Summer should be a time for investors to relax and enjoy the warm weather — especially in Canada, where it tends to be limited. That’s why finding TSX stocks that can protect your investments during the warm weather can be a great choice.
Today, we’re going to go right to the top source of blue-chip stocks. These large, well-established companies have long histories of profitability and tend to be safer investments. Therefore, investing in these companies can be a solid choice for those investing in the summer and not wanting to worry about their savings while they enjoy themselves.
So, here are three TSX stocks I would consider today.
CIBC stock
The Big Six banks are a great choice for investors seeking safe income but also wanting a deal. A bull market will arrive eventually, and banking stocks have a long history of creating provisions for loan losses — especially in Canada, where there’s an oligopoly within the banking sector.
Of these banks, Canadian Imperial Bank of Commerce (TSX: CM) offers a superior deal. The summer slowdown allows for an opportunity to buy CIBC stock at a discount. It also doesn’t tend to swing with the volatility of other stocks when we’re not near a recession or downturned market. Therefore, right now is a great time to pick it up while it trades at just 11.15 times earnings, with shares down 11% in the last year as of writing.
Further, it offers a substantial dividend yield, currently at 6.01%. Therefore, you’ll be receiving passive income while also waiting for the share price to return to normalcy.
Teck stock
Another top choice for investors is Teck Resources (TSX: TECK.B), a solid choice for those wanting in on the safety of the basic materials sector. It invests in commodities such as copper, zinc, coal, and fertilizers.
Furthermore, Teck stock has a strong future ahead with these basic materials only growing in need. And with the company selling assets to strengthen its bottom line, it’s a solid choice for investors. It’s, therefore, a well-diversified, solid investment that continues to offer stability among TSX stocks on the market this summer.
Shares of Teck stock trades at just 8.16 times earnings, making it incredibly valuable, with shares up 53% in the last year but down 8% in the last three months. So, you’re still getting a great deal for those wanting in on the summer dip in the market.
Fortis stock
Finally, utilities are another stable sector of the market that offers long-term investors a great investment right now. Fortis (TSX: FTS) is a diversified energy company operating in Canada, the United States, and the Caribbean. It provides power through electricity, natural gas and water to over three million customers. And Fortis stock has a long history of creating revenue and using it to make further acquisitions for more growth.
The stock is well established in this growth-through-acquisition momentum and is well positioned to benefit from the growth in the global economy. Furthermore, it has a superior history of increasing dividends. It currently offers a dividend yield at 3.93%, trading at 19.07 times earnings.
As utilities in general tend to be less-volatile stocks, Fortis stock offers a strong opportunity for those wanting stability and growth during the summer, while also bringing in dividend income. Shares are down 7% in the last year, but starting to recover, up 5% in the last six months. This will certainly continue as the market stabilizes, making Fortis stock a great buy at these levels.
