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Defensive Stock to Stash against stock market crash

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The S&P/TSX Composite Index rose another 133 points on August 5. Mining and materials combined with the energy space to power another green day for the Canadian market. Earlier this week, I’d discussed whether investors should look to prepare for a stock market crash. It is almost never a good idea to try to time the market. However, piling up on defensive stocks may be prudent in what looks like an overvalued climate. Today, I want to look at three dividend stocks that can protect your portfolio for the rest of 2020.

Why grocery stocks can defend against a stock market crash

In the early spring of 2020, the TSX Index suffered a sharp correction along with its global peers. However, consumer staples like grocery stocks managed to provide stability to shareholders during this turbulent period. These stocks continue to be great targets for those who are worried about a stock market crash.

Loblaw Companies (TSX:L) is the largest grocery retailer in Canada. Its shares have climbed 5.2% in 2020 as of close on August 5. The company released its second-quarter 2020 results on July 23. It put together a strong performance in the face of the COVID-19 pandemic.

Revenue increased 7.4% year over year to $11.9 billion. Like other retailers, grocers have also accelerated their e-commerce push. Loblaw’s Everyday Digital sales soared 280% to $1.2 billion in Q2 2020. The board of directors announced a quarterly dividend of $0.315 per share, which represents a modest 1.8% yield.

Shares of Loblaw last had a price-to-earnings (P/E) ratio of 25 and a price-to-book (P/B) value of 2.2 It is still in solid value territory compared to industry peers.

One dividend stock to stash

Back in July, I’d discussed how millennials could build a green energy portfolio. A stock market crash is impossible to predict. However, the continued growth of the renewable energy sector appears to be a sure bet as we kick off the 2020s.

Polaris Infrastructure (TSX:PIF) is a Toronto-based renewable energy company that acquires, explores for, develops, and operates geothermal and hydroelectric energy projects in Latin America. Its stock has climbed 21% in 2020 so far.

In Q1 2020, Polaris generated $20.3 million in revenue from energy sales. Adjusted EBITDA increased to $17.0 million over $15.9 million in the prior year. It declared a quarterly dividend of $0.15 per share. This represents a strong 5.7% yield.

The stock last possessed a P/E ratio of 11 and a P/B value of 0.8. This puts Polaris in attractive value territory as we start the month of August. I’m bullish on this renewable energy stock going forward.

Stock market crash: Why telecom is a solid option

Telecom stocks have been quiet since the stock market crash in March. Rogers Communications, one of the largest telecoms in Canada, has seen its shares drop 12% in 2020 as of close on August 5. The stock looks undervalued in the middle of the summers. Shares last had a favourable P/E ratio of 16. Meanwhile, Rogers offers a quarterly dividend of $0.50 per share, representing a 3.6% yield.

One super interesting stock to watch in this hot market…

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

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Tech stocks lift Wall Street as economic rebound slows – Reuters

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(Reuters) – Wall Street climbed in choppy trading on Thursday, with investors returning to the perceived safety of technology-related stocks as a surprise rise in weekly jobless claims signaled a slowdown in economic growth.

FILE PHOTO: A worker cleans the floor of the New York Stock Exchange (NYSE) , U.S., March 20, 2020. REUTERS/Lucas Jackson/File Photo

Nine of the 11 major S&P indexes were trading higher, with information technology leading gains.

Apple Inc, Amazon.com Inc, Netflix Inc, Nvidia Corp and Facebook Inc, which have outperformed at a time of increased economic uncertainty, rose between 0.5% and 2.7%.

“Investors are going to be needing stocks that can weather a lower growth path because if we don’t get another round of fiscal stimulus, there’s not going to be a lot more we can do to continue boosting the economic recovery,” said Max Gokhman, capital markets strategist at Pacific Life Fund Advisors.

Waning hopes of more fiscal stimulus, signs of a faltering business recovery and a sell-off in technology-related names have weighed on U.S. stocks this month.

The S&P 500 briefly fell 10% below its intraday record high hit on Sept. 2. If the benchmark index closes at that level, it will enter correction territory.

Dow constituents, considered a barometer of economic confidence, lagged the S&P 500 on Thursday as data showed 870,000 Americans applied for jobless benefits in the week ended Sept. 19, up from 866,000 in the previous week.

Job cuts have spread to industries such as financial services and technology that were not initially impacted by the mandated business closures in mid-March because of insufficient demand.

At 12:32 p.m. ET, the Dow Jones Industrial Average was up 0.39%, the S&P 500 was up 0.54% and the Nasdaq Composite was up 0.81%.

The CBOE volatility index, which is hovering near two-week highs, is expected to climb in the run up to the quarter end next week.

“The key is the VIX index, which has not yet reached levels that would suggest a continued strong move to the downside,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“So you might get a day of bargain hunting followed by a day of selling, but as the last days of September come into place, we should begin to see some sort of window dressing by institutions.”

Homebuilders climbed 0.8% as sales of new single-family homes increased to their highest level in nearly 14 years last month.

Nikola Corp, which is set for its biggest weekly decline ever, shed another 4.3% as Wedbush downgraded the stock to “underperform”.

Accenture Plc fell 6.4% after the IT consulting firm forecast current-quarter revenue below expectations, while, U.S.-listed shares of Canadian security software firm BlackBerry Ltd jumped 5% after it posted a surprise rise in quarterly revenue.

Declining issues nearly matched advancers on the NYSE and the Nasdaq.

The S&P index recorded no new 52-week highs and two new lows, while the Nasdaq recorded seven new highs and 116 new lows.

Reporting by Sagarika Jaisinghani and Devik Jain in Bengaluru; Editing by Arun Koyyur

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Wall Street opens lower as jobless claims rise – Reuters

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Sept 24 (Reuters) – Wall Street opened lower on Thursday as a surprise increase in weekly jobless claims signaled that a labor market recovery was cooling and that more fiscal support would be necessary to avoid another round of mass layoffs and furloughs.

The Dow Jones Industrial Average fell 47.04 points, or 0.18%, at the open to 26,716.09. The S&P 500 opened lower by 10.78 points, or 0.33%, at 3,226.14, while the Nasdaq Composite dropped 81.97 points, or 0.77%, to 10,551.02 at the opening bell. (Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)

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US STOCKS-Tech stocks lift Wall Street as economic rebound slows – Reuters

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(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Weekly jobless claims unexpectedly rise to 870,000

* Nikola slides after Wedbush downgrade

* Accenture drops, BlackBerry rises on quarterly earnings

* Indexes up: Dow 0.39%, S&P 0.54%, Nasdaq 0.81% (Updates to early afternoon)

Sept 24 (Reuters) – Wall Street climbed in choppy trading on Thursday, with investors returning to the perceived safety of technology-related stocks as a surprise rise in weekly jobless claims signaled a slowdown in economic growth.

Nine of the 11 major S&P indexes were trading higher, with information technology leading gains.

Apple Inc, Amazon.com Inc, Netflix Inc , Nvidia Corp and Facebook Inc, which have outperformed at a time of increased economic uncertainty, rose between 0.5% and 2.7%.

“Investors are going to be needing stocks that can weather a lower growth path because if we don’t get another round of fiscal stimulus, there’s not going to be a lot more we can do to continue boosting the economic recovery,” said Max Gokhman, capital markets strategist at Pacific Life Fund Advisors.

Waning hopes of more fiscal stimulus, signs of a faltering business recovery and a sell-off in technology-related names have weighed on U.S. stocks this month.

The S&P 500 briefly fell 10% below its intraday record high hit on Sept. 2. If the benchmark index closes at that level, it will enter correction territory.

Dow constituents, considered a barometer of economic confidence, lagged the S&P 500 on Thursday as data showed 870,000 Americans applied for jobless benefits in the week ended Sept. 19, up from 866,000 in the previous week.

Job cuts have spread to industries such as financial services and technology that were not initially impacted by the mandated business closures in mid-March because of insufficient demand.

At 12:32 p.m. ET, the Dow Jones Industrial Average was up 0.39%, the S&P 500 was up 0.54% and the Nasdaq Composite was up 0.81%.

The CBOE volatility index, which is hovering near two-week highs, is expected to climb in the run up to the quarter end next week.

“The key is the VIX index, which has not yet reached levels that would suggest a continued strong move to the downside,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“So you might get a day of bargain hunting followed by a day of selling, but as the last days of September come into place, we should begin to see some sort of window dressing by institutions.”

Homebuilders climbed 0.8% as sales of new single-family homes increased to their highest level in nearly 14 years last month.

Nikola Corp, which is set for its biggest weekly decline ever, shed another 4.3% as Wedbush downgraded the stock to “underperform”.

Accenture Plc fell 6.4% after the IT consulting firm forecast current-quarter revenue below expectations, while, U.S.-listed shares of Canadian security software firm BlackBerry Ltd jumped 5% after it posted a surprise rise in quarterly revenue.

Declining issues nearly matched advancers on the NYSE and the Nasdaq.

The S&P index recorded no new 52-week highs and two new lows, while the Nasdaq recorded seven new highs and 116 new lows. (Reporting by Sagarika Jaisinghani and Devik Jain in Bengaluru; Editing by Arun Koyyur)

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