Registered Retirement Savings Plan (RRSP) investors shouldn’t wait to get started investing, with all the high-value TSX stocks still lying around the market. With the TSX Index up more than 7% since its recent October lows, investors may be wondering if it’s time for that much-awaited breakout.
Only time will tell if markets have enough fuel to spark a breakout. Either way, RRSP investors should be ready to act, whether it be buying on any further dips (there has been no shortage of those over the past two years!) or nibbling away at the catch-up plays that stand to make up for lost time in the face of a bull market.
In this piece, we’ll just have a closer look at two Canadian stocks that I view as poised to thrive in most types of market environments. So, as inflation dies down and economic softness remains, the following plays may be positioned to outperform.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) is my absolute top restaurant stock to own in this market, not just because of the incredibly bountiful 3.16% dividend yield. But because I love the brands underneath the hood of the firm. Tim Hortons, Burger King, Popeyes, and Firehouse Subs are some of my favourite fast-food or fast-causal places to dine out. Indeed, each chain offers very different fare. And right now, the stock seems to be trading at a price that I deem to be more than fair!
At writing, shares trade at just north of 24 times trailing price to earnings (P/E). That’s pricier than just a few months ago. Still, I view the new multiple as more than warranted and in alignment with industry peers. If a recession hits hard, I expect shares of QSR to be rocked somewhat less than broader markets. When things get tough, cheap fast-food options tend to take the share of those fancy dine-in restaurants. As the industry tables turn in QSR’s favour, I’m also bullish on the company’s ability to take share away from other quick-serve icons as the firm continues innovating and renovating.
All considered, QSR stock is a delicious restaurant stock to pick up as it looks to test new highs over the coming weeks and months. QSR really is a one-stop-shop type of restaurant play.
Brookfield Corp.
Speaking of one-stop-shop types of plays, Brookfield Corp. (TSX:BN) is in an alternative investment manager that’s in a league of its own. The stock has been sluggish for around two years now. Though shares recently spiked off recent lows, shares remain a solid value option for those seeking to benefit from the firm’s ability to make smart deals.
Reportedly, the $77 billion firm has been building its cash pile up, possibly ahead of a merger and acquisition spree. In a high-rate world, it’s always nice to have plenty of cash on hand. And should valuations across the board contract in the new year, don’t be so shocked to see Brookfield get greedy while others remain fearful.
The 0.83%-yield dividend may be small, but it looks primed for above-average growth over the years.
