September is the beginning of the new school year, and it’s time to be schooled on the stocks to snap up for the month. Of course, diversification is an important part of investing, So, today I’ll be discussing two top TSX stocks in the energy and banking sectors. Let’s dive in.
Top TSX stocks: Enbridge
Enbridge (TSX:ENB)(NYSE:ENB) certainly falls into the large-cap category on the TSX. This energy infrastructure company is presently valued at around $100 billion. But perhaps more intriguing than Enbridge’s size is the size of its dividend. This company currently pays out an eye-popping dividend yield of 6.7%. That’s a big yield for any stock, let alone a mega-cap name like Enbridge.
Indeed, Enbridge has consistently paid out its dividend on time and on schedule. In fact, the company’s management team has put forward plans to increase this dividend (albeit slightly) moving forward. However, given the size of Enbridge’s payout, the company has decided to dedicate more of its free cash flow toward reinvestment in key projects, and balance sheet improvement initiatives. These moves are positives for long-term investors considering Enbridge stock.
This cash flow is generated via an extremely stable business model. Until oil stops flowing to refineries, Enbridge’s pipelines are key to ensuring the domestic economy operates properly. With Enbridge’s Line 3 project set to be completed this year, investors stand to reap the benefits of this $9.3 billion project over time.
One of the top TSX stocks in the banking space I’ve liked for some time is Toronto-Dominion Bank (TSX:TD)(NYSE:TD). A leading Canadian bank, TD is also a big player in the U.S. and has grown its influence in this market for some time. Via a series of well-timed acquisitions south of the border, TD has become a truly North American banking play.
For Canadian investors seeking international exposure, TD is a great pick. Being based in Canada means said investors have access to the Canadian dividend tax credit. These factors are worth considering, given TD’s track record of dividend growth (and impressive total returns) over time.
Indeed, TD bank is a stock to throw in one’s retirement account and leave it there for decades. This is a company that has proven it’s extremely stable, relative to other global banks, even in times of crises. Accordingly, long-term investors would do well to hold onto shares of this top TSX stock and add on any major dips.
The post 2 Top TSX Stocks to Buy in September 2021 appeared first on The Motley Fool Canada.
This Tiny TSX Stock Could be Like Buying Tesla in 2001
Our team of diligent analysts at Motley Fool Stock Advisor Canada has identified one little-known public company founded right here in Canada that’s at the cutting-edge of the space industry and recently completed a transformational acquisition, all while making a handsome profit in the process!
The best part is that in a market where many stocks are selling at all-time-highs, this stock is trading at what looks like a VERY reasonable valuation… for now.
Click here to learn more about our #1 Canadian Stock for the New-Age Space Race
- 2 Reasons Why Enbridge Stock Could Soar Through Christmas
- Got $1,000? Here Are 2 of the Best Canadian Energy Stocks to Buy in September
- The Best Dividend Stocks to Buy in Canada This September
- These 2 TSX Stocks Are Plunging: Time to Buy the Dip or Sell Out?
- The 3 Best Under-$50, High-Dividend Stocks to Buy in September 2021
Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool owns shares of and recommends Enbridge.