Which TSX stocks to explore after Canada's inflation soars 5.7% in Feb?

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Which TSX stocks to explore after Canada's inflation soars 5.7% in Feb?

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BNS & BMO: 2 TSX stocks to watch as inflation soars 5.7% in Canada
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Highlights
  • Canadian investors seem to be looking for inflation-safe stocks once again after Statistics Canada reported latest inflation data on Wednesday, March 16.
  • Canada's consumer price index (CPI) spiked 5.7 per cent in February this year, StatCan said.
  • Amid inflation concerns, big banks like Bank of Nova Scotia (TSX: BNS) and Bank of Montreal (TSX: BMO) could help investors to a certain extent.

 

Canadian investors seem to be looking for inflation-safe stocks once again after Statistics Canada reported on Wednesday, March 16, that the country's consumer price index (CPI) spiked 5.7 per cent in February this year.

The national agency said that this rise, led by higher gasoline and grocery prices, was the highest inflation surge since August 1991.

Keeping this in mind, let us explore two TSX stocks that could protect your portfolio against inflation.

 

Bank of Nova Scotia (TSX: BNS)

BNS stocks, trading over one per cent higher at 11:45AM EST on Wednesday, is set to dole out a quarterly dividend of C$ 1 per share on April 27.

The banking scrip also gained almost 18 per cent in the last year.

On the financial front, Bank of Nova Scotia saw its net profit rise to C$ 2.74 billion in Q1 FY2022 compared to C$ 2.39 billion in Q1 2021. Scotiabank will 

 

Also read: Is Hycroft (HYMC) stock worth your attention as AMC buys stake in it?

 

 

Bank of Montreal (TSX: BMO)

Bank of Montreal noted a 45 per cent year-over-year (YoY) growth in its net income of C$ 2.93 billion in the first quarter of fiscal 2022.

BMO stocks, on the other hand, jumped by over 37 per cent in the last year to trade at C$ 151.79 apiece on Wednesday (11:45AM EST).

The Montreal-based lender is scheduled to deliver a quarterly dividend of C$ 1.33 apiece on May 26.

Bank of Montreal (BMO) Q1 FY2022 results

 

Bottomline

Rising inflationary pressure on the economy could push the central bank to raise its interest rates further. Amid these concerns, big banks like Scotiabank and Bank of Montreal, which are generally known for their robust fundamentals and dividend aristocrat status, could help investors to a certain extent.

Investors, however, should consider their personal return targets and risk tolerance levels before diving into any investment decisions.

Also read: CVE & IMO: 2 TSX oil stocks to buy as US bans Russian barrels

 

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.

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