The S&P/TSX Composite Index moved up nine points on Friday, September 21. This week may be an anxious one for investors, as Canada gears up for the final few days of trade negotiations before the October 1st deadline. Trade tensions have also escalated between the United States and China, leaving Canada in a precarious position if it finds itself in the cross-hairs after failed talks.
Investors may want to turn to income-yielding equities in the beginning of the fall. Today, we are going to look at four options to stash in your portfolio to ride out what could be a choppy finish to 2018.
Empire Company (TSX: EMP.A)
Empire Company stock dropped 2.4% on September 21. Shares have fallen 7.3% in 2018 so far. In a recent article, I’d discussed why grocery retailers have been forced to raise prices, even in the face of intensifying competition. Empire released its fiscal 2019 first-quarter results on September 13.
The company reported the same-store sales rose 1.3% year over year, excluding fuel. Earnings per share climbed to $0.35 compared to $0.20 in the prior year. The board of directors also declared a quarterly dividend of $0.11 per share, representing a 1.4% dividend yield.
Suncor Energy (TSX: SU)(NYSE: SU)
Suncor stock rose 1% on September 21. Shares have dropped 5.9% over the past month. Suncor is one of several energy equities that have been hammered in recent weeks. This slide presents a potential buy-low opportunity for investors right now.
Suncor put together a record second quarter on the back of higher oil prices and improved efficiency across the board. Oil and gas prices are expected to remain stable into the fall with the potential for increases as geopolitical tensions remain high. Suncor stock last paid out a quarterly dividend of $0.36 per share, representing a 2.7% dividend yield.
Stella-Jones (TSX: SJ)
Stella-Jones is a Quebec-based company that sells lumber and wood products. Shares have dropped 12.3% in 2018 so far. The company sells a significant portion of its utility poles segment to the United States and could benefit from continued weakness in the Canadian dollar relative to the U.S. dollar.
In the second quarter, Stella-Jones saw sales increase 11.5% year over year to $662.3 million, while operating margins were also improved from Q1 2018. The board of directors declared a quarterly dividend of $0.12 per share, representing a modest 1% dividend yield.
Brookfield Infrastructure (TSX: BIP.UN)(NYSE: BIP)
Brookfield Infrastructure owns a diverse range of international assets that generate stable cash flows. Shares have dropped 11.5% in 2018 so far. The company released its second-quarter results on August 2.
Net income surged to $125 million in the second quarter compared to $5 million in the prior year. For the first six months of 2018, net income and funds from operations rose to $334 million and $627 million, respectively. The board of directors declared a quarterly dividend of $0.47 per share, which represents an attractive 4.8% dividend yield.
