DOL, MG, L, WN, & ATD.A: TSX consumer stocks for minimizing risk

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DOL, MG, L, WN, & ATD.A: TSX consumer stocks for minimizing risk

TSX consumer stocks
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Highlights

  • Dollarama is one of the leading retailers in Canada and offers products at discounted prices.
  • Magna is a regular dividend-paying stock and registers a dividend yield of about three per cent.
  • Alimentation Couche-Tard Inc. (TSX:ATD.A) has convenience stores in Europe, Russia, and North American markets.

Ever since the war between Russia and Ukraine began, the equities markets have recorded increased volatility. Due to this reason, the investors have remained sceptical, and they could be looking to reshuffle their investment portfolio.

On that note, we have shortlisted five consumer stocks that could help potential investors minimize the risk.

Let's look at them:

Dollarama Inc. (TSX:DOL)

Dollarama is one of the leading retailers in Canada and offers products at discounted prices. At market close on May 3, the DOL stock had gained 0.4 per cent and was priced at C$ 71.85 per share.

The retailer has a volume-active stock, and on Tuesday, 485,670 DOL shares exchanged hands on the Toronto Stock Exchange. Meanwhile, the Relative Strength Index (RSI) value of the DOL stock is 47.99, as per Refinitiv data.

Some analysts believe that the RSI value of 50 is considered a neutral zone for a stock, and the DOL stock's value is slightly below that figure. The moving average of the DOL stock suggested an uptrend.

The DOL stock paid a quarterly dividend of C$ 0.055 per unit, and its dividend yield was 0.3 per cent as of writing.

Magna International Inc.

The company is involved in providing products for electric vehicles, and as they are expected to witness a boom in future, Magna appears to have a bright future.

Although the stock seems more like an undervalued stock than its previous highs, it never fails to attract investors' attention.

Also Read: Lightweights in 2022: 5 junior Canadian stocks to buy in May

Compared to a 52-week high of C$ 126 per share, the stock closed at C$ 78.81 apiece on May 3. However, it did record a surge of about 0.8 per cent during the trading session.

Magna is a regular dividend-paying stock and registers a dividend yield of about three per cent.

Loblaw Companies Limited (TSX:L)

One of the largest retailers in Canada, Loblaw Companies' financial performance in the fourth quarter of 2021 displayed a strong balance sheet.

In Q1 2022, Loblaw's revenue surged to C$ 12,262 million. Meanwhile, the operating income surged to C$ 738 million compared to C$ 617 million in Q1 2021.

Notably, the retailer registered a 6.3 per cent growth in its dividend in the last three years. This could mean that the company had given timely and improved returns to the shareholders.

TSX consumer stocks

George Weston Limited (TSX:WN)

George Weston completed the sale of its Weston Foods business in the fourth quarter of 2021. The retailer said it will focus on its market leading businesses like the retail and real estate sectors.

In Q4 2021, George Weston's adjusted net earnings were C$ 347 million, up by 29.5 per cent YoY.

Meanwhile, the operating income increased to C$ 1,009 million from C$ 869 million in the same comparable period.

Alimentation Couche-Tard Inc. (TSX:ATD.A)

The multinational retailer has convenience stores in Europe, Russia, and North American markets. Alimentation stock registers a significant volume, and on May 3, the volume of the ATD.A stock was 1.77 million, reflecting a considerable trading activity.

As per Refinitiv data, the 20-day moving average exponential indicated that the stock was in an uptrend manner and at market close on Tuesday, the Alimentation stock was priced at C$ 57.95 per share.

In Q3 2022, the company's net earnings were C$ 746.4 million compared to C$ 607.5 million in Q4 2021.

Also Read: Activision soars as Berkshire ups stake: Does Buffett own TSX stocks?

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