Essential stocks are those companies within industries that will remain essential no matter what happens in the market. But just because they’re within these industries doesn’t mean every stock is a winner.
That’s why today, I’m going to look at three essential stocks that should continue to do well. What’s more, whether they’re at 52-week highs or lows, I’ll continue to buy them up, no matter the price.
Loblaw
Loblaw (TSX:L) is a great option in the essential sector of food. The company has become the largest grocery chain in Canada, becoming the banner behind numerous chains. This includes high-priced options like Loblaw stores themselves and frugal choices like No Frills.
But perhaps the biggest win for this company is its loyalty program. Loblaw stock has created partnerships with Shoppers Drug Mart as well as gas locations for its loyalty program customers. No matter what you’re shopping for when it comes to essential items, you can choose a Loblaw location first and foremost.
In fact, shares of Loblaw stock are actually up this year, reaching 18% year to date as of writing. Even so, it remains a good price trading at 19 times earnings. Plus, you can add on a 1.38% dividend yield. Given its solid ground and future growth, this is a stock I’ll buy no matter the price.
NorthWest REIT
While Loblaw stock is up, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is quite down. Shares have dropped to around $10 per share — a fall of about 22% year to date. The reason behind this isn’t just poor market performance, but also the rise in interest rates. It’s left many fearful that its properties will wait for better rates before re-signing with NorthWest once more.
But guess what? There was a surge of renewed lease agreements during ultra-low rates during the pandemic. Because of this, NorthWest continues to have 97% occupancy with an average 14-year lease agreement around the world. And given it’s one of the essential stocks in the healthcare sector, it’s properties simply aren’t going anywhere.
So, yes, shares are down, but they won’t be for long. This is one I’m scooping up while it trades at 8.77 times earnings. And, honestly, I’ll continue to scoop it up no matter the price, if only for that 7.67% dividend yield.
Brookfield Renewable
Finally, if there’s one industry that’s bound to be the biggest growth opportunity in the years to come, it’s renewable energy. This is going to take over the oil and gas sector to be the top of essential stocks. And of those essential stocks, Brookfield Renewable Partners (TSX:BEP.UN) looks to be a stellar option.
Brookfield is similar to NorthWest in that it has a diverse range of assets, all located in countries around the world. It continues to create more partnerships with countries looking to expand into the sector, with only a pause in growth because of interest rates.
That pause won’t last forever, as Brookfield looks to be one of the biggest beneficiaries of the renewable energy transition. So, it’s certainly one of the essential stocks I would pick up while shares are down 12% year to date, with a 4.41% dividend yield.
