The Toronto Stock Exchange has dipped below 22,000 points after two trading days in June 2024. Only 7 of 11 primary sectors are up year to date, with energy as the top-performing sector with a 16.1% increase versus the broad market’s 4.9%.
However, if you have the appetite to invest today, consider taking positions in the Royal Bank of Canada (TSX: RY), Suncor Energy (TSX: SU), and Bird Construction (TSX: BDT). The first two stocks are price volume leaders, while the third is a fast-rising growth stock.
Most valuable
RBC is as popular as ever, given the stability and resiliency of Canada’s banking sector. Besides being TSX’s largest company by market capitalization, the $207.7 billion bank has been paying dividends since 1870. The 154-year dividend track record underscores its reliability as a passive income provider.
The Big Bank stock is also a screaming buy following impressive financial results in Q2 fiscal 2024. In the three months ended April 30, 2024, net income rose 7% to $4 billion compared to Q2 fiscal 2023. The Capital Markets business segment’s net income reached a record $1.3 billion during the quarter.
RBC’s net income after the first half of fiscal 2024 climbed 11% year over year to $7.5 billion. The total provisions for credit losses (PCL) increased 53% to $920 million from a year ago, mainly due to a higher PCL in Personal & Commercial Banking. At $146.95 per share, current investors enjoy an 11.9% year-to-date gain on top of the 3.9% dividend yield (50% payout ratio).
Volume leader
Suncor Energy is among the most active and heavily traded TSX stocks lately. The $66.1 billion integrated energy company is an oil bellwether. If you invest today, the share price is $51.47 (+24% year to date), while the dividend yield is an attractive 4.2%. Given the 35.3% payout ratio, the quarterly dividends should be sustainable.
In Q1 2024, Canada’s second-largest oil producer reported an all-time high oil sands production of 785,000 barrels per day (bbl/d) on a 102% upgrader utilization. However, net earnings dropped 21.5% to $1.6 billion versus Q1 2023.
Nonetheless, Suncor returned $1 billion to shareholders through share repurchases ($300 million) and dividends ($700 million). Cash flow provided by operating activities increased 168.2% year over year to $2.8 billion.
Its President and CEO, Rich Kruger, predicts that 2024 will be a very good and fun year for Suncor Energy. “Our strategies and priorities are clearer and simpler. We have very tangible and accelerated operational performance improvement plans,” he said.
High flyer
The stock’s performance reflects Bird Construction’s strong business momentum and financial results. Moreover, you can earn two ways from this high-flyer: capital gains and dividends. At $22.23 per share, the year-to-date gain is 56.2%, while the dividend yield is 2.5%.
In Q1 2024, construction revenue and net income rose 28.3% and 93.9% year over year to $688.2 million and $10 million, respectively. As of March 31, 2024, the total backlog is $3.5 billion, a record level. “The Company’s strategic focus on being a leading collaborative construction company continues to drive growth,” said Teri McKibbon, President and CEO of Bird Construction.
Strong buys
RBC, Suncor Energy, and Bird Construction are popular TSX stocks and strong buys for their thriving businesses. All three should be among the winning TSX stocks in 2024, with or without interest rate cuts.
