As we enter autumn, 2022 remains incredibly volatile for investors. Apart from the ongoing pandemic, investors have fared global supply issues, staggering inflation, and the looming prospects of a recession. Instead of worrying, investors should look forward and consider some steady TSX stocks to buy in September.
If you have $40,000 to invest today, the dividend earnings alone make these three reliable stocks worthy of your attention today.
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Buy today, stability for a decade
Finding that perfect mix of steady TSX stocks to buy in September requires patience. It also requires one or more great income stocks that can offer some defensive appeal.
That’s why the first stock to consider should be BCE (TSX:BCE)(NYSE:BCE).
BCE is one of the largest telecoms in Canada. The diversified telecom generates a reliable revenue stream from its complement of subscription-based services offered across the country.
Additionally, BCE has a massive media segment comprising TV and radio stations. Those media holdings provide an alternative revenue stream that is complementary to its core subscription business.
Telecoms are very defensive businesses. In fact, in recent years that defensive appeal has shot upward. At the onset of the pandemic, people were forced to work and study remotely. That arrangement has now become permanent for many. As a result, the need for a fast and stable internet connection has become a necessity.
The same could be said with regard to mobile device connections. Mobile-based commerce and the ongoing proliferation of 5G-capable devices have continued to provide strong growth for BCE’s wireless segment.
BCE isn’t just a stable stock with growth potential. The company has also paid out a handsome quarterly dividend for over a century. Additionally, BCE has provided an annual uptick to that dividend for well over a decade.
The current yield works out to 5.68%, meaning that a $40,000 investment in BCE will provide an income of over $2,270.
Did someone say stable, defensive growth?
It would be impossible to compile a list of steady TSX stocks to buy in September and not mention Fortis (TSX:FTS)(NYSE:FTS).
Fortis is one of the largest utilities on the continent, with operating regions across the U.S., Canada, and the Caribbean.
Utilities are excellent long-term investments owing to their lucrative business models. They are bound by regulated long-term contracts that provide a recurring and stable revenue stream.
Those contracts often span well over a decade. That allows Fortis to invest in growth and provide a stable, recurring, and growing dividend to investors.
Speaking of income, Fortis offers a quarterly dividend and has provided investors with a handsome annual uptick to that dividend for a whopping 48 consecutive years. The current yield works out to 3.71%. Using that same $40,000 example, Fortis provides a first-year income of just over $1,480.
I mention first-year income because long-term investors that don’t need to draw on that income yet can opt to reinvest it for the future. Given Fortis’ established payout history and the reliability of the utility business, the potential is huge.
Banks may be down, but long-term potential is way up
Canada’s big banks are among the best long-term investments on the market. They offer a reliable business, generate solid earnings, and have paid dividends for decades.
The bank for investors to consider now is Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM). Canada’s fifth-largest lender currently has several key advantages over its larger peers.
CIBC’s larger mortgage portfolio has weighed down the stock recently – specifically, concerns over the impact of rising interest rates on CIBC’s portfolio. Yet, the current stock price, which is down nearly 14% year to date, already factors in those concerns. In fact, the stock trades at a discounted P/E of just 9.13.
CIBC’s expansion into the U.S. market was one of the driving purposes for the bank’s expansion into the U.S. That diversification over the past decade will provide another growth avenue for the bank.
Finally, let’s talk dividends. CIBC’s discounted stock price has pushed its yield up. The current yield works out to an appetizing 5.23%, surpassing its big bank peers. Given a $40,000 investment, that earns an income of over $2,090 in the first year.
TSX Stocks to Buy in September
No stocks are without risk. Fortunately, the three stocks outlined above are great picks that offer some defensive appeal as well as strong growth potential. They also provide juicy income potential, which given a $40,000 investment in each will total a first-year income of over $5,840!
