Stock market drop? 3 companies to buy and keep for the long term


We would all like to think that the worst is over. But that may not be the case. The TSX is down 10% year to date as of this writing. However, we have seen this happen before. Just as the market begins to rally ahead of earnings, another drop occurs.

That may be the case today. Profits keep pouring in, with tech giants showing that the worst may be yet to come. Moreover, the Bank of Canada’s interest rate hike does not bode well either, even if it is less than the economists estimated at 50 basis points.

The thing is, there are still companies that can offer protection, even though there’s another stock market drop – heck, even if there’s a stock market crash! Here are the three I would choose today.

Northwest REIT

During this volatility, I go with the high-yield dividend payers. However, I’m not going with anyone. The companies I choose must be the ones that will continue to see cash flow, even in the face of all this downturn nonsense.

For this, I continue to feed myself NorthWest Healthcare Properties REIT (TSX: NWH.UN). NorthWest has grown through acquisitions in healthcare properties around the world. For this reason, we have seen rental contracts come back time and time again to longer and longer durations. It now has an average lease of 14.1 years!

NorthWest stock also has one of the highest dividend yields, at 7.61% at the time of writing! Although the dividend itself has not yet increased since its introduction to the market, it has remained stable since its release. This is likely due to the company’s incredible growth in business. So I’m sure we’ll see increases in the years to come.

Stocks are down 19% year-to-date, providing a huge opportunity to lock in that dividend yield. Today, you could return $754 on an investment of $10,000. That would have netted you $554 at 52-week highs.

Brookfield Power

Another company that I continue to drip feed is Brookfield Renewable Partners (TSX:BEP.UN). Unlike NorthWest, this company has the history to support its substantial growth. It has been around for decades and invests in renewable energy assets globally. This diversification has increased recently, as European countries want to get out of Russian oil dependence.

Now, Brookfield stocks still have some work to do. Interest rates and inflation have not been good for the stock these days. However, long-term investors need not worry. It has been proven that it can weather a recession and come out strong on the other side.

Plus, renewable energy itself offers so many opportunities, and Brookfield is one of the biggest stocks to walk you through that reality. Meanwhile, with a dividend yield of 4.56%, you’ll be paid a pretty penny to wait.

The shares are down 10% year-to-date, offering an excellent chance to jump on that yield. A $10,000 investment would net you $438 per year at the time of writing, down from $327 at 52-week highs.

WSP Global

Finally, if there is one thing the world will always need, it is infrastructure. We need highways, bridges, sewers, railroads – whatever is essential to how humans live. And that’s what makes WSP Global (TSX:WSP) such a solid investment.

The company has a diverse range of assets, providing support to countries and businesses around the world to build their infrastructure. And if you’re worried about how long it might last, don’t. WSP stock has been around for 1885! However, you can only see 2014 for market performance because the company changed its name.

Yet during this period the shares are up around 487% at the time of writing. That’s a compound annual growth rate of 24%! Moreover, it has a small dividend that you can also add. Although, in this case, I’m more interested in the long-term performance of the company in terms of share price.

With shares down 10.5% year-to-date, I consider this a great stock to buy. When interest rates and inflation are under control, it is a stock that rebounds even before the end of a recession.


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