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

analyze data
Tech Stocks

Nuvei Stock Is on Fire This Year: Is it a Good Buy Today?

For investors looking for a prominent Canadian growth story, Nuvei stock has become a clear winner, but can the rally…

Read more »

stock analysis

Is BCE Stock a Buy?

BCE (TSX:BCE) stock looks incredibly attractive, as shares pick up again, while the yield remains bountiful.

Read more »

analyze data
Dividend Stocks

The Best Dividend Stocks in Canada Right Now

Earn worry-free income from these best Canadian dividend stocks.

Read more »

Value for money
Dividend Stocks

3 Top Canadian Value Stocks in December 2023

Not all undervalued stocks are worth buying. You should look into the fundamental strengths of the stocks and reconcile value…

Read more »

calculate and analyze stock

2 TSX Stocks to Dominate the Market in 2024

Two stocks with market-beating returns with one month to go this year are the frontrunners to dominate the market in…

Read more »

Young woman sat at laptop by a window

SPY Stock Is Just the Tip of the Iceberg for Canadians Investing in the U.S.

These two BMO ETFs are great alternatives to just buying SPY.

Read more »

TFSA and coins
Stocks for Beginners

How a BIG New TFSA Change Could Affect You in 2024

Canadians are in for a BIG surprise for the TFSA in 2024. Here's how TFSA changes could help you keep…

Read more »

Growing plant shoots on coins
Dividend Stocks

2 Under-the-Radar Dividend Payers With Solid Growth Prospects in 2024

These under the radar monthly dividend payers could provide good growth prospects in 2024 and beyond.

Read more »