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

Are you looking to buy some resilient stocks during a wobbly market? There are plenty of opportunities right now to consider.

| More on:
Man making notes on graphs and charts

Image source: Getty Images.

If I were to say that the market in 2022 was a volatile one, that would be an understatement. The market volatility we’ve seen this year has exposed some great stocks at discounted prices. To put it another way, picking up some resilient stocks during a wobbly market is something every investor should consider.

Here are three options that should be on every investor’s radar.

A defensive stock offers peace of mind

Utilities represent some of the most defensive investments on the market. There’s a good reason for that view. Utilities provide a necessary service, for which there is no alternative. They are also bound by long-term regulatory contracts that generate a stable and recurring income.

That’s just one reason why Fortis (TSX:FTS)(NYSE:FTS) is one of the resilient stocks to buy during a wobbly market.

Another reason to consider Fortis is the company’s impressive dividend. Fortis pays out a quarterly dividend and has done so without fail for decades.

In fact, Fortis has provided an annual bump to that dividend going back for 48 consecutive years. This means that the current yield of 3.72% is not only attractive and stable but also continues to grow.

Weathering market volatility for over a century

Another area for investors seeking solace in resilient stocks during a wobbly market is in Canada’s big banks. The big banks are some of the best long-term growth and income investments anywhere.

Coincidentally, the big banks have also endured over a century of market turbulence, weathering multiple crises over that time. In fact, Canada’s big banks are a welcome breath of fresh (stable) air compared with its riskier U.S.-based peers.

And it’s that opportunity that leads me to suggest Toronto-Dominion Bank (TSX:TD)(NYSE:TD) as a great addition to your portfolio.

TD is the second-largest bank in Canada, and, while many Canadians may not realize it, it’s one of the largest banks operating in the U.S. market, too. Following the Great Recession, TD acquired several banks and stitched them together into a single network.

That branch network now stretches from Maine to Florida. TD is about to expand yet again. The bank is in the process of completing its acquisition of Memphis-based First Horizon. The deal, much like the ones completed during the last turndown over a decade ago, will greatly expand TD’s network in the U.S.

TD, like its big bank peers, has shown resilience in overcoming market volatility, and emerging stronger.

That compelling growth opportunity will also help TD to continue paying out its handsome quarterly dividend. The bank has paid out dividends for well over a century. Today, that yield works out to a generous 4.09% yield.

Another surprising option can be found everywhere

Canada’s telecoms represent a final area to buy into at this juncture. BCE (TSX:BCE)(NYSE:BCE) is a compelling option for investors to consider.

BCE is one of the largest telecoms in Canada. Apart from its enviable infrastructure and nationwide coverage, BCE also boasts a massive media segment. That segment provides an alternative revenue stream for the company, which is complementary to its core subscription service.

BCE’s core subscription services are now more defensive than ever before. Following several years of pandemic-related closures, there are more of us working and studying remotely than ever before. To put it another way, maintaining a high-speed internet connection is now more of a necessity than a luxury.

The same argument could be made for BCE’s wireless segment. Mobile commerce is now a widely accepted medium for shoppers. Additionally, the ongoing 5G rollout is bringing forth a new generation of data-hungry devices and apps, which will continue to drive growth in the segment.

Turning to income, BCE provides investors with a handsome quarterly dividend. That dividend works out to a juicy yield of 5.89%, making it one of the better-paying yields on the market.

In short, BCE is a defensive stock with plenty of potential that should be on the radar of investors everywhere.

Resilient stocks during a wobbly market are everywhere

Finding that perfect mix of stocks for your portfolio takes time. Fortunately, the stocks mentioned above offer some defensive appeal as well as growth and income prospects.

In short, investors should consider adding one or all of the stocks 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 Fortis Inc. and The Toronto-Dominion Bank. The Motley Fool recommends FORTIS INC.

More on Investing

Upwards momentum
Investing

3 of the Top-Growing Stocks on Earth

Canadian investors may want to branch out and target top-growing stocks like Exxon Mobil Corp. (NYSE:XOM) in the early fall.

Read more »

A worker uses a laptop inside a restaurant.
Investing

3 of the Best Stocks to Buy After Last Week’s Selloff

After many Canadian stocks fell rapidly in price last week, here are three of the best to buy to take…

Read more »

stream movies at home
Dividend Stocks

3 TSX Stocks With High Dividend Yields

As markets continue to sell off, here are three of the best TSX dividend stocks you can buy to earn…

Read more »

A worker gives a business presentation.
Investing

3 TSX Stocks That Are Actually Beating the Market

Dependable TSX stocks like Hydro One Ltd. (TSX:H) and Loblaw Companies Ltd. (TSX:L) have beaten the TSX in a harsh…

Read more »

analyze data
Dividend Stocks

Got $250? Here Are 3 Smart Stocks to Buy Now

Are you looking for some smart stocks to buy? Here are three options that offer growth and income that you…

Read more »

Maxar Technologies
Tech Stocks

2 Incredible Deals for Your TFSA Today

Investing in MDA Ltd. (TSX:MDA) could increase capital gains in a TFSA account, and here's one REIT to boost tax-free…

Read more »

Profit dial turned up to maximum
Dividend Stocks

2 TSX Stocks to Buy With Dividends Yielding More Than 3%

These two TSX stocks offer ultra-high dividends and, more importantly, stability towards a solid future of passive-income payments.

Read more »

Happy shoppers look at a cellphone.
Investing

Millennials: 3 TSX Stocks to Buy on the Dip

Millennial investors navigating this volatile market should look to snatch up promising TSX stocks like Capital Power Inc. (TSX:CPX).

Read more »