The S&P/TSX Composite Index slipped marginally to open the week on Monday, November 21. Some of the worst performing sectors included Health Care, which was dragged down by cannabis stocks, as well as Energy and Information Technology. Canadian investors may want to seek out defensive stocks in this uncertain economic climate. Today, I want to zero-in on two of my favourite defensive equities.
Metro (TSX:MRU) is a Montreal-based company that operates a top grocery and pharmaceutical retailer in Canada. It boasts a particularly strong footprint in its home province of Quebec. Shares of this defensive stock have climbed 15% in 2022 as of close on November 21. The stock has shot up 10% month over month.
In the fourth quarter of fiscal 2022, Metro posted sales growth of 8.3% to $4.43 billion. Meanwhile, it posted adjusted net earnings of $219 million or $0.92 per diluted share – up 9.4% and 13%, respectively, from the prior year. This defensive stock possesses a solid price-to-earnings ratio of 22. It offers a quarterly dividend of $0.275 per share, which represents a modest 1.4% yield.
Saputo (TSX:SAP) is the second defensive stocks I’d look to snatch up in the final weeks of November. This Montreal-based company is one of the largest dairy processors on the planet. Its shares are up 19% in 2022.
Shares of this defensive stock are trading in attractive value territory compared to its industry peers. Saputo last paid out a quarterly dividend of $0.18 per share. That represents a 2% yield.