Defensive investors: 3 actions to consolidate your portfolio

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Volatility is something all investors need to consider. One of the best ways to account for volatility is for defensive investors to add one or more defensive stocks. Fortunately, the market offers us many opportunities to consider. Here are three options for your wallet.

Stable growth is achievable

Utilities are among the most defensive investments in the market. There is a good reason for this point of view. In short, public services provide us with a necessary service for which there is no substitute. Unlike other staples like groceries, you can’t just find cheaper electricity or even go without.

This is just one of the reasons why your wallet needs Fortis (TSX: FTS) (NYSE: FTS).

Fortis is one of the continent’s largest utilities with a presence in Canada, the United States and the Caribbean. Fortis has come to this point by taking an aggressive stance on expansion, which is anything but the norm for a utility. In recent years, this growth has turned towards the transition of existing installations to renewable energies.

Either way, Fortis generates a reliable and recurring income stream that should appeal to any long-term investor. This income stream also helps Fortis finance its quarterly dividend and generate a nice annual increase.

The current yield is an impressive 3.56%. It’s also worth noting that Fortis has maintained an incredible 48 consecutive years of annual dividend increases. This makes the utility a great option for defensive investors.

Here is another option to consider

As traditional utilities slowly transition to renewables, there are other options to attract defensive investors who already have a renewable energy portfolio.

One of these options is Brookfield Renewable Energy Partners (TSX: BEP.UN) (NYSE: BEP). Brookfield Renewable has a massive (and still growing) portfolio of renewable energy assets. These assets are primarily hydroelectric, but the company also owns wind and solar assets.

When it comes to Brookfield’s appeal, investors should take note of the firm’s massive footprint. Currently, the company operates facilities in North America, Europe, Asia and Latin America. Collectively, these facilities have a production capacity of 21 GW. Keep in mind that one GW is roughly enough to power 750,000 homes.

If that isn’t convincing enough, defensive investors should note that Brookfield has an additional 36 GW of additional facilities in its development queue. Oh, and just like traditional utilities, the majority of these facilities will be backed by long-term regulated contracts.

When it comes to dividends, Brookfield has a delicious yield of 3.65%.

Renewable energy can pay you monthly

Fortis and Brookfield are great options to consider. That being said, quarterly distribution may not work well for all investors. Fortunately, there is another renewable energy provider that offers even higher distribution on a monthly basis.

This stock to be considered is Renewable energies TransAlta (TSX: RNW). TransAlta’s portfolio of fully renewable facilities is located in Canada, the United States and Australia. These assets are not only geographically diversified either. TransAlta’s facilities include solar, wind, hydro and gas assets.

There is another reason to consider purchasing TransAlta. The stock is currently trading at a discount, reflecting a 20% decline over the past 12 months. When you factor in TransAlta’s juicy monthly dividend of 5.15% yield, you have a great long-term investment for any portfolio.

Defensive investors: are you going to buy?

Finding the right mix of investments takes time and a lot of patience. That being said, the three investments described above are great options to help you grow your portfolio. In my opinion, one or more of these stocks should be part of any well-diversified portfolio.

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