In the event you’re a worth-conscious dividend hunter, the TSX Index is a good place to look, whilst Canada exams recession territory, probably sooner or later over the subsequent yr. Undoubtedly, macro headwinds are fairly distinguished. However even when Canada falls right into a recession, numerous pundits assume it’ll be a light one. Certainly, even a light recession might spell hassle for traders offered they overpaid for shares of an organization that might face earnings hurdles within the quarters forward.

Although discretionary shares are certain to be a uneven experience, I’d a lot relatively be within the defensive performs. Not solely are the dividends interesting (who can resist the tasty yields), however in addition they have fairly defensive progress narratives which may be a little bit rattled by any form of coming downturns for the financial system.

With out additional ado, let’s try three of my favorite restaurant shares to play for 2024 and the subsequent 10 years.

Restaurant Manufacturers Worldwide

Not all restaurant shares are created equally. Some stand taller than others, particularly in instances when macro headwinds are hitting client wallets.

Restaurant Manufacturers Worldwide (TSX:QSR) is having fun with an enormous comeback (shares up 48% in two years) after years of flying below the radar of shinier fast-food companies which have delivered extra on the returns entrance. On Monday, the inventory blasted greater than 2% larger to $105 and alter per share. With a possible breakout, which I known as in a previous piece, doubtlessly on the horizon, the inventory’s 2.84%-yielding dividend might stand to compress to round 2-2.5%.

Certainly, capital positive factors can drag down the dividend yield. And as extra traders pound the desk on the corporate’s transformative efforts (particularly over at Burger King), I’d search for QSR inventory to outpace rivals within the quick-serve restaurant scene.

MTY Meals Group

For individuals who search better worth, MTY Meals Group (TSX:MTY) could also be extra interesting, with shares going for simply 15.2 instances trailing value to earnings. That’s means too low cost for an organization behind quite a few meals court docket eating places like Taco Time. Final week, the corporate introduced a hike in its dividend by a whopping 12%.

With a yield simply shy of the two% mark, MTY stands out not solely as an important earnings play within the current but in addition as a future dividend-growth juggernaut. With shares delivering flat (up simply 3.7% previously two years) outcomes amid its multi-year interval of consolidation, I’d look to be a internet purchaser for a possible breakout. At this juncture, I anticipate MTY inventory might have what it takes to face taller than the broad TSX Index.

Pizza Pizza Royalty

Lastly, we’ve got Pizza Pizza Royalty (TSX:PZA), which pays a pleasant 6.31% yield on the time of writing. Technically, it’s not a dividend however a royalty that earnings traders stand to gather. Both means, shares of the royalty play are up large during the last two years, rising greater than 25% over the timespan.

As one of many lower-cost pizza supply choices in Canada, it’s not onerous to think about why shares have finished so nicely. Macro headwinds and inflation name for higher worth, and when it comes to aggressive costs, it’s been onerous for Pizza Pizza’s rivals to problem it.

Even when Pizza Pizza’s costs are lower than a few of its U.S. friends, the standard remains to be fairly first rate. And for a big household with out dinner plans, Pizza Pizza stands out as an important alternative, not solely to get their pizza repair however to avoid wasting a couple of dollars within the course of. Tasty pizza, tasty worth proposition, tasty yield — what’s to not love in case you’re a passive-income investor?