3 TSX Stocks Under $100 to Buy in September

Given their solid underlying businesses and healthy growth prospects, these three under-$100 defensive stocks would be an excellent buy in this uncertain outlook.

| More on:
Paper Canadian currency of various denominations

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Yesterday, the Bank of Canada cut its benchmark interest rate by 25 basis points to 4.25%. It was the third straight interest rate cut by the central bank this year. Meanwhile, the rate cuts failed to improve investors’ sentiments as the S&P/TSX Composite Index closed flat yesterday. The weak economic data from the United States have raised fears of a slowdown. Amid the uncertain outlook, I expect the equity markets to remain volatile this month. So, you can buy the following three defensive TSX stocks under $100 to strengthen your portfolios.

Hydro One

Hydro One (TSX:H) operates a low-risk utility business, meeting the electricity needs of 1.5 million customers. With 99% of its business rate-regulated, the company’s financials are less susceptible to market volatility. It has also adopted several cost-cutting initiatives, including outsourcing certain activities and adopting strategic sourcing initiatives, leading to cost savings of $1.5 billion since 2016. Supported by solid financials, the company has delivered over 120% returns over the last five years at an annualized rate of 17.1%.

Electricity demand is rising amid growing awareness and policy changes to reduce pollution. The growing demand for electricity could benefit Hydro One by expanding its addressable market. Meanwhile, the company is expanding its asset base with a planned capital investment of $11.8 billion from 2022–2027. Amid these planned investments, the company’s management expects its EPS (earnings per share) to grow by 5-7% annually. Its financial position also looks healthy, with liquidity of $3.9 billion.

Moreover, Hydro One has raised its dividends at an annualized rate of 5% from 2016 to 2022. Its forward dividend yield currently stands at 2.7%, and the management expects to raise its dividend at an annualized rate of 6% through 2027. Considering all these factors, I believe Hydro One would be an excellent buy.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD), which operates 16,803 convenience stores across several countries, would be my second pick. Yesterday, the company reported its first-quarter earnings for fiscal 2025, which ended on July 21. Its topline during the quarter grew by 17% amid growth across its three segments. The contributions from the acquisitions over the last four quarters and growth in its wholesale fuel business boosted its topline. However, weak fuel prices and a decline in same-store sales offset some of the growth. The company’s management has blamed the decline in discretionary spending amid the challenging macro environment for its weak same-store sales.

Meanwhile, ATD is focused on delivering value offerings and growing its loyalty membership program through personalized offerings and savings to boost its same-store sales. Given the highly fragmented United States retail market, the company continues to expand its footprint through strategic acquisitions. It recently signed an agreement to acquire 279 company-operated convenience stores from Giant Eagle for $1.6 billion. Besides, its “10 For The Win,” a five-year strategy, could also support its financial growth in the coming years. Considering all these factors, I believe ATD would be an excellent buy at these levels.

Canadian Utilities

Canadian Utilities (TSX:CU) has increased dividends for 52 years, the longest record for consistent dividend growth by a Canadian public company. Its forward yield is currently at a juicy 5.2%. The company’s low-risk electricity and natural gas transmission and distribution businesses provide more visibility over its cash flows, allowing it to raise its dividends consistently.

Meanwhile, the company expects to invest between $4.3-$4.7 billion from 2024 to 2026, expanding its rate base at an annualized rate of 3.5-4.3%. Besides, the company is growing its renewable energy assets with a 1.3 gigawatts project pipeline. Given these growth initiatives, I believe Canadian Utilities is well-equipped to maintain its dividend growth, thus making it an attractive buy in this volatile environment.

Should you invest $1,000 in Ballard Power Systems Inc. right now?

Before you buy stock in Ballard Power Systems Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Ballard Power Systems Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

woman analyze data
Dividend Stocks

Secure Dividends: How to Turn $10,000 Into Reliable Passive Income

Earn a secure dividend income of over $150 every quarter by investing in these reliable Canadian dividend stocks.

Read more »

top TSX stocks to buy
Dividend Stocks

Buy the Dip: This Top TSX Dividend Stock Just Became a Must-Own

This retail dividend stock is a Canadian legend, allowing investors to get in on some serious action with a strong…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Build a $1 Million TFSA Starting With Just $10,000

Two established, high-yield dividend stocks can help turn a small seed capital into a million-dollar TFSA.

Read more »

money cash dividends
Dividend Stocks

Here’s How Many Shares of FIE You Should Own to Get $500 in Monthly Dividends

This monthly-paying dividend ETF is simple to understand.

Read more »

sale discount best price
Dividend Stocks

Is This Correction Your Chance? Top 5 Canadian Dividend Stocks on Sale

For value, income, and long-term growth, check out these top five dividend stocks.

Read more »

Stethoscope with dollar shaped cord
Dividend Stocks

Canadian Investors: Buy WELL Health Stock Right Now

WELL Health (TSX:WELL) stock might be on the downturn right now, but a bargain for value-seeking investors for their self-directed…

Read more »

A worker gives a business presentation.
Dividend Stocks

3 No-Brainer Canadian Stocks to Buy Under $70

Investing in stocks need not require you to burn a hole in your pocket. You can invest $70 to $100…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Canadian Real Estate Stocks Plummet: Is it Time to Sell or Buy?

Real estate stocks have a lot going for the, especially dividends. But are they all a buy or due to…

Read more »