More Motley Fool The 3 Best Canadian Stocks to Buy in September 2021
Robin Brown | September 8, 2021|
September and October have traditionally been rocky months for Canadian stocks. Yet, so far that has not proven to be the case. The S&P/TSX Composite Index just set new all-time highs over 20,800 points! While it appears stocks could keep going up forever, I am starting to get a little bit more cautious about valuations.
Cheap capital is keeping stocks elevated, but will it last?
Low interest rates and cheap capital have meant most people have no choice but to invest in stocks for decent, inflation-adjusted returns. I can never time the market properly, so I like to combat potential market volatility by diversifying my portfolio and thinking long-term.
Owning a bit of income, defence, and value all seem to make sense right now. Here are three Canadian stocks that could meet each of those criteria in September.
A defensive stock: Brookfield Renewable Partners
If you want to get a little more defensive and lower your exposure to carbon-related energy, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a solid Canadian stock to own. It operates 21,000 megawatts (MW) of hydro, wind, solar, distributed generation, and battery power across the world. Its large diversified portfolio helps offset some of the variability involved in renewable power generation.
As a result, it can consistently grow its cash flows and dividend rate. It has over 30,000 MWs of projects in its development pipeline. Many of these are contracted with governments or massive carbon-sensitive corporations (like Amazon.com, Facebook, etc.). This Canadian stock pays a 2.9% dividend, but that is only a piece of the 12-15% annual total returns that it targets.