3 Top TSX Stocks Under $30 to Buy for Defensiveness

Here are three of my top picks I’d recommend long-term investors seeking defensiveness in today’s market consider right now.

Volatility in today’s market provides a backdrop of uncertainty for investors. Which way the market will ultimately go from here remains to be seen.

However, investors may want to consider some defensive plays to limit volatility. Risk-adjusted returns may become more important for many investors now. Accordingly, checking out these top three defensive stocks under $30 may be a good idea for such investors.

In this context, let’s dive into why these stocks are great options.

Suncor Energy

In the commodities space, there are few companies with the quality and defensive profile Suncor Energy (TSX:SU)(NYSE:SU) provides.

Indeed, this energy producer has excellent core fundamentals. Given where energy prices are today, Suncor’s cash flows are expected to be very strong for some time. Indeed, if energy prices remain high, Suncor could continue to outperform. Years of cost-cutting measures have positioned Suncor to do well in nearly any commodity price environment. The company’s breakeven cost per barrel around US$35 WTI oil makes this stock highly defensive.

Additionally, Suncor’s investments in renewable energy make this a long-term play as well. Suncor’s cash flow growth is expected to remain high. Indeed, the company’s forecast of a $2 billion cash flow increase at these energy prices ought to be enough to entice investors today.

Currently, this stock has a dividend yield of 3.2%, For long-term investors, this stock provides a great mix of defensiveness, income, and value at these levels.

Barrick Gold

There’s perhaps no more defensive commodity than gold. And gold producers like Barrick Gold (TSX:ABX)(NYSE:GOLD) continue to be among my top picks.

Gold producers provide enhanced leverage to rising gold prices. For those worried about inflation and the effects inflation could have on stocks, gold miners are a great place to be. These stocks are positively correlated with inflation, acting as a hedge in down markets.

Additionally, Barrick has some of the highest-quality mines and gold reserves in the world. It’s a global producer with operations in 10 countries and diversified operations across a range of metals. Furthermore, this company boasts some of the best operating metrics of its competitors.

Killam Apartment REIT

Real estate is a more cyclical sector, generally speaking. However, the defensiveness of the dividends paid by REITs make these bond-like equities great picks in today’s environment.

In the REIT space, one of my top picks continues to be Killam Apartment REIT (TSX:KMP.UN). This residential-focused REIT focuses on apartment buildings and manufactured home communities in the Atlantic provinces. The REIT has more than $3.8 billion in assets in its portfolio. And the company’s continued to grow its assets considerably over time in a prudent fashion.

I think Killam’s operating metrics are among the best in the sector. Additionally, I like the company’s cash flow position relative to its peers. Rents came in at a stellar clip throughout the pandemic, showing just how defensive this gem is.

Currently, Killam is attractively valued at less than 15 times earnings. For those seeking reasonably priced long-term growth, this is an excellent option.

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 Chris MacDonald has no position in any of the stocks mentioned.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »