2 Top Defensive Stocks to Buy Before June
The S&P/TSX Composite Index dropped 218 points on Wednesday, May 24. Some of the worst performing sectors included Battery Metals, Base Metals, Financial, and Industrials. Today, I want to look at two top defensive stocks that Canadian investors may want to stash in this volatile environment.
Metro (TSX:MRU) is a Montreal-based grocery and pharmaceutical retailer. Shares of this defensive stock have dropped 3.9% month-over-month as of close on May 24. Meanwhile, the stock is down 2.2% in the year-to-date period.
In the second quarter of fiscal 2023, the company delivered sales growth of 6.6% to $4.55 billion. Moreover, it posted adjusted net earnings of $225 million or $0.96 diluted earnings per share (EPS) – up 10% or 14%, respectively, compared to the second quarter of fiscal 2022. Shares of this defensive stock possess a favourable price-to-earnings ratio of 19. Meanwhile, Metro offers a quarterly dividend of $0.302 per share. That represents a modest 1.6% yield.
Waste Connections (TSX:WCN)(NYSE:WCN) is a Toronto-based company that provides non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. This defensive stock has dropped 1.8% over the past month. Its shares are still up 3.6% so far in 2023.
This company posted revenue growth of 15% to $1.90 billion in the first quarter of fiscal 2023. Meanwhile, it posted adjusted net income per share of $0.89. Waste Connections has delivered 13 straight years of dividend growth, which makes this defensive stock a Canadian dividend aristocrat. It offers a quarterly distribution of $0.255 per share, which represents a 0.7% yield.
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