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Highlights
- The Canadian equities market is known to offer a wide variety of financial stocks to choose from.
- The financial sector contributes over 31 per cent to the TSX main index.
- A stock mentioned here jumped by about 30 per cent in nine months.
Investors often find financial stocks a safer investment option for the long term. The Canadian equities market is known to offer a wide variety of such stocks, which investors can choose from depending on their investment capacity and return goals.
Notably, the financial sector contributes over 31 per cent to the TSX main index, which is said to be the largest contribution compared to other sectors.
Considering these points, let us discuss the following TSX stocks for May 2022.
1. Intact Financial Corporation (TSX: IFC)
Intact Financial Corp is a Toronto-based insurance company. The C$ 31 billion market cap company saw its direct premium written reach C$ 5.31 billion in Q4 2021, noting a year-over-year (YoY) growth of 82 per cent.
The insurer’s net profit rose 85 per cent YoY to C$ 701 million in the latest quarter.
IFC stock zoomed by some nine per cent in 12 months.
2. Fairfax Financial Holdings Limited (TSX: FFH)
Fairfax Financial is a Canadian holding firm that operates through subsidiaries in the insurance business. The Toronto-headquartered company earned a net premium of US$ 4.37 billion in Q4 2021 compared to US$ 3.69 billion a year ago.
The C$ 16-billion market cap company posted a net income of US$ 931.3 million in the latest quarter, up from US$ 909.1 million in 2020.
It pays an annual dividend of US$ 10 per share, as of writing this.
Stocks of Fairfax Financial jumped by about 30 per cent in nine months.
3. CI Financial Corp (TSX:CIX)
CI Financial is a wealth management company with a market capitalization of C$ 3 billion. The asset manager posted a preliminary asset under management (AUM) of C$ 146.4 billion as of January 31, 2022.
Its wealth management assets amounted to C$ 226.1 billion at the end of January 2022. Its total assets were worth C$ 372.5 billion this day.
CIX scrip plummeted by about 12 per cent in 12 months.
Also read: Is Well Health (TSX:WELL) a healthcare stock to buy right now?
4. goeasy Ltd (TSX: GSY)
goeasy is a financial company that provides credit services to consumers in Canada. The firm expects its 2022 revenue to reach C$ 970 million to C$ 1 billion.
For 2023-24, it expects its revenue to be in the range of C$ 1.1 billion and C$ 1.14 billion.
Stocks of goeasy decreased by some 21 per cent in a year.
5. IGM Financial Inc (TSX: IGM)
IGM Financial is a Winnipeg, Manitoba-based asset management firm. It recorded net flows of C$ 133.2 million in March 2022.
As of March 31, 2022, its total AUM amounted to C$ 268.3 billion.
IGM will pay a quarterly dividend of C$ 0.563 per share on April 29. The financial stock plunged by about three per cent in a year.
Bottomline
The financial companies mentioned above are known to pay dividends regularly, which could interest investors looking for additional income. However, it is crucial to study market sentiments and conduct a detailed analysis before exploring any stock.
Also read: Air Canada (TSX:AC) posts operating revenue of $2.5B in Q1. A buy?
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.
