The cocktail mix of inflation, supply chain issues, the ongoing war in Ukraine, and the never-ending pandemic continue to wreak havoc on the market. To say that it’s a volatile market would be a gross understatement. Finding intriguing buys for a volatile market like the current one can be challenge.
It’s during times like these that investors should look at long-term defensive stocks that can weather the current storm. It’s also worth noting that volatility and the occasional correction make for an excellent time to buy into some really great (discounted) stocks.
Here are some prime candidates to consider for your portfolio.
Stability, growth, and staying on track
One of the most intriguing buys for a volatile market that you probably haven’t considered yet is a railroad. Specifically, I’m looking at Canadian National Railway (TSX: CNR)(NYSE: CNI), and there are three key reasons.
First, Canadian National hauls just about everything you can think of from automotive components, chemicals and raw materials to wheat, metals, and crude. In total, Canadian National hauls upwards of $250 billion worth of goods each year. This leads to my second point.
Canadian National’s network is huge. It’s one of the largest on the continent and the largest in Canada. The railroad’s track network spans from coast to coast and down the Midwest to the U.S. Gulf coast. This makes the railroad the only one on the continent that has access to three separate coastlines.
That immense size and scope of Canadian National’s operations makes it a core asset of the entire North American economy. In some ways, the railroad’s network, which traverses every metro area is akin to an arterial vein of the economy. That’s a massive defensive moat that is impossible to beat.
Apart from the defensive appeal, Canadian National boasts a juicy quarterly dividend. The 1.89% yield may not be the highest yield on the market, but it is reliable, stable and continues to see annual upticks.
This makes the stock a great buy for a volatile market.
Good, quick food is always in demand
Are you familiar with Restaurant Brands International (TSX: QSR)(NYSE: QSR)? That’s the name behind some of the biggest fast-food name brands, including Tim Hortons, Burger King, Popeyes Louisiana Chicken, and, most recently, Firehouse Subs.
Fast-food stocks are great investments, even during market slowdowns. In fact, they tend to thrive during slowdowns, as people seek out more frugal, quick meals instead of elaborate (and expensive meals).
As an income investment, Restaurant Brands offers a juicy quarterly dividend. The current yield works out to 3.61%, making it one of the better income buys for a volatile market.
Power up your (clean) portfolio
Renewable energy is to be one of the biggest and most important changes of the decade. Global warming is an accepted scientific fact, and governments around the world are transitioning away from fossil fuels.
In other words, it’s a great time to invest in renewable energy. This is where the appeal of TransAlta Renewables (TSX: RNW) comes into play. TransAlta boasts an impressive portfolio of solar, wind, hydro, and gas facilities across Canada, the U.S., and Australia.
Perhaps best of all, TransAlta operates under the same stable, recurring, and, dare I say, lucrative business model that traditional utilities adhere to.
In other words, as long as TransAlta keeps generating and distributing power, it will continue to get paid. For investors, this works out to a juicy monthly dividend that carries a yield of 5.22%.
To put that into context, a $30,000 investment will earn an income of $130 each month. That factor alone makes the stock a great pick for a volatile market.
Buys for a volatile market
There’s never a perfect time to buy all stocks, but there are great times to buy some stocks. The stocks noted above are great candidates for long-term investors given the current volatility on the market.
In short, they are great buys for a volatile market. Buy them, hold them (beyond the current uncertainty), and watch them grow.
