of exposure means that Rogers is a buy ahead of a market crash. It could even make this name recession-proof to a certain extent.
Of course, no stock is immune to a blowout recession. But Rogers is solid nonetheless — and a long-term buy. Just look at its 50% payout ratio fed by 10 million wireless subscribers and mass media revenue, for instance.
Investors spooked by the selloff last week should consider stacking shares. Buying half now and half as the market weakens further would be an especially strong move.
The bottom line
Investors seeking the best TSX stocks to buy this week have a tough market to navigate. From the coronavirus to the surprise interest cuts, uncertainty abounds.
However, investors can stay safe and reap financial rewards by buying top Canadian stocks like Northland Power and Rogers Communications.
