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North American and global markets experienced significant volatility in the last weeks of April. The S&P / TSX Composite Index It fell 321 points on April 26, 2022. Earlier this week, I discussed how investors might want to respond to a potential market correction. Today, I want to take a look at three other defensive stocks that you might want to grab in this turbulent market. Let’s jump.
Here’s why Hydro One keeps correcting the market
Hydro one (TSX:H) This is the first defensive earnings stock I’m looking to target in this environment. This Toronto-based property prides itself on having a monopoly in the province of Ontario. Hydro One shares were up 3.1% on a weekly basis to the close on April 26. The stock is up 9.1% in the year-to-date period.
The company is due to announce its results for the first quarter of 2022 in early May. In 2021, Hydro One reported adjusted net income of $965 million, or $1.61 per diluted share — up from $903 million, or $1.51 per diluted share, the previous year. The Hydro One project will benefit from higher peak demand and full-year energy consumption in 2021.
This dividend stock currently has a solid price-to-earnings (P/E) ratio of 22. It last declared a quarterly dividend of $0.266 per share. This represents a return of 2.9%.
Defensive Profit Stock can be trusted in a volatile market
B.C. (TSX: BCE) (NYSE: BCE) is a Montreal-based communications and media company. Its shares are up 7.2% so far in 2022. However, BCE stock is down 3.2% in the last week’s period. This is still an earnings stock that I’m looking forward to targeting in a market correction.
Investors can expect to see the company’s first round of earnings for 2022 in early May. It unveiled its final set of 2021 results on February 3, 2022. BCE reported total revenue of $23.4 billion in 2021 – a 2.5% increase over the previous year. Meanwhile, adjusted net profit rose 6% year over year to $2.89 billion. The media segment is back in formation with total revenue growing by 7.3%. Furthermore, adjusted EBITDA jumped 3% to $9.89 billion.
BCE shares are trading in favorable value territory at the time of writing. It offers a quarterly dividend of $0.92 per share, which is a solid 5.2% return.
Another defensive dividend stock to own today
Back in March, I discussed why soaring food prices spur Canadian investors to grab retail stocks of groceries. Empire Company (TSX: EMP.A) is one of the best operating retail grocery stores in Canada. Defensive Dividend Stock increased 10% year-to-date. The stock is down 3.4% over the past week.
The company released its financial results for the third quarter of 2022 on March 10. It reported a 16% EPS growth to $0.77. Meanwhile, same-store sales increased by 8.3% compared to the previous year. Even better, free cash flow jumped 75% to $551 million.
This dividend stock has an attractive P/E ratio of 15. It last paid a quarterly dividend of $0.15 per share. This represents a modest return of 1.4%.