Got $100? 5 TSX safe stocks Canadian investors can buy and hold

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Got $100? 5 TSX safe stocks Canadian investors can buy and hold

 Got $100? 5 TSX safe stocks Canadian investors can buy and hold
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Highlights

  • The TSX main stock index dropped by almost one per cent on Tuesday, July 12
  • BCE had a dividend yield of almost six per cent
  • CU stock spiked by roughly 14 per cent in nine months

The TSX main stock index ended in red for the fourth straight day on Wednesday, July 13, as the Bank of Canada's latest interest rate hike was announced. While investor sentiments may be weak at the moment, there are some relatively safe stocks, like Toronto-Dominion (TSX: TD), BCE (TSX: BCE), Fortis (TSX: FTS) etc, that Canadians can look at for passive income and reduced market risks.

Let's explore these Canadian large-cap players in detail.

 

1.     Toronto-Dominion Bank (TSX: TD)

Toronto-Dominion said its Q2 2022 performance reflected 'strong' revenue growth across its businesses, with its top-line reaching C$ 11.26 billion in the latest quarter compared to C$ 10.22 billion a year ago.

TD scrip fell by nearly five per cent in 12 months. Refinitiv data suggest TD scrip be an oversold category with a Relative Strength Index (RSI) of 23.54 on Tuesday, July 12. Though the current market situation seems to impact its stock performance, TD Bank could be a reliable source of dividend income as its recorded a 5-year dividend growth rate of over seven per cent.

2.     BCE Inc (TSX: BCE)

Telecom company BCE holds a market capitalization of C$ 57.89 billion. The communication service provider had a dividend yield of almost six per cent (an annual dividend amount that a company pays stated as a percentage of its present stock price.

BCE stock swelled by over two per cent year-over-year (YoY). According to Refinitiv, this telecom stock had an increasing RSI of 41.2 (above the oversold mark of 30) on July 12, with trading volume in green.    

3.     Fortis Inc (TSX: FTS)

Fortis said it is working on further expanding the electric transmission grid in the US. The C$ 29-billion market cap utility company aims to facilitate clean energy and natural gas infrastructure across its geographies.

FTS stock spiked by over nine per cent in a year. As per Refinitiv findings, Fortis stock had a moderate RSI of 49.53 on July 12.

Got $100? here are 5 TSX safe stocks to explore: TD, BCE, FTS, ABX, CU

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4.     Barrick Gold Corporation (TSX: ABX)

Investors generally prefer commodity equities like Barrick Gold to gain exposure to the yellow metal. In addition, Barrick pays dividends (currently US$ 0.1) to its shareholders every quarter.

ABX stock dipped by about 11 per cent year-to-date (YTD). As per Refinitiv, this gold stock seems to be facing an oversold market situation with an RSI of 26.98 on July 12. Hence, investors ought to stay aware of commodity prices while choosing such stock.

5.     Canadian Utilities Limited (TSX: CU)

Canadian Utilities saw its stock spike by roughly 14 per cent in nine months and was down by nearly four per cent from its 52-week high of C$ 40.79 (May 24). With a YTD return of about seven per cent, CU stock outperformed the TSX Capped Utilities Index, which posted a gain of 0.16 per cent this year. 

According to Refinitiv information, Canadian Utilities appears to be on an upward trajectory, with an RSI of 62.66 on July 12.

Bottomline

Risk-averse investors could consider these TSX-listed stocks to protect their portfolios to a certain extent from market volatility resulting from growing economic worries. These TSX stocks also distribute sturdy dividend income and can provide stable returns in the long term.

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. 

The TSX main stock index ended in red for the fourth straight day on Wednesday, July 13, as the Bank of Canada's latest interest rate hike was announced. While investor sentiments may be weak at the moment, there are some relatively safe stocks, like Toronto-Dominion (TSX: TD), BCE (TSX: BCE), Fortis (TSX: FTS) etc, that Canadians can look at for passive income and reduced market risks.

Let's explore these Canadian large-cap players in detail.

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