3 Stocks to Make Your Portfolio Recession Ready

AltaGas Ltd (TSX:ALA) and these two other dividend socks can provide investors with a lot of stability and dividend income over the years.

| More on:

If you’re worried about a recession coming up, there are ways that you can help strengthen your portfolio. For one, investing in some good, quality companies that have recurring customers and strong business models can provide a lot of stability. And stocks that pay dividends can also help minimize potential losses along the way. Below are three stocks that could be good buys for both of those reasons.

AltaGas (TSX:ALA) has had a great year in 2019, and although it hasn’t made up for the challenging one that it had in 2018, the stock can offer a lot of potential for investors that buy its shares today. At a price-to-earnings multiple of around 18, and the company having a strong utility business with lots of recurring customers, stability is certainly one of its strengths.

The company is a lot different from years past, as it is now focused more on its U.S. business, and it also cut its dividend significantly. However, with a yield of around 5%, it’s still a fairly good dividend for income investors, especially with payments being made on a monthly basis. And if the company can continue producing strong financial results, it’s possible we could see dividend payments get a boost as well.

With the stock still trading close to its book value, AltaGas could be a good deal at its current price.

Lassonde Industries (TSX:LAS.A) is another good option for investors, as its food products are a staple at many big retail chains across the country. From Allen’s to Oasis, and many others, its brands are well known, and the company’s fruit drinks and other items will continue to be bought whether there’s a downturn in the economy or not. And with consumers focused more on healthier products, Lassonde’s numbers could get stronger.

In each of the past three years, sales have come in at over $1.5 billion, and the company has also generated profits of at least $66 million as well. There’s been a lot of consistency from Lassonde, and that makes its dividend, which is currently yielding around 1.3%, very stable. There could even be room for those payouts to rise.

The stock has struggled this year, falling 9% through the first nine months of the year. However, with the stock trading at less than twice its book value, it could also be a good value buy for investors.

Jamieson Wellness (TSX:JWEL) is another well-known brand that has reach all over the world, and its popular vitamins have become the default choice for many consumers. Its trusted name has helped provide the company with a lot of consistency and allowed it to continue to grow. Sales have been steadily rising for Jamieson over the years from $231 million in 2015 up to $320 million in 2018 — an increase of 39% over three years for a company that’s fairly mature in its development.

It’s been lower down in its financials, which has been the problem from Jamieson, but the company turned a profit in 2018. In each of the past four quarters, it has remained in the black as well. Like Lassonde, it doesn’t pay a terribly high yield with payouts coming in at around 1.7%, but they can help generate some income during challenging economic periods.

With dividend income and a stable brand, Jamieson Wellness could be a good option for investors that are worried about what the future might hold for the economy.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any of the stocks mentioned. AltaGas is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

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

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »

analyze data
Dividend Stocks

3 Dividend Stocks That Are Screaming Buys in November

Here are three top dividend stocks long-term investors won't want to ignore during this part of the market cycle.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Generate $175/Month in Passive Income With a $30,000 Investment

Dividend aristocrats offer reliability, and many of them also offer generous yields. With sizable enough discounts, these yields can become…

Read more »

dividends can compound over time
Dividend Stocks

Best Dividend Stocks to Buy Now for Canadian Investors

These three stocks would be excellent additions to your portfolios, given their solid underlying businesses, consistent dividend growth, and healthy…

Read more »

data analyze research
Dividend Stocks

3 Undervalued Stocks to Watch in November

Not all undervalued and discounted stocks are destined or poised to make a comeback soon, and a protracted timeline can…

Read more »

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

The Perfect TFSA Stocks for Long-Term Growth

Two industry heavyweights are perfect stock holdings in a TFSA for long-term money growth.

Read more »