When it comes to investing, history has shown us that there are a number of sectors that perform better during certain seasonal times of the year. Specific industries—specifically agriculture and retail—will begin to see a significant uptick in the following weeks for different reasons.
Here’s a look at two different stocks that have historically performed better during the fall season.
Agrium Inc.
Agrium Inc. (TSX:AGU) (NYSE:AGU) is a leading producer of agricultural products and services. These products are purchased primarily during the fall season, specifically near harvest. This is when farmers have the income available to stock up and prepare for the following year’s crops, primarily purchasing the necessary fertilizers, equipment, and products.
Over the past 20 years, the company has turned a profit nearly 80% of the time during the October to January window, with shares growing an average of 13% during that time frame.
Agrium currently trades at $118, up over 7.5% year-to-date, outperforming the market.
The company has a quarterly dividend of $0.875, which has risen steadily over the years, most recently in July, when the company raised the dividend by an incredible 12%.
The company is currently engaged in a number of capital projects that will see free cash flow grow significantly over the next few years from approximately $289 million this year to upwards of $1.3 billion by 2018.
Investors that do not already have a small position in Agrium would be hard pressed to find a better stock to not only diversify their portfolio, but to add a stock that shows incredible growth and promise.
Canadian Tire Corporation Limited
Canadian Tire Corporation Limited (TSX:CTC.A) is one of the largest and most iconic retailers in the country. The company is well known for being a source of products for fall cleanup and winterizing homes and automobiles, and it also offers sports and fitness equipment.
The company has traditionally brought in a return in excess of 7% during the season when looking at the past 20 years.
The company has recently undergone a number of innovative changes, bringing technology to the forefront of the buying process and setting an example for other retailers on how to use technology to assist consumers in making purchasing decisions.
Canadian Tire currently trades at just over $119, down nearly 3% for the year. The company has a quarterly dividend of $0.525 per share that has been bumped up consecutively over the years.
Canadian Tire is an absolute bargain at the current price. There are considerable long-term growth prospects for the company, and it has a sizeable free cash flow that will see investors smiling and have dividends rising.
