Yes, there were some stock market winners

A few gems amidst the market carnage in 2022

Some years are remembered by investors for catastrophic market plunges. Think 1929 or 2008. Others are marked by frenzied excesses, such as the dot-com craze in 1999.

The year now winding down has no memorable characteristics. Rather, it was a grinder, one that relentlessly eroded the value of our portfolios, month after month. It didn’t matter whether you held bonds or stocks or crypto, everything was hammered.

Well, almost everything. There were a few sparks of light amidst the carnage, securities that bucked the trend and are ending 2022 on the plus side.

Here are some of the TSX winners from my recommended list in the Internet Wealth Builder newsletter. If you owned a few of these, they helped ease the pain of the broad market pullback.

Tourmaline Oil Corp. (TSX: TOU). The TSX fared better than any of the U.S. indexes due primarily to the strength of the energy sector, more specifically fossil fuel companies. They may be headed for dinosaur-land in the not-too-distant future, but right now they’re what’s keeping many portfolios afloat.

Calgary-based Tourmaline is a relatively new, well-managed business that emerged as the country’s top natural gas producer after Encana pulled up stakes and moved to the U.S., changing its name in the process. As of the close on Dec. 8, Tourmaline stock was up 83.5% for the year. But that doesn’t include dividends. Along with its regular $0.225 quarterly dividend (which is increasing to $0.25 with the next payment), the company paid out four special dividends this year for a total of $7.90. Investors who owned the stock at the start of the year, when it was trading at $40.84, ended with a total return of almost 103%.

Loblaw Companies Ltd. (TSX: L). You know it has been a good year for the food industry when politicians start trying to score points by criticising rising prices. Makes great sound bites but never achieves much. Meantime, companies like Loblaw and Metro keep padding the bottom line. Loblaw stock is ahead 20% year-to-date and the dividend was increased 11% in mid-year.

Alimentation Couche-Tard Inc. (TSX: ATD). Inflation, war, rate hikes – no matter how bad the times, people still need gas (grumbling all the way). A bag of chips and a soda to wash it down help to ease shattered nerves and contribute to Couch-Tard’s bottom line. The stock is ahead 17.7% for the year. The quarterly dividend was recently increased by 27%, to $0.14 a share.

Canadian National Railway Co. (TSX: CNR). Despite the threat of a recession lurking just over the horizon, both our major railroads managed to stay on the plus side in 2022. CN, which is our pick, ended 2021 at $155.38. It closed on Dec. 8 at $170.54, for a gain of 9.8% on the year. Add dividends of $2.93 per share and the total return is 11.6%.

Winpak Ltd. (TSX: WPK). Little-known companies can sometimes shine in tough times. Winnipeg-based Winpak is one example. It manufactures packaging and related packaging machines. The company’s goods are used primarily in food, beverages, and healthcare applications, with its modified atmosphere packaging used to extend the shelf life of perishable foods such as meats, poultry, and cheeses as well as medical devices. It’s a low-profile business. The shares are down from the 52-week high reached in October but are still up 12.3% for the year. The stock pays a small dividend.

Franco-Nevada Corp. (TSX: FNV). After a mid-year slump, gold is shining again with the price edging above US$1,800 an ounce last week. Gold mining stocks are reacting as you might expect. The S&P/TSX Global Gold Index is up 16% in the current quarter, although it is still in the red year-to-date. My favourite gold stock, which I have owned for many years, is royalty streamer Franco-Nevada. The shares are up 11.4% this year plus the company has raised its dividend four times, albeit by small amounts.

These are just a few of the many stocks on our recommended list that are making money this year. What’s interesting is the diversity. The energy sector is faring best, but we’re finding winners in many other sectors. As for next year, look to those areas of the economy that have done badly in 2022. I suggest you start with real estate. The whole sector looks deeply oversold.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website. To take advantage of a 50% saving on a trial subscription and receive the special report “The Tumultuous Twenties,” go to https://bit.ly/bwGP20s.

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