Brookfield Infrastructure Partners LP (BIP)

Infrastructure has long been a steady option for investors seeking stability. Infrastructure makes up the essentials of our daily lives, from the water we drink to the power in our homes. That’s why no matter what the market does, infrastructure will remain stable.

While there are many options out there, Brookfield Infrastructure Partners LP is one to consider. The infrastructure stock has a long history of share growth, and has shown in its 14-year history that it can handle downturns and come out strong on the other side.

Much of this is thanks to the way the $20.8-billion company is set up. It currently focuses mainly on energy production and mines for its assets. These are classified as “long-term” assets, providing long-term contracts. Furthermore, these assets purchased by the company have low maintenance capital costs, with high barriers to entry. Combined, this creates stable income and cash flow for investors.

Since coming on the market, shares have risen 611% as of April 2023. Investors today will notice shares are down 20% in the last year, but there’s improvement since the beginning of 2023. So it might be an opportune time to jump in and get a 4.29% dividend yield while you’re at it.

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Hydro One (H)

While Hydro One hasn’t been on the market long, the $23.3-billion utilities company provides most of the power to Ontario, Canada’s most highly-populated province.

While transmission accounts for 60% of the company’s value, distribution takes up the other 40%. The company is well supported with the province of Ontario holding about 47% of its common equity stake.

Utility stocks have long been solid options to help investors through tough times, and much for the same reasons as infrastructure stocks. They provide power, which is needed no matter what happens on the market. The difference with Hydro One is that it’s relatively new, so there’s potential for a long term position in your portfolio.

In the meantime, shares of Hydro One stock are up 82% since coming on the market in 2015, and 14% in the last year. In fact, it’s done quite well even during this downturn, providing some immediate protection for investors. Plus, there’s a dividend yield currently at 2.91%.

Those looking to take control of their investments should certainly explore online trading platforms. The best sites offer resources and tools to help investors make informed decisions as they build and manage their investment portfolios.

Royal Bank of Canada (RY)

Now if you’ve been doing pretty much any reading about investing during a downturn, you’ll likely have seen that the banks tend to not do so great. In fact, look to the very recent past and you’ll have seen the Silicon Valley Bank collapse, among others. While that may occur in America, the Canadian banking system is incredibly regulated and stable.

Royal Bank is a great example of this stability. It continues to be the largest bank in Canada in terms of assets, with a $180-billion market capitalization. The company continues to have lucrative operations thanks to its success in wealth and commercial management, insurance and its capital markets services.

Even when Canadian banks see downturns, they have provisions for loan losses. This has allowed the banks to come roaring back within a year of recession lows, and Royal Bank is no exception.

In fact, it is doing well compared to the other Big Five Banks so far in 2023. Shares are down just 5% in the last year and up 113% in the last decade. The 4.03% dividend yield is attractive as well.

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About the Author

Amy Legate-Wolfe

Amy Legate-Wolfe

Freelance Contributor

Amy Legate-Wolfe is an investment junkie, who aims to help others get hooked by providing well-researched advice. After receiving a masters in journalism from Western University, Amy worked for Huff Post and CTVNews.ca, while freelancing for organizations such as the CBC, Motley Fool Canada and Financial Post. Amy Legate-Wolfe is an experienced personal finance writer and freelance contributor working with Money.ca.

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