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The economic headwinds providing uncertainty for investors are only multiplying of late. Indeed, geopolitical risks, including the Russian Invasion of Ukraine, are top of mind for most investors. This risk is on top of already skyrocketing inflation, rising interest rates, and the potential for a recession looming around the corner. For most investors, there’s really not a lot to be positive about right now.
That said, there are some great value stocks available for investors looking to get defensive right now. Among my two top picks in this regard are Restaurant Brands (TSX:QSR)(NYSE:QSR) and Fortis (TSX:FTS)(NYSE:FTS). Let’s dive into why investors may want to consider these stocks right now.
Top TSX stocks: Restaurant Brands
Restaurant Brands shares increased to more than a one-month high after its upbeat Q4 financial performance. This company showed its pricing power, increasing prices across its key banners to maintain profits. For defensive investors, this pricing power is a big deal.
Accordingly, Restaurant Brands was able to produce some relatively impressive numbers. The company posted adjusted earnings per share of $0.70 on $1.55 billion in revenues. These numbers beat or came in line with most analyst estimates.
Additionally, Restaurant Brands released its segment-wise sales performance. Burger King saw its same-store sales jump 11.3%, which beat forecasts of 10%. As per the company’s CEO, restaurant growth and digital sales are two specific areas of strength across the business. Indeed, the company’s guests have embraced the digital investments of the company, with global digital sales touching $10 billion last year — an increase from $6 billion from the year earlier and representing around 30% of the worldwide system-wide sales.
Investors seeking income often search for utility stocks because of both their annual hikes and dividend yield. For Fortis, this is a key reason to own this stock. Over the past five decades, Fortis hasn’t missed a beat, increasing its dividend distribution each and every year.
Fortis is Canada’s largest publicly traded utility organization which operates in the Caribbean, Canada, and the United States. This company’s business included natural gas, electricity, and hydroelectricity. Valued at $29 billion, Fortis generates annual revenue of roughly $7 billion. This has allowed Fortis to increase its dividend so consistently over time.
This well-diversified leader of the North American regulated electric, and gas utility sector declared its 2021 Q4 and annual financial results. Last year, the company saw steady growth and significantly progressed on its long-term goals. In addition, the organization executed a capital program of $3.6 billion valuation, lowered its carbon emissions, outperformed industry averages for reliability and safety performance, and delivered solid returns for its shareholders.
Over the long term, I think both these top TSX stocks are worth considering. Right now, for investors looking to put fresh capital to work, these are two great options to consider.