This will be the last weekend before the United States Presidential Election on November 3. Throughout the month, I’d discussed what stocks could potentially thrive or struggle in the event of a Joe Biden or Donald Trump win. Today, I want to look at two more TSX stocks that investors should stash no matter how things shake out on November 3.
As far as polls are concerned, Joe Biden currently enjoys a commanding lead on the national level and has extended his lead in key battleground states. However, analysts and experts are still wary after Donald Trump managed to upset Hillary Clinton in 2016. While Biden is certainly the odds-on favourite, anything is possible, especially in 2020.
Whether Donald Trump or Joe Biden win, this TSX stock is worth owning
One of Donald Trump’s first big moves as president was to pull the United States out of the Paris Climate Accord. Still, a seemingly hostile administration was not able to slow the growth of green energy in the U.S. or outside of it. Over the past decade, renewables have more than doubled their share of the global power mix – from 5.9% in 2009 to 13.4% in 2019 according to Bloomberg.
Canada has been aggressive in pushing renewable energy reform, albeit with some practical caution considering the size of its oil and gas sector. Polaris Infrastructure (TSX:PIF) is one of my favourite renewable energy TSX stocks. Shares of Polaris have increased 9.4% in 2020 as of close on October 29.
In Q2 2020, Polaris posted total revenue of $18.9 million compared to $17.2 million in the previous year. Adjusted EBITDA grew to $15.1 million compared to $14.4 million in Q2 2019. This TSX stock last possessed a price-to-earnings ratio of 7.3 and a price-to-book value of 0.7, putting Polaris stock in very attractive value territory. Better yet, it offers a quarterly dividend of $0.15 per share, which represents a tasty 6.1% yield.
One stock that will benefit from an aging population
In a battle between two septuagenarians in Biden and Trump, it stands to reason that we should talk about demographic changes. Namely, the trend of aging that is ongoing in the developed world. By 2031, Statistics Canada projects that one in four Canadians will be over the age of 65. This demographic transformation is unprecedented, and will have huge ramifications politically, socially, and economically.
Park Lawn Corporation (TSX:PLC) is one TSX stock that is poised to post growth due to this demographic shift. The company provides death care products in Canada and the United States. Sadly, demand for these services has risen due to the pandemic. Its shares have dropped 1.8% in 2020. However, the stock has climbed 17% over the past three months.
The company will release its Q3 2020 results on November 12. In the second quarter, Park Lawn reported revenue of $84.6 million compared to $58.5 million in the prior year. Adjusted EBITDA increased to $19.4 million over $13.0 million in the second quarter of 2019. Park Lawn has a solid balance sheet which has allowed it to pursue aggressive acquisitions in this space.
This TSX stock also offers a monthly dividend of $0.038 per share, which represents a modest 1.6% yield.
Speaking of the election, these are five more stocks that can thrive after November 3 . . .
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Polaris Infrastructure Inc.