AUS
NZ
UK
CA
USA
IND
Highlights
- The primary Canadian index opened lower on June 30
- EMA stock swelled by seven per cent in the past 52 weeks
- CU stock spiked by approximately 12 per cent in nine months
The primary Canadian index continued to fall on Thursday morning, June 30, as it opened the session 274.2 points lower at 18,804.44 at 9:31 AM EST, with healthcare and energy stocks sinking. Recession fears arising from more interest rate hikes to combat inflation seem to be affecting investor sentiments broadly.
In such market scenarios, Canadian investors can prefer to explore TSX utility stocks like Emera (TSX:EMA) and Canadian Utilities (TSX: CU) for the long term, as these players are often considered to be safer than others as the companies provide products and services that are generally necessities, like electricity.
Let us talk about these two TSX utility stocks.
Emera Incorporated (TSX:EMA)
Emera has revealed that its subsidiary, Emera Technologies, together with NOVONIX Limited (NASDAQ: NVX, US: NVX), launched a custom-designed microgrid battery prototype earlier in June.
The utility firm reported a net profit of C$ 362 million in Q1 2022, marking a year-over-year (YoY) growth of C$ 89 million.
EMA stock swelled by seven per cent in the past 52 weeks. As per EODHD/Others, EMA held a relative Strength Index (RSI) of 46.54 (moderate level) on June 30.
Canadian Utilities Limited (TSX:CU)
Canadian Utilities said its earnings attributable to equity owners climbed to C$ 227 million in the first quarter compared to C$ 141 million in the first quarter a year ago. Canadian Utilities had a dividend yield of nearly five per cent, reflecting the utility company's annual dividend as a percentage of its current stock price.
CU stock spiked by approximately 12 per cent in nine months. According to EODHD/Others data, CU held an RSI value of 47.78 on June 30.
Bottomline
TSX utility stocks like Emera Incorporated (TSX:EMA) and Canadian Utilities (TSX:CU) can be considered by investors seeking some stability amid the ongoing market tensions. These TSX utility stocks can serve as a safety net against market volatility to a certain extent. They are also known to pay dividends.
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.
