For those planning on being invested for the long term, volatility is no reason to be on the sidelines today. In fact, with all of the discounted stocks on the TSX, now is an excellent time to invest.
Whether you’re looking for a high-flying growth stock or a dependable Dividend Aristocrat, there’s likely a stock on sale that’s a fit for your portfolio.
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Investing ahead of a recession
Even if you’re a long-term investor, it’s hard to ignore all of the headlines surrounding a looming recession. While it may only be a matter of time, I’m not letting a potential recession prevent me from investing today.
There are plenty of TSX stocks that have the capability of surviving recessionary periods and coming out of them even stronger.
I’ve reviewed two top Canadian companies that have been winning stocks for investors for years. Regardless of what may be in store in the coming months, these are two solid companies that you can feel great about buying right now.
Brookfield Asset Management
There’s never a bad time to invest in Brookfield Asset Management (TSX:BAM.A). The global asset management company is a well-diversified business on the TSX.
The company boasts an international presence, with a portfolio spanning a range of different assets, including real estate, energy, and infrastructure.
Despite the stock’s broad diversification, it’s been an impressive market beater. Shares have more than doubled the returns of the broader Canadian stock market over the past five years. And the further you go back, the longer the market-beating track record continues.
In addition to market-beating gains, Brookfield Asset Management offers shareholders a modest and growing dividend. At today’s stock price, the dividend yields upwards of 5%.
Investors with some cash to spare this holiday season would be wise to have this dependable TSX stock on their watch list. Whether we’re headed for another market drop or the start of a bull run, Brookfield Asset Management is an excellent long-term buy today.
Constellation Software
Not many TSX stocks have outperformed Constellation Software (TSX:CSU) since it went public close to 20 years ago. Growth may be slowing for the nearly $50 billion tech company, but there’s still lots of market-beating potential left in the tank for Constellation Software.
Shares are up close to 200% over the past five years. In comparison, the S&P/TSX Composite Index has returned less than 30%.
With many high-growth tech stocks on the TSX trading at massive losses on the year, Constellation Software is down just 10%. The tech stock has held up impressively well while tech stocks across North America have been hit hard over the past 12 months.
One of the reasons why Constellation Software has held up so well this year is because it’s not a young, unprofitable tech company. It’s now a mature and very profitable company that relies much more on acquisitions to help drive growth than it has in the past.
For investors that are looking to add some growth to their portfolios in an uncertain market period, this is the company that I’d recommend.
