Hi there, Fools. I’m back to call your attention to three large-cap stocks for your watch list — or, as I like to call them, my top “forever income” assets. As a refresher, I do this because companies with a market cap of more than $10 billion
- can stabilize your portfolio during periods of high volatility; and
- provide steady and healthy dividends year after year.
So, if you’re looking to protect yourself from this recent market selloff, this is a good risk-averse place to start.
Let’s get to it.
Baked to perfection
Leading off our list is food giant George Weston (TSX:WN), which currently boasts a market cap of about $14 billion.
The stock has been walloped along with the rest of the market, providing Fools with a solid opportunity. Specifically, George Weston’s long-term investment case continues to be backed by a defensive business model, stable cash flows, and consistently growing dividends.
In the most recent quarter, earnings increased $162 million to $433 million, as revenue improved 3% to $12 billion.
Looking ahead, management expects to deliver positive same-store sales and stable gross margins in its retail segment.
“George Weston’s businesses performed well during the fourth quarter,” said Chairman and CEO Galen Weston. “Loblaw improved its sales trajectory, achieved its financial metrics and continued to invest in strategic growth areas.”
Shares of George Weston currently trade at a forward P/E in the low double digits and offer a decent yield of 2%.
The 10 Best Stocks to Buy This MonthClick here to learn more!
Waste Connections shares have also been pummeled, but the stock might now be too attractive to pass up. The company’s regulatory protection, massive scale advantages, and highly fragmented competitive environment will continue to support stable long-term financials.
In the most recent quarter, revenue improved 8% to $1.36 billion on better-than-expected solid waste price growth. More importantly, operating cash flow and free cash flow for 2019 clocked in at $1.54 billion and $917 million, respectively.
“2019 ended on a high note, as financial results for the fourth quarter exceeded expectations on better than expected solid waste price growth, E&P waste activity and acquisition contribution,” said President and CEO Worthing Jackman. “We are also extremely pleased with our results for the full year, as underlying adjusted EBITDA margins in solid waste collection, transfer and disposal expanded by 50 basis points.”
Waste Connections currently sports a comforting beta of 0.5.
Rounding out our list is communications giant Rogers Communications (TSX:RCI.B)(NYSE:RCI), which currently boasts a market cap of $27 billion.
Rogers shares have held up relatively well during the downturn, but there’s definitely still value to be hand. Specifically, the company’s massive scale, diversified nature, robust wireless growth, and strong cash flows should continue to underpin its long-term trajectory.
In the most recent quarter, for example, free cash flow improved 6% to $497 million. More importantly, management returned an impressive $1.67 billion to shareholders in 2019 through dividends and share repurchases.
“Our fourth-quarter results reflected healthy Wireless postpaid and Internet customer additions, and strong demand for Rogers Infinite data plans, which grew 40% sequentially to 1.4 million subscribers,” said President and CEO Joe Natale. “As we enter this next decade, we are confident in our long-term growth strategy to deliver the most advanced networks and a continuously improving customer experience while growing shareholder value.”
Rogers currently offers a solid dividend yield of 3.0%.
The bottom line
There you have it, Fools: three top income stocks worth considering.
As always, they aren’t formal recommendations. Instead, see them as a starting point for further research. Even the largest companies can suffer setbacks, so plenty of your own due diligence is still required.
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned.