Can investors beat the market during volatile or uncertain times, like today? The answer is yes, as evidenced by the performance of four Canadian stocks. They belong to various sectors, and all are winning investments thus far in 2023 for their impressive, market-beating returns.
A Dividend Aristocrat
CCL Industries (TSX: CCL.B), the pioneer in specialty packaging, is a Dividend Aristocrat owing to 21 consecutive years of dividend increases. At $68.01 per share, investors are up 18.08% and partake in the 1.56% dividend. While the yield is modest, the quarterly payouts are rock steady.
The $11.4 billion company is a global leader in labels, specialty packaging, and security applications. It has 165 production facilities around the world distributed in four divisions. In the first quarter (Q1) of 2023, total sales and net earnings rose 8.5% and 10.8% year over year to $1.65 billion and $166.4 million. CCL president and chief executive officer (CEO) Geoffrey T. Martin said the company ended the quarter with a strong balance sheet and robust liquidity.
Clean-air world
Cameco (TSX: CCO) wants to meet the ever-increasing demand for clean, baseload electricity by providing nuclear fuel products to energize a clean-air world. The $16.6 billion company is a global provider of uranium fuel. You can earn two ways from this energy stock, capital gains and dividends. At $37.55 per share (+22.35 year to date), the dividend offer is 0.28%.
Tim Gitzel, Cameco’s president and CEO, said, “The world is recognizing the benefits of clean-air nuclear energy and the critical tool it can be in the fight against climate change and in providing energy security.” He added that there’s no better time than today to be a pure-play investment in the growing demand for nuclear energy.
Steady senior gold producer
Metals and mining (basic materials) is currently the third-best-performing sector in 2023. Kinross Gold (TSX: K) is one of the steadiest constituents, with its 31.14% year-to-date gain. At $7.18 per share, the dividend yield is a decent 2.23%. The $9.11 billion senior gold producer owns and operates a diverse portfolio of mines in five countries.
In Q1 2023, net earnings from continuing operations increased 10.9% to US$90.2 million versus Q1 2022. Notably, free cash flow (FCF) reached US$37.8 million compared to -US$2.8 million a year ago. Because of the 23% increase in year-over-year production to 466,022 gold equivalent ounces (Au eq. oz.), management expects to hit its annual production target (2.1 million Au eq. oz.) in 2023.
Soaring healthcare stock
Dialogue Health Technologies (TSX: CARE) flies under the radar, but the obscure healthcare stock is soaring this year. At only $3.62 per share, the year-to-date gain is a fantastic 56.03%. Market analysts forecast a return potential between 39.4% (average) and 72.1% (high) in 12 months.
This $252.4 million company provides affordable, on-demand access to quality care through its digital healthcare and wellness platform.
In Q1 2023, management reported a smaller loss of $2.7 million compared to $6.7 million in Q1 2022. Its chief financial officer Navaid Mansuri said Dialogue aims to reach adjusted earnings before interest, taxes, depreciation, and amortization breakeven by year-end. He added that the company needs limited capital to reach the cash flow-generation stage.
Excellent for growth investors
The four Canadian stocks in focus are excellent options for growth investors. If they outperform during a bear market, they could soar even higher in the coming bull market.
