3 No-Brainer Stocks to Buy in a Correction

These TSX stocks continue to be analyst recommendations that have strong futures and are essential to our daily lives. Oh, and did I mention they offer dividends?

| More on:
Target. Stand out from the crowd

Image source: Getty Images

I know it sounds ridiculous, but the market could actually get worse before it gets much better. That’s at least what economists on Wall Street and Bay Street continue to say. A recession is still predicted for 2023 and could last until at least halfway through the year. That could mean we see the market fall even further than it has already.

That would be pretty bad, considering we’ve made so much headway already! The TSX is down 3.5% year to date but has come up about 12% from 52-week lows seen just last month. And notice, that was just last month, not months ago. This isn’t a very stable situation and could therefore just as easily drop once more.

But enough doom and gloom! Consider this time an opportunity to pick up some no-brainer TSX stocks that should fly out of this recession and keep climbing higher for decades. If you do, here are the three I would consider.

WSP Global

WSP Global (TSX:WSP) is a consulting service that helps companies in countries around the world create infrastructure. That makes WSP stock an essential service that will remain essential no matter what happens in the markets.

Yet shares of WSP stock remain down 11% year to date among other TSX stocks. This despite recently raising its financial guidance and looking to grow even further both organically and through acquisitions. Oh, and did I mention it continues to beat out analysts’ earnings estimates as well?

Taken together, WSP stock is a great buy among TSX stocks, trading at a deal and with a nice little 0.94% dividend to pick up as well. Should it reach analyst consensus targets, you could see a potential upside of 12% as of writing.

BCE

Another strong choice that will remain essential no matter what is BCE (TSX:BCE). BCE stock got in on the fibre-to-the-home network just in time. Right when the pandemic hit, it already had its fibre network ready to go, and was rolling out 5G as well. At a time when people started working from home in droves, it proved to bring in even more clients.

BCE stock now remains the top of the telecommunications companies, holding about 60% of the market share. And it now is rolling out its 5G+ network and bringing fibre to more locations across Canada. In fact, it’s also been beating the market, up about 1.5% year to date. Not that much, but better than a loss surely!

Just like WSP it continues to beat out earnings estimates as well. Plus, this is a great choice among TSX stocks if you’re looking for a dividend. BCE stock offers a 5.74% dividend yield as of writing and is a Dividend Aristocrat for every investor to consider.

Nutrien

Finally, for those wanting a potential for major growth, then I would certainly consider Nutrien (TSX:NTR). I continue to recommend Nutrien stock because of its potential for growth within the crop nutrients sector — growth that it’s already achieved in many respects.

Nutrien stock has been merging a fractured crop nutrient sector, buying up smaller companies to take on the market share. This share became even larger when sanctions against Russia meant many companies looked to Nutrien stock to fill their needs. This also caused shares to soar, but they’ve since come down to reasonable levels.

Now, Nutrien stock is up 17% year to date, providing even more protection and growth. Plus, you can bring in a 2.42% dividend yield. And despite all this growth, the company is one of the few TSX stocks trading at a very valuable 5.72 times earnings. What’s not to love?

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 no position in any of the stocks mentioned. The Motley Fool recommends Nutrien and Wsp Global. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »