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Highlights
- Canada’s inflation rate grew by 4.7 per cent year-over-year (YoY) in October 2021, Statistics Canada reported on Tuesday, November 17.
- An REIT mentioned here saw its stock price increase by nearly 28 per cent in the past nine months.
- A utility company listed below is expected to dole out a quarterly dividend of C$ 0.535 per share on December 1.
World leaders were seen taking some drastic steps in the wake of the pandemic last year to combat its effects and keep the economies running, some of which were expected to fuel inflation.
With the COVID-19 effect now fading and the economy slowly moving towards normalcy, Canadians are witnessing the soaring prices for nearly everything.
Canada’s inflation rate grew by 4.7 per cent year-over-year (YoY) in October 2021, Statistics Canada reported on Tuesday, November 17. This being the largest spike in inflation the country has seen since 2003, Canadians in general have been left much worried.
Amid this rising concern, let us discuss two TSX-listed firms that could help investors hedge against inflation.
Also read: 2 Canadian crypto stocks to explore in Q4 2021
1. InterRent Real Estate Investment Trust (TSX: IIP.UN)
Canadian real estate investment trust (REIT) InterRent closed at a value of C$ 17.18 per unit on Wednesday, November 17.
The REIT jumped by roughly 11 per cent in the last six months and swelled by nearly 28 per cent in the past nine months.
Image source: © 2021 Kalkine Media Inc
On the financial front, InterRent REIT posted an 18 per cent year-over-year (YoY) growth in its operating revenue of C$ 46.86 million in the third quarter of fiscal 2021. Its occupancy rate increased to 94.4 per cent in Q3 FY2021, up from 92.1 per cent in the same quarter a year ago.
Also read: 2 real estate stocks to buy as Canada’s home sales surge
With a market capitalization of C$ 2.4 billion, the REIT held a price-to-book (P/B) ratio of 1.03 and a return on equity (ROE) of 15.11 per cent as of November 17.
It is also scheduled for a monthly dividend payment of C$ 0.029 per unit on December 15.
2. Fortis Inc (TSX: FTS)
Fortis Inc, which owns transmission and distributions assets in the United States and Canada, saw its stock close at C$ 55.9 apiece on November 17.
FTS stock has zoomed by more than eight per cent in the past nine months. On a year-to-date (YTD) basis, it has surged by nearly seven per cent.
The utility company recorded net earnings of C$ 295 million, or C$ 0.63 per common share, in the third quarter of fiscal 2021. Its adjusted net earnings, on the other hand, stood at C$ 0.64 per share in the latest quarter.
Fortis Inc also posted a market capitalization of C$ 26.4 billion on November 17, while holding a price-to-earnings (P/E) ratio of 21.1 and an ROE of 7.26 per cent.
Fortis is expected to dole out a quarterly dividend of C$ 0.535 per share on December 1 this year.
Bottom line
The Canadian equity market is equipped to offer a wide range of investment options for investors seeking protect themselves for the rising inflation.
However, one needs to remember that the stock market is not an inflation-proof or risk-free zone. Hence, every investment decision, no matter how small, should be taken after considering one’s own risk appetite and thoroughly investigating a company.
