Bear Market: 2 Safe TSX Stocks to Buy Right Now

We could all use some safety right now, and these two TSX choices are perfect for investors seeking it out.

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A bear market is a time when securities fall for a sustained period of time, which is certainly what we’re experiencing on the TSX today. TSX stocks continue to drop; however, there has been some good news as of late.

While the TSX is down, it’s true, the bear market looks like it may be improving. The TSX is down 8% year to date; certainly an improvement from the double-digit drop we experienced about a month back. However, it’s still down about 12% from 52-week highs. So there is still time to get in on a deal.

For that, however, you want a safe deal. That’s why today I’ll be focusing on two safe TSX stocks for investors to consider not just for the next year, but decades.

CP stock

Canadian Pacific Railway (TSX:CP) is an excellent choice for investors looking for growth over the next decade. CP stock is well positioned for growth thanks to its acquisition of Kansas City Southern, with the deal due to be inked at any time.

Yet I’d understand if you’re a bit wary given the US$31 billion price tag that comes along with it. However, note that this will merely increase the company’s transportation assets over the next years to come. It should expand the company’s growth exponentially. Growth that’s already well underway.

After a decade of making cuts and cost-saving measures, CP stock is a well-oiled machine. Its recent third quarter earnings report was proof of that fact. The company announced record shipments of grain tonnage, and saw an increase in shipping as well.

Revenue was up 19% year over year to $2.3 billion, with reported diluted earnings per share (EPS) up 37% to $0.96 from last year as well. With the company’s growth initiatives now underway, this looks like one of the safest growth stocks you could buy amongst TSX stocks today.

Granite REIT

Yet another of the safe TSX stocks to consider is Granite REIT (TSX:GRT.UN), and for similar reasons. While Granite isn’t in the business of shipping products, it is in the business of storing and making them. The company invests in industrial properties throughout North America and Europe. It therefore offers warehouses, assembly, and logistics for shipping products in these locations.

And what’s more, there is a massive need for more of these industrial properties. That’s why the company continues to expand its operations quarter after quarter, with acquisitions almost constantly being announced.

Analysts continue to trade their recommendations from hold to a buy in the case of Granite REIT. You can lock in substantial passive income from a 4.21% dividend yield. Yet, you can also look forward to solid and safe growth from its investments in industrial properties.

What’s more, it remains a steal trading at 4.4 times earnings, and shares down 28% year to date. It’s important to note that the share drop is due to its relation to the e-commerce sector, not from anything the company has done wrong.

Bottom line

These two TSX stocks offer safety and security, as well as an increase in share price over the next year and beyond. You’ll receive solid growth, as well as passive income through dividends that will last decades. So these two are certainly the ones I would consider during this bear market.

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 Amy Legate-Wolfe has positions in Canadian Pacific Railway Limited. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST. The Motley Fool has a disclosure policy.

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