The financial media is still divided on what path the markets will follow in 2021. Many say that the crash is imminent, while the rest are way bullish amid the ongoing economic recovery. However, if you belong to the third bloc like me and don’t care about the market direction, this post is for you. Here are three TSX stocks that could stay resilient in almost all market conditions.
Telecom stocks generally provide stable returns in all kinds of markets. An $11 billion Shaw Communications (TSX:SJR.B)(NYSE:SJR) operates as a diversified telecom and cable TV company.
The company’s wireless and wireline operations effectively complement each other. While the wireline segment generates stable cash flows, wireless gives it the growth. Last year, it launched a wireless service called Shaw Mobile, in addition to its emerging low-cost service provider Freedom Mobile.
Notably, Shaw’s wireless division operates in Ontario, Alberta and British Columbia, covering approximately 50% of the Canadian population.
Shaw Communication stock currently yields 5.4%, higher than TSX stocks at large. It pays stable dividends mainly because of its low-risk operations and stable earnings. The stock might not see a strong performance like growth stocks, but one can expect consistent dividends for years.
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Canadian Natural Resources
The energy sector dug a deep hole in investors’ pockets in the last few years, but I see some value in it now. After all, it’s imprudent to shun an entire sector, as few quality stocks indeed offer a decent investment proposition. I think Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) looks attractive at the moment.
The low-cost upstream energy company has a diversified product base that includes natural gas, light and heavy crude oil, and natural gas liquids. Its expanded product portfolio and stable dividend profile make it stand tall among peers. CNQ stock yields a juicy 6% at the moment. It also has a strong balance sheet that keeps it resilient amid market downturns.
As the world moves toward normalcy after last year’s lockdowns, energy demand could stabilize, making a strong case for dividend-paying energy stocks.
CNQ stock currently looks attractive from the valuation perspective. It is still trading 30% lower than its pre-pandemic levels. One can expect CNQ stock to reach those levels as its earnings improve in 2021.
Top gold miner stock Barrick Gold (TSX:ABX)(NYSE:GOLD) has been trading in a narrow range for the last three months. The stagnation indicates a fair level to enter and limited downside potential. The stock could soon break above the range as it readies for blockbuster quarterly earnings this month.
Barrick Gold is the second-biggest gold producer in the world. Its operational efficiency and unique asset of mines notably differentiate it from its peers.
Driven by higher production and upbeat prices, almost all miners reported record profits last year. Barrick Gold was no different. Interestingly, the trend can well continue for Barrick this year, driven by a bullish outlook for gold. The stock could reach last year’s record highs of $41 in that case, indicating a sizeable upside potential.
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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 Vineet Kulkarni has no position in any of the stocks mentioned.