We’re in a recession right now — or perhaps we aren’t! It depends on when and who you ask that question to. One certain thing is that there are stellar Canadian picks for income investors on the market right now.
More importantly, those Canadian picks can provide years, if not decades of income and growth potential, irrespective of how the market fares.
Here’s a look at a few to consider buying for your portfolio today.
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This stock is incredibly recession resistant
Some of the best, most-defensive stocks on the market today are utilities, and I’m specifically looking at Fortis (TSX:FTS).
Fortis is one of the largest utilities in North America. The company operates across 10 operating regions that blanket Canada, the U.S., and the Caribbean. And while that diversification is great, the real reason why Fortis is one of the Canadian picks to consider buying now is for its business model.
Utilities generate a reliable and recurring revenue stream that is backed by long-term, regulated contracts. In short, for as long as Fortis continues to provide service, it generates a stable revenue stream.
And that stable revenue stream, which is largely immune to shorter-term market volatility, allows the company to invest in growth and pay out a very generous dividend.
In the case of Fortis, that recession-proof dividend comes in the form of a quarterly payout. As of the time of writing, Fortis offers investors a juicy yield of 4.23%. And that’s not even the best part.
Fortis has provided investors with an annual uptick to that dividend for an incredible 50 consecutive years without fail. This means that prospective investors who drop $30,000 into Fortis can expect a first-year income of just over $1,270.
As of the time of writing, Fortis trades up just 2% year to date, making it a unique option and great time to buy a long-term gem.
This stock can power your portfolio to greatness
Another intriguing option for income investors looking for top Canadian picks to consider is Enbridge (TSX:ENB). Enbridge is a massive energy infrastructure company that boasts the largest and most complex pipeline system on the planet.
In terms of volume, here’s a unique fact to provide some context.
Enbridge’s pipeline network transports nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Not surprisingly, that pipeline business generates the bulk, but not all of Enbridge’s revenue. And given the necessity of the pipeline on the entire continental economy, it makes Enbridge one of the most defensive stocks on the market.
But incredibly, that’s not all that Enbridge does. The company also operates a growing renewable energy business, which includes over 40 facilities located in Europe and North America. Enbridge has invested over $8 billion into the segment in the past two decades and continues to expand its footprint.
Enbridge also operates the largest natural gas utility in North America. This only furthers the defensive appeal of Enbridge as one of the Canadian picks for investors.
Finally, one of the main reasons why investors continue to flock to Enbridge is for the company’s incredible quarterly dividend. As of the time of writing, Enbridge offers an insane yield of 7.63%, making it one of the best-paying dividends on the market.
Using that same $30,000 example from above, prospective investors can expect an income of just over $2,270. And just like Fortis, Enbridge has provided investors with a juicy annual uptick to that dividend for three decades without fail.
Investors looking to buy Enbridge as one of the Canadian picks for income should note that the stock also trades down 9% year to date. This makes Enbridge a discounted great Canadian pick for any portfolio.
