3 Resilient Stocks to Help Solidify Your Portfolio
Stocks have been under tremendous pressure this year, driven down by concerns that raising interest rates to combat inflation will push the economy into a recession. A deep downturn would affect how much money companies in economically sensitive sectors earn, limiting their ability to make new investments and return cash to shareholders.
However, some companies are more immune to downturns than others because of their more durable business models. Three highly resilient companies are Enbridge (NYSE: ENB), Realty Income (NYSE: O), and WM (NYSE: WM). Because of that, they can help solidify your portfolio by providing some safety amid the current storm.
Enbridge is a leading energy infrastructure company. Its pipeline-utility business model generates very stable cash flow produced from over 40 diversified sources. Roughly 98% of its revenue comes from stable cost-of-service agreements or other long-term contracts with financially strong customers (95% have investment-grade credit ratings). Meanwhile, 80% of its earnings have inflation protection mechanisms. These features make Enbridge one of the energy sector's most resilient and least risky businesses.
Source Fool.com
