3 Canadian Stocks I’m Buying in This Volatile Market

Canadian stocks like Hydro One Ltd. (TSX:H) and Empire Company Ltd. (TSX:EMP.A) are worth holding in a choppy market.

| More on:
Volatile market, stock volatility

Image source: Getty Images

The S&P/TSX Composite Index was up 124 points in mid-morning trading on August 25. Every sector started the day in the black, with health care, base metals, and financials standing as the best performers. Today, I want to look at three Canadian stocks that are worth snatching up, as volatility still rules North American markets. Let’s jump in.

You can trust this Canadian stock in the face of volatility

Waste Connections (TSX:WCN)(NYSE:WCN) is the first Canadian stock I’d look to snatch up in a turbulent market. This Toronto-based company provides non-hazardous waste collection, transfer, disposal, and resource recovery services in North America. Investors can trust this stock, as there are few industries as dependable as waste disposal. Shares of Waste Connections have climbed 7% in 2022 at the time of this writing.

This company released its second-quarter (Q2) fiscal 2022 earnings on August 2. It delivered revenue growth of 18% to $1.81 billion. Meanwhile, adjusted net income per share increased 23% year over year to $1.00. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This aims to give a more complete picture of a company’s profitability. Waste Connections posted adjusted EBITDA growth of 16% to $566 million in the second quarter of 2022.

Shares of this Canadian stock are trading in solid value territory relative to its industry peers. It offers a quarterly dividend of $0.23 per share. That represents a modest 0.6% yield.

Hydro One has delivered dividend growth every year since its TSX debut

Hydro One (TSX:H) is a Toronto-based electricity transmission and distribution company that boasts a monopoly in its home province of Ontario. Investors can trust top utilities in most any environment. Hydro One has proved resilient in the face of tough market conditions. Its shares have climbed 8.6% in 2022 at the time of this writing.

Investors got to see the company’s second-quarter 2022 earnings on August 9. In Q2 2022, the company delivered basic earnings per share (EPS) of $0.43 — up 7.5% from the previous year. Revenues rose to $3.88 billion in the first six months of fiscal 2022 — up from $3.53 billion in the year-to-date period in 2021. Net cash from operating activities rose to $1.06 billion compared to $929 million in the prior year.

This Canadian stock currently possesses a solid price-to-earnings (P/E) ratio of 20. Moreover, it offers a quarterly dividend of $0.28 per share. That represents a 3.1% yield.

One more Canadian stock you can depend on in this volatile market

Empire Company (TSX:EMP.A) is the third Canadian stock I’d look to snatch up in this volatile environment. This top grocery retailer owns and operates brands like IGA, Farm Boy, Sobeys, and many others. Its shares have increased 1.2% in the year-to-date period.

The company is set to unveil its first-quarter fiscal 2023 earnings in early September. In Q4 FY2022, Empire reported total sales of $7.84 billion — up from $6.92 billion in the previous year. Gross profit jumped more than $200 million year over year to $2.00 billion.

Shares of this Canadian stock possess an attractive P/E ratio of 13. It offers a quarterly dividend of $0.165 per share, which represents a 1.6% yield.

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 has no position in any of the stocks mentioned.

More on Investing

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

3 Canadian Dividend Stocks to Buy Hand Over Fist

These three Canadian dividend stocks each offer a unique opportunity, making them some of the best investments to buy at…

Read more »

Chalk outline of two arrows pointing in opposite directions
Top TSX Stocks

2 TSX Stocks That Can Deliver Massive Gains in a Recession

Restaurant Brands International (TSX:QSR)(NYSE:QSR) stock and another recession-resilient firm that can win big in 2023.

Read more »

Growing plant shoots on coins
Stocks for Beginners

For New (and Old) Investors: 3 Dividend-Paying ETFs With Lower-Risk Profiles

Three dividend-paying ETFs with lower-risk profiles are suitable for new and old investors alike.

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Is Now the Time to Buy Shopify Stock?

Shopify stock (TSX:SHOP)(NYSE:SHOP) hasn't hit these lows in years. So is it a great time to buy the dip, or…

Read more »

A person builds a rock tower on a beach.
Dividend Stocks

Retirement Wealth: 2 Oversold Canadian Stocks to Buy Now and Own for Decades

These industry-leading dividend stocks look cheap right now and have increased their distributions annually for decades.

Read more »

money cash dividends
Tech Stocks

Got $1,000? 3 Cheap Stocks to Buy Right Now

If you've got cash on the sidelines that you're looking to put to work, here are three cheap stocks that…

Read more »

Tired or stressed businessman sitting on the walkway in panic digital stock market financial background
Dividend Stocks

2 of the Safest TSX Stocks Right Now

The stock market is heading towards a crash. Investors are seeking the safety of dividends, and these two stocks provide…

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia Stock Is Down 60%: Should You Buy?

Nvidia (NASDAQ:NVDA) stock has slipped over 60% as short-term headwinds hurt its revenue. But a long-term view of the stock…

Read more »