If you consider yourself a more conservative investor but don’t want to compromise long-term growth and income, there are good ways to keep your money in the market. Today I’ll discuss two high-quality TSX stocks that you can continue investing in regardless of the short term market volatility.
Enbridge
Enbridge Inc. (TSX:ENB) is one of the most popular Canadian stocks and an important part of many investment portfolios. The $144.5 billion market-cap company, headquartered in Calgary, owns extensive midstream assets that transport hydrocarbons across Canada and the US. The energy company also owns a portfolio of utilities that provide stable cash flows while bringing lower risk to revenue streams.
Enbridge also has a growing portfolio of renewable energy assets, a move that prepares the company for a brighter future in an increasingly green energy sector. ENB is a top dividend stock and boasts a 30+ year track record of increasing shareholder payouts.
At the time of writing, Enbridge stock is trading at $66.24 per share, paying $0.9425 per share every quarter, which translates into a 5.7% dividend yield that you can lock into your portfolio today.
Hydro One
Hydro One Ltd. (TSX:H) is the smaller of the two dividend stocks I’ll discuss in this piece, but not one you should brush aside. The company with a market cap of $31.3 billion is not diversifying into other sectors. Instead, it focuses only on the utility sector, specifically electricity transmission in Ontario.
Hydro One is the largest regulated electricity transmission company in the region. The company also has a small telecom business, but that accounts for less than 1% of sales. As a utility, Hydro One enjoys protection from volatile commodity prices, and its financial performance is largely safe from the impact of market volatility and market cycles.
The demand for electricity will only increase over the years, and Hydro One will benefit from the growing demand. At the time of writing, it is trading at $52.11 per share and paying $0.3331 per share per quarter, which translates into a dividend yield of 2.6%.
Silly takeaway
When investing in uncertain times, it’s a good idea to look for stocks with resilient and solid business models dividend track records and other defensive qualities. Even if market volatility leads to a short-term downturn, these are the types of companies that could come out stronger on the other side when the dust settles.
To this end, Enbridge shares and Hydro One shares offer the kind of resilience that makes them excellent long-term investments to consider for your self-directed investment portfolio.
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