Every time the stock market sells off and numerous companies lose value, investors are naturally unsettled. In particular, bear markets, defined as stock market indexes falling at least 20% from their highs, are of particular concern if you haven’t found safe stocks to buy.
This is because bear markets and pullbacks in general really only affect riskier stocks to any significant extent. A quality company with solid operations should be able to weather economic downturns and a consequent decline in share prices. And when you find companies that will be around for years, if not decades, it’s a lot easier to have confidence in those investments.
A higher-risk stock is a different story. It’s quite possible that many of these substandard companies won’t survive a recession or significant bear market.
Therefore, it is important not to be intimidated by market conditions. Instead, as long as you can find safe stocks to buy and keep a long-term mindset, there shouldn’t be anything to worry about.
So if you’re looking to add defensive stocks to your portfolio as market conditions continue to deteriorate near-term, here are two safe stocks to buy today.
One of the best safe stocks to buy for your portfolio today
Investors have a lot of choices when it comes to finding safe, reliable stocks for their portfolios. Utility stocks in particular are often extremely reliable, and Canada is home to many top utility stocks.
One of the best things to buy now to start earning passive income and keep your capital safe is Algonquin force and utilities (TSX:AQN)(NYSE:AQN).
Algonquin is an ideal stock because it has extremely robust operations in every state where it provides utilities such as electricity, gas, and water. In addition, since it is spread across several states, it reduces the risk significantly.
In addition to these utilities, however, Algonquin also has a massive growth pipeline as it also operates an impressive green energy segment in which it owns many renewable energy generation assets.
This makes Algonquin one of the safest stocks to buy. It pays an incredible dividend that it grows every year, and has tremendous long-term growth potential. Best of all though, Algonquin has been retiring lately, although not by much given how resilient it is. However, you can still buy the stock today just above its 52-week low while it offers a yield of more than 5.75%.
So if you’re looking for safe stocks to buy in a bear market, Algonquin is a good pick.
A top stock for energy infrastructure
Another excellent deal to buy today for security and stability is Enbridge (TSX:ENB)(NYSE:ENB). Enbridge is a business very similar to Algonquin. While most of its wealth isn’t necessarily regulated by governments, the stock’s operations are so critical to the North American economy that it’s one of the safest stocks to buy.
Aside from the importance of Enbridge’s operations and therefore the company’s resilience, the stock also regularly brings in billions in cash flows.
This keeps it ultra-safe and ensures that Enbridge can fund its impressive 6.6% dividend, which it has increased for 26 straight years.
In fact, Enbridge is expected to generate at least $5.20 in distributable cash flow per share this year, but it will only return $3.44 per share in dividend payments, showing how safe this dividend is and why Enbridge is one of the best stocks you can buy.
So if you’re looking to shore up your portfolio in this environment and add a quality passive income generator to your portfolio, there’s no question that Enbridge is one of the best stocks to buy today.