I’m Buying These 3 Resilient Stocks During a Bear Market

This bear market has me contemplating all of the TSX stocks I own today.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 21, 2022 1:45 pm EDT

| More on: BEPCPBEP.UNCPVITL.UN

This bear market has me rethinking all of the TSX stocks I own today. I’m not just thinking of simply selling the ones I don’t think will do well in the next year. I’m looking at what I own and considering adding a stake to some stocks. And a bear market is the best time to do that.

CP Rail

One of the companies that has been producing income for me for years is Canadian Pacific Railway (TSX:CP)(NYSE:CP). In fact, my shares are still up even after a drop in TSX stocks and year to date. Shares of CP stock are up 5.11% as of writing year to date, yet trade at a valuable 2.6 times earnings.

The reason that CP stock will always be in my portfolio and added to in a bear market is because it’s a railway. Canada has a duopoly, of which CP stock is one. However, it recently expanded by acquiring Kansas City Southern. The deal looks like it will be approved by the Surface Transportation Board. When that happens, it will add more revenue by becoming the only railway travelling from Canada all the way down to Mexico.

So, during a bear market, I would certainly consider this stock. It’s grown 594% in the last decade alone for a compound annual growth rate (CAGR) of 21.35%.

Brookfield Renewable

I’m also adding to Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) during this bear market. This company hit all-time highs in 2021 when then new president Joe Biden came to office. He announced there would be a shift towards renewable energy. But that excitement soon waned, leading to a drop in share price.

Yet now seems like the perfect time to buy. All TSX stocks are down, leaving room for opportunity on the TSX today. Long term, Brookfield has a diverse range of assets all around the world. The company already looks like it’s stabilizing, so you can grab shares before they completely recover.

Shares are already up 6.71% year to date. So, there’s little time to lock in a dividend yield of 3.56% with this stock during a bear market. Shares have climbed 408% in the last decade for a CAGR of 17.63% on the TSX today.

NorthWest Healthcare

Finally, I also own NorthWest Healthcare Properties REIT (TSX:NWH.UN) and plan to add more. It’s a passive-income-producing machine — one that keeps paying out during this bear market. In fact, you wouldn’t know there was a bear market if you looked just at this company.

Earnings continue to be strong, and the company continues to expand through acquisitions of healthcare properties around the world. That now includes the United States in addition to Australia, the Netherlands, Canada, and more. Yet it remains incredibly valuable, trading at just 7.04 times earnings.

Shares in this company are also up year to date by 3.78% as of writing. Those shares have climbed 142% in the last seven years when it came on the market for a CAGR of 13.11%. So, there may be little time to lock in an astounding 6.33% dividend yield on the TSX today.