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11 Top TSX Stock Picks for September 2021 – The Motley Fool Canada

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We asked our Foolish writers for their top ideas for September. Here are their picks:

Chris MacDonald: Manulife

My top stock for September is Manulife (TSX:MFC)(NYSE:MFC). This top insurance player is among the biggest players in Canada, with a growing market share in key growth markets abroad, particularly China.

Given a resurgence in higher bond yields, the longer-term earnings prospects of Manulife have improved. This insurance player currently trades at a significant discount to peers in the financials space, providing great value for long-term investors.

As far as top value stocks with excellent leverage to the pandemic recovery, Manulife remains a top pick of mine. This is a stock I think has tremendous value in September and beyond.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned.

Amy Legate-Wolfe: NorthWest Healthcare Properties REIT

The economic recovery may be slow, but it’s there. NorthWest Healthcare Properties REIT (TSX:NWH.UN) continues to run strong. The company saw revenue skyrocket during the pandemic, as one of the very few real estate investment trusts (REITs) that provided essential services. NorthWest then used the low interest rate environment to renew lease agreements and bring in new properties — even an Australian healthcare REIT!

Yet despite this and its dividend yield of 6.16%, shares are only up 7% year to date, and it continues trade at a P/E ratio of 9.28. Given that healthcare REITS are immune to global inflation, that makes them in high demand moving forward. And NorthWest currently boasts a global 97% occupancy rate with a 14.3 year average lease agreement! So, while investors may have to be patient for share growth, it won’t be for long. Meanwhile, you can bring in this solid dividend yield for guaranteed passive income.

Fool contributor Amy Legate-Wolfe owns shares of NorthWest Healthcare Properties REIT.

Ambrose O’Callaghan: Suncor Energy

My top stock for September is Suncor Energy (TSX:SU)(NYSE:SU). Shares of this Canadian energy heavyweight had dropped 7.6% month over month as of close on August 26. However, it has delivered much-improved earnings in 2021. The rise of the Delta variant remains a concern when it comes to demand, but I’m bullish on the energy sector going forward.

Suncor posted a profit of $868 million in Q2 2021. Meanwhile, its production enjoyed a significant uptick, even in the face of planned maintenance. This stock last had a price-to-earnings ratio of 23, putting it in solid value territory relative to its industry peers. It offers a quarterly dividend of $0.21 per share, representing a 3.5% yield. I’m looking to snatch up this super energy stock on the dip before the summer ends.

Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned.

Nicholas Dobroruka: goeasy

My top stock for the month of September is goeasy (TSX:GSY).

This $3 billion company might be one of the best-kept secrets on the TSX. Shares are up close to 100% year to date and more than 800% over the past five years.

Some investors may be hesitant to buy during such a strong bull run, but I’m as bullish as ever on goeasy. The reopening of the country could send the growth stock surging even higher over the next couple of months.

goeasy is a consumer-facing financial services company. It provides Canadians with all types of home, auto, and personal loans. So, if consumer spending begins to rise as the country slowly reopens, I think it’s a safe bet to say that goeasy revenue will be rising too.

The best part is, goeasy stock is trading at a discount compared to many other Canadian growth stocks right now. Shares are trading at a bargain price of a forward price-to-earnings ratio of just 15.

Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned.

Jed Lloren: Nuvei 

My top stock for September is Nuvei (TSX:NVEI). This is a stock that has intrigued me since its IPO. Of all the industries to invest in, I am most fascinated by the potential growth of the e-commerce industry. While Nuvei doesn’t operate in that industry per se, it is highly exposed to it due to its business as a payment processor. As more retail spending continues to flow into these online streams, Nuvei is poised to benefit.

In its latest earnings presentation, the company reported that its total volume processed in Q2 2021 was 146% greater than its processed volume in Q2 2020. This translated into a 114% year-over-year increase in Nuvei’s quarterly revenue. Already present in 200 global markets, Nuvei is well positioned for continued growth in the future.

Fool contributor Jed Lloren has no position in any of the stocks mentioned.

Robin Brown: Sangoma Technologies

Sangoma Technologies (TSXV:STC) is a one-stop shop for unified communications-as-a-service solutions across the world. This stock has pulled back 38% from highs set earlier this year.

Yet this company is in excellent shape. It just acquired a similar-sized peer in the United States. This should significantly broaden its cloud services platform. Likewise, Sangoma expects to see higher gross margins and expanded recurring revenues (over 70%).

The company expects to grow revenues and EBITDA in fiscal 2021 by 26% and 40%, respectively. Despite strong growth and profitability, this stock trades at fraction of larger, unprofitable peers. Hence, this stock could enjoy the double-edged combination of rising earnings and higher valuation multiples in years to come.

Fool contributor Robin Brown owns shares of Sangoma Technologies.

­­­­­­Kay Ng: Canadian Net REIT

Nothing beats having the reassurance of earning safe passive income every month. Canadian Net REIT (TSXV:NET.UN) is a Canadian Dividend Aristocrat with a track record of cash distribution increases.

Recently, it had shown signs of accelerated dividend growth. Its five-year dividend-growth rate is 13%, including this year’s cash distribution hike of 17%.

Canadian Net REIT maintains a high occupancy rate of 99%. It has benefited from a low interest rate environment. Last quarter, its weighted average interest rate on fixed loans and mortgages was 3.4% versus 3.7% a year ago.

It’s still a small REIT with $232 million of assets and lots of room to grow. With a safe yield of about 3.9%, the undervalued monthly dividend stock is a great buy for passive income in a TFSA.

Fool contributor Kay Ng owns shares of Canadian Net REIT.

Stephanie Bedard-Chateauneuf: Spin Master

Spin Master (TSX:TOY) is my top TSX stock for September.

The toymaker posted higher earnings for its most recent quarter, as revenue climbed 39% on better-selling products from Paw Patrol, Gabby’s Dollhouse, and Present Pets as well as strong revenues for its digital games.

The Toronto-based company reported a net profit of US$33.5 million (US$0.32 per share) for the quarter ended June 30 compared with a net loss of US$14.9 million (US$0.15 per share) in the prior-year quarter.

According to Spin Master’s president and CEO Max Rangel, the company is well positioned for the second half of 2021, with a strong toy lineup, growth in its digital game franchises, and the release of the movie Paw Patrol: The Movie. Spin Master’s first foray into the film business is expected to boost toy sales as well as licensing and merchandising revenue.

Fool contributor Stephanie Bedard-Chateauneuf has no position in any of the stocks mentioned.

Puja Tayal: Suncor Energy

My top TSX stock pick for September is Suncor Energy (TSX:SU)(NYSE:SU). This stock has dipped 22% since July 5, as rising Delta variant cases created hiccups in the global recovery. Moreover, a decline in oil price and production issues at Suncor’s Fort Hills oil sands mine put downward pressure on the stock.

But these are temporary issues. There is pent-up demand for travel, and it is reflected in Suncor’s second-quarter earnings. As the fourth wave eases, the recovery could return. Suncor stock could recoup the two-month loss and surge more than 20% back to the July level of over $30.

Fool contributor Puja Tayal has no position in any of the stocks mentioned.

Vineet Kulkarni: Canadian Natural Resources

Shares of Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ), Canada’s biggest energy company by market cap, have been on a downtrend for the last few months. Fears of reopening delays weighed on energy commodities and on CNQ stock as well. However, this could be a valuable opportunity for discerning investors.

Canadian Natural will likely see stellar earnings growth in the second half of 2021, driven by higher production and higher oil prices as against last year. Moreover, its lower breakeven costs allows huge free cash flow growth even at current oil prices. So, once the Delta variant fears subside, CNQ stock should resume its upward climb.

Apart from its superior capital gain prospects, CNQ offers a juicy yield of nearly 5%. Investors can expect consistent dividend growth from the energy giant driven by its robust balance sheet and strong financial growth.

Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

Demetris Afxentiou: Fortis

The growing need to diversify your portfolio to counter volatility has never been greater. That’s just one reason why my pick for this month is Fortis (TSX:FTS)(NYSE:FTS).

Fortis is one of the most defensive picks on the market. In terms of size, the utility behemoth is one of the largest on the continent, with operations across 10 different operating regions. Fortis also boasts over 3.4 million utility customers across both electric and gas segments. If that weren’t enough, keep in mind that utilities generate a stable revenue stream backed by long-term regulated contracts.

Fortis’s immense size coupled with a very reliable and stable business model make it a great defensive pick in an increasingly volatile market.

Adding to that appeal is Fortis’s dividend. The current yield works out to a juicy 3.52%. Even better, Fortis has provided investors with annual bumps to that dividend for over 47 consecutive years. The company is also extending that guidance through 2025, making Fortis a perfect defensive option (and a future Dividend King) for your portfolio.

Fool contributor Demetris Afxentiou owns shares of Fortis.


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As COVID-19 vaccines for kids get closer, experts weigh up how to reassure parents – CBC.ca

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As Pfizer Inc. and BioNTech say they’ve moved a step closer to providing their COVID-19 vaccine for younger children, one mother says she’s keen to have her eldest vaccinated, but hears some hesitation among other parents.

“As parents, you’re nervous and you’re apprehensive, obviously, about any risks,” said Fallon Jones, who lives in Halifax with a five-year-old daughter and two-year-old son.

“But we have to weigh the pros and the cons here, and I think that this is a good opportunity to protect them against a potentially deadly virus,” she told The Current’s Matt Galloway.

Pfizer-BioNTech said Monday that a clinical trial of its COVID-19 vaccine recorded a robust immune response in five- to 11-year-olds, and the company plans to seek regulatory approval as soon as possible. Children received two shots, each one-third the dose size given to adults. The findings have not been peer-reviewed, nor published.

Pfizer-BioNTech COVID-19 vaccine appears safe, effective in younger kids, expert says

3 days ago

Although he cautions Pfizer-BioNTech has yet to release the raw data supporting the claim that its COVID-19 vaccine is safe and effective in kids aged 5-11, it’s ‘reasonable’ to assume that’s accurate, says Dr. Christopher Labos, a cardiologist with a degree in epidemiology. 2:35

For any vaccine to be approved by Health Canada, the manufacturers supply the necessary clinical trial data for review. If the regulator grants approval, the National Advisory Committee on Immunization (NACI) will make a recommendation on their use, but the final decision to deploy the vaccines rests with provincial authorities.

In a statement to The Current, Health Canada said the makers of all COVID-19 vaccines approved in Canada are conducting or planning studies in adolescents and younger children, but it has so far not received any submission for the approval of any COVID-19 vaccine for children under 12.

In her work at a vaccine hesitancy clinic in Calgary, Dr. Cora Constantinescu meets parents who are experiencing “a lot of fear and anxiety” around their children potentially getting the vaccine.

“We often have parents who are fully vaccinated themselves, who may be hesitant about their kids,” said Constantinescu, a pediatrician and infectious disease doctor at Alberta Children’s Hospital.

She said that parents talk to her about things they’ve seen online, including “anti-vaccine rhetoric and a lot of misconstrued science.”

In Halifax, Jones said she often hears other parents say they don’t know what’s in the vaccine, so they won’t give it to their kids. When she asks if they knew what was in the vaccines their kids received as babies, the response is usually no, she said.

“I completely respect and understand how there would be some fear associated with it,” she said. 

But ultimately, “we trusted our doctors then and we trusted the science then, and we need to do the same with this vaccine.” 

Dr. Cora Constantinescu said that as parents approach the decision, they should consider the negative impacts of COVID-19 on children. (Submitted by Dr. Cora Constantinescu)

How should parents approach vaccine question?

Constantinescu said many parents have seen misinformation on social media, where there is a “huge polarization of the pro-vaccine and the anti-vaccine crowd.”

“The parents are caught in the middle, scared and worried about their kids, trying to make the best decision they can,” she said.

As parents approach the decision, they should consider the dual impact of COVID-19 on children, she said.

“We’re seeing the direct effects of COVID on children, and we know that that can range from mild disease, to respiratory illness, to being hospitalized, having a multi-system inflammation, to ending up in ICU,” she said.

There is also an indirect cost, including mental health issues and issues around socialization, she said.

How a doctor discusses vaccine hesitancy with patients

10 months ago

Dr. Cora Constantinescu, an infectious disease specialist from the Vaccine Hesitancy Clinic in Calgary, discusses how she approaches conversations around vaccine hesitancy, the impact of those conversations and what’s needed in messaging around the COVID-19 vaccine. 3:44

The news from Pfizer-BioNTech gives her hope that those impacts can soon be addressed, but she warned that the data has not yet been made public, or reviewed by Health Canada.

If it is approved, she said parents should approach the vaccine as an issue of “personal protection first.”

“It’s about protecting their kids directly, looking out for them, and wanting to return them to a normal life,” she said.

‘Pull out all the stops’ to protect kids

Dr. Kashif Pirzada, an emergency physician in Toronto, wants to see a safe vaccine for kids approved and available as quickly as possible.

“I’m calling for all of these processes to be speeded up and done very transparently,” said Pirzada, who is also a co-founder of Masks4Canada, a group that advocates for public health measures to slow the spread of the virus.

Dr. Kashif Pirzada said that when a vaccine is approved for younger children, ‘we should pull out all the stops and get these shots into little arms as quickly as possible.’ (Dr. Kashif Pirzada)

He added that more work should be done to reassure parents that the vaccines are safe. He warned that COVID-19 is not harmless to children, and the longer they remain unprotected, the more infections there will be.

In the meantime, vaccination sites and health-care workers could be prepared to ramp the vaccination campaign back up, he said.

“Once that approval comes, we should pull out all the stops and get these shots into little arms as quickly as possible.”


Written by Padraig Moran. Produced by Rachel Levy-McLaughlin, Arianne Robinson and Joana Draghici.

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Gold price drops as Powell talks 'gradual' tapering, downplays Evergrande contagion concerns – Kitco NEWS

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(Kitco News) The gold market saw its earlier gains reversed as Federal Reserve Chair Jerome Powell talked about “gradual” tapering while downplaying China’s Evergrande contagion effect on the U.S. market.

On Wednesday, the Fed said it may soon start tapering its $120 billion in monthly asset purchases, with central bank officials showing growing support for raising interest rates in 2022. 

“If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses,” the Fed said in a statement.

When clarifying the Fed’s stance at a press conference following the Fed statement, Powell indicated that it would be a “very gradual taper,” which could conclude in the middle of next year.

Powell also pointed out that the central bank has the freedom to speed up or slow down the tapering process as it sees fit. He added that markets should not expect a rate hike while the Fed is still tapering.

Tapering does depend on substantial further progress made by the U.S. economy. And if the economy continues to advance in line with expectations, the Fed could move ahead with tapering at the next meeting.

“For me, it wouldn’t take a knockout [August] employment report. It would take a reasonably good employment report for me to feel like that test is met,” Powell said. “I would say that in my own thinking, the test is all but met. I don’t personally need to see a very strong employment report. Again it’s not to be confused with the test for [rate] liftoff, which is so much higher.”

The Fed Chair was also asked about China’s Evergrande debt issue, which sparked a rout in the markets earlier this week.

“The Evergrande situation seems very particular to China, which has very high debt for an emerging economy,” Powell told reporters. “Corporate defaults in the U.S. are very low right now … You would worry that it would affect global financial conditions through confidence channels.”

When asked about the stock-trading policies for Fed officials, Powell replied that they are “not adequate” and the Fed “could do better.”

Powell noted that it is reasonable for Fed officials not to own the same assets as Fed buys. “We are going to be looking at all those things,” he said.

On the debt ceiling issue, Powell also urged Congress to raise the debt limit in a timely fashion. “It is critically important. Failure to do that is something that could result in severe damage to the economy and financial markets.”

He added that no one should assume Fed can protect the economy if the debt ceiling is not raised.

In response to Powell’s comments, gold saw some losses as markets interpreted Powell’s comments as upbeat when it came to the U.S. economy. At the time of writing, December Comex gold futures were trading at $1,767.20, down 0.62% on the day.

Live 24 hours gold chart [Kitco Inc.]

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China asks local governments to prep for Evergrande downfall: Report – CNBC Television

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