It might seem like COVID-19 is in the rearview. I found myself thinking this as I watched a few sporting events during the last few weeks. Baseball games and, most significantly, the Euro Cup had spectators by the thousands. Hardly even one person in 100 wearing a mask from what I could see.
But it looks like the TSX and other markets are catching on before sport spectators do. Shares in the TSX dropped by over 200 points Monday, or about 1%. This came as the COVID-19 Delta variant continues to climb and spread. While it might feel like we’re out of the woods, a quick trip to the World Health Organization will quickly remind you that we are still indeed in a pandemic.
What are other Motley Fool investors doing? That’s easy. They’re finding safe stocks to ride out this storm until it well and truly passes. And that won’t be until herd immunity and when the WHO itself claims the pandemic is done, finished, complete. So, until that happens, if you’re worried about your investments, here are three safe stocks to consider.
Safe, no matter what
If you want an investment that’s going to continue doing well, even if the pandemic never recedes, look for those that have been doing well to start with. NorthWest Healthcare Property Units (TSX:NWH.UN) proved its worth during the pandemic. Its diverse range of healthcare properties around the world provided care during a catastrophe. And it continues to grow, recently purchasing $200 million in properties in the Netherlands and spending AU$2.4 billion to acquire an Australian healthcare REIT.
If the COVID-19 variant continues to spread, NorthWest has already proven it can take on the challenge. Revenue actually increased, and many took the opportunity to use interest rates to their advantage. The company now boasts an average 14.3-year lease agreement and an occupancy rate of 97%!
Shares are up 26.5% in the last year, with analysts believing the stock can climb another 10% in the next year. And with 6.11% dividend yield and a price-to-earnings (P/E) ratio of just 9.62, it remains a steal.
Store your cash
Even before the COVID-19 pandemic, e-commerce was booming. That increased again and again and is still likely to outpace retail in the next decade. That’s with the pandemic coming to an end, never mind with it continuing. But you don’t have to spend a lot to see major growth. That’s proven by Motley Fool investors who have invested in StorageVault Canada (TSXV:SVI).
This company has seen a massive increase in use for its 220 storage locations, with small- and medium-sized businesses needing a place to ship and store products. The company has also overhauled its online presence and just added two locations in the Greater Toronto Area for $11.1 million. As revenue continues to climb, this is a safe stock you can hold onto for years — especially considering shares have climbed 50% this year and 2,288% in the last decade!
Tech for the strongest sectors
Motley Fool investors seeking safety can still get in on strong tech stocks. In fact, Dye & Durham (TSX:DND) provides this in spades. The company provides cloud-based software for legal firms, government organizations, and financial service institutions — basically, the last of institutions on earth to go under, even during the COVID-19 pandemic.
This has led to strong financial and operating performances, with the company growing both organically and through major acquisitions. All of this revenue it’s created is on a recurring basis, creating strong adjusted EBITDA that can continue to grow at a rapid pace. Shares are up almost 200% as of writing in the last year, yet analysts believe there is still room for a potential upside of at least 30%. So, if you want safety during the uncertainty of COVID-19 and still want to see growth, this is the company to get you there.
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 Amy Legate-Wolfe owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.