The Bank of Canada maintained its key rate decision at 5% on Wednesday for the fifth consecutive time. Interest rate stability is good news for TSX utilities, which have significantly underperformed broad market benchmarks as interest rates, and therefore borrowing costs, have soared. However, utilities’ predictable and consistent earnings and cash flow earn them a place among the best stocks to buy right now as interest rates stabilize.
Who should consider buying Canadian utility stocks?
Investors looking to add a reliable layer of passive income, portfolio defensiveness, and stable long-term growth potential to their retirement investment portfolios should check out TSX utilities as interest rates stabilize in March 2024.
Why now? Although borrowing costs remain at 22-year highs, the era of rising interest expenses that has dragged down utilities stocks seems to have passed. TSX utilities have calibrated their operating…
