the Indice composé S & P / TSX had a difficult 2020, including a pandemic-induced market crash in mid-March. On the last trading day of the year, the index closed at 17,433.40, which was 55% higher than its low of 11,228.50 on March 23, 2020. As of January 5, 2021, the index climbed even more high at 17,682.51 (+ 1%), which seems to suggest that the rally continues into 2021.
Brian Belski, Chief Investment Strategist at Bank of Montreal, predicts that Canada’s primary stock market will post double-digit gains, leading to a record 19,500 by the end of the year. Despite threats from the new strain of coronavirus, there are two must-have TSX stocks for 2021. One is growth stock, while the other is instant hedge against a stock market crash.
Growth is real
For the second year in a row, Real questions (TSX: REAL) rewarded investors with massive gains. The total tech stock return in 2020 was 56%, although this year looks more promising. Analysts predict the stock price will cross the $ 30 mark over the next 12 months.
Real Matters is a $ 1.69 billion company and a leading provider of network management services for the mortgage and insurance industries. Its platform is a combination of proprietary technology and network management capabilities. The Company’s primary business is residential real estate appraisal and securities and mortgage closing services in the United States.
The financial results for fiscal 2020 (fiscal year ended September 30, 2020) are extremely impressive. Compared to fiscal 2019, consolidated revenue and net revenue increased by 41% and 59%. Notably, consolidated adjusted EBITDA of $ 72.2 million was more than double the previous year. Given the low interest rate environment, the purchase and refinancing markets in the United States will remain strong and drive growth for Real Matters.
Dull but safest investment
If you are looking for capital protection and an uninterrupted income stream in 2021, Fortis (TSX: FTS) (NYSE: FTS) is the premium choice. This $ 23.89 billion regulated electric utility company is neither nor the largest contributor of dividends to the TSX. However, the stock of utilities is recession and pandemic resistant.
Fortis operates on different continents where the majority of its regulated utilities are under long term contract. Therefore, income flow and cash flow are safe, stable and predictable. At $ 51.20 a share, the dividend yield is a respectable 3.87% dividend. This utility action is a defensive star and a dividend star in one.
The company has increased its dividends for 47 consecutive calendar years. Management plans to increase the dividend by 6% per annum until 2024. Investors who fear a stock market crash typically rebalance their portfolios and take a defensive stance. Fortis is the go-to name every time. During the pandemic, the stock of public services once again showed their resilience.
Don’t think twice
Real Matters is well positioned to move higher this year as it aims to reduce the US valuation market by 15% to 20%. With interest rates at historically low levels, favorable winds in the mortgage market should be stronger and more business opportunities should open up.
Fortis is a no-frills, if not boring, investment. You can’t expect much from price appreciation, but stock can protect your capital. Likewise, it’s an outfit for the long haul. While income investors need an anchor and a safety net during market uncertainties, this utility stock boasts similar characteristics to bonds. Your income could also be for a lifetime.
Speaking of two must-see TSX stocks for 2021 …
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Foolish contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and Real Matters Inc.