ONEX and QBR.B: 2 TSX mid-cap stocks to buy and hold

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ONEX and QBR.B: 2 TSX mid-cap stocks to buy and hold

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ONEX and QBR.B: 2 TSX mid-cap stocks to buy and hold
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Highlights

  • Mid-cap stocks typically hold a market capitalization of C$ 2 billion to C$ 10 billion.
  • ONEX’s return on equity (ROE) was nearly 19 per cent.
  • ONEX Corporation will deliver a quarterly dividend of C$ 0.10 on July 31.

Investors often look to position themselves with less risky stocks offering adequate growth exposure. Mid-cap stocks could be a perfect option for such investors.

Mid-cap stocks typically hold a market capitalization of C$ 2 billion to C$ 10 billion and are believed to expand their size in the right market conditions. However, multiple factors related and unrelated to the company could impact its stock price.

Let’s discuss two TSX mid-cap companies that are known to provide dividends every quarter.

ONEX Corporation (TSX: ONEX)

ONEX Corporation is focused on expanding its asset management business and enhancing shareholders’ value in the long run. The financial service company posted a net income of US$ 164 million in Q1 2022, significantly down from US$ 415 million in Q1 2021. The company’s cash and near-cash, which indicates liquidity, also reduced to US$ 1.4 billion at the end of Q1 2022 compared to US$ 1.6 billion in Q1 2021.

ONEX Corporation will deliver a quarterly dividend of C$ 0.10 on July 31.

ONEX’s return on equity (ROE), which represents the company’s efficiency in producing profits and growth from equity financing, was nearly 19 per cent at the time of writing. ONEX stock plummeted by almost 12 per cent in a year, and its Relative Strength Index (RSI) value rose above the oversold market of 30 to 36 on May 13.

Also read: WED, NOU, OYL, SVA and EU: 5 Canadian smallcap stocks to buy under $10

Quebecor Inc (TSX: QBR.B)

Quebecor Inc, a Montreal-headquartered telecom firm, saw its total revenue diminish to C$ 1.08 billion in Q1 2022, up from C$ 1.09 billion in Q1 2021. Notably, its media and sports and entertainment segment recorded its revenue growth on a year-over-year (YoY) basis, except for its telecom segment. 

Besides this, the telecommunication company also announced a quarterly dividend of C$ 0.30 per share on May 27. QBR.B graph on Refinitiv suggests one can say that the telecom stock has fallen sharply since April. 

However, QBR.B’s ROE was approximately 49 per cent. The communication service stock sank by over 21 per cent in the last 52 weeks and had an RSI value of 20.25, indicating that it was facing an oversold in the market on May 13.

ONEX and QBR.B: Are these 2 TSX mid-cap stocks a buy?

Bottomline

These TSX mid-cap stocks offer exposure to two different spaces: the financial service and telecom sector, which could diversify your portfolio. However, these mid-cap stocks are trading near their 52-week lows in the current market environment, so that is something investors may want to look into.

Also read: GOOS and BLX: These under-$40 midcap stocks should be on your radar

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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