The past two years have been exciting, to say the least, for investors. The pandemic has re-shaped how many investors think about their portfolios. And news today that a new variant is spreading fear in the markets once again makes picking top TSX stocks a more difficult task.
With uncertainty taking hold in the markets today, here are two top stocks that I think provide a nice mix of defensiveness and growth that investors can get behind.
Top TSX stocks: Restaurant Brands
What’s more defensive than fast food?
For investors in Restaurant Brands (TSX:QSR)(NYSE:QSR), asking such questions is important. The company’s core banners — Burger King, Tim Hortons, and Popeyes Louisiana Kitchen — are world class. Indeed, from a cash flow perspective, there are few more stable stocks in the market to pick on right now.
However, I don’t think Restaurant Brands is a top TSX stock just for its defensive profile. Rather, this is a company with some impressive growth potential. As we sort out this pandemic (which seems like it may take longer than expected), there’s certainly a case to be made for expansion. Only the best companies will be able to grow through what could be a turbulent few months. However, I think Restaurant Brands is more than up to the task.
Now, supply chain issues and other margin pressures haven’t been good for Restaurant Brands stock of late. This is a company that’s battling some headwinds. And the threat of new restaurant mandates via this new virus strain isn’t good.
However, taking a longer-term view of Restaurant Brands, this is a stock that I think is worth a core portfolio holding right now.
Another top TSX stock from a defensive standpoint, Enbridge (TSX:ENB)(NYSE:ENB) is a company I typically look at for yield. Indeed, Enbridge’s yield of 6.6% right now is among the juiciest investors seeking high-grade, high-yield returns can find.
Enbridge isn’t likely to grow its dividend rapidly from here. That said, at this yield, the company doesn’t have to.
That said, I think Enbridge stock has some real upside potential, particularly as supply chain issues in the energy markets persist. Pipelines are among the safest and most economical ways of transporting energy long distances. And Enbridge’s pipeline network is simply among the best of breed.
Owning the literal infrastructure underpinning the energy sector is an attractive prospect right now. Given the uncertainty in the markets, there’s a really strong thesis for owning these longer-term income stocks in this environment. Accordingly, Enbridge continues to be a top TSX stock I think provides investors with incredible value right now.