2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning potential.

| More on:
Double exposure of a businessman and stairs - Business Success Concept

Image source: Getty Images

The roller-coaster ride that is 2022 continues to keep investors on edge. The markets continue to edge lower, and with it, the opportunity for long-term gains continues to grow. Specifically, there are some stocks trading at discounted levels that are otherwise great buys in any market.

Here are two intriguing options that should appeal to both new investors as well as seasoned veterans.

Build a passive-income stream right now

Enbridge (TSX:ENB)(NYSE:ENB) is a stock that should be familiar to most investors. The energy infrastructure behemoth is a leader across multiple segments. First and foremost is Enbridge’s lucrative pipeline network.

That pipeline network transports crude and natural gas across Canada and into the United States. In fact, Enbridge hauls about 30% of all North American-produced crude. The company also transports one-fifth of all the natural gas consumed by the U.S.

Keep in mind that Enbridge charges for use of its massive pipeline network. More importantly, those charges aren’t based on the volatile prices of the commodities. In other words, the pipeline business operates like a toll-road network. It generates a steady stream of revenue for the company irrespective of oil prices.

Apart from its pipeline business, Enbridge also operates a growing renewable energy business. The company has invested $8 billion into the segment over the past 20 years. Today, that investment comprises 48 different facilities, most of which are wind and solar farms. Collectively, the facilities have a net generating capacity of 2,172 MW.

Another key advantage of investing in Enbridge is the company’s quarterly dividend. The current yield works out to a very tasty 6.04%. This means that a $40,000 investment in Enbridge will earn an income of just over $2,400 in the first year.

Factor in annual bumps into the equation, and Enbridge comes out as a superb buy in any market. Keep in mind that Enbridge has provided those annual bumps for well over two decades consecutively.

More importantly, if you aren’t ready to draw on that income, those earnings can be reinvested until needed. This will significantly bump any future income potential further.

Despite that appeal, Enbridge is trading down over 3% in the past month.

Here’s another necessity that is a great option

Grocers are one of the most underrated areas of the market that rose to the challenge of the pandemic. When all businesses were shuttered, grocers were deemed essential and continued to operate. Again, the sheer necessity of what they provide made them essential. That necessity also makes them great investment options.

Metro (TSX:MRU) is an intriguing option to consider. Metro is one of Canada’s largest grocers. The company boasts a growing network of over 950 stores primarily located in Quebec and Ontario. That core grocery business is complemented by Metro’s Jean Coutu pharmacy network.

With the cost of food (and just about everything else) increasing lately, there is a likely tailwind expected. Specifically, those surging prices will push consumers to seek out more frugal options.

Still, in the most recent quarter, Metro saw sales surge 1.9% to $4274.2 million. Same-store sales also inched upward by 0.8%. Overall, the company earned $198.1 million, or $0.82 per diluted share.

Turning to income, Metro is a Dividend Aristocrat with an impressive span of 27 consecutive years of dividend increases. That factor alone makes Metro one of the great buys in any market.

You can find great buys in any market

Unfortunately, volatility isn’t going away anytime soon. Both Enbridge and Metro offer investors growth and income that are packaged defensively.

In short, both stocks are great buys in any market. In my opinion, both stocks would do well as part of any well-diversified portfolio.

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 Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »