2 Top Stocks For December 2019 + Comments

Contributors at Motley Fool Canada (including myself) cooked up a list of 15 top stocks for December 2019. Actually, I had trouble choosing my top idea for this month as the market kept grinding higher. I chose Enbridge (TSX:ENB)(NYSE:ENB), a defensive name that’s fairly valued with a high dividend yield and a proven track record of dividend growth.

I’ll comment on some of my colleagues’ picks.

Another Solid Energy Dividend Payer

Two contributors picked TC Energy (TSX:TRP)(NYSE:TRP), a smaller peer of Enbridge in the energy infrastructure space. TC Energy is a quality dividend name also but Enbridge offers a bigger yield right off — 5.87% versus TC Energy’s 4.48%, which is just a little more defensive should a market correction happen soon.

The Renewable Energy Space

Two contributors chose a stock in the renewable energy space: Innergex Renewable Energy (TSX:INE) and TransAlta Renewables (TSX:RNW). Clean and renewable energy is a good space to be in as it has secular growth, but I don’t have a strong opinion about these two names in particular.

Given the run-up in utilities in general lately, I think it’s best for investors to consider the space when it’s out of favour again. 

hydropower plant in Ontario
Source: Author – A hydropower plant in Ontario

A Top Stock for a Trade

My colleague, Ryan Vanzo, chose Fairfax Financial Holdings (TSX:FFH) as his top stock idea for December. Interestingly, this is a stock that I’d consider for a trade. In fact, I already bought it at a lower price. We last added to the stock in late October in our service, from which the stock has appreciated +9%. 

We look forward to receiving the dividend, which is paid once a year in January and is worth a yield of 2.07% at the current quotation. The ex-dividend will be on January 17, 2019. So, there’s plenty of time to pick up the value stock if it’s something you’re interested in.

Fairfax stock is still cheap, trading at close to its book value, while it tends to grow its book value per share over time. 

Data by YCharts

Food for thought

If you don’t feel compelled to buy any stocks right now, it’s perfectly fine to sit on some cash and wait for a market correction. Take the break as an opportunity to review your watchlist and update your price or yield targets for buying.

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Disclosure: As of writing, we’re long on the TSX: ENB and FFH.

Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.

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