Stock market investors do not always appreciate black sheep events like the pandemic. These situations could be tough and completely devastate your returns. There are several lightweight investments that can provide you excellent returns in favourable market conditions. However, when the times get tough, you can rely on heavyweights on the TSX to protect your capital and deliver returns.
I will discuss two such industry titans that you could consider adding to your portfolio to create a reliable and long-term income stream.
Financial industry titan
Royal Bank of Canada (TSX: RY)(NYSE: RY) is the most significant financial institution in the country. Before Shopify came along, RBC was the undisputed king of the TSX in terms of its market capitalization. The bank is a time-tested, battle-scarred, and proven long-term holding for Canadian investors.
RBC has withstood several recessions and financial crises to remain standing strong today. In Q1 of fiscal 2021, the company reported a 10% increase in net revenue than the same period last year and a 19% increase from its previous quarter. The bank experienced increased client activity and substantial volume growth across its businesses.
Its provisions for credit losses went down by more than $270 million from Q1 2020. With over 150 years of paying its shareholders their dividends, RBC is undoubtedly a staple investment to protect your capital and generate wealth in the long run.
Telecom giant
BCE (TSX: BCE)(NYSE: BCE) is another industry giant. The telecom titan makes for an excellent defensive asset for reliable income. In an increasingly digital world, telecom companies are playing an integral role in keeping the world connected. You can never go wrong with investing in a company that provides leading broadband communication services.
The companyâs retail internet net additions and internet revenue increased by 25% and 12% in Q4 2020 compared to the same period last year. Its free cash flow increased 30.3% in this quarter on a year-over-year basis.
BCEâs media holdings have underperformed in recent years, contributing to its net earnings dropping by 17% in the full year for 2020 compared to the same period last year. Its media holdings could continue underperforming. However, its telecom business is sure to continue growing and adding more subscribers in the coming years.
BCE could see a massive boost in its revenues with the rollout of 5G technology and an industry-leading position in the space. It means the company can deliver more dividends to its shareholders.
Foolish takeaway
Whether you are a seasoned investor or new to stock market investing, it would be ideal to have Royal Bank of Canada and BCE in your investment portfolio. The staple investments are safe and ideal for practically any type of portfolio. The industry titans are reliable performers on the stock market, have a longstanding reputation, and well positioned to face adverse economic conditions.
The two companies are ideal as long-term buy-and-hold investments to protect your capital, grow your wealth, and generate passive income through dividends.
