The vaccine’s effectiveness in fighting against the spread of COVID-19 is showing promising results. However, widespread inoculation is going to take a long time. Additionally, the advent of a mutated strain detected in the U.K. is creating more fear since it can spread 70% faster. Many European countries have locked down again, posing greater challenges for their economic recovery.
It remains to be seen where the market movements may go in the future. Equity markets could be in for another steep decline. With such an uncertain outlook, it would be wise to add safe assets to your investment portfolio that can preserve your capital while growing your wealth.
Fortis (TSX:FTS)(NYSE:FTS) is always going to be first on my list when I am looking for income-generating assets that can provide stability to my portfolio in any market conditions. The utility sector operator earns almost its entire income through regulated assets. It means that the company knows about its earnings in the year.
The company provides an essential service that people will need regardless of their economic circumstances. It means that Fortis generates predictable and virtually guaranteed income. The company continues to invest in expanding its rate base to support its earnings growth. It plans to invest $19.6 billion in the next five years to increase its rate base to $40.3 billion.
Its strong cash flows have allowed Fortis to increase its dividends for the last 47 years. I believe it can be an excellent addition to your portfolio, no matter what.
BCE (TSX:BCE)(NYSE:BCE) is my second pick for stocks to buy no matter what. In the digital age, the internet is no longer a luxury. It has become a necessity. The telecom sector has become highly defensive, considering its need. BCE is the third-largest telecom operator in Canada.
The company added almost 130,000 new wireless customers and more than 81,600 wireline connections in just the September-ending quarter in 2020. BCE also generated significant cash flows from its operating activities, improving its financial position with $5.2 billion liquidity by the end of September 2020.
The company’s rollout of 5G technology and improved internet services across Canada will continue fueling its revenue growth. It is an attractive bet for any market conditions.
TransAlta Renewables (TSX:RNW) represents a growing industry. Renewable energy is going to overtake the oil and gas sector, as the demand for renewable resources increases. Global investment in renewable energy infrastructure stands at $5 trillion in the last five years. The next five years are expected to see investment grow to $10 trillion.
This industry is already huge, and it will become more massive with passing time. TransAlta is one of the companies leading the charge. It operates various power-generation facilities, generating 57% of its cash flows from renewable sources. The company sells 2,537 MW of power through long-term contracts, shielding its cash flows from price and volume fluctuations.
The renewable industry boom is on its way, and companies like TransAlta can provide investors with significant returns by capitalizing on it.
Fortis, BCE, and TransAlta can all be excellent additions to your investment portfolio in an uncertain market. While most other companies might see their revenues decline during harsh economic environments, FTS, BCE, and RNW can continue generating reliable cash flows that can protect your capital.
I think that investing in these three TSX stocks could be a wise move, regardless of how the economic conditions shape up this year and beyond.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.