Bear Market Beaters: 3 Stocks to Own When the Market Crumbles

Core Viewpoint - The article emphasizes the importance of having a diverse and defensive portfolio to withstand market downturns, particularly during bear markets. It highlights three companies that are considered strong candidates for investment during such times due to their stable cash flows and dividend yields. Group 1: Defensive Stocks Overview - Defensive stocks operate in essential industries, allowing them to maintain performance regardless of economic conditions. They typically offer predictable cash flow and potential dividend income [2]. - The selection criteria for the stocks included a minimum return on equity (ROE) of 10% and sorting based on dividend yield [2]. Group 2: Suburban Propane Partners (SPH) - Suburban Propane Partners is a major supplier of propane and energy products, with a recent quarterly dividend of $0.325 per share, resulting in an annual yield of approximately 6.8% [4][5]. - The company reported a year-over-year net income increase from $104.5 million to $111.5 million, demonstrating resilience despite warm weather affecting heating product demand. Its ROE stands at 17.56% [5]. Group 3: Brookfield Infrastructure Corporation (BIPC) - Brookfield Infrastructure Corporation operates a global logistics network and has a market cap exceeding $1 billion. It recently increased its dividend by 6% to $0.405 per unit, yielding 4.55% [7][10]. - The company reported a significant net income surge to $170 million in Q1 2024, a 640% increase from $23 million in Q1 2023, driven by organic growth and strategic investments. Its ROE reached an impressive 88% [10][11]. Group 4: Brookfield Renewable Corp (BEPC) - Brookfield Renewable Corp focuses on renewable energy, holding a development pipeline of around 134,400 megawatts and installed capacity of 33,000 megawatts. It pays a forward dividend of $1.42, reflecting a yield of 4.39% [13]. - The company reported an 8% increase in funds from operations in Q1 2024, moving closer to its target of 10% FFO growth for the year. It has a strong partnership with Microsoft to deliver renewable energy capacity, which is crucial for meeting growing demand [14][17].