September: Market Slump or Prime Buying Window?
September has long had a bad reputation on Wall Street. Known as the September Effect, it’s often considered the worst month for stocks — and history backs it up. Over the last 10 years, the S&P 500 has fallen in six Septembers, averaging a -2% return.
But if stocks are prone to stumble during this time, savvy investors should be asking: Isn’t that the perfect time to buy?
TSX: Breaking the September Curse
Unlike its U.S. counterpart, Canada’s TSX is rewriting the September story. As of mid-September 2025, the index has been hitting record highs, up 18.55% year to date and climbing 10.34% in the last three months alone.
With a possible Bank of Canada interest rate cut on the horizon, momentum could build even further. In this bull run, two standout Canadian stocks — Extendicare (TSX:EXE) and Telesat (TSX:TSAT) — offer unique opportunities for both income-focused and growth-hungry investors.
Extendicare (TSX:EXE): A Reliable Monthly Income Stream
Extendicare operates long-term care (LTC) homes and provides in-home healthcare services across Canada. With demand for senior care steadily rising, the company is delivering strong results:
- H1 2025 revenue up 5.9%, to $758.1 million
- Net operating income (NOI) up 7.9%
- Net earnings surged 20.5% year over year, hitting $47 million
CEO Dr. Michael Guerriere credits demographic-driven demand and operational efficiency for the solid performance. Further tailwinds are coming from Ontario’s new 2025 Long-Term Care Home Capital Funding Policy (CFP) — a program with no time limit that supports new LTC facility construction. Extendicare is planning 18 redevelopment projects under the initiative.
At $13.14 per share, EXE is up nearly 27% year to date and offers a 3.84% dividend yield — paid monthly. Even during turbulent market cycles, Extendicare has never missed a monthly dividend since January 2013 — making it a reliable income play for long-term holders.
Telesat (TSX:TSAT): A Satellite Stock Soaring Higher
Telesat, a Canadian satellite communications company, has been on a tear in 2025, delivering a market-beating 54.89% gain so far. Currently trading at $36.60, TSAT is riding the wave of innovation and commercial expansion.
The company operates both Geostationary Orbit (GEO) and Low Earth Orbit (LEO) satellite networks. Its Telesat Lightspeed LEO program is designed to meet the growing needs of clients in aerospace, telecom, maritime, and government sectors.
With contracted backlogs of $900 million (GEO) and $1.1 billion (LEO), the revenue pipeline is solid. CEO Dan Goldberg says the Lightspeed network is making “strong technical and commercial progress” — potentially making Telesat a case of buying high and selling higher as its long-term vision unfolds.
Final Thoughts: Myth or Opportunity?
The so-called September Effect may still spook some investors — but Canada’s stock market is telling a different story this year. Rather than run from September, investors may want to lean in and take advantage of what could be undervalued opportunities hiding in plain sight.
Whether you’re after monthly income (Extendicare) or high-growth potential (Telesat), these two TSX stocks offer strong cases for inclusion in your portfolio this month.
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