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.
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.
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
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.