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Energy remains the best performing sector in the TSX. On August 12, 2022, its year-to-date gain rose to 42.44% after a broad rally. The year-to-date loss for Canada’s main stock market also narrowed to 4.91% after closing above 20,000 points for the first time since early June this year.
However, investors should not focus solely on energy stocks. Actions like Dollarama (TSX: DOL), Auctioneers Richie Bros. (TSX: RBA)(NYSE: RBA), and Quebecor (TSX:QBR.B) are not oil companies, but they actually outperform the market. All three stocks are also suitable for income investors because they pay dividends.
Dollarama in the consumer discretionary sector is holding up more than ever. The $22.97 billion company is an iconic value retailer in Canada. At $79.25 per share, current investors have a 25.47% year-to-date lead. They also participate in the modest but safe dividend of 0.27%.
According to its President and Chief Executive Officer (CEO), Neil Rossy, the lifting of COVID restrictions in the first quarter (Q1) of fiscal year 2023 resulted in a double-digit increase in customer traffic. Management also noted strong customer demand for affordable everyday consumables and seasonal products.
In the three months ended May 1, 2022, sales increased 12.4% to $1.07 billion from the first quarter of fiscal 2022. Net income jumped 28.1% from year-over-year to reach $145.5 million. Rossy said: “Our strong performance on key indicators in the first quarter reflects the relevance of our business model and the positive consumer response to our value proposition in a high inflation environment.”
Dollarama is a defensive asset and an anti-inflation. Rossy noted that the company’s business and operations play a unique role in the lives of Canadian consumers.
Richie Bros. Auctioneers stands out in the industrial sector with its gain of 18.63% since the beginning of the year. The stock’s performance is quite surprising, given the massive headwinds, especially inflationary pressures. It has advanced 4.07% in the past five days to $91.08 per share. If you invest today, the dividend yield is 1.54%.
The $10 billion global asset management and disposition company is a leader in the auction and valuation services industry. It offers end-to-end solutions for buying and selling used heavy equipment, trucks and other assets. In the first half of 2022 (six months ended June 30, 2022), operating income increased by 142% compared to the same period in 2021.
Additionally, net profit attributable to shareholders jumped 160% year-on-year to US$231.46 million. Ann Fandozzi, CEO of Ritchie Bros., said the company will continue to invest in local yards, sales coverage and service to accelerate revenue while advancing its market technology.
Quebecor made headlines last week following the announcement of a definitive agreement with Rogers Communications and Shaw Communications. The parties’ pact is the $2.85 billion purchase of Shaw’s Freedom wireless business by Quebecor.
Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor, declared: “We are very pleased with this agreement and we are determined to continue to build on the strengths of Freedom. Quebecor has demonstrated that it is the best player to create real competition and disrupt the market. »
Along with the 5.04% year-to-date gain, the $6.84 billion telecommunications company is paying an attractive dividend of 4.28%. The current stock price of $29.38 is also a good entry point.
Investors should diversify and consider buying non-energy stocks. Dollarama, Richie Bros. and Quebec are solid investment choices.