Each sector in the stock market has its own “personality.” Some sectors are aggressive movers. They move up and down relatively more quickly, fluctuating the market. Some sectors are stagnant, and some move contrary to the broader market conditions. Similarly, some stocks survive market crashes and corrections better than others.
Franco-Nevada (TSX:FNV)(NYSE:FNV) is a Toronto-based, gold-focused royalty and stream company. It has a geographically diversified portfolio of assets, leaning heavily towards gold. The company had a very steady run in the past five years, spiking high last year amid the recession fears. But like the broader market, Franco-Nevada’s stock also dived, and the stock has tanked about 25%.
But as a gold-based company, its chances of bouncing back up are higher than other companies and sectors, primarily because many people prefer to buy gold in economically uncertain times to provide their asset base and portfolio with a hedge. It’s also a Dividend Aristocrat, with more than a decade’s worth of dividend increases under its belt. Currently, it offers a yield of 1.14%.
Canadian National Railway (TSX:CNR)(NYSE:CNI) owns and operates an impressive fleet of 24,000 railroaders that transport goods on tracks spanning about 20,000 miles in the country and beyond. The company moves an estimated quarter of a trillion worth of goods every year. Even in the current state of fear, goods need to be transported from one corner of the country to another. And once the panic stops, it will be business as usual for the company.
The business model gives it an automatic sheltering from many kinds of economic headwinds and might also be the reason behind the company’s continued growth over the past decade. The company is also an established aristocrat. As dividend royalty, it’s increased its payouts for 20 consecutive years, and unlike a “symbolic” increase in payouts, the increases CNR offers are quite substantial. The current yield offered by the company is 2.15%.
Whether you are at your workplace or home, you need power. It’s why utility companies like Capital Power (TSX:CPX) have a steady stream of income through utility bills. It also allows them to bounce back on track after market corrections and recessions, relatively faster than other businesses. The company has a Canadian and U.S.-based portfolio of 26 properties.
Most of the electricity generation facilities are natural gas dependent. Others run on wind, solar, and coal. This brings the total production capacity of the company to 6,210 MW. It’s also a Dividend Aristocrat with a six-year track record of increasing dividends. Currently, it’s offering a juicy yield of 7.33%.
The coronavirus sell-off is taking the market by the storm. Or, more precisely, it is the storm. But not all people are treating it the same way. While some are busy dumping their stakes in the market, others are loading up on good companies when they are trading far below their fair value. And if you understand what kind of stocks can survive the sell-off, you can make some pretty amazing buys in the market.
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