3 Top Stocks for Risk-Averse Investors
Some investors just can't stomach losing a significant chunk of their net worth in a short period of time. However, instead of avoiding the market altogether to steer clear of that risk, a better option would be to invest in stocks that have lower risk profiles. Three options that risk-averse investors should love are TransCanada (NYSE: TRP), Brookfield Renewable Partners (NYSE: BEP), and Medical Properties Trust (NYSE: MPW). Not only do all three have rock-solid financials and pay a pretty compelling dividend, but each has visible growth prospects on the horizon that should enable investors to earn a solid return with less risk.
Canadian gas pipeline giant TransCanada operates a low-risk business model since regulated assets and long-term contracts support 95% of its annual EBITDA (earnings before interest, taxes, depreciation, and amortization). The company further minimizes risk by maintaining a top-tier balance sheet, complete with an 'A' credit rating and a low leverage ratio. In addition, TransCanada typically pays out less than half its cash flow in dividends, using the rest to help finance growth projects. Even with that low-end payout ratio for a pipeline company, TransCanada still yields a compelling 3.6%.
Keep reading to learn more about these safer stocks. Image source: Getty Images.
Source: Fool.com
TC Energy Corp. Stock
Currently there is a rather positive sentiment for TC Energy Corp. with 3 Buy predictions and 1 Sell predictions.
On the other hand, the target price of 29 € is below the current price of 42.12 € for TC Energy Corp., so the potential is actually -31.14%.
