Recession-proof companies are those that don’t tend to see major disruptions in their business as a result of a recession. Generally, these companies are mature and established. As a result, the stocks of these companies tend to move a lot more gradually than growth stocks would. However, one positive note relating to that would be that recession-proof stocks tend to be more stable during periods of economic uncertainty. This makes these stocks an essential aspect to include in a portfolio. Here are three top stocks for your portfolio!
Utilities are essential for everyday life
No matter what the economic situation may be, cities will always need gas and electric utilities. As a result, utility companies are provided with a very steady and predictable source of revenue. Of all the utility companies listed on the TSX, my top choice would be Fortis (TSX: FTS)(NYSE: FTS). What attracts me to this company is its diversified business. It provides regulated gas and electric utilities to 3.4 million customers across Canada, the United States, and the Caribbean.
Fortis is also known as a Canadian Dividend Aristocrat. These are companies that have increased their dividend distribution for at least five consecutive years. Fortis has managed to blow past that minimum requirement by almost 10-fold. Its dividend-growth streak currently stands at 47 years. That gives it the second-longest active dividend-growth streak in Canada.
We need to communicate every day
Another crucial part of our day-to-day lives is communicating with each other — be it with family and friends or co-workers. To enable this, consumers rely on a small number of telecommunication companies. In fact, the leaders in this industry may have a moat even more formidable than the moats of the leading Canadian banks. Of the big players in the telecommunication industry, my top choice is Telus (TSX: T)(NYSE: TU).
Telus operates the largest telecom network in Canada. Its network covers about 99% of the Canadian population. In addition to its vast network coverage, I believe Telus offers a more robust business than its competitors. It has established itself as a major player in the telehealth industry, offering its MyCare app. As a stock, Telus is a well-renowned dividend company. It currently holds a 17-year dividend-growth streak, placing it among the elite in the country in that regard.
A job that needs to be done
Finally, investors should consider buying shares of Waste Connections (TSX: WCN)(NYSE: WCN). Regardless of what happens to the economy, cities will need to have garbage collected. This makes Waste Connections an excellent company to hold in your portfolio. It serves more than eight million customers across 43 states and six Canadian provinces. Waste Connections also offers a variety of additional services in the United States. This includes oilfield waste treatment, intermodal services for the movement of waste containers, and more.
Like the other two stocks listed here, Waste Connections is known as a Canadian Dividend Aristocrat. It has managed to increase its dividend in each of the past 11 years.
