2 TSX Stocks to Smooth Over the Market’s Bumps

Here are two of the safest TSX stocks you can buy in June 2023 without worrying about high stock market volatility.

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New investors usually find the stock market volatility unnerving, as it significantly swings the value of their investments up and down in a notably brief timeframe. As high inflationary pressures, rapidly rising interest rates, geopolitical tensions, and the possibility of a moderate recession continue to weigh on stocks in 2023, I don’t expect market volatility to reduce significantly in the short term.

In my opinion, instead of worrying about the market’s bumps, beginners should try to focus on how to deal with them to minimize their negative impact. And adding some safe stocks with low volatility to your portfolio could be one of the easiest ways to deal with market uncertainties. Let me quickly highlight two of the safest TSX stocks you can buy in June 2023 that can help you keep your worries about market volatility at bay.

A safe TSX renewable energy stock to buy now

While macroeconomic uncertainties have taken a toll on global economic growth lately, the demand for renewable energy has remained largely unaffected. This is one of the key reasons why I find Brookfield Renewable Partners (TSX:BEP.UN) to be a safe stock to buy to smooth over the market’s bumps in 2023. This renewable energy-focused company currently has a market cap of $11.3 billion, as its Toronto Stock Exchange-listed stock trades at $41.09 per share with nearly 20% year-to-date gains.

In the first quarter of 2023, Brookfield Renewable Partners posted a 17.2% YoY (year-over-year) increase in its revenue to US$1.33 billion, exceeding Street exceeding analysts’ expectations of US$1.02 billion by more than 30%. Similarly, its adjusted losses also significantly reduced to US$0.09 per share last quarter from US$0.16 per share a year ago.

Brookfield Renewable expects to commission about 5,000 MW (megawatts) of capacity in 2023. And it remains on track to achieve that target as it has already commissioned around 700 MW of capacity in the March quarter. These positive factors and growing demand should help this safe TSX stock inch up despite slowing global economic growth.

And a reliable TSX stock for steady returns

Dollarama (TSX:DOL) is another safe TSX stock you can consider adding to your portfolio now, especially if you are worried about high stock market volatility. This Montréal-headquartered discount store retail chain operator has a market cap of $23.6 billion, as its stock trades at $82.58 per share after witnessing 12.6% gains in the last 12 months.

Even as inflationary pressures made most retailers worried in the last year, the demand for Dollarama’s affordable essential products has strengthened further, helping the company post strong financial growth. To give you an idea, its revenue rose 16.7% YoY in its fiscal year 2023 (ended in January) to $5.05 billion. Furthermore, its adjusted earnings for the fiscal year jumped 26.6% from a year ago to $2.76 per share.

As global supply chain bottlenecks continue to improve in 2023, I expect Dollarama’s logistics costs to reduce significantly and expand its profit margins. Given that, this safe TSX stock has the potential to continue soaring, despite broader market ups and downs.

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.

The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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