Stock markets worldwide have seen a higher degree of market volatility in recent weeks, owing to macroeconomic factors fueling uncertainty. The S&P/TSX Composite Index, the benchmark for the Canadian stock market, is down by 2.3% from its 52-week high. However, the index is still up by 21.1% year-to-date.
In this environment, it might be understandable for investors to seek more defensive investments. However, I believe that this is not the time to forget about growth-focused investments. A better approach to repositioning your self-directed portfolio might be balancing growth and safety.
Considering this, here are the top three investments I would consider making right now.
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Enbridge
Enbridge Inc. (TSX: ENB) is a $147.5 billion market-cap giant in the Canadian energy sector, and this stock comes in as my suggestion for an investment that balances passive income and long-term growth. The Calgary-based company owns an extensive network of midstream assets throughout North America, transporting a lot of the hydrocarbons produced and consumed in the region.
Enbridge also has Canada’s largest natural gas distribution company and one of the biggest regulated natural gas utility businesses in the region under its belt. It also has a growing portfolio of renewable energy assets to future-proof itself for a greener energy industry. As of this writing, the stock trades for $67.60 per share and boasts a 5.6% dividend yield that you can lock into your portfolio today.
Fortis
Fortis Inc. (TSX: FTS) is the darling stock that you might find in many stock market investing portfolios. The $36.7 billion market-cap utility holdings company owns and operates several natural gas and electricity utility businesses across Canada, the US, and the Caribbean. It might not be the most exciting stock to own in terms of capital gains. However, Fortis is a staple in investor portfolios due to its reliable track record for paying and increasing dividends.
Fortis is among dividend royalty on the TSX, boasting an over 50-year track record for increasing payouts to investors. The fact that it is a defensive business operating in a highly rate-regulated market means predictable cash flows and steady revenue. Barring high interest rates weighing on its financials, it can perform well in virtually any market environment.
As of this writing, Fortis stock trades for $72.66 per share and boasts a 3.5% dividend yield.
Shopify
And finally, Shopify Inc. (TSX: SHOP). This $271 billion market-cap tech stock is my entry for a high-risk but high-reward growth stock to consider adding to your portfolio. The company offers commerce solutions to merchants of all sizes worldwide, helping them set up an online presence with its platform and numerous solutions.
Shopify has been innovating new and improved solutions to provide a better experience to end-consumers and its clients by helping them set up an increasingly impactful online presence. Its recent Artificial Intelligence (AI) integrations and growing demand in the sector make it an attractive investment for growth-focused investors. As of this writing, it trades for $208.28 per share.
Foolish takeaway
Stock market investing is inherently risky. Even the most reliable stocks are not immune to the impact of market downturns. However, fundamentally strong stocks have what it takes to weather the storm and emerge stronger once the dust settles. Balancing the approach between “safe” and higher-risk investments like growth stocks can be a good way to invest in the market.
To this end, Enbridge stock, Fortis stock, and Shopify stock can be solid holdings to consider for your self-directed investment portfolio.
