Canadians recently got hit by both sides in January on the TSX today. The Bank of Canada and Federal Reserve in the United States both declared the key interest rate would hold steady. In fact, it’s unlikely that rates will come down not just in March, not just in May, but perhaps in June or even July.
This is why Canadians have continued to consider stable stocks the best place to put their cash for now. There’s a lot to consider, and investors should always speak with their financial advisors about making those decisions. But if you’re looking for stable stocks, investors may want to look at financial companies and insurance outside the Big Six banks.
Analysts believe the next year will see higher prices for insurance in particular, with lower costs. Further, for those with cash on hand after a year of cuts, there could be some strong merger and acquisition opportunities. And if this is the case, these are the three stable stocks to consider on the TSX today.
Trisura Group
First for your consideration is Trisura Group (TSX:TSU), with the specialty insurance provider set up to outperform in 2024. Shares have fallen dramatically, now trading around $37 per share as of writing. Yet analysts believe this could almost double in 2024 as investor confidence improves.
That improvement should come as the company manages to keep costs down and stay within annual guidance. Furthermore, the company doesn’t seem to have any new risks on hand after reporting a relatively strong fourth quarter. Therefore, Trisura stock is expected to either confirm or even increase its top and bottom-line growth outlook for 2024.
All in all, Trisura stock should see a strong 2024 that’s filled with a lot of recovery. With that in mind, it looks like a steal trading at 2.59 times sales.
goeasy
If you’re looking for a dividend stock for some stable income, I would certainly consider goeasy (TSX:GSY) as a great place to start. The company has delivered strong results again and again, seeing record loan originations from the loan provider quarter after quarter.
Now, analysts believe goeasy stock should perform even better than it did back in 2023. Loan growth continues to remain strong, but so does its credit quality. While recession risks remain should Canadians need to keep cash on hand, it seems that goeasy stock offers the best options when it comes to picking up a new loan.
Therefore, not only should goeasy stock continue to offer growth in returns but also in dividends. Analysts are predicting another dividend increase come the next quarterly earnings report. While returns may not jump another 50% as they have since October, investors should still consider the strong for high growth over the next few years, especially with a 2.46% dividend yield to latch onto.
Tricon
Now, if you really want in on some extra stable cash, consider picking up Tricon Residential (TSX:TCN), but you’ll have to do it reasonably fast. The company is being acquired by Blackstone for US$3.5 billion. This caused shares to surge and could still climb higher before the acquisition goes through.
The deal includes a “right to match” provision. This would mean that even if the deal falls through, Blackstone would pay a $526 million break fee, with Tricon stock paying $123 million. So, it looks like a win for investors no matter what happens in the next few months. Investors are likely to approve the deal.
For now, you could look forward to that approval raising share prices even higher. What’s more, you can grab a dividend yield at 2.1% just while you wait. In any scenario, it looks like a great buy ahead of the acquisition for stable income.
