Some of the Best TSX Stocks to Buy in September

There’s no shortage of volatility in the market this year. And now that we’re into the last quarter of the year, that famous quote about selling in September comes into play. But here’s the thing: you don’t need to sell in September. Fortunately, there are more than a few great stocks to buy in September.

Here’s a look at two options to buy in September and hold for decades.

Option #1: BCE

BCE (TSX:BCE) is one of the largest telecoms in Canada. Telecoms are great options for long-term growth owing to their stable business model and tasty dividends.

That view has been the exception in recent years, as rapidly rising interest rates have put pressure on telecoms like BCE to rein in costs and limit growth. In the case of BCE, the telecom was forced to shutter some of its media portfolio and slash costs earlier this year.

As a result, the stock has dropped over 20% in the trailing two-year period.

Over that same period, the drop in stock price has swelled BCE’s dividend yield, making it a great buy in September. As of the time of writing, BCE boasts an insane 8.15% dividend. This handily makes it one of the best-paying dividends on the market.

So, then, why should investors look to BCE as an option to buy in September (apart from that crazy yield)?

In short, now that Interest rates are starting to drop, BCE’s stock is beginning to recover. This includes a nearly 3% increase over the past three months. As interest rates continue to decline, BCE’s share price will increase, taking investors for the ride (along with earning that tasty dividend).

Option #2: Fortis

Another great option to buy in September is Fortis (TSX:FTS). Fortis is one of the largest utility stocks on the market, boasting 10 operating regions that blanket Canada, the U.S., and the Caribbean.

But what really makes Fortis an option to buy in September is the reliable business model of the company and, by extension, its recurring dividend.

Utilities like Fortis generate a stable and reliable revenue stream that is backed by long-term, regulated contracts that can often span decades. Adding to that, it’s worthwhile to note that utilities provide a necessary service for which there is no lower-cost alternative.

In other words, it’s a defensive investment that can weather a variety of different market conditions, like the volatility we’ve seen this summer.

Now that interest rates are beginning to drop, Fortis, like BCE, is also seeing a decent bump. As of the time of writing, Fortis has seen its stock price jump 10% over the past three months.

The main reason why investors continue to flock to Fortis is for the company’s stellar dividend. And that dividend is also a reason why this is one of the stocks to buy in September.

As of the time of writing, Fortis offers investors a tasty 3.87% yield. Fortis also has an established cadence of providing investors with an annual uptick to that dividend. The company has provided those annual increases for a whopping 50 consecutive years, making Fortis one of only two Dividend Kings on the market.

Do not sell: Buy in September

No stock, even the most defensive, comes without some risk, and that includes otherwise defensive holdings like Fortis and BCE. Fortunately, both stocks mentioned above benefit from a defensive moat and reliable business model that also pays out a very juicy dividend.

In my opinion, one or both of these stocks should be core holdings in any well-diversified, long-term portfolio.