When investors have some extra cash sitting in their bank accounts, it is always a good practice to put this capital to work by investing in high-quality stocks. It is an excellent way to book decent profits and increase their capital in the long run.
However, the difficulty lies in choosing the right stocks which can help them achieve this feat. In this regard, here are three TSX stocks which, at the moment, are great buys.
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Restaurant Brands
Restaurant Brands (TSX: QSR) is a Canadian multinational holding company. Notably, QSR stock has outperformed many of its peers, generating 25% earnings-per-share (EPS) growth over the last year. Additionally, for the previous quarter, this organization declared a dividend payout of $0.74 per share. This amount has a payout ratio of 66.17% and a dividend yield of 3.4%, which is much higher than the 0.992% sectorial average.
Four of the company’s main brands, namely Popeyes, Burger King, Tim Hortons, and Firehouse Subs, have recently renewed their partnership with the Coca-Cola Company until 2033. This deal should ensure stability for Restaurant Brands shareholders and removes some slight uncertainty, which may have hampered this stock in the past.
The soft drink giant will invest in the aforementioned companies, along with supporting their marketing priorities. As per RBI’s chief executive officer, this renewed partnership will enable the organization to effectively increase its share in the United States market.
Fortis
When looking for stocks providing increasing dividend payments, Fortis (TSX: FTS) is right at the top of the list. Latest reports state that this gas and electricity utilities company has declared a dividend payout worth $0.59 per share. This marks 50 consecutive years of dividend increases by the company.
Currently, Fortis stock yields a little more than 4.1%, which is slightly higher than the 2.992% sectorial average.
This strong yield has been driven by remarkable earnings results in recent quarters. In the company’s second quarter, Fortis’s net earnings rose to US$294 million (US$0.61 per share) from the prior year’s second-quarter (Q2) results of US$284 million (US$0.59 per share).
The company has also declared its 2024-2028 capital plan, which is worth US$25 billion. Over this time, Fortis plans on investing 18% of these funds in major capital projects and 27% in cleaner energy investments.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD) announced a dividend payment of $0.96 per share for the previous quarter. The company’s payout ratio is 46%, while its yield is 4.69%. This is slightly higher than the 2.114% sectorial average, which indicates the stock’s market-beating potential.
The Canadian multinational bank has also recently announced its intention to repurchase around 90 million of its outstanding common shares. This will effectively increase the value of this bank’s remaining shares, enabling investors to book decent gains.
Furthermore, around 60% of Toronto-Dominion’s stocks are held by institutional investors. As many investors already know, such entities only invest in companies that can facilitate long-term growth. Thus, such a high level of institutional investment in this stock is a sign of its profit-making potential.
