The S&P/TSX Composite Index is coming off another rough week, dropping just about 3%.
With no shortage of catalysts fueling uncertainty in the stock market, volatility has been at all-time highs in 2022. Still, the Canadian stock market is only sitting at a loss of less than 5% this year. In comparison, the U.S.-based S&P 500 is down nearly 20% in 2022.
It’s anybody’s guess as to where the Canadian stock market will be in six months. But that’s certainly not stopping me from investing today. There are plenty of high-quality TSX stocks trading at huge discounts today. Long-term investors won’t want to miss out on these rare deals.
I’ve got Algonquin Power (TSX:AQN)(NYSE:AQN) and Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) at the top of my watch list today. Both picks are dependable companies that you can feel good about buying, regardless of the market’s condition.
Utility stocks are some of the best options for investors looking to put money to work during turbulent market conditions. The dependable nature of the utility business tends to lead to lower volatility, with the possibility of generating passive income, too.
At a market cap of $12 billion, Algonquin Power is a leading utility provider in Canada. The company also boasts a presence in the U.S. and South America.
Excluding dividends, shares of the utility stock are just about flat on the year. Over the past five years, Algonquin Power has slightly trailed the Canadian market’s returns. But when you factor in dividends, it’s been a market beater.
At today’s stock price, Algonquin Power’s annual dividend of $0.94 yields just over 5%.
If you’re in search of dependability and passive income, there aren’t many better options than Algonquin Power on the TSX right now.
This $100 billion TSX stock is a perfect pick for long-term investors. It’s the type of company that you can feel good about buying paycheque after paycheque. Buying and holding is the name of the game with Brookfield Asset Management.
It’s the company’s broad diversification that makes it an excellent long-term hold. The TSX stock is as close to an index fund, as you’ll find on the TSX. Owning shares of Brookfield Asset Management provides a portfolio with instant diversification.
Shares are down more than 20% year to date, largely underperforming the Canadian market’s return. But over the past five years, Brookfield Asset Management has returned over 80%. That’s good enough for more than doubling the returns of the S&P/TSX Composite Index.
Down close to 25% from 52-week highs, now is as good a time as any to start a position in this dependable TSX stock.
The stock market is not exactly welcoming new investors with open arms today. Volatility is spiking and the short-term future of the stock market is full of question marks. But if you’ve got a long-term time horizon, now is not the time to be on the sidelines. We’re witnessing plenty of rare discounts that may not be available for much longer.
If you’ve got some cash to spare today, Algonquin Power and Brookfield Asset Management should be on your radar.
The post 2 Dependable TSX Stocks to Buy in a Volatile Market appeared first on The Motley Fool Canada.
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* Returns as of 4/14/22
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Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV.
By: Nicholas DobrorukaTitle: 2 Dependable TSX Stocks to Buy in a Volatile MarketSourced From: www.fool.ca/2022/06/13/2-dependable-tsx-stocks-to-buy-in-a-volatile-market-2/Published Date: Mon, 13 Jun 2022 14:45:00 +0000