In response to the BP oil spill in the Gulf of Mexico, regulators will probably require offshore drillers to install more equipment aimed at preventing future spills. These extra costs would hurt the profits of companies that are active in the Gulf.

That should spur more development of less-risky onshore oil and natural-gas deposits, particularly Canada’s oil sands.

Safety, falling costs could …read more »

One key part of our three-pronged investing program is to spread your money out across the five main sectors of the economy: Manufacturing & Industry; Resources; Consumer; Finance; and Utilities.

In general, stocks in the Resources and Manufacturing & Industry sectors expose you to above-average volatility, and stocks in the Utilities and Finance sectors entail below-average volatility. Consumer stocks usually …read more »

Demand for wireless services is rising sharply in North America. That’s partly because device makers continue to release new cellphones and wireless devices, such as Apple’s iPad and Amazon’s Kindle e-book reader.

As well, more customers are switching from traditional phones (or land lines) to wireless services.

Tap into wireless growth with blue chip stocks that operate networks

We think wireless carriers …read more »

BCE INC. $30 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 767.2 million; Market cap: $23.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 5.8%; SI Rating: Above Average) is buying back 20 million, or about 3%, of its outstanding shares this year. Share buybacks raise earnings per share and other per-share calculations.

Buybacks like this typically occur in small amounts …read more »

BANK OF NOVA SCOTIA $52 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $52.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.8%; SI Rating: Above Average) is expanding its operations in Thailand.

Right now, it owns 49% of Thailand’s Thanachart Bank. Thanachart has agreed to buy rival Siam City Bank. When the deal closes later this …read more »

BCE INC. $30.07 (Toronto symbol BCE; Shares outstanding: 765.2 million; Market cap: $23.0 billion; SI Rating: Above Average; Dividend yield: 5.8%) provides telephone and Internet services in Ontario and Quebec. It also sells wireless and satellite-TV services across Canada.

In 2009, BCE’s revenue rose 0.4%, to $17.74 billion from $17.66 billion in the prior year. Earnings before one-time items rose 6.5%, …read more »

BCE is using its strong cash flow to expand and improve its wireless and high-speed Internet networks. That will fuel the company’s long-term growth. It will also let BCE keep adding services, buying back shares and paying (and possibly raising) its high dividend.

BCE INC. $30.07 (Toronto symbol BCE; Shares outstanding: 765.2 million; Market cap: $23.0 billion; SI Rating: Above Average; …read more »

IBM $128.48 (New York symbol IBM; Shares outstanding: 1.3 billion; Market cap: $166.9 billion; SI Rating: Above Average; Dividend yield: 1.7%) has formed a long-term alliance with Broadridge Financial Services (New York symbol BR). Broadridge is a recommendation of two of our affiliated publications, Wall Street Stock Forecaster and Stock Pickers Digest.

Broadridge serves the investment industry in three main areas: …read more »

WAL-MART STORES INC. $56 (New York symbol WMT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 3.8 billion; Market cap: $212.8 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.2%; WSSF Rating: Above Average) is the world’s largest retailer. The company has over 8,400 stores in the U.S. and 14 other countries, including over 2,700 supercentres, which sell groceries as well as general …read more »

MANULIFE FINANCIAL $19.31 (Toronto symbol MFC; Shares outstanding: 1.8 billion; Market cap: $33.9 billion; SI Rating: Above Average; Dividend yield: 2.7%) sells life and other forms of insurance, as well as mutual funds and investment management services. It operates in 22 countries. Manulife has $440 billion of assets under management.

In the three months ended December 31, 2009, Manulife earned $868 …read more »

BANK OF NOVA SCOTIA $48.81 (Toronto symbol BNS: Shares outstanding: 1.0 billion; Market cap: $50.1 billion; SI Rating: Above Average; Dividend yield: 4.0%) is paying an undisclosed sum for 10% of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank). The deal should close in the third quarter of this year.

VietinBank is one of several state-owned banks in Vietnam. …read more »

To cut your investing risk, we recommend following our three-part system: Hold mostly high-quality, dividend-paying stocks, spread your money out across the five main economic sectors (Manufacturing & Industry; Resources; Consumer; Finance; Utilities) and avoid or downplay stocks in the broker/public relations limelight.

How “in-the-limelight” stocks can hurt your portfolio

Even well-established large cap stocks (or shares of larger-sized companies) can stumble. …read more »

BANK OF NOVA SCOTIA $46 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $46.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.3%; SI Rating: Above Average) is paying an undisclosed sum for 10% of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank). The deal should close in the third quarter of 2010.

VietinBank is …read more »

Bank of Nova Scotia continues to prosper in its domestic Canadian market. That gives it a solid base to fund its continuing international expansion. Recently, it made a big acquisition in the rapidly growing Chinese financial industry.

BANK OF NOVA SCOTIA $45.68 (Toronto symbol BNS: Shares outstanding: 1.0 billion; Market cap: $46.8 billion; SI Rating: Above Average; Dividend yield: 4.3%) is …read more »

We recommended five newly issued bank preferreds in our February 2009 issue. The big five Canadian banks issued these preferreds on especially attractive terms to attract investors in a time of weak stock markets.

Despite rising over 10% in price, their yields are still high. As well, holders can reset the dividends at higher rates in 2014 if interest rates …read more »

ROYAL BANK OF CANADA $56 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $78.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.6%; SI Rating: Above Average) is Canada’s largest bank, with total assets of $655.0 billion.

Royal is seeing strong demand for loans because of low interest rates. As well, improving financial markets have helped its …read more »

TORONTO-DOMINION BANK $64 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 858.8 million; Market cap: $55.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.8%; SI Rating: Above Average) is the second-largest Canadian bank, with total assets of $557.2 billion.

TD has now fully integrated Commerce Bancorp Inc. with its other U.S. banking operations. The bank paid $8.5 billion for Commerce …read more »

BANK OF NOVA SCOTIA $47 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $47.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.2%; SI Rating: Above Average) is Canada’s third-largest bank, with total assets of $496.5 billion.

Bank of Nova Scotia is the most international of the big-five banks. It gets about 30% of its earnings from …read more »

BANK OF MONTREAL $54 (Toronto symbol BMO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 550.5 million; Market cap: $29.7 billion; Price-to-sales ratio: 1.9; Dividend yield: 5.2%; SI Rating: Above Average) is the fourth-largest Canadian bank, with total assets of $388.5 billion.

The bank earned $1.8 billion in fiscal 2009, down 9.7% from $2.0 billion in the prior year. Earnings per share …read more »

CANADIAN IMPERIAL BANK OF COMMERCE $66 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 384.0 million; Market cap: $25.3 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.3%; SI Rating: Above Average) is Canada’s fifth-largest bank, with assets of $335.9 billion.

The bank continues to benefit from its plan to expand its retail-banking and wealth-management operations, which are less risky …read more »

Things are going well for Canada’s big five banks. Low interest rates continue to spur strong demand for new loans. As well, loan defaults should fall as the economy improves. Despite strong gains in their stock prices since last March’s lows, all five continue to trade at attractive multiples to earnings.

Canadian and international banking regulators are working on new rules …read more »

Power Corp. has moved up this year, along with most financial services related stocks. Both of its major holdings are leaders in their fields. Both are still cheap in relation to earnings, and both have a long history of raising their dividends.

POWER CORP. $29.32 (Toronto symbol POW; Shares outstanding: 408.4 million; Market cap: $12.0 billion; SI Rating: Above Average; …read more »

BCE INC. $28.54 (Toronto symbol BCE; Shares outstanding: 767.2 million; Market cap: $21.9 billion; SI Rating: Above Average; Dividend yield: 6.1%) will face pressure from three new wireless providers (Globalive’s WIND Mobile, DAVE Wireless and Public Mobile) that will probably enter the Canadian market this year. But BCE has dealt with strong competition from wireless and cable companies for years.

For …read more »

BANK OF NOVA SCOTIA $47.52 (Toronto symbol BNS: Shares outstanding: 992 million; Market cap: $47.1 billion; SI Rating: Above Average; Dividend yield: 4.1%) reported higher earnings and revenue in its latest fiscal year.

The bank earned $3.5 billion in the year ended October 31, 2009. That’s up 13.0% from $3.1 billion in the prior year. Earnings per share (excluding one-time items) …read more »

On January 8 The Successful Investor will unveil a stock that’s primed for explosive growth in 2010. In fact, we think this blue chip stock’s prospects are so bright we’ve named it The Successful Investor’s #1 stock pick for the coming year.

More on how you can get all the details on this exciting #1 pick in a moment, but …read more »

Blue chip stocks are well-established companies that have demonstrated their financial strength through good times and bad. They typically pay dividends, and are considered to be less risky, based on their historical patterns.

There are many blue chip stocks in the consumer sector. Typically, the strongest of these companies sell staples, like soap, beverages and soup, that consumers must buy …read more »

PEPSICO INC. $61 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.6 billion; Market cap: $97.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.0%; WSSF Rating: Above Average) will pay $900 million for the right to make and distribute certain soft drinks in North America owned by Dr. Pepper Snapple Group Inc. (New York symbol DPS). The price …read more »

GREAT-WEST LIFECO INC. $24 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 944.7 million; Market cap: $22.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 5.1%; SI Rating: Above Average) is Canada’s largest insurance company, with $340.7 billion of assets under management. It also offers retirement planning and wealth-management services. Power Corp. owns 68.7% of Great-West’s shares. The company gets …read more »

Smartphones have become increasingly popular in recent years. Aside from functioning as mobile phones, these devices have many computer-like functions, including Internet access and email.

The smartphone market is highly competitive. Two large cap stocks, Apple and Research in Motion, are the dominant players. However, other firms, such as Motorola, Palm and Garmin, have introduced new smartphones in recent months, as …read more »

TELUS CORP. (Toronto symbols T $33 and T.A $31; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 318 million; Market cap: $10.2 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) earned $280 million in the three months ended September 30, 2009. That’s down 2.1% from $286 million a year earlier. Earnings per share fell 1.1%, to $0.88 from $0.89, on …read more »

We noted with interest (and some amusement) the unveiling of the prototype of “The Rationalizer,” a new device that aims to sense day traders’ stress levels and alert them when it may be time to step back from trading. The idea is to ensure that traders avoid the mistake of trading based on emotion.

The device is made by Philips Electronics …read more »

Companies in the highly competitive and fickle fast-food market are always looking for new ways to grow. Sometimes this involves introducing new products to try to take advantage of changing customer tastes. McDonald’s, for instance, has recently started selling premium coffee and healthier foods.

Another way fast-food firms try to grow is through aggressive expansion into overseas markets. This is …read more »

AMERICAN EXPRESS CO. $35 (New York symbol AXP; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $42.0 billion; Price-to-sales ratio: 1.6; WSSF Rating: Average) earned $0.44 a share in the three months ended September 30, 2009. That’s down 40.5% from $0.74 a year earlier. The latest earnings excluded a $0.10-a-share gain related to the restatement of earnings …read more »

TELUS CORP. (Toronto symbols T $34 and T.A $32; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 318 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) is Canada’s second-largest telephone company after BCE Inc. (Toronto symbol BCE).

Telus has been expanding its wireless operations over the past few years. As a result, the company now gets 55% …read more »

Three new wireless providers (Globalive, DAVE Wireless and Public Mobile) will probably enter the Canadian market next year. This will undoubtedly put pressure on Canada’s three existing wireless carriers, including Telus.

However, Telus has dealt with strong competition from wireless and cable companies for years. For example, last year it launched Koodo, a new discount cellphone service, to attract younger users. …read more »

TransCanada and Canadian Utilities are both working on major new projects. Despite the huge size of these undertakings, their overall risk is low. That’s because government regulators will let the companies pass along most of the costs to their customers in the form of higher rates. This should let both firms keep paying their current dividends, or raise them.

ATCO owns …read more »

ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $43 and
ACO.Y [class II voting] $43; Shares outstanding: 57.9 million; Market cap: $2.5 billion; Price-to-sales ratio: 0.7; SI Rating: Above Average) is a Calgary-based holding company. ATCO’s main subsidiary is 52.3%-owned Canadian Utilities Ltd..

As a result of a recent reorganization, Canadian Utilities operates most of ATCO’s main utility and energy businesses.

Based on …read more »

IMPERIAL OIL $40.75 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $34.5 billion; SI Rating: Average) is Canada’s largest integrated oil company.

Imperial earned $0.25 a share in the three months ended June 30, 2009. That was down 80.5% from $1.28 a share a year earlier. Falling oil and natural-gas prices were the main reason for the drop. As well, …read more »

Imperial Oil has 25 years worth of oil and gas reserves. But it also owns four refineries, which convert crude oil into gasoline and other fuels. These operations profit when oil prices fall because they pay less for the crude they refine. Imperial also operates 1,900 Esso gas stations. This diversification helps shield the company from volatile oil and gas …read more »

BCE INC. $26.39 (Toronto symbol BCE; Shares outstanding: 767.2 million; Market cap: $20.2 billion; SI Rating: Above Average) has deeply disappointed many investors at times in the past, and they’ve resolved never to buy it again.

The most recent disappointment came when the company sold itself to the Ontario Teachers’ Pension Plan for $42.75 a share, but the deal fell through …read more »

TELUS CORP. $33.31 (Toronto symbol T.A; Shares outstanding: 335.6 million; Market cap: $11.1 billion; SI Rating: Above Average) has purchased privately owned Black’s Photo Corp. Black’s owns and operates 113 stores that sell film, cameras and other photographic equipment.

Telus plans to sell its wireless phones through these stores. As well, most cellphones now come with built-in cameras, so Black’s could …read more »

3M COMPANY $74 (New York symbol MMM; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 698.3 million; Market cap: $51.7 billion; Price-to-sales ratio: 2.3; WSSF Rating: Above Average) is a diversified manufacturing firm. The company was formerly known as Minnesota Mining & Manufacturing.

3M owns a large number of well-known brands. Post-it notes, Scotch tape, Scotch-Brite household-cleaning products, Scotchguard protection …read more »

ROYAL BANK OF CANADA $56 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $78.4 billion; Price-to-sales ratio: 2.1; SI Rating: Above Average) is Canada’s largest bank, with total assets of $659.9 billion.

In its third quarter, which ended July 31, 2009, Royal’s earnings rose 23.7%, to $1.6 billion, or $1.05 a share, from $1.3 billion, …read more »

TORONTO-DOMINION BANK $67 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 854 million; Market cap: $57.2 billion; Price-to-sales ratio: 2.2; SI Rating: Above Average) is the second-largest Canadian bank, with total assets of $544.6 billion.

TD has built up its U.S. retail-banking operations in the past few years, mostly through acquisitions. In May 2008, it paid $8.5 billion for …read more »

BANK OF NOVA SCOTIA $44 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $44 billion; Price-to-sales ratio: 1.8; SI Rating: Above Average) is Canada’s third-largest bank, with total assets of $485.9 billion.

Rising stock markets continue to help the bank’s trading division. In the three months ended July 31, 2009, the division’s earnings jumped 58.3%, …read more »

BANK OF MONTREAL $51 (Toronto symbol BMO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 549.9 million; Market cap: $28 billion; Price-to-sales ratio: 1.7; SI Rating: Above Average) is the fourth-largest Canadian bank, with total assets of $415.4 billion.

Despite the recession, Bank of Montreal is setting less money aside to cover bad loans. In the three months ended July 31, 2009, …read more »

CANADIAN IMPERIAL BANK OF COMMERCE $61 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 382.7 million; Market cap: $23.3 billion; Price-to-sales ratio: 1.7; SI Rating: Above Average) is Canada’s fifth-largest bank, with total assets of $335.9 billion.

In August 2005, CIBC set aside roughly $3 billion to settle a class-action lawsuit related to its involvement with failed energy company …read more »

Canada’s big five banks are still dealing with high loan losses, but they have enough capital to absorb them without having to issue more shares. This should also let them keep providing above-average dividend yields.

ROYAL BANK OF CANADA $56 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $78.4 billion; Price-to-sales ratio: 2.1; SI Rating: …read more »

TELUS CORP. (Toronto symbols T $34 and T.A $33; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 317.7 million; Market cap: $10.8 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) has purchased privately owned Black’s Photo Corp., which operates 113 stores that sell cameras, film and other photographic equipment. Telus plans to sell its cellphones and wireless services through Black’s. This …read more »

BCE INC. $27 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 767.2 million; Market cap: $20.7 billion; Price-to-sales ratio: 1.2; SI Rating: Above Average) has 7.2 million residential and business telephone customers in Ontario and Quebec. It also has 6.6 million wireless subscribers across Canada, and sells other services, including Internet access and satellite TV.

BCE also owns 44% …read more »