Just when the end of the summer looked like it could bring better stock performance, it seems as though that won’t be the case. The TSX today is down 7% since hitting higher points in September. This brings the Canadian benchmark index below the $20,000 mark, which hasn’t been the case since June!
That means it’s still a great time to look into safe stocks. These are likely to be blue-chip stocks that provide longevity through decades of strong performance, along with years of dividend payments. So let’s look at three I’d recommend for October on the TSX today.
Renewable energy stocks continue to be a great long-term hold for investors seeking both income and growth. Yet among them, Brookfield Renewable Partners LP (TSX:BEP.UN) is a favourite. BEP stock provides decades of growth, but also an even longer history in the renewable energy business. Its parent company has been involved in renewable energy production since the 1800s!
More recently, management has viewed the current share price as undervalued. So much so that it announced an automatic purchase plan just today on October 2, ending on December 15. While earnings continue to fall below estimates, it’s the long-term that investors should look out for. The company continues to post strong cash flows, and is on track to deliver 5,000 megawatts of new capacity this year.
Meanwhile, BEP stock is a steal trading below $30 as of writing. It offers a 6.18% dividend yield, trades at 1.2 times sales, 1.2 times book value, and 11.7 enterprise value over earnings before interest, taxes, depreciation and amortization (EBITDA). It’s now a stock that could double in the near future, with the safe income coming from renewable energy.
So you’re looking for less “one day” and more “right now.” That would mean looking at a company such as Granite REIT (TSX:GRT.UN). While real estate investment trusts (REIT) haven’t been too great lately, Granite stock is an exception. Granite invests in industrial properties. These are the large properties with usually just one or a few tenants.
When it comes to Granite stock, the company has been expanding rapidly. It’s now one of the safe stocks up 7% in the last year, with a large upside of 36% as of writing, according to analysts estimates. And that look safe, as the company continues to acquire these properties that remain in high demand.
Furthermore, Granite stock offers a 4.44% dividend yield as of writing. That’s while it remains valuable trading at just 0.9 times book value! So if you’re looking for stable passive income, this is certainly the stock I would go for.
Finally, a solid choice for any investor is definitely BCE (TSX:BCE). BCE stock is the trading name of the Bell Company. This company has been around since the 1800s, providing hundreds of years of growth for investors to look back on. More recently, however, it’s expanded into every type of telecommunications in existence.
What’s more, BCE stock is the largest of the telecom stocks. It holds the most clients in Canada, and continues to expand its clientele given its rollout of 5G and 5G+. Yet shares of the safe stock also trade at a steal, down 14% in the last year. But that’s also while shares are up 28% in the last decade, even after this most recent fall.
So if you’re looking for a solid long-term hold bound to bounce back, now is the time to pick up BCE stock among your safe stocks. You can pick up a 7.46% dividend yield while you’re at it, and bring in superb dividend income that can last you a lifetime!