Canadian stocks have witnessed a sharp correction lately. While most high-growth stocks continue to get hammered due to the ongoing tech sector-wide selloff, investors’ focus seems to have shifted to reliable dividend stocks to buy and hold for the long term. In this article, let’s take a closer look at the three most traded stocks on the Toronto Stock Exchange in the last three months to get an idea of where big investors might be focusing right now.
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Most active TSX stock: Suncor Energy
As the demand and prices of energy products have risen sharply in the last few months, the energy sector seems to be the key focus of TSX investors right now. This could be one of the reasons why Suncor Energy (TSX: SU)(NYSE: SU) has been the most active stock on the TSX Composite lately. On average, about 11.1 million shares of Suncor have changed hands on the exchange each day in the last three months.
In its first-quarter results released on May 9, the energy company reported an outstanding 292% YoY (year-over-year) jump in its adjusted earnings. While SU stock has jumped by nearly 60% this year so far, it still has a decent dividend yield of 3.6%.
Second most active TSX stock: Enbridge
As I’ve noted in one of my recent articles, Enbridge (TSX: ENB)(NYSE: ENB) might be one of the most reliable dividend stocks on the TSX. The company has an impressive history of consistently increasing its dividends for the last 27 years. About 10.3 million shares of ENB have traded on the TSX each day in the last three months, making it the second-most active TSX stock on this list.
Enbridge’s diversified asset base and predictable cash flows make it easier for investors to rely on its stock even in difficult economic times. Recently emerged macro and geopolitical factors, including high inflation, rising interest rates, and the Russia-Ukraine war, have made investors worried about a possible recession. In such a tough phase, Enbridge’s continued financial growth and strong dividends could help its investors minimize their risk exposure. This energy stock currently trades with 17.2% year-to-date gains and has a dividend yield of around 6%.
Third most active TSX stock: Manulife Financial
The financial sector hasn’t seen much appreciation this year so far despite the ongoing economic recovery in the post-pandemic world. This could be one of the main reasons why Manulife Financial (TSX: MFC)(NYSE: MFC) — the Toronto-based financial services company — on the third position on our list of most active TSX stocks with about 9.3 million of its shares being traded on the exchange each day in the last three months.
Despite a 22% YoY drop in its total revenue last year, Manulife’s earnings rose by more than 18% from a year ago with the help of solid double-digit growth in the annualized premium equivalent sales and new business value of its insurance businesses. Despite its strong earnings growth in 2021, the recent market-wide selloff has driven its stock down by 15% in Q2, making it look cheap.
