With the threat of a full-blown trade war escalating and tariffs once again weighing on investor sentiment, the market has started to show signs of strain. Uncertainty surrounding global supply chains, inflationary pressures, and how central banks will respond has left many investors wondering which stocks to avoid altogether and which stocks to buy now.
In times like these, it’s crucial to focus on high-quality businesses that have the reliability to weather near-term headwinds, as well as the long-term potential to generate significant returns once the dust settles.
Although tariffs can create a lot of uncertainty in the short run, they don’t change the fact that great companies will continue to execute through all types of environments.
Not only are there high-quality stocks that are well-positioned to withstand an economic slowdown, but many of them are also trading below their recent highs, giving investors an opportunity to buy now at attractive prices.
So, if you’re looking for reliable stocks to buy today that can hold up in this uncertain environment and set you up for gains once the volatility fades, here are a few of the best options to consider.
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One of the best TSX stocks to buy on the dip
If you’re looking for high-quality stocks to buy on the dip in this environment, one of the very best is goeasy (TSX:GSY), the specialty finance stock.
goeasy has been one of the most impressive growth stocks on the TSX in recent years. So, the opportunity to buy the stock while it trades nearly 25% off its 52-week high can’t be ignored.
With goeasy trading below $160 a share, it is trading at a forward price-to-earnings ratio of just 7.95 times, which is well below its five-year average of 10.5 times. However, its dividend yield has also increased to 3.7% in the selloff.
Therefore, not only is goeasy one of the best growth stocks on the TSX that you can buy at a discount today, but the stock will pay you to wait for the eventual recovery rally.
Furthermore, in the last five years alone, goeasy has increased its annual dividend by more than 220%.
So, it’s no surprise that six of the seven analysts covering goeasy rate it a buy, and its average analyst target price is upwards of $220, a more than 40% premium to where goeasy trades today.
Two top defensive growth stocks
Although goeasy is one of the best stocks you can buy now, because it’s a high-quality growth stock, it has the potential to be somewhat volatile.
So, if you’re looking for some of the best stocks to buy now that can also help to shore up your portfolio, two of the best are Brookfield Infrastructure Partners (TSX: BIP.UN) and Telus (TSX:T).
Brookfield is one of the top long-term investments on the TSX. Therefore, the fact that it’s currently trading 22% below its 52-week high makes it one of the best stocks to buy now.
Not only does it own a well-diversified portfolio of essential infrastructure assets, which makes its operations considerably defensive, but it also has significant long-term growth potential as it continues to recycle capital.
Furthermore, the stock also offers a yield of more than 6.3% today. Therefore, in addition to the resilience of its operations and long-term growth potential, investors who buy Brookfield Infrastructure now can begin earning a return almost immediately, even if markets continue to trade flat or even down in the near term.
Meanwhile, Telus is another defensive stock that offers a compelling dividend yield.
As a telecom stock, not only does it generate significant cash flow from its resilient operations, but it also returns much of that cash flow to investors. In fact, if you buy Telus stock right now while it trades off its highs, you can lock in a yield of roughly 7.8%.
That’s considerably higher than its five-year average forward yield of 5.7%. Plus, like Brookfield, it’s constantly increasing the dividend it pays to investors.
So, if you’re looking to shore up your portfolio in this uncertain economic environment, there’s no question that Telus is one of the best stocks to buy now.
