In case you haven’t noticed, the market is full of volatility of late. The bulk of that uncertainty can be traced back to the ongoing unpredictability stemming from Washington. That ongoing economic storm has left many investors scrambling for safer investments for the longer term.
Fortunately, there are several great stocks to bypass the current economic storm, including these three Dividend Aristocrats.
Image source: Getty Images
Build a defensive core
One of the best ways to counter market volatility is to invest in defensive investments. Defensive utility stocks like Fortis (TSX:FTS) continue to offer a reliable revenue stream and a juicy dividend irrespective of which way the market heads.
Part of the reason for that is thanks to the reliable business model that utilities like Fortis adhere to. In short, the company generates a reliable and recurring revenue stream that is backed by long-term, regulated contracts.
Those contracts not only provide that stable revenue stream but also provide ample revenue for Fortis to pay out a handsome quarterly dividend. As of the time of writing, that dividend works out to 3.95.
Adding to that appeal, Fortis has provided investors with generous annual upticks to that dividend for over 50 consecutive years without fail. This makes the stock one of just two dividend Kings on the market and a solid option to withstand any economic storm.
Take note of this defensive gem
Another defensive gem that can bypass any economic storm to consider is Canadian National Railway (TSX:CNR). Canadian National is one of the largest railways in North America, with an extensive network that connects warehouses, factories and ports across the continent.
The goods that Canadian National transports can be anything from automotive components, raw materials and crude to wheat, finished products and chemicals. In total, that amounts to more than $200 billion worth of goods each year.
In other words, Canadian National is an incredibly defensive investment that could weather economic storms. A prime example of that is the recent tariff discussion that could have (and may still eventually) have a significant impact on the economy.
Despite that threat, the stock trades flat this year.
Adding to that appeal is Canadian National’s quarterly dividend. As of the time of writing, the railway boasts a 2.33% yield. While that’s not the highest yield, it is well-covered and growing.
In fact, Canadian National has provided investors with annual increases for over two decades without fail.
Add an incredible investment that can provide years of growth
One final option for investors to consider buying that can weather an economic storm is Enbridge (TSX:ENB). For those unfamiliar with the stock, Enbridge is one of the largest energy infrastructure companies on the planet.
The company is best known for its lucrative pipeline business, which consists of both natural gas and crude segments. The pipeline operation generates the bulk of Enbridge’s revenue, but it isn’t the only segment worth noting.
Enbridge also operates a growing renewable energy business and operates one of the largest natural gas utilities in North America.
Those segments provide Enbridge with ample defensive revenue streams that leave room for growth and payout one of the best dividends on the market. As of the time of writing, Enbridge pays out a yield of 6.01%.
The defensive nature of Enbridge, coupled with its impressive dividend and diversified operation handily makes it one of the best options to weather an economic storm.
Pick the right stocks to weather any economic storm
No stock, even highly defensive options like the trio above, is without risk. Fortunately, all of the options above boast defensive appeal and as well as juicy yields.
In my opinion, one or all of the above are great options for any well-diversified portfolio.
