Why share buybacks deserve more respect

Dividends are in fashion with investors right now, and that’s always a good thing. Creative accounting can produce false impressions of prosperity and hide embarrassing financial problems. But accounting can’t create cash for this year’s dividend, let alone conjure up a history of past dividends. If you restrict your stock market picks to dividend payers, you’ll avoid most of the market’s greatest disasters.

It’s odd that while investors periodically crave cash dividends, they rarely get excited about stock buybacks. But in some ways, stock buybacks are better than dividends. In particular, …read more »

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you our advice on the fundamentals of successful investing, including specific stock market advice. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away.

Today’s tip: “If you let share price fluctuations dictate your buying and selling, you’re almost certain to lose money.”

It’s a fact of life on the stock market. Stocks go up …read more »

AGRIUM INC. (Toronto symbol AGU; www.agrium.com) makes fertilizers from natural gas. It sells its products to farmers and industrial users through its more than 1,200 stores in North America, South America and Australia. The company’s retail outlets help shield it from volatile fertilizer prices.

Agrium continues to add more stores. It recently agreed to pay $1.65 billion (all amounts except share price and market cap in U.S. dollars) for 230 fertilizer outlets in western Canada operated by Viterra Inc.

It will also purchase Viterra’s 17 stores in Australia, plus its 34% …read more »

Pat McKeough responds to many personal questions on specific stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions.

This past week, an Inner Circle member wondered about one of Canada’s most successful growth stocks. The shares for this athletic wear firm have done very well for this investor, but he asks Pat …read more »

The Week in Review lets you easily catch up on any Daily Updates you may have missed during the week. This is your opportunity to review the reports and analysis that may have the greatest impact on your investments.

This Week’s Reports

Canadian tech stock positions itself for takeover

Dividend stocks: Takeover gives Pembina big stake in natural gas liquids

Do you have too many stocks or too few?

Don’t make these 3 mistakes in a troubled market

Should Investors Buy Facebook’s New Shares-Pat on Youtube

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Gennum—another takeover success for our investment strategy

Dividend stocks: Smartphone contracts …read more »

This is the latest in a series of video interviews in which Pat McKeough will give his investing advice on a variety of topics. Some will deal with his overall investment philosophy, others on specific investment strategies and still others will be comments on events that are affecting the markets and the economy. This week, the topic is the decision of Internet phenomenon Facebook to start selling shares to the public. The intense media limelight surrounding this initial public offering is just one of the things that should make investors …read more »