Got $3,000 to Invest? Buy These 3 TSX Stocks

If you have money, and you’re looking to buy TSX stocks, look no further than these three top defensive businesses that are perfect for today’s environment.

| More on:

If you have money to invest, you may be wondering where to start. A lot of TSX stocks have rebounded considerably in the last few months. This doesn’t leave investors with many options to buy undervalued stocks.

Furthermore, we are still in the thick of the pandemic, and most high-quality stocks are trading back near their pre-pandemic highs.

Despite this rally and the underlying economic environment, there are still some TSX stocks for investors to buy.

However, because of the uncertainty, investors will need to make sure they buy only the best stocks for this environment. These are going to be high-quality businesses, blue-chips, or stocks that offer investors defence against more market turmoil.

Here are three TSX stocks that I would invest my money in today.

Consumer staple TSX stock

The first stock to consider is one of the most well-known consumer staple companies in Canada: Loblaw Companies (TSX:L).

Loblaw owns a massive portfolio of high-quality grocery store brands across Canada. That’s one of the reasons I’d buy the stock today. In the current environment, with so much economic uncertainty, owning defensive businesses has much lower risk.

Plus, in addition to all the grocery stores it owns, Loblaw has complemented them with Shoppers Drug Mart, the biggest pharmacy chain in Canada.

The massive market share Loblaw has between grocery and pharmacy has helped make its loyalty program one of the best in the nation. Furthermore, it promotes more customer loyalty and is a boost to its ancillary businesses, such as its President’s Choice credit card and financial services business.

This just goes to show everything Loblaw has going for it. It also shows why it’s such a top business to own long term and a perfect stock to buy in this environment. Plus, investors with cash today can buy the TSX stock at an extremely attractive price, trading more than 15% off its 52-week high.

TSX utility stock

Another great business to own in this environment is a utility stock. One of the top utility stocks on the TSX is Fortis (TSX:FTS)(NYSE:FTS).

Fortis is a massive $20 billion utility company that’s mostly  electric utilities as well as some gas. The company has also recently gained some exposure (albeit small) to electricity generation.

Utilities are great because they are low risk; however, Fortis takes it a step further, operating in several different regulatory jurisdictions. Furthermore, the most income it earns from one segment is 34%. So, it’s done a great job to diversify its main exposure.

In addition to being attractive for its defensive business and stable 3.8% dividend, the company is also one of the top dividend-growth stocks on the TSX.

Fortis now has 47 consecutive years of dividend increases; and going forward, it’s targeting a 6% compounded annual growth rate in its dividend through 2024.

Green energy stock

The third and final top TSX I would buy today is Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).

Green energy is a perfect long-term industry for investors. Numerous governments continue to push for more clean energy. This will be a huge tailwind for renewable energy businesses that can continue to grow and develop their asset portfolios.

Not only that, but power generation is an industry that’s generally highly defensive, since we continue to demand electricity, whether the economy is booming or not.

Brookfield, specifically, is a top investment company and one of the best choices for investors interested in green energy. The company is considerably bigger than its TSX peers and an ideal stock to hold for decades.

And even though it’s already a massive company, it continues to plan more growth projects with its more than $3 billion in liquidity. On top of all that, it also pays a solid dividend that currently yields roughly 4.6%.

Bottom line

Now is as good a time as any to buy TSX stocks. Just bear in mind the environment we are in and all the uncertainty that exists. This way, you’ll make sure to buy the best TSX stocks, which will continue to protect and grow your capital.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

More on Coronavirus

A airplane sits on a runway.
Coronavirus

3 Fresh Stocks I’m Likely Buying in 2025

I am likely buying Air Canada (TSX:AC) stock in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Coronavirus

Canadian RRSP Stocks to Buy Now for Retirement

Alimentation Couche-Tard Inc (TSX:ATD) is a quality retirement stock.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Coronavirus

Retirees: What Rising Inflation Means for Your CPP Payments

If you aren't getting enough CPP, you can consider investing in stocks and ETFs. Canadian National Railway (TSX:CNR) is one…

Read more »

Coronavirus

Air Canada Stock Is Starting to Get Ridiculously Oversold

Air Canada (TSX:AC) has been beaten down to absurd lows.

Read more »

Coronavirus

Should You Buy Air Canada Stock While it’s Below $18?

Air Canada (TSX:AC) stock is below $18. Should you invest?

Read more »

Illustration of data, cloud computing and microchips
Stocks for Beginners

3 Canadian Stocks That Could Still Double in 2024

These three Canadians stocks have been huge winners already in 2024, but still have room to double again in the…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Can Air Canada Stock Recover in 2024?

Air Canada (TSX:AC) stock remains close to its COVID-19 era lows, even though its business has recovered.

Read more »

A airplane sits on a runway.
Coronavirus

3 Things to Know About Air Canada Stock Before You Buy

Air Canada stock continues to hover below $20 despite the sharp rise in travel demand seen across the industry. What's…

Read more »