New to Investing? These Resilient Stocks Could Guide You Through Market Turbulence

Are you looking for resilient stocks to buy for a starter portfolio? Here are three stocks that could outlast the market volatility.

When you are new to investing, it is smart to start conservatively and then add risk from there. That is why a lot of new investors prefer dividend stocks. When you invest in dividends, you collect a tangible cash income return. That can be comforting during times of stock market volatility.

investor looks at volatility chart

Source: Getty Images

Never buy a stock just for its dividends

However, dividends for the sake of dividends can potentially be a dangerous strategy. High dividends (like those with a yield over 8%) can seem very attractive. The problem is that high-yielding stocks tend to have major business or financial risks that are causing the stock to drop and the yield to rise.

An overtly elevated yield is not useful if that dividend is cut or if it becomes elevated because the stock has declined significantly. That is why it is better to sacrifice yield for the sake of owning a better-quality company. The smartest you can do is collect a mix of stable, growing income and modest capital appreciation.

If you want some resilient stocks with that profile, here are three a new investor should consider.

Intact Financial

Intact Financial (TSX: IFC) is a great, resilient TSX stock. Its stock is up 17% this year and 123% in the past five years. It only yields 1.8% right now. However, it has grown that dividend consecutively for 20 years.

Intact is considered a very solid stock to hold for the long term. Everyone needs basic insurance, whether it be for their vehicle, apartment rental, or house. Intact is the largest property and casualty insurer in Canada.

With its scale, it can offer some of the best rates in the market. It can be opportunistic to take market share when other providers are pulling back.

Intact has growing operations in the U.K. and a productive specialty division. It is an established player, but it still has more upside as it continues to execute.

AltaGas

AltaGas (TSX: ALA) is another stock to hold for defence and growth. For a utility/midstream company, it has delivered a very good return in the past five years. Its stock is up 132% in that time!

AltaGas has executed an excellent turnaround strategy. It has divested non-core assets and drastically reduced debt. Today, it has an attractive mix of stable and growing assets.

AltaGas yields 3.1% today. It has been growing its annual dividend by a mid-single-digit rate for the past several years. That is likely to continue going into the future.

EQB stock

Another stock for income and capital gains is EQB Inc. (TSX: EQB). It owns EQ Bank, which is Canada’s largest online-only bank. It has been the fastest-growing bank in Canada for several years.

Since the bank operates online, it can provide customers with attractive perks like free Interac transfers and elevated savings rates. The bank is a highly attractive option to students, newcomers, and families. As a result, it has been gaining steady market share.

It yields 2.14% right now. However, it has been growing its dividend by a double-digit rate for two decades. EQB still has plenty of growth ahead, and you get to enjoy it both for dividends and capital upside.

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends EQB and Intact Financial. The Motley Fool has a disclosure policy.

More on Dividend Stocks

man shops at grocery store
Dividend Stocks

A High Dividend Yield Can Be a Warning Sign: Here’s Why

A high dividend yield can signal trouble. TELUS and Slate Grocery REIT show why investors should examine what supports their…

Read more »

Real estate investment concept
Dividend Stocks

Paying Off the Mortgage or Saving for Retirement First? A Guide for Your 40s and 50s

Find out how rates, renewals and tax rules shape your choice in your 40s and 50s, and where blue chip…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

$14,000 in a TFSA: 2 Stocks I’d Buy for Meaningful Monthly Cash Flow

Cardinal Energy (TSX:CJ) and another monthly income play that's fit for those seeking huge dividends and deeper value.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use a TFSA to Generate an Average of $500 in Monthly Tax-Free Income

Unlock the potential of a TFSA for tax-free savings. Discover strategies to generate income while minimizing taxes for the future.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

This Stock Pays You a 4.7% Dividend Every Single Month

Sienna Senior Living's seemingly safe 4.7% monthly dividend yield, eligible dividend tax perks, and strong growth potential appear attractive today

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Most Canadians Pick the Wrong Investing Account First: Don’t Be One of Them

Your first investing account matters far more than your first stock. Compare the TFSA, RRSP and FHSA for 2026 and…

Read more »

money goes up and down in balance
Dividend Stocks

Building a Retirement Paycheque: Where Each Dollar Comes From

Thinking about retirement? Find methods to create passive income to cover daily expenses and enhance your financial freedom.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

The RESP Deadline is December 31: Ottawa Adds 20% for Free

An affordable RESP contribution can attract a 20% basic grant, with December timing, catch-up limits, and the child's age shaping…

Read more »