Although now is the time to buy high-quality stocks for the long haul as they trade cheaply, it’s also important to own resilient stocks that can help protect your capital.
Resilient stocks are companies with defensive operations and significant cash flow, which is why they are so robust and highly reliable.
And because they’re so reliable, these stocks are high in demand in these adverse economic environments, which is one of the reasons why they are so resilient and see such minimal volatility.
Many of these stocks won’t offer significant discounts because of their reliability. However, if they are high-quality companies that can continue to grow their operations for years, you don’t necessarily need to buy them while they’re undervalued.
With that in mind, if you’re looking for reliable companies that you can invest in today, here are three resilient stocks that are perfect for today’s market.
Two top defensive growth stocks that are perfect for today’s environment
If you’re looking for resilient stocks to buy in today’s market, two of the best stocks to consider are Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) and Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN).
Algonquin is an ultra-safe business due to its utility operations, which account for roughly three-quarters of its business. In addition, it also has a high-potential green energy segment, where the company owns renewable energy-generating assets, such as wind farms.
Brookfield is also a highly reliable company, as it owns tonnes of crucial infrastructure assets across the globe, including utility businesses.
Therefore, both of these stocks have highly reliable and predictable revenue and cash flow, which is why they are some of the most resilient stocks you can buy.
In addition, though, both stocks are also focused on maximizing growth for shareholders. In Brookfield’s case, it’s constantly looking for as much organic growth as possible and is also constantly recycling capital.
Algonquin has growth potential due to the significant demand for renewable energy infrastructure, as climate change continues to be one of the most significant threats to the world. Furthermore, Algonquin has also begun to look at a capital-recycling program to increase its growth potential for investors.
Plus, on top of the fact that both stocks are resilient, and both offer plenty of long-term growth, these stocks also pay attractive dividends, which are increased annually.
If you’re looking for some of the most resilient stocks to buy now, utility and infrastructure stocks like these two are some of the best you can buy.
This consumer staple is one of the most resilient stocks on the market
In addition to utility stocks and other crucial infrastructure businesses, another industry that has highly resilient stocks to buy now is consumer staples. That’s why Loblaw Companies (TSX:L) is one of the best stocks you can buy now.
Loblaw is one of the best stocks to own, because it’s an owner and operator of grocery stores and supermarkets across the country. These are businesses that see only minimal impacts from recessions, since no matter what’s going on with the economy, people need to eat.
In addition, Loblaw also owns pharmacies such as Shoppers Drug Mart, which are also highly defensive assets. So, it’s no surprise that, like many other resilient stocks, Loblaw is trading just 10% off its 52-week high.
The stock may not pay as much of a dividend yield as Brookfield or Algonquin. However, it’s one of the best and most resilient stocks to buy that can protect your capital in the short run and grow it over the long haul.
So, if you’re looking for high-quality and resilient stocks to buy now, I’d consider consumer staples such as Loblaw.