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The primary stock market in Canada is currently down 9.17% year to date, making it possible that the year may conclude in the negative for the first time since 2018. I would purchase four solid TSX stocks this week if I were trying to build a well-balanced portfolio for November.
I would choose Sierra Wireless (TSX:SW) and Slate Grocery (TSX:SGR.UN) as my second-liners, with Pembina Pipeline (TSX:PPL) and Toronto Dominion Bank (TSX:TD) serving as my anchor stocks.
Energy TSX Stock
Because Pembina Pipeline is a dividend aristocrat that distributes dividends regularly, income investors shouldn’t overlook it. Current shareholders are up 22.55% year-to-date at $44.89 a share and receive a 5.81% dividend. Owning 461 shares ($20,694.29) generates a passive monthly income of $100.19. In addition, prospective investors might anticipate annual dividend growth.
Pipelines are among the crucial infrastructure assets operated by the $24.91 billion energy transportation and midstream service company. Like most energy businesses, Pembina profits from rising crude prices.
In comparison to the same period in 2021, revenue and earnings climbed by 56.5% and 56.6%, respectively, to $6.13 billion and $899 million in the first half of 2022. Pembina also boasted a $1.26 billion cash flow from operating activities, an increase of 21% over the previous year.
Financial TSX Stock
The TSX’s heavyweight sector is the financial industry, where bank stocks are found. The company that comes to mind first is TD, Canada’s second-largest lender with a 165-year dividend track record. This $157.38 billion lender has suffered the toughest recessions and economic downturns, yet it has become stronger each time.
The dividend yield is 4.09%, and the share price is $87.05 (-6.68% year to date) if you decide to buy now. While banks face short-term risks from higher interest rates, TD is always proactive in adjusting, like increasing provisions for credit losses (PCLs) to cover future loan defaults.
Investors anticipate TD’s upcoming acquisition of First Horizon (NYSE:FHN), increasing the Canadian bank’s exposure to the Southeastern United States. The transaction must close by January 31, 2023, or no later than Q3 of the following fiscal year.
Technology TSX Stock
Sierra Wireless’s rapid growth in 2022 appears to be unstoppable. The share price is $40.34 at the time of writing. More significantly, the tech stock’s +80.9% year-to-date return outperforms the general market. This $1.57 billion business offers Internet-of-Things (IoT) solutions for the connected economy that bring together hardware, network services, and software.
Total revenue (IoT and Enterprise solutions) rose by 49.8% annually to US$360.9 million in the first half of 2022. Notably, the net loss decreased 97.5% from the prior year to US$980,000 from US$39.81 million. Investors should be encouraged by the company’s return to profitability in Q2 2022 (net income of US$11.7 million).
Real estate TSX Stock
In the real estate industry, I like Slate Grocery. The grocery-anchored properties are owned and managed by the $631.1 million real estate investment trust (REIT). You may enjoy the mouthwatering 8.33% dividend for just $14.12 per share (up 4.2% year to date). The payouts are monthly, just like Pembina.
Due to its fantastic financial results in Q3 2022, this REIT is an absolute must-buy. Net operating income (NOI) and net income for the three months ended September 30, 2022, respectively, increased by 53.8% and 249.4% year over year to US$39.45 million and US$33.55 million.
Fortify your portfolio
November could be a good time to rebalance or fortify stock portfolios before the year ends. These four names of focus are the TSX stocks I recommend buying, and they will likely outperform in 2023.
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