3 High TSX Shares I am Shopping for in August

Earnings season has arrived, and this may be fairly overwhelming. After such a lull, all of a sudden, we’re flooded by data, all whereas geopolitical points and financial uncertainty abound.

However right now, we’re simply three TSX shares that provide a powerful future. And what’s extra, they provide a powerful current and previous as nicely. With that in thoughts, let’s take a look at the highest TSX shares I might contemplate shopping for in August.

A&W

Shares of A&W Income Royalties Revenue Fund (TSX:AW.UN) popped by 20% this week as the corporate introduced it will change its construction. Whereas this was all executed within the identify of making worth, much more was already there.

A&W Income Royalties Revenue Fund has proven strong monetary efficiency. Within the first quarter of 2024, the fund reported earnings per share (EPS) of $0.43. This was up from $0.37 in the identical interval of 2023. The fund’s internet revenue for 2023 was $32 million, demonstrating constant profitability.

Buyers on the lookout for regular revenue will admire A&W’s dependable dividend payouts. The fund declared a money distribution of $0.16 per unit for June 2024. This maintained a gradual circulate of revenue to its unitholders. With a present yield of round 6.73%, A&W presents a compelling dividend yield in comparison with many different funding choices.

Sleep Nation

One other massive transfer this week got here from Sleep Nation Holdings (TSX:ZZZ) with the announcement it will be purchased up by Fairfax Monetary Holdings. Fairfax Monetary Holdings introduced the acquisition of Sleep Nation Canada for $35.00 per share. A big premium over its latest buying and selling value. This acquisition not solely underscores the intrinsic worth of Sleep Nation. It additionally positions it for additional progress beneath the administration of Fairfax — an organization recognized for its strategic investments and operational experience.

So, why does this firm need it? Sleep Nation has demonstrated constant monetary efficiency. For the fiscal yr ending 2023, the corporate reported annual revenues of $938.26 million — a modest enhance from the earlier yr. Regardless of a difficult retail setting, Sleep Nation managed to take care of a internet revenue of $68.60 million. This displays its means to generate steady earnings.

Because the main retailer of mattresses and sleep-related merchandise in Canada, Sleep Nation is well-positioned to capitalize on the rising demand for high-quality sleep merchandise. The corporate’s intensive product vary, together with mattresses, bedding, and sleep equipment, caters to a broad shopper base. Moreover, Sleep Nation’s strategic initiatives, resembling increasing its product choices and enhancing its e-commerce platform, are anticipated to drive future progress.

VXC ETF

Lastly, let’s make it easy with an exchange-traded fund (ETF). Vanguard FTSE World All Cap ex Canada Index ETF (TSX:VXC) is a wonderful funding selection for these seeking to diversify their portfolios globally whereas sustaining publicity to a variety of market caps and areas.

VXC ETF is a wonderful funding selection for these seeking to diversify their portfolios globally whereas sustaining publicity to a variety of market caps and areas. The ETF has delivered stable returns, with a complete return of twenty-two% over the previous yr. Plus, it holds a beautiful 1.53% dividend yield.

VXC’s holdings are well-diversified throughout numerous sectors and areas. The fund’s largest allocations are to the expertise sector (21%), shopper discretionary (13.9%), and financials (13.7%). Geographically, 61.3% of its property are allotted to U.S.-listed corporations, with important publicity to different markets like Japan, the U.Ok., China, and rising markets. So, you get the whole lot from the most important shares on the market to the far lesser recognized. Altogether, it’s a transparent winner as a purchase in August.