The share market has lots of interesting opportunities for investors. Some businesses are growth orientated, relying on the economy to keep going upwards. Whereas there are others that can keep growing regardless of what the economy does.
Unless you're able to buy the cyclical shares at the bottom of the cycle I think it's better to buy the all-weather shares.
Here are three of those defensive options:
TPG Telecom Ltd (ASX: TPM)
TPG is one of Australia's largest telecommunications businesses. It also has other brands such as iiNet under its belt.
Telecommunications can almost be described as a household necessity with how connected we are to the internet now. This need provides TPG with strong recurring revenue.
TPG also has plans to create mobile networks in Australia and Singapore. Both of these projects could deliver good growth in the years ahead.
The share price has declined significantly over the last year but I think the current price represents a good opportunity. It's currently trading at 14x FY18's estimated earnings with a grossed-up dividend yield of 3.84%.
Transurban Group (ASX: TCL)
Transurban is a major toll road operator in Australia and the USA. The increasing populations and density of our capital cities make Transurban's toll roads very attractive to drivers who want to save time.
It impressively grew its proportional revenue, free cash flow and the final distribution by 10.6%, 32% and 15% respectively in its recent annual result.
It's currently trading with a partially franked distribution yield of 4.36%.
The Australian healthcare giant has been one of the best performing blue chips over the past decade.
It invests significant sums of money into research and development to make sure it stays ahead of the curve and potentially has the latest cures.
Healthcare is a very defensive industry and the ageing demographics make this stock a good choice in any economic environment, as long as you can buy at a decent price.
CSL is currently trading at 25x FY18's estimated earnings with an unfranked dividend yield of 1.09%.
Foolish takeaway
I like the idea of all three of these stocks and wouldn't mind owning any of them. However, I'm a little wary of Transurban because of rising interest rates and automated cars in the long-term.
At the current prices, I think TPG's beaten-down share price offers the best value.