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Earnings season has arrived, and this may be fairly overwhelming. After such a lull, all of the sudden, we’re flooded by data, all whereas geopolitical points and financial uncertainty abound.
However immediately, we’re taking a look at simply three TSX shares that provide a powerful future. And what’s extra, they provide a powerful current and previous as properly. With that in thoughts, let’s take a look at the highest TSX shares I’d think about 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 could change its construction. Whereas this was all finished within the title 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 earnings for 2023 was $32 million, demonstrating constant profitability
Buyers searching for regular earnings will recognize A&W’s dependable dividend payouts. The fund declared a money distribution of $0.16 per unit for June 2024. This maintained a gentle circulate of earnings to its unitholders. With a present yield of round 6.73%, A&W gives 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 could 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 worth. This acquisition not solely underscores the intrinsic worth of Sleep Nation. It additionally positions it for additional progress below the administration of Fairfax — an organization identified 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 atmosphere, Sleep Nation managed to take care of a internet earnings of $68.60 million. This displays its capability 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 in depth product vary, together with mattresses, bedding, and sleep equipment, caters to a broad shopper base. Moreover, Sleep Nation’s strategic initiatives, reminiscent of 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 alternative for these trying to diversify their portfolios globally whereas sustaining publicity to a variety of market caps and areas.
VXC ETF is a wonderful funding alternative for these trying 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 lovely 1.53% dividend yield.
VXC’s holdings are well-diversified throughout numerous sectors and areas. The fund’s largest allocations are to the know-how sector (21%), shopper discretionary (13.9%), and financials (13.7%). Geographically, 61.3% of its belongings are allotted to U.S.-listed corporations, with vital publicity to different markets like Japan, the U.Okay., China, and rising markets