TFSA Users: 2 No-Brainer Buys When the Market Crashes Again

TFSA users can lessen fears of another market crash by rebalancing their portfolios to make them more defensive. The Fortis stock and the TELUS stock are pandemic-resistant assets that should provide steady dividend income.

Another market crash could mean more massive losses. If you’re investing in a Tax-Free Savings Account (TFSA), prime your portfolio for the inevitable. Stock values could tank again, like they did in the March 2020 selloff.

The fight against the COVID-19 outbreak isn’t over. It would be best if you were scouting for safer assets to mitigate the risks of the continuing pandemic. Among the viable, if not no-brainer choices are Fortis (TSX: FTS)(NYSE: FTS) and TELUS (TSX: T)(NYSE: TU).

A combination of two pandemic-resistant stocks should ease TFSA users’ fears regarding the coming of a second market crash.

Resiliency at its best

Fortis, as usual, is holding up well during the health crisis. The TSX’s top utility stock is showing its bond-like features again. Whether you’re a risk-averse investor, income investor, or growth investor, Fortis is an excellent option.

You’ll be investing in a rock-solid dividend stock. This $24.08 billion regulated electric and gas utility can withstand the harshest market turbulence. The operations are enduring if your core business is to deliver electricity and natural gas to North American customers.

From a dividend standpoint, Fortis’s dividend-growth streak is close to 50 years, while its 10-year average dividend-growth rate (DGR) is 5.6%. Under its $18 billion capital-investment plan, management is promising to grow dividends for 2020 through 2024 by 6% annually.

As of this writing, the utility stock is down by only 2.02% year to date and trading, at offering, a 3.64% dividend. A $10,000 investment can generate a tax-free income of $364.

Bet your bottom dollar

TELUS is another defensive gem you can include in your TFSA portfolio. Communication services and the internet are essentials in the age of the pandemic. TELUS should remain vital for years on end.

The $28.86 billion telco stock boasts a 15-year dividend-growth streak and an 8.7% 10-year average DGR. Its current price is less than $25 per share, while the dividend yield is 5.11%. If you allocate another $10,000 for TELUS, your tax-free earning is $511. In terms of year-to-date performance, the stock is down 7.56%.

TELUS’s network is now the fastest in the world with the recent launching of its first wave 5G network. Samsung along with Nokia and Ericsson were announced as 5G network infrastructure partners.

Your bottom dollar can go a long way on a company that promises to add 250,000 new jobs annually to the Canadian economy. The economic contribution should be around $40 billion yearly. You can now lock in your position in TELUS to ride on the building momentum of the next generation of wireless technology.

Prepare for a gathering storm

Market analysts, as well as billionaire investors, are sure another market crash is forthcoming. However, TFSA users can stay invested and compound their account balances by taking a defensive posture.

A utility stock like Fortis and a telco stock like TELUS can weather a weakening economic condition. The demand for the products and services of both companies is constant regardless of market conditions. Henceforth, income streams of TFSA users should be stable and flowing. Besides the steady dividends, you get capital protection.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

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