Unless you happen to be an unabashed stock market enthusiast, chances are, you don’t have a lot of time to be spending your evenings and weekends keeping up to date with the latest news releases and quarterly filings of the companies that make up your RRSP or TFSA investment portfolios.
Instead, you’ll probably prefer to look for investments in high-quality companies led by experienced management teams that operate in industries with a relative degree of predictability and stability and which hold bright prospects for the future.
The good news is that right now in the market, there are several opportunities to make an investment in just these types of companies.
Let’s take a closer look at three of these companies and detail some of the best attributes of each.
Things haven’t changed. No one gets to ride for free
The last couple of years have involved a fair bit of discussion about the merits of electric vehicle technology and self-driving cars, yet at least up to now, it looks like those technologies still have some way to go before they reach mainstream acceptance.
In the meantime, fossil fuels and combustible engine technology remain a part of many people’s everyday lives.
In this respect, Cenovus (TSX:CVE)(NYSE:CVE) makes so much sense as a safe, long-term buy-and-hold investment.
Cenovus is in the business of refining crude oil into everyday energy products like jet fuel, diesel, and gasoline, and, like it or not, most can agree that the energy industry still maintains a firm grip on consumer spending patterns.
Don’t agree? Look no further than how the price of crude plummeted a few years ago and ask yourself if you saw a similar drop in the price drivers paid at the pump.
While that can be a unfortunate situation of car and truck owners, it’s welcome news for Cenovus, which effectively profits from the difference between oil and gasoline prices, less its operating expenses.
A recession-proof stock you can toast to
Meanwhile, you may have heard some people speculating recently that there is some chance that the North American economy could be on the verge of entering a recession.
In this respect, it would be difficult to make the argument against a company like Molson Coors (TSX:TPX.B)(NYSE:TAP) and the domestic brewing industry in general being anything but recession proof.
Molson is in the process of working through its mega-acquisition of Miller Coors U.S. business, which has seen management prioritize paying down its outstanding debt maturities in favour of increasing its current 2.57% dividend yield.
Yet, based on the company’s most recent conference call, it looks as though those plans are continuing to progress in a timely manner.
There’s a solid chance that Molson’s board of directors could initiate another dividend hike as early as the second half of 2019.
Wireless provider that will benefit from 5G networks
Lately, it would appear as though the narrative in support of the impending global rollout of 5G wireless network technology has been gaining some momentum.
Chances are that there will end up being several beneficiaries of 5G, including technology companies that will build the network infrastructure, wireless providers that will benefit from greater network usage, as well as businesses that will benefit from greater enterprise connectivity.
But in cases of technological transformation like this, there is also a heightened sense of risk involved, so if you were looking for a “safe” way to try and profit from the introduction of 5G, I’d suggest Telus (TSX:T)(NYSE:TU).
Larger rival BCE still has a significantly large landline telephone business that shouldn’t expect any lift from the introduction of 5G; meanwhilec Toronto-based Rogers Communications has far more debt outstanding on its books, despite offering a lower dividend payout than Telus’s 4.32% yield.
Bottom line
Within the 5G space, wireless tech companies Sierra Wireless (TSX:SW)(NYSE:SWIR) and BlackBerry (TSX:BB)(NYSE:BB) each offer compelling stories and trade at attractive valuations.
But in the interest of keeping it simple, Telus — along with Molson and Cenovus — appear to offer investors the best bang for their bucks.
