The S&P/TSX Composite Index has recouped some of its losses from a brutal September. However,
Canadian stocks still have a long way to go to recover from what has been a difficult second half of 2022.
Investors may want to brace for further volatility in the face of rising interest rates and economic
uncertainty. Today, I want to look at a top defensive stock available on the TSX; Saputo (TSX:SAP).
Saputo is a Montreal-based company that produces, markets, and distributes dairy products in Canada,
the United States, and around the world. Indeed, it is one of the 10 largest dairy producers on the
planet. Its shares have climbed 16% in 2022 as of close on October 28. The stock is up 12% year over
year.
Investors can expect to see Saputo’s second quarter fiscal 2023 earnings on Thursday, November 10. It
released its first quarter fiscal 2023 results on August 4. The company posted revenue growth of 24% to
$4.32 billion. Saputo’s revenue growth was powered by higher domestic selling prices that rose along
with the “higher cost of milk as raw material”. Saputo reported adjusted net income of $161 million or
$0.39 per share – up from $122 million or $0.29 per diluted share in the first quarter of fiscal 2022.
This super dairy producer is a highly dependable play that you can trust for the long haul. It is still
trading in favourable territory compared to its industry peers. Meanwhile, it offers a $0.18 per share.
That represents a 2.1% yield.
