TD & Enbridge (ENB): TSX stocks to watch amid Canada's rising inflation

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TD & Enbridge (ENB): TSX stocks to watch amid Canada's rising inflation

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TD & Enbridge (ENB): TSX stocks to watch amid Canada's rising inflation
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Highlights

  • On Wednesday, February 16, Statistics Canada said that the country's inflation rose 5.1 per cent year-over-year (YoY) in January 2022, up from a 4.8 per cent surge in December last year.
  • The national agency added that COVID worries continue to put pressure on the country's supply chain system.
  • Some experts believe that the latest inflation data could lead the Bank of Canada to raise interest rates in the March meeting in order to fight back soaring prices.

On Wednesday, February 16, Statistics Canada said that the country's inflation rose 5.1 per cent year-over-year (YoY) in January 2022, up from a 4.8 per cent surge in December last year. This was reportedly the first time that Canada’s inflation crossed five per cent since September 1991.

The national agency added that COVID worries continue to put pressure on the country's supply chain system.

Some experts believe that the latest inflation data could lead the Bank of Canada to raise interest rates in the March meeting in order to fight back soaring prices.

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Let’s look at two TSX stocks that investors can explore amid rising inflation.

Toronto-Dominion Bank (TSX: TD)

Toronto-Dominion Bank is a C$ 196-billion market cap Canadian lender that presently has a return on equity (ROE) of 15.27 per cent.

TD Bank is one of the largest banks in the country, with an average five-year dividend growth rate of 8.74 per cent. The bank pays a quarterly dividend (currently C$ 0.89 per share) to its shareholders.

Stocks of Toronto-Dominion climbed over 42 per cent year-over-year (YoY). TD stock closed at C$ 107.75 apiece on Wednesday, February 16.

Enbridge Inc (TSX: ENB)

The C$ 106-billion market cap energy company, presently posting an average five-year dividend growth rate of 9.74 per cent, pays a dividend of C$ 0.86 apiece each quarter.

Enbridge Inc noted a distributable cash flow (DCF) of C$ 10 billion in 2021 compared to C$ 9.44 billion in 2020.

Enbridge (TSXENB)Q4 FY2021 results

Stocks of the midstream energy firm expanded by nearly 20 per cent in a year and closed at C$ 52.79 apiece on Wednesday.

Bottomline

Toronto-Dominion Bank and Enbridge are commonly known for their robust business operations in the country. With both the companies being dividend aristocrats, they are also likely to be able to help investors tackle inflationary pressure from time to time.

However, all stocks are exposed to market volatility, hence, investors should make up their minds after careful consideration.

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