Business & Investment

3 shares to buy prior to market crash

The· TSX composite index We continue to trade at the highest price ever. This alone does not mean that the market will crash, but at least it does mean that it could retreat.Whether that happens or not, the market crash Finally come. It may not be in the coming months, but there can be a market crash in the normal market.

So it’s great to be prepared for a potential market crash. To do so, we need a combination of companies that provide a strong future outlook.

Royal Bank

One of the best places to invest is Canada’s Big Six Bank. It’s true that banks tend to fall significantly during a market crash, but banks are also full of professionals who make money and quickly return to pre-crash levels. Take the last recession of 2008 as an example. Canadian banks were among the leading banks in the world, returning to pre-crash levels within a year. It has happened again since the March 2020 crash.

If you are considering a bank for your safety, Royal Bank of Canada (TSX: RY)(NYSE: RY) The perfect option. It is the largest bank by market capitalization and is expanding rapidly. It has a large presence in the United States, but is expanding into the wealth and commercial management sector, which has proven to be very lucrative in Canada. It is also expanding into emerging markets, offering a diverse portfolio that limits the decline in earnings.

Last year’s share increased 4.71%, but with a CAGR of 12.92%, it has increased 84% over the last five years. It also offers a solid dividend of 4.05% at the time of writing.

Fortis

If you need a safe stock that limits your exposure to a market crash, it’s definitely for the utility sector. We believe these stocks will be profitable no matter what the market is doing. This is an essential service for every industry and everybody on the planet.

that is Fortis Inc. (TSX: FTS)(NYSE: FTS) very strong. The company has acquired projects throughout North America and has grown through the acquisitions. Its predictable cash flow means that we can continue to increase strong dividends already. In fact, it’s only a year shy to become the dividend king with a 49-year dividend increase! And the company continues to expect a CAGR of 7.2% over the next few years.

Shares have fallen 7% from their pre-crash highs in the last few years, but have increased 49.75% and CAGR 8.4% over the last five years. It also offers a solid dividend of 3.92% at the time of writing.

health

Finally, if you need a company that has a strong outlook, but isn’t a problem with little history, consider telemedicine stocks. WELL Health Technologies Corp (TSX: WELL) In particular, due to the influence of the pandemic, it surged last year or so. Telemedicine has become a necessity during COVID-19, but it is very likely that it will remain a necessity for the foreseeable future.

Well health lead That fee. The company recently announced a major acquisition to expand into the US market by acquiring CRH Medical for $ 295.5 million. The company expects to increase earnings per share by 120% and EBITDA by 800% in 2021 alone.

Equities increased 371% last year and increased 2,305% over the last three years. Its growth is not sustainable in the long run, but we can certainly see that these shares will continue to skyrocket for at least the next few years and remain strong for decades.

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Stupid contributor Amy Legate-Wolf I own a stake in ROYAL BANK OF CANADA. Motley Fool recommends FORTIS INC.

3 shares to buy prior to market crash

https://www.fool.ca/2021/02/12/3-stocks-to-buy-ahead-of-any-market-crash/ 3 shares to buy prior to market crash

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