Protect Your Portfolio With These 2 Defensive Gems Today

Here’s why Kirkland Lake Gold (TSX:KL)(NYSE:KL) and Rogers Communications (TSX:RCI.B)(NYSE:RCI) are two great defensive options today.

Investors are constantly looking for opportunities to derive better yields from their portfolios. However, diversity and growth are also factors one should be looking for. With the market opening up, some sectors are certain to pick up better than others. Identifying such trends is essential to generate a good Return on Investment. Here, I have listed two stocks with high dividend yields offering diversity as well.

Kirkland Lake Gold

Kirkland Lake Gold (TSX:KL)(NYSE:KL) remains one of my top defensive picks in the market today.

As if gold wasn’t defensive enough on its own, Kirkland Lake’s valuation makes this stock stand out among the rest. The company’s trading at a valuation of fewer than 16 times earnings with some of the best assets in the precious metals mining space.

The company’s high-grade production in mining-friendly jurisdictions like Canada and Australia ought to stand out to investors. The earnings quality stemming from sky-high margins and operating efficiencies make this miner a top pick of mine.

Additionally, given Kirkland Lake’s high-quality balance sheet (with essentially no debt), I think the company could be in the market to make a deal happen. Indeed, the company will need to replace some production in the medium term as one of its high-grade mines nears the end of its life. I’m keeping my eye on Kirkland Lake right now in this regard.

Rogers Communications

As far as defensive sectors go, telecom players are inherently defensive. The cash flows these behemoths provide allow for extremely stable long-term returns for shareholders.

Additionally, the 5G catalyst is set to be huge in terms of incremental cash flow growth over the long term. For industry leaders like Rogers Communications (TSX: RCI.B)(NYSE: RCI), these are simply too many factors to ignore right now.

Rogers is bolstering its market position via a deal to acquire Shaw Communications (TSX: SJR.B)(NYSE: SJR) in a massive US$20 billion deal. This deal is set to cement the company’s cash flow growth trajectory, both in its existing core businesses as well as in 5G wireless.

Indeed, capital spending is going to rise substantially as a result of this deal. However, Rogers’s expanded footprint in Western Canada and the synergies that are possible as a result of this deal make for an interesting hold right now.

As far as defensive TSX plays go, both Kirkland Lake and Rogers Communications fit the bill nicely. These blue-chip stocks are among the best for diversification and cash flow stability in these otherwise uncertain times.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.

More on Dividend Stocks

oil pumps at sunset
Dividend Stocks

Canadian Natural Resources vs. Suncor: The Dividend Stock to Own Through 2026

Let’s compare Canadian Natural Resources and Suncor Energy across their financial performance, dividend track records, growth prospects, and valuations to…

Read more »

man studies at computer
Dividend Stocks

Here Are The 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

Discover strategies for investing in stocks that can help you thrive in a market filled with volatility and uncertainty.

Read more »

telecom towers concept for wireless technology
Dividend Stocks

BCE Stock Is Down 2% After Q3: Is the 5.8% Dividend Safe?

BCE stock slipped 2% after Q3 earnings. See whether the 5.8% dividend is safe, how free cash flow covers it,…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Too Busy to Invest? This Dividend Stock Deserves a Permanent Place In Your TFSA

This Canadian stock appears well-positioned to keep paying and growing its dividend and deliver solid capital gains in the long…

Read more »

monthly calendar with clock
Dividend Stocks

The TFSA Strategy I’d Use to Generate $600 in Monthly Tax-Free Income

A smarter TFSA approach is to prioritize sustainable total returns and diversification rather than chasing an arbitrary monthly income number.

Read more »

Concept of rent, search, purchase real estate, REIT
Dividend Stocks

How Much to Invest in Killam Apartment for $250 a Month in Dividends

Want $250 a month? Killam Apartment pays $0.06 a unit at $17.45. See how many units to buy, what Q3…

Read more »

resting in a hammock with eyes closed
Dividend Stocks

3 Top Canadian Dividend Stocks for $2,050 in Passive Income Each Year

With resilient business models, consistent dividend payouts, and clear growth prospects, these three dividend stocks are ideal for income-seeking investors.

Read more »

GettyImages-1394663007
Dividend Stocks

A Recession-Resistant Dividend Stock for Lifelong TFSA Income

A resilient utility business, improving earnings, and ambitious investment plans could make this Canadian dividend stock an excellent choice for…

Read more »