3 TSX Stocks To Buy Ahead Of A Market Crash

Market analysts and economists are worried about a market crash in the near future. Stock markets around the world are trading at their highest while economic data is the weakest it has been in decades. In such a scenario, a market crash seems like it’s just around the corner. Smart investors should look to prepare a stock portfolio that can hold its own in a falling market. 

When it comes to the TSX, here are three stocks that can prove to be smart defensive plays in a volatile market. These stocks should perform better during a market crash than traditional growth stocks.

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Fortis (FTS):

This company is one of the leading players in the utility space in North America providing services to customers across Canada, USA and the Caribbean. Whether there is a pandemic or a recession, people need their utilities. Fortis is a rock during any market, good or bad. It is one of the safest companies on the TSX.  

For the third quarter of 2020, the company said that around approximately 82% of its revenues are either protected by regulatory mechanisms or are derived from residential sales which have generally increased as a result of work-from-home practices. Fortis increased its earnings by 39 million for the first nine months of 2020, not including one-time gains of $525 million from different sources.

This regular cash flow has enabled Fortis to increase its dividends for 47 consecutive years. Fortis has weathered multiple recessions over this time period and has never once compromised on its dividend payout. The company has given guidance of increasing its dividend payout by 6% through 2024.

The company has upped its five-year capital plan by $0.8 billion to $19.6 billion. This will help support its dividend plan over the next decade. 

Fortis is currently trading at $51.17 and analysts have given it a target of $59.5. That’s an upside of over 16% from current levels. When you take into account its dividend yield of 3.96%, the total returns on Fortis are closer to 20%. Not bad for a utility company.

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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