It took over a decade, but it finally happened. The stock market crashed to levels not seen in months or even years in some cases. While analysts predicted the dip, nobody could have predicted the reason behind it.
The coronavirus has created a terrifying situation both for the health of Canadians and their finances. It can therefore seem like an odd time to think about it being time to retire.
In fact, this recent crash may seem that it’s putting retirement off for a few years — or more. But it doesn’t have to. In fact, now could be an ideal time to look over your portfolio and make some adjustments, potentially allowing you to retire rich.
Enbridge: Retire in a few years
If there’s one company that will be sorely needed in the near future, it’s Enbridge Inc. (TSX:ENB)(NYSE:ENB). Enbridge has been unnecessarily dropped by shareholders as the oil and gas industry takes a beating. However, the company has exactly what the industry needs: pipelines.
To end the oil glut and get gas moving across North America, Enbridge has a number of secured projects to build up pipelines. Once these are built, the company’s stock should soar, but for now the stock remains at a steal of a deal.
If you’re looking for a great stock to retire on, Enbridge is an excellent option to make significant short-term gains, and long-term investors will be even happier. Then there’s the company’s solid dividend yield of 8.11%, which is definitely interesting during a downturn.
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Fortis: The long-term investor
Fortis Inc. (TSX:FTS)(NYSE:FTS) is the best stock to buy if you want to remain steady and stable for decades to come. This stock will practically guarantee you won’t see any major drops. So if you plan out with your financial advisor how much you’ll need when you retire, you can bank on Fortis being able to deliver.
That’s because Fortis is a utility stock — one that has made a number of acquisitions to grow its portfolio even further. The company has strong cash flow coming in and that isn’t likely to drop.
Even during an economic downturn, everyone needs to keep the lights on, so a company like Fortis is great if you’re looking for little — but strong — movement.
TD Bank: As soon as possible!
Of course, banks have been hit as every industry in the economy is hit due to the coronavirus and oil and gas industry, and the housing industry could also mean TD Bank takes another hit.
However, for investors looking to retire shortly, this leaves a great opportunity with TD Bank. Canadians bans fared as some of the best in the world during the last recession, and should pop back up to prerecession prices sooner as opposed to later.
TD Bank is also going through an expansion phase into the United States and wealth and commercial management sectors, leaving two highly lucrative areas ripe with cash.
For investors looking to make killer cash relatively quick, this is the ideal choice, especially if you reinvest the company’s solid 5.41% dividend yield in the meantime.
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 Amy Legate-Wolfe owns shares of ENBRIDGE INC and TORONTO-DOMINION BANK. The Motley Fool owns shares of and recommends Enbridge.