3 No-Brainer Canadian Stocks to Buy in November 2022

Top Canadian utility stocks have dropped in recent weeks. Top-quality income stocks like Fortis look like great buying opportunities today!

| More on:
data analyze research

Image source: Getty Images

Canadian stocks have enjoyed a solid rally in November. However, it is uncertain whether this rebound will be sustained. If your investment horizon is years or even decades, there are still some bargains to be found. Here’s three no-brainer, safe Canadian utility stocks to buy in November.

An ultra-safe Canadian utility stock to buy and hold

If you want a defensive stock that will allow you to rest easy at night, you can’t find much better than Fortis (TSX:FTS). At a price of $53.50 per share, Fortis trades with a market cap of $25.68 billion.

It is a massive, regulated utility provider in North America. The company primarily owns power/gas transmission assets. Given the consistent and essential nature of these services, Fortis produces predictable revenue streams.

In its recent third quarter, adjusted net earnings per share rose 12.5% to $0.71 per share. It also increased its quarterly dividend by 6%. That is its 49th consecutive annual dividend increase — a very impressive record. While the company may be slowing its annual dividend-growth rate to a range of 4-6%, it expects its balance sheet to improve and its dividend to become even more sustainable for the long term.

This Canadian stock has fallen over 12% in 2022. It is offering a 4.23% dividend yield, which is nicely above its average. While it is not “cheap” compared to some other utilities, its valuation is not demanding at today’s price.

A utility and midstream stock

If you don’t mind a little more risk, but a lot of potential reward, AltaGas (TSX:ALA) could be another good utility stock to buy right now. With a price of $23.80, its stock is down 5.6% in the past month and 12.85% this year.

This is a very interesting stock in the current environment. Nearly 60% of its earnings come from several natural gas utilities in the United States. These provide very consistent earnings and have larger-than-average opportunities to grow. The remainder comes from its midstream and energy export business, which, for the most part, has been very strong in recent years.

This Canadian stock had a slightly weaker-than-expected third quarter, and the stock pulled back. Today, it trades with a 4.5% dividend and an attractive forward price-to-earnings ratio of 13. AltaGas is one of the cheapest utilities and midstream businesses you can buy, so it is likely due for a price re-rating over the coming years.

A top Canadian renewable stock

Keeping the theme of utilities, Northland Power (TSX:NPI) is another Canadian income stock to look at today. Northland owns both utility and renewable power projects across North America, Central America, and Europe. It has become a leader in offshore wind power development.

So far, it has had a very successful year, given strong energy pricing in Europe and robust power generation. This year, sales, operating income, and earnings per share are up 24%, 60%, and 544%, respectively. Given the energy crisis in Europe, the company is very well positioned to provide many long-term green energy solutions.

Right now, Northland operates three gigawatts of power. It expects to more than triple its generation by the end of the decade. It has plenty of growth ahead. While investors wait, they also collect a nice 3% dividend that is distributed monthly.

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 Robin Brown has positions in NORTHLAND POWER INC. The Motley Fool recommends FORTIS INC. The Motley Fool has a disclosure policy.

More on Dividend Stocks

thinking
Dividend Stocks

Should You Buy BCE Stock for its 8.6% Dividend Yield?

Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX…

Read more »

grow dividends
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how high-quality TSX dividend stocks and the power of compound interest can help grow your investments by 400% or…

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

Invest $374.50 Each Month to Create Passive Income of $288 in 2024

Investing a specific amount each month to create passive income this year is possible with monthly dividend payers.

Read more »

Happy retirement
Dividend Stocks

2 Stocks to Help Turn $100,000 Into $1 Million

If you want to reach $1 million, $100,000 can certainly get you there. Even if you invest in some low…

Read more »

warning or alert
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

There's no shortage of companies that raised their dividends recently. Here's a trio of options to consider buying now.

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

Don’t Look Now, But These 3 TSX Stocks Look Poised for a Nice Rally 

Three TSX stocks are in a downtrend amid headwinds. 2024 may be rocky for them, but they are poised for…

Read more »

protect, safe, trust
Dividend Stocks

3 Safe Dividend Stocks to Beat Inflation

These three dividend stocks are excellent buys to beat inflation, given their solid underlying businesses and high yields.

Read more »