3 No-Brainer Stocks I’d Buy Right Now Without Hesitation

Given their stable cash flows and high yields, investors can buy these three TSX stocks without thinking twice.

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Although the S&P/TSX Composite Index has increased by over 2.6% this month, there are concerns over higher inflation, geopolitical tensions, and the impact of higher interest rates on global growth. So, investors should look to invest in quality dividend stocks to earn a stable passive income and strengthen their portfolios given this uncertain outlook. Meanwhile, here are my three top picks you can buy without hesitation.

Enbridge

Enbridge (TSX:ENB) would be a top pick for investors navigating today’s uncertain outlook, given its stable cash flows from contracted assets, consistent dividend growth, and high yield. The midstream energy company has paid dividends for 69 years while raising the same for 29 previous years at an annualized rate of 10%. Its rate-regulated assets and long-term contracts generate stable cash flows, allowing it to increase dividends consistently. It currently pays a quarterly dividend of $0.915/share, with its forward yield at 7.24%.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The Calgary-based company is working on acquiring three natural gas facilities in the United States, which could stabilize its cash flows further. It is also continuing with its $24 billion secured capital program and expects to put $4 billion of assets into service annually for the next two years.

Further, Enbridge’s financial position also looks healthy, with its debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple standing at 4.1, lower than management’s guidance of 4.5 to 5. Considering all these factors, I believe Enbridge would be an excellent buy for income-seeking investors.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) is another no-brainer stock I am betting on due to its asset-light business model, stable cash flows, and high dividend yield. The company operates around 774 Pizza Pizza and Pizza 73 brand restaurants through its franchisees. It collects royalties from these franchisees based on their sales. So, its financials are less susceptible to inflation.

Created with Highcharts 11.4.3Pizza Pizza Royalty PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Meanwhile, the company intends to pay its investors all of its free cash flows. However, given the impact of seasonality on its financials and the need to pay equal monthly dividend payouts, the company’s payout ratio currently stands at 96%. Further, it has adopted a five-year growth strategy, intending to expand its store count to 1,100 by the end of 2028. These expansions could grow its retail sales at an annualized rate of 7%, thus driving its royalty income. So, I believe PZA’s future payouts will be safe. Meanwhile, the company currently pays a monthly dividend of $0.0775/share, with its forward yield at 6.95%.

Fortis

My final pick would be Fortis (TSX:FTS),  a Dividend Aristocrat that has raised dividends uninterruptedly for 50 years. The electric and natural gas utility company serves around 3.5 million customers across Canada, the United States, and the Caribbean. With 93% of its assets involved in low-risk utility businesses, its financials are stable and predictable, irrespective of the broader market conditions. Supported by these healthy cash flows, the company has raised its dividends consistently. ENB stock currently pays a quarterly dividend of $0.59/share, with its forward yield at 4.28%.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Further, Fortis has adopted a $25 billion five-year plan, which would grow its rate base at an annualized rate of 6.3% to $$9.4 billion. The expansion of the rate base could boost its cash flows in the coming years. Amid these growth initiatives, Fortis’s management hopes to grow its dividend at an annualized rate of 4 to 6% through 2028, making it an attractive buy.

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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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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