Canadian stocks have been hammered in October. A global stock market sell-off was sparked in the United States and has spread to European and Asian markets. Newfound volatility has investors anxious about higher interest rates, trade tensions, and the prospect of slower global growth.
Investors may want to explore different varieties of equities that could be discounted during this period. Today, we are going to look at three “sin stocks.” These companies have a presence in the alcohol and gambling sectors and offer income, growth, and a combination of both. Companies in these sectors have historically been more robust during periods of economic uncertainty.
Corby Spirit and Wine (TSX:CSW.A)
Corby Spirit and Wine is a Toronto-based marketer and distributor of spirits and imported wines. Shares have dropped 4.6% week over week as of close on October 24. The stock is down 16.8% in 2018 so far.
Corby released its fourth-quarter and full-year results on August 22. Revenue rose 2% in fiscal 2018 to $146.6 million. This growth was powered by the acquisition of the premium Ungava spirits brands and Foreign Affair wines as well as its export business growth and commission income from Pernod Ricard (PA:PERP). Net earnings were mostly flat year over year.
Corby plans to focus on international expansion to propel growth in 2019 and beyond, leveraging some of its most popular brands to appeal to global markets. It will also continue to be aggressive in pursuing new acquisitions. The board of directors also announced a quarterly dividend of $0.22 per share, which represents an attractive 4.5% yield.
Great Canadian Gaming (TSX:GC)
Great Canadian Gaming operates gaming, entertainment, and hospitality businesses across Canada and the United States. Shares have dropped 7.1% over the past month as of close on October 24. The stock is still up 24% in 2018 so far.
Great Canadian Gaming remains an attractive hold ahead of its expected third-quarter earnings release on November 5. In the second quarter, it began including full results from its recently acquired GTA Bundle. Revenues surged 90% year over year to $305.3 million and net earnings soared 134% to $64 million.
The GTA Bundle was a huge victory for Great Canadian Gaming and its contract runs for over two decades. It has already moved to revamp the locations over the next several years. Great Canadian Gaming is a solid option for long-term investors on the hunt for growth.
Andrew Peller (TSX:ADW.A)
Andrew Peller is an Ontario-based wine-producing company. Shares have dropped 10.4% over a three-month span as of close on October 24. The stock has climbed over 140% over the past three years as the Canadian wine business has flourished in this decade.
In addition to its solid financials, Andrew Peller’s business is in a great position to gain from trends in the wine industry. Younger demographics are abandoning beer for wine, and its market share in the alcohol industry has experienced good growth in recent years. Andrew Peller also offers a modest quarterly dividend of $0.0513 per share, which represents a 0.7% yield.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.