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Labor market cooling? | The Canadian stock with the most stable dividends

Wealth Awesome June Newsletter

Author

Qayyum Rajan
June 25, 2024

Welcome to the June edition of the Wealth Awesome newsletter. Thank you to the 15,000+ 🇨🇦 subscribers who join us today!

Lets take a moment, the first rate cut is here! 🎊 

Market Update

Summary: Labour market cooling down 🥶 

Canadian employment saw a modest increase of 27,000 jobs in May, unable to keep pace with the population growth of 98,000. Consequently, the unemployment rate edged up to 6.2% from 6.1% in April.

The increase in unemployment is largely attributed to students entering the job market and a 33% year-over-year rise in permanent layoffs. While part-time jobs increased by 62,000, full-time positions dropped by 36,000, and total hours worked remained steady.

Wage growth unexpectedly rose to 5.1% year-over-year, a key indicator for the Bank of Canada regarding future inflation. Despite this, other wage measures indicate a broader slowdown in labor demand.

The gradual cooling of the labor market suggests that the Bank of Canada’s recent interest rate cuts are appropriate, with further cuts possible without reigniting inflation. Basically the BoC “don’t have regrets”

Key Takeaways đź’ˇ

Unemployment and Wage Dynamics: Unemployment rate increased to 6.2%, with a significant portion due to new job market entrants and rising permanent layoffs. Wage growth unexpectedly spiked to 5.1%.

Labour Market Trends: Part-time job gains offset full-time losses, and broader wage measures indicate a slowing labor demand, supporting the potential for further interest rate cuts by the Bank of Canada.

This Canadian stock has the most stable dividends in the last 5+ years

Investors in Canada typically love dividends, especially with our huge weightings to financials and utilities. Whats better than any dividends, well, strong, stable dividends!

One stock we wanted to highlight is Canadian Utilities (TSE:CU)

CU has had some remarkable statistics:

  • 48 straight dividends that were the same or growing

  • Over 6% yields compared with a sector average of 2.12%

  • 86% payout ratio

  • Over 15 years (since 2009)

Definitely worth a look if you want stability. That is a team committed to their shareholders.

CU: Canadian Utilities Limited Stock Profile

Canadian Utilities Limited | CU | CU.TO stock analysis, stock price and competitor insights.

wealthawesome.com/CU-TO

CU Dividend Yield Range

TSE:CU Dividend History

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Want to earn money while you sleep? Learn these awesome passive income ideas in Canada so you can sit back and collect that money.

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INVEST | 10 Best Canadian REIT Stocks for Monthly Dividends in June 2024

Want to invest in real estate without the hassle? Here's a list of my top picks for the best Canadian REIT stocks that you can buy

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SAVE MONEY | 15 Cheapest Places To Live In Ontario For An Affordable Lifestyle (2024)

Below, I’ll share some of the cheapest places to live in Ontario, so you can consider your options and find the city or town that best fits your needs.

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See you next month!

The Wealth Awesome Team

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