3 Stocks to Buy Before the Bear Market Is Over

Opportunities like these only come up once every few years, if not every decade. So, grab these three TSX stocks while you can.

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Motley Fool investors are currently in panic mode during this bear market — or, at least, many of them are. And I don’t blame them. The TSX today continues to drop far below market correction territory. It’s led to mass selloffs of some strong TSX stocks — stocks that really should be held or even bought up in bulk.

Today, I’m going to cover three TSX stocks Motley Fool investors should consider on the TSX today. Each of these stocks is the perfect buy in this bear market. But the opportunity won’t last long.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of Canada’s Big Six banks. There are a number of reasons I would consider this stock in today’s bear market. Among top TSX stocks, TD stock has been a solid performer, climbing higher and higher over the years. Furthermore, it’s a great defensive play. The Big Six banks have provisions for loan losses. Losses that they are currently experiencing with loans dropping as interest rates rise.

Yet TD stock is a solid long-term hold that you can get at a discount on the TSX today. It offers you growth as the company continues to expand its online business as well as its top performance in the United States. On top of that, it’s focusing on expansion in the wealth and commercial management sector, which will generate massive returns. So, if you’re looking for top TSX stocks, the Big Six banks I would certainly consider, especially TD stock.

Dream Industrial REIT

Another industry during this bear market I would consider right now are industrials. Light industrial properties have become incredibly sought after over the last few years. E-commerce businesses need them to store and ship products. On top of that, they’re needed for assembly and warehousing. So, a company like Dream Industrial REIT (TSX:DIR.UN) is a perfect option. The company dropped recently because of the fall in e-commerce stocks. But e-commerce will come back, making it one of the best TSX stocks out there.

Another bonus is of course that you can pick up Dream Industrial REIT with a solid dividend yield as well. One that will continue to grow as the company expands its business, which is already underway. Dream currently has properties in Canada, the United States, and internationally. So, this gives you a diversified portfolio with passive income on top of that.

Canadian Utilities

Speaking of passive income, the last company I would consider during this bear market has to be Canadian Utilities (TSX:CU). Utilities are another solid sector for those seeking long-term income. And Canadian Utilities I would consider the best. That’s because it is the only Dividend King on the TSX today. Motley Fool investors can therefore look forward to receiving dividend boosts each and every year, as it’s done for the last 50 years.

What’s great about this defensive stock is Canadians and the world always need the lights on. Because of this, utilities will continue to be in demand no matter what kind of market we’re in. Yet during a bear market, there is usually a dip as we’ve seen with Canadian Utilities stock. So, now is the perfect time to pick up this stock and lock in some long-term passive income.

Bottom line

Don’t miss out on an amazing opportunity to buy up some life-long performers. Each of these TSX stocks are in a solid sector that will see returns continue for decades. On top of that, each offers passive income through dividends that will pay you while you wait. So, get defensive in this bear market and get greedy; buy up these stocks on the TSX today.

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 has positions in TORONTO-DOMINION BANK. The Motley Fool recommends DREAM INDUSTRIAL REIT.

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