The Bull Keeps Running: These TSX Stocks Just Hit 52-Week Highs

Enbridge Inc. (TSX:ENB)(NYSE:ENB) rose to year-long highs this week, along with some other familiar faces on the TSX.

| More on:
A bull outlined against a field

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Some of this week’s top 52-week highs on the TSX were showing that investors are still moving funds into traditionally defensive areas. Among this week’s high fliers were some big names such as Enbridge (TSX:ENB)(NYSE:ENB) and gold miner Wesdome.

Energy bulls were out in force this week

With a 5.86% yield and an exceptionally wide moat, thanks to its unassailable Mainline System. The pipeline network carries an outstanding 2.85 million bpd per year, making it a primary fuel transport system. Beyond Western Canada, the Mainline network connects up with pipelines into the east of the country and the Gulf Coast in the U.S.

However, with the green economy being one of the leading growth trends in the world right now, investment managers are predicting that the scales will eventually tip in favour of renewables. Energy investment is reaching a tipping point whereby fossil fuels and green power will counterbalance for a while before possibly flipping into a full-blown renewables bull run.

Northland Power was also riding high this week, for instance, breaking the $28 ceiling. The stock’s 4.3% dividend yield shows that renewables can compete with more hydrocarbon-heavy energy companies when it comes to passive income.

Gold was in a holding pattern midweek, as the markets awaited a three-day period of uncertainty that eyed a U.K. general election that will be decisive in how Brexit rolls out, and the deadline for a U.S.-China trade deal. The trend helped push Wesdome to a year-long high.

At the other end of the scale were materials stocks such as Transcontinental. At one point the printing and packaging stock was down on average by more than 10% this week, hitting a 52-week low, though this had diminished to around 4% by Friday.

The economy is still holding its breath

American investors were stuck in an eddy midweek as the Fed held rates steady. Meanwhile, the German economy — a key indicator of the fiscal health of the Eurozone — was buoyed by strong results arising from exports in October. So positive was the German rally that the euro rose against the U.S. dollar.

The U.S. is looking at 2% growth in 2020, however, and while that is down from the 2.3% standard and a long way off the president’s 3% goal, at least it’s a positive number. By keeping rates steady, the Fed leaves a powerful weapon in its arsenal for next year, just in case further stimulus is needed to hang on to that growth.

The next few days could see some positive developments, as markets react to the U.K. election outcome and relaxed trade tensions between the U.S. and China. With U.S. unemployment rates low and stock markets buoyant, North American investors shouldn’t worry just yet.

The bottom line

Canadian investors looking for the top TSX stocks to buy and forget about have some quality choice this week. Enbridge has long been a favourite for long-range stockholders bullish on pipeline developments, for instance. Though it faced a tough year to challenges in its pipeline network, investors have proved loyal. Meanwhile, Transcontinental could bounce back on weakness as bullishness returns.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends TRANSCONTINENTAL INC A.

More on Dividend Stocks

exchange-traded funds
Dividend Stocks

2 Dividend ETFs With Significant Exposure to the TSX’s Top 2 Sectors

Two dividend ETFs offer ideal diversification because of their exposure to the TSX’s two strongest sectors.

Read more »

Illustration of bull and bear
Dividend Stocks

3 Top ETFs Canadians Can Buy Amid a Bear Market

Monthly dividend-paying ETFs allow investors to generate a stable stream of recurring income, making them ideal bets in a volatile…

Read more »

Oil pipes in an oil field
Dividend Stocks

3 Dividend-Paying TSX Energy Stocks for TFSA Investors

TSX energy stocks will likely continue to beat broader markets!

Read more »

Portrait of woman having fun in the street.
Dividend Stocks

3 Fantastic Stocks for Young Investors

You are never in a better position to be daring with your investment than early on in your life. But…

Read more »

data analyze research
Dividend Stocks

1 Investment Strategy That Works in a Higher-Rate Environment

Market analysts say that dividend investing is back in style and a winning strategy in a higher-rate environment.

Read more »

Dividend Stocks

Top 3 REITs That Are Yielding Over 3%

Canadian real estate investment trusts such as Dream Industrial offer you the opportunity to benefit from a steady stream of…

Read more »

Target. Stand out from the crowd
Dividend Stocks

Beginner Investors: 1 Top Dividend Stock Pick to Buy for Stagflation

Fortis (TSX:FTS)(NYSE:FTS) is a great dividend stud to buy and hold through stagflationary, recessionary, or inflationary times.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

Tax-Free Passive Income: 2 Oversold TSX Dividend Stocks for TFSA Investors

These top TSX dividend stocks look cheap to buy today for TFSA investors focused on passive income.

Read more »