Some years are remembered by investors for catastrophic market crashes. Think 1929 or 2008. Others are marked by wild excesses, such as the dot-com boom of 1999.
The year that is now coming to an end has had no memorable features. Instead, it is a grinder that relentlessly erodes the value of our portfolio month after month. Whether you own bonds, stocks or cryptocurrencies, everything is getting hammered.
Well, pretty much everything. There were some sparks in the carnage, and these securities bucked the trend and ended 2022 well.
Below are some of the TSX winners from my Internet Wealth Builder Recommendations list. If you have some of these, they help ease the pain of a broad market pullback.
tourmaline oil co. (TOU-T). The TSX has outperformed any U.S. index largely due to the strength of the energy sector, and more specifically fossil fuel companies. They may go to the land of the dinosaurs in the not-too-distant future, but they are what keep many portfolios afloat right now. Calgary-based Tourmaline, a relatively new and well-managed business, became the country’s largest natural gas producer after Encana withdrew its stake and moved to the US, changing its name in the process. As of the close on December 8, Tourmaline’s share price rose 83.5% for the year. But that doesn’t include dividends. In addition to the regular quarterly dividend of 22.5 cents (which increases to 25 cents with the next payment), the company paid four special dividends this year totaling $7.90. Investors who held the stock at the start of the year at $40.84 ended up with a total return of nearly 103%.
Loblaw Limited (LT). You know it’s been a good year for the food industry and politicians are starting to try to score points by criticizing price increases. Makes great segments, but never achieves much. At the same time, companies like Loblaw and Metro kept increasing their profits. Shares of Loblaw are up 20% year to date, and the midyear dividend has increased by 11%.
Food Couche-Tard Inc. (ATD-T). Inflation, wars, rate hikes – no matter how bad the times are, people still need gasoline (complaining all the way). A bag of chips and a soda help ease the jitters and help Couch-Tard bottom line. The stock is up 17.7% this year. The quarterly dividend was recently increased by 27% to 14 cents per share.
Canadian National Railway (CNR-T). Despite the threat of a recession lurking on the horizon, both of our major railroads have managed to stay up in 2022. Our pick for CN to close 2021 at $155.38. It closed at $170.54 on Dec. 8, up 9.8% YoY. Combined with the $2.93 per share dividend, that’s a total return of 11.6%.
forever hundred co., ltd. (WPK-T). Little-known companies can sometimes shine in tough times. Winnipeg-based Winpak is one example. It manufactures packaging and related packaging machinery. The company’s products are primarily used in food, beverage and healthcare applications, and its modified atmosphere packaging is used to extend the shelf life of perishable foods such as meat, poultry and cheese, as well as medical devices. It’s a low-key business. The stock is off its 52-week high set in October, but is still up 12.3% for the year. The stock pays a small dividend.
franco-nevada corp. (FNV-T). After a mid-year slump, gold is shining again, topping $1,800 an ounce last week. Gold mining stocks reacted as you might expect. The S&P/TSX Global Gold Index is up 16% for the quarter, despite remaining in the red for the year to date. My favorite gold stock that I have held for years is Royal Ribbon Franco-Nevada. The stock is up 11.4% this year, and the company has raised its dividend four times, albeit only slightly.
These are just a few of the many stocks on our recommended list that will make money this year. What’s interesting is the variety. The energy sector performed best, but we also found winners in many other sectors. As for next year, look at areas of the economy that don’t perform well in 2022. I suggest you start with real estate. The entire sector looks seriously oversold.
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