It’s been a year to forget for many investors. The Canadian stock market as a whole may only be down 5% this year, but many individual TSX stocks are down far more than that.
What’s worse? It doesn’t look like volatility in the stock market will be easing anytime soon. There’s still plenty of uncertainty in the short-term future of the economy, which is exactly what investors do not want to hear.
Focusing on the long term
All that to say, now is definitely not the time that I’d suggest being on the sidelines, as long you have a long-term time horizon.
It’s years like these where patient investors make their fortunes. We’re witnessing loads of high-quality TSX stocks trading at bargain prices that we may not see again for a while.
I will admit, though, it’s not easy to invest with this much short-term uncertainty in the market. Even though I’m a long-term investor, it’s painful to endure sudden market drops, which we’ve had no shortage of this year.
This year’s market conditions are when it makes sense to own slow-growing, dependable stocks. It allows you to remain invested while also keeping volatility down in your portfolio.
For those willing to invest in these harsh conditions, here are two trustworthy TSX stocks that you can feel good about buying today.
TSX stock #1: Brookfield Infrastructure Partners
Not the most exciting companies to invest in, but utility stocks are among the most dependable companies on the TSX. As a result of unwavering demand and predictable revenue streams, utility companies tend to enjoy relatively low levels of volatility.
At a market cap of $20 billion, Brookfield Infrastructure Partners (TSX:BIP.UN) is a global company with a leading presence in the utility space in Canada. The company also owns and operates different types of businesses too, such as transport, infrastructure, and data.
Excluding dividends, shares of the utility stock are just about on par with the returns of the S&P/TSX Composite Index this year. Going back five years, Brookfield Infrastructure Partners has managed to deliver market-beating gains while also keeping volatility to a minimum for its shareholders.
In addition to dependability and market-beating gains, Brookfield Infrastructure Partners offers investors a top dividend. At today’s stock price, the company’s dividend yields upwards of 4%.
TSX stock #2: Royal Bank of Canada
If we’re going to talk about dependability, the Canadian banks need to be mentioned. Once again, it’s not the most exciting industry to invest in, but the Canadian banks deserve a spot in any long-term Canadian investor’s portfolio.
Nearing a market cap of $200 billion, Royal Bank of Canada (TSX:RY) is not only the largest Canadian bank but the largest company on the TSX.
There are some similarities between Brookfield Infrastructure Partners and RBC. The bank stock has delivered similar growth numbers year to date and over the past five years, while also paying a respectable yield, which is currently above 4%.
Where RBC differs from Brookfield Infrastructure Partners is its geographical presence. The bank is much more concentrated in North America, which could be a pro or con depending on your portfolio’s exposure.
If you’re looking for long-term dependability while also earning passive income, you cannot go wrong with owning Canada’s largest bank.