The S&P/TSX Composite Index put together a strong first week of November after a shaky conclusion to the previous month. Investors may be more anxious than usual as the Bank of Canada has made its intention to pursue monetary tightening apparent. It suspended its QE bond-buying program and has forecast higher rates going forward. This has the potential to provide a shock to an economy and market that has gorged on easy money since the beginning of the pandemic and for the years prior. Today, I want to look at three TSX stocks that you can trust in this environment. Let’s jump in.
Here’s why this is a TSX stock you can trust through thick and thin
Corby Spirit and Wine (TSX: CSW.A) is a Toronto-based company that manufactures, markets, and imports spirits and wines. I’d suggested that investors should scoop up this TSX stock when this year began. Its shares have climbed 2.4% in 2021 as of close on November 4.
Alcohol consumption rose in the face of the COVID-19 pandemic. Moreover, this space has proven historically resilient during rough economic patches. The company unveiled its fourth-quarter and full-year 2021 results on August 25.
Corby saw domestic retail purchases slow in the year-over-year period, largely due to a surge in pandemic-fueled sales in the previous year’s quarter. Regardless, Corby still delivered revenue growth of 6% from the prior year. For the full year, the company posted earnings growth of 15% to $30.6 million.
Shares of this TSX stock possess a favourable price-to-earnings (P/E) ratio of 16. It last paid out a quarterly dividend of $0.21 per share, which represents a solid 4.7% yield.
Grocery retailers have proven their mettle since early 2020
Inflation in Canada hit an 18-year high in the month of September. Gasoline price hikes were the key driver, but higher food prices also played a big role. Top grocery retailers like Loblaw (TSX: L) can provide some solid cover for Canadian consumers who are getting killed on their food purchases.
This TSX stock jumped 50% in 2021 as of close on November 4. It is set to release its next batch of results later this month. In Q2 2021, Loblaw achieved revenue growth of 4.5% to $12.4 billion. Meanwhile, operating income jumped 86% to $752 million. Adjusted EBITDA increased 36% year over year to $1.37 billion.
Loblaw stock possesses a solid P/E ratio of 24. It last paid out a quarterly dividend of $0.365 per share, which represents a modest 1.5% yield.
One more TSX stock you can count on for the long haul
Utilities have proven reliable in recent years, especially for investors looking for alternatives to fixed-income vehicles. The inflation rate, combined with historically low interest rates, has forced income-oriented investors to assume risk in order to outpace CPI. Emera (TSX: EMA) is a very solid TSX stock to target in this space. Its shares have climbed 8.7% in the year-to-date period.
In the second quarter of 2021, the company posted adjusted earnings-per-share growth of 17% in the year-to-date period to $1.49. Emera benefited from low corporate interest expenses and increased earnings at two of its top segments: PGS and EES.
This TSX stock last had a P/E ratio of 24. That puts Emera in favourable value territory in comparison to its industry peers. It offers a quarterly dividend of $0.662 per share, which represents a solid 4.5% yield.
