The S&P/TSX Composite Index climbed 252 points to close out the previous week on Friday, August 31. Some of the best-performing sectors included base metals, energy, and health care. Overall, August started strong, passed through a rough patch through the middle of the month, and recouped its losses in its final trading days. Still, there are warning signs investors must heed as experts and analysts are raising recession concerns.
Today, I want to target three safe stocks that are perfect for your portfolio in September 2023. Let’s jump in.
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Here’s why Canadians can trust this safe stock for the long haul
Waste Connections (TSX: WCN) is a Toronto-based company that provides non-hazardous waste collection, transfer, disposal, and resources recovery services in the United States and Canada. Shares of this safe stock have increased marginally month over month as of close on August 31. The stock is up 5.2% so far in 2023. Investors can see more of its recent and past performance with the interactive price chart below.
Grand View Research recently valued the global waste management market at US$1.29 trillion in 2022. The same report projected that this market would deliver a compound annual growth rate (CAGR) of 5.4% from 2023 through to 2030. In the second quarter (Q2) of fiscal 2023, Waste Connections delivered revenue growth of 11% year over year to $2.02 billion. Meanwhile, adjusted net income rose to $262 million or $1.02 per diluted share — up from $257 million, or $1.00 per diluted share, in Q2 2022.
This TSX stock is trading in solid value territory compared to its industry peers. It last announced a quarterly dividend of $0.255 per share. That represents a modest 0.7% yield. Waste Connections has delivered 13 straight years of income growth, which makes this safe stock a Dividend Aristocrat.
This super utility stock is ready to be crowned
Fortis (TSX: FTS) is a St. John’s-based electric and gas utility company that operates in Canada, the United States, and some Caribbean countries. Utility stocks have proven to be highly dependable in recent decades. Its shares have dipped 0.8% over the past month. Meanwhile, the safe stock has declined 3.5% in the year-to-date period.
In Q2 2023, Fortis reported adjusted net earnings of $302 million, or $0.62 per diluted share — up from $272 million, or $0.57 per share, in the previous year. Shares of this TSX stock currently possess a favourable price-to-earnings (P/E) ratio of 18. Fortis offers a quarterly dividend of $0.565 per share, which represents a solid 4.2% yield. The stock has delivered 49 consecutive years of dividend growth. That means Fortis is one year away from becoming a Dividend King.
One more safe stock I’d snatch up in a volatile period
Metro (TSX: MRU) is the third safe stock I’d look to snatch up in the first week of September. This safe stock has jumped 1.1% month over month. Its shares are still down 6.6% in 2023.
This company delivered sales growth of 9.6% to $6.42 billion in Q2 2023. Moreover, adjusted net earnings climbed 10% year over year to $314 million. Adjusted diluted earnings per share jumped 14% to $1.35.
Shares of this safe stock currently possess a favourable P/E ratio of 17. Metro offers a quarterly dividend of $0.302 per share, representing a modest 1.7% yield.
