Stability could be one of the most important benefits investors look for in their stocks right now. Stable stocks can provide you with a good night’s sleep. They change your outlook knowing full well your stocks will continue to create returns, even during this unstable market.
Today, there are three stable stocks I would recommend to smart investors. I say smart because these are the investors who know over time, the market trends upwards. There isn’t a reason to fear, there’s only a reason to invest in stable stocks like these. And that reason is stability.
With that in mind, these are the three stable stocks I’d consider on the TSX today.
I know, I’m talking about stability and then I go straight to a tech stock. Seems strange, right? Well, smart investors should know that tech stocks aren’t exactly new. Such is the case for Constellation Software (TSX:CSU).
Now just because Constellation stock has been around a long time doesn’t mean it’s automatically a stable stock. No, it’s one of the stable stocks to consider because it has created a lucrative and stable growth strategy.
With a track record of decades, its incredible management team acquires software companies, gives them what they need to thrive, and brings in stable revenue as a result. And these are essential companies such as the ones needed at libraries, subway stations and more.
Constellation stock is up a steady and stable and incredible 1,783% in the last decade alone. Shares are up about 7% in the last year as of writing.
If you really want stability, get basic. Literally. That’s why Teck Resources (TSX:TECK.B) is also a strong option during a downturn. Teck stock offers exposure to basic materials, where it produces the items necessary for our daily lives.
Whether it’s silver for batteries, copper for plumbing, coal for steel, or even potash for fertilizer, it produces a wide array of products. It has also been around since the 1970s, providing decades of growth in that time.
With another strong balance sheet and more growth always at the ready, Teck stock has proven it’s one of the stable stocks smart investors should seriously consider â especially with a dividend yield at 2.16% and trading at a valuable 6.47 times earnings.
Shares of Teck stock are down about 8% in the last year, but up 63% in the last decade alone.
It happened. Canadian Pacific Railway (TSX:CP) received approval from the Surface Transportation Board (STB) in the United States to merge with Kansas City Southern Railway. It’s now creating a new company, the first single line railway that will provide access across North America.
With little overlap, the company is set for a steady and increasing amount of new revenue streams that will last decades. So while the dividend cut in the past was a bummer, it’s going to prove worthwhile in the long term. Even in the short term, CP stock has done quite well. It’s now one of the stable stocks that I’d seriously consider smart investors buy in bulk.
With shares up 310% in the last decade, this could absolutely happen again in the next decade. Shares are up just 5% in the last year alone, so I would jump on this railway before it leaves the station. And no, you may not pardon my pun.
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Fool contributor Amy Legate-Wolfe has positions in Canadian Pacific Railway. The Motley Fool recommends Canadian Pacific Railway and Constellation Software. The Motley Fool has a disclosure policy.