Buy These 2 Top TSX Stocks for Long-Term Upside

Stocks like Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) can reward investors for years to come, thanks to their recession-resistant qualities.

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What do green power, sports media, and telecommunications all have in common? One compelling answer is that all three are rewarding, recession-resistant plays for the long term. All three of these high-reward sectors can also be accessed with a purchase of just two exemplary Canadian stocks. Let’s take a quick look at them.

The diversified green energy stock

Algonquin Power & Utilities is a smart long-term play on diversified green power. It’s also a decent income stock for dividend investors on the lookout for a tasty yield in the energy sector. A 4.6% yield is certainly nothing to be sniffed at and would make a welcome addition to a TFSA. Indeed, this is one name that Canadians should feel comfortable about going long on. It packs diversification across several energy sources and is rich with green power upside potential.

Green energy rocketed back into the headlines this week with the Trump Administration’s backing of the billion-dollar Gemini solar project in Nevada. News of the groundbreaking project, which will likely be the eight-largest solar energy facility globally, has pushed green power back into the limelight. Stocks like Algonquin Power & Utilities tap this growth megatrend and are a strong bid for years-long returns.

The sports media power play

Rogers Communications is a strong buy for any Canadian sports fans betting on a recovery. Teams and supporters alike are raring to get back into action as soon as the pandemic is broken. Investors have a double-whammy with Rogers Communications, though, since its telco operations make for a solid wireless play during this period of physical distancing. Indeed, communications stocks are proving reliably resilient during the pandemic.

Sports media has proven a staple of the stay-at-home content diet, despite the current lockdown. Even with major teams on the bench, Rogers is a strong play for dominance in the sports media space. Investors not au fait with Rogers’s impressive roster have some major names to consider adding TFSA access to. With one stock, shareholders gain exposure to the Raptors, Blue Jays, Maple Leafs, and, of course, the famous Rogers Centre itself.

A simple strategy for recession investing

But don’t buy these names all in one go. Some investors are waiting for the bottom. But don’t do that either. Instead, make a watch list of names like the ones above. Decide upon your entry points and get ready to hold, even if those dividends end up getting reduced or even put on ice for the time being. What’s called for now is super long-range vision. So, if your financial horizons are wide enough, build your wish list.

Buy in stages instead of waiting for the bottom to back up the truck. The market is simply far too unstable for placing very large bets. You may have a figure you’re thinking of spending on a certain list of names. Or perhaps the size of your eventual position is the determining factor. Either way, break that position down into segments and begin sculpting your pandemic portfolio over a period of months.

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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 Victoria Hetherington has no position in any of the stocks mentioned.

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