There are plenty of great buys on the market if you know where to look. With recent events leading to increased volatility, finding those investments should be an objective of every investor. Fortunately, some of those options double up as stellar defensive picks and income producers.
Here are some of those investments to add to your portfolio.
Not your typical retailer
Canadian Tire (TSX:CTC.A) is one of the largest and most well-known retailers in Canada. Apart from its namesake, the company also owns the SportChek and Mark’s brands. Fortunately, unlike most traditional retailers, Canadian Tire has embraced the shift to online commerce.
That shift has helped Canadian Tire continue to see sustained growth, while other retailers have stalled. In fact, in the most recent quarterly update, Canadian Tire surpassed expectations by a whopping 28%.
As impressive as that sounds, the retailer recently announced a $3.4 billion investment to drive further improvements and growth. Canadian Tire noted that the investment will bolster and modernize its supply chain fulfillment infrastructure.
And to top it off, Canadian Tire offers investors a quarterly dividend with a yield of 2.61%. Canadian Tire has also provided annual or better upticks to that dividend going back well over a decade. This factor alone makes Canadian Tire one of the great buys to consider for your portfolio
Hauling freight and growing your portfolio
One of the most underrated investments on the market are railroads. Despite its age, rail is still one of the single-largest forms of hauling freight, connecting ports, warehouses, and factories. In fact, railroads are often referred to as arterial veins of the entire North American economy.
This is where the appeal of Canadian National Railway (TSX:CNR)(NYSE:CNI) comes into play. Canadian National is the largest railroad in Canada and one of the largest on the continent. The railroad is also the only one in North America that has access to three separate coastlines through its massive network.
That network, which spans over 32,000 kilometres, hauls over $250 billion worth of freight each year. That freight can be anything from wheat and crude to automotive components, raw materials, chemicals, and finished products.
In addition to that stellar defensive moat, Canadian National also offers investors a respectable quarterly dividend. The current yield of 1.78% isn’t the highest on the market, but it’s stable and growing. In fact, Canadian National has provided an annual bump to that dividend without fail for well over two decades.
Again, that just calls out as one of the great buys your portfolio needs.
Hungry for food as well as growth and income?
Some of the best investments are those that we engage with on a daily basis yet rarely think of as investments. That’s just one reason why investors should take a look at Metro (TSX:MRU).
The Quebec-based grocer operates a large network of grocery stores and pharmacies under several banners. The stores are predominately located in Ontario and Quebec. In total, the company boasts about 950 grocery stores and 650 pharmacies across its network.
Grocery stores are great defensive investments. They provide a necessary service to people, not unlike utility investments. That’s where the similarity stops. Unlike, for example, paying a utility bill, consumers will derive some satisfaction from buying groceries and can opt for more frugal options when financially stretched.
That defensive appeal is augmented by Metro’s impressive 27-year record of providing investors with annual consecutive dividend hikes. The current yield works out to 1.58%, and the most recent uptick was a 10% increase earlier this year.
Will you buy one or more of these great buys?
Finding the right mix of investments can take time. Fortunately, the great buys noted above provide income and growth potential that would do well in any well-diversified portfolio.
In short, whether it’s one or all of the stocks noted above, buy them, hold them, and watch them grow.
