- As the war in Ukraine continues, and with high inflation and interest rate hikes, there is still uncertainty in the market
- The idea with these stocks is relatively stable performances rather than quick growth and they may be considered in a volatile market such as the present one
- Most of these are dividend aristocrats with multi-billion-dollar market caps
In a volatile market, like it is presently, perhaps, its best to look at stocks of big well-established companies. Given their sizes and cash flows, these companies are better able to weather tough times.
As the war in Ukraine continues, and with high inflation and interest rate hikes, there is still uncertainty in the market. So, today let’s look at some TSX stalwarts.
Capital Power Corp (TSX:CPX)
Conservative investors tend to pick utility stocks and for good reason. These, in all reality, are necessities today.
CPX has gained 15 per cent in 2022 and 14 per cent over the last 12 months. At market close Wednesday, May 25, it touched a new 52-week high of C$45.95 before closing at C$45.36.
A dividend aristocrat, the stock has a dividend yield of nearly five per cent.
The price-to-earnings (P/E) ratio denotes the number dollars invested for each dollar’s gain. Compared to others on this list, its price-to-earnings (P/E) ratio of 85.6 is relatively high. But the point here is safety more than rapid growth.
Enbridge Inc (TSX:ENB)
ENB’s year-to-date (YTD) growth of 17 per cent pales in comparison to the S&P/TSX Capped Energy Index’s 62 per cent. However, it is likely one of least volatile oil and gas stocks in Canada.
ENB closed Wednesday at C$57.81 and is up 25 per cent in 12 months. It is currently also one of the most actively traded stocks in terms of volume.
ENB is also a dividend aristocrat with a dividend yield of nearly six per cent and a P/E ratio of 20.1.
Brookfield Infrastructure Partners LP (TSX:BIP.UN)
The long-term nature of Brookfield’s assets means it tends to draw stable cash flows. The stock, on Wednesday, closed at C$78.11.
Its gain this year is 1.5 per cent and over the last 12 months it has returned around 20 per cent. It has a dividend yield of 3.6 per cent and its P/E ratio is 43.1.
Algonquin Power & Utilities Corp (TSX:AQN)
AQN is the other utility stock on this list. It closed Wednesday at C$18.66.
The stock has gained two per cent this year and over six per cent in the last six months. It is also a dividend aristocrat with a dividend yield of over five per cent.
AQN’s P/E ratio is 28.7.
Restaurant Brands International (TSX:QSR)
It holds some of the popular chains like Burger King and Popeyes. The stock, however, has suffered this year, down 16 per cent YTD.
It began to fall in mid-April and currently, with a Relative Strength Index (RSI) of 28.7, may be considered undervalued.
The company is set to launch its first Tim Hortons in India later this year in New Delhi and expand that to 300 locations across the country in the coming years. However, it may be affected by inflation and an increase in food prices.
It is also a dividend aristocrat with a dividend yield of 4.3 per cent. Its P/E ratio is 18.9 and its historic P/E ratio for two years is better than that of its peers.
The idea with these stocks is relatively stable performances rather than quick growth and they may be considered in a volatile market such as the present one. Most of these are dividend aristocrats with multi-billion-dollar market caps.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.