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Trading stocks online can look like a great way to build wealth. But it’s fraught with risks, and only really works when stock prices are rising steadily. Investors who see early success in a bull market can face devastating losses when markets retreat.
Today, you often see references to trading stocks online in the media, as if there’s something magical about …read more »
Ottawa’s new Tax-Free Savings Accounts (or TFSAs) let you earn investment income — including interest, dividends and capital gains — tax free.
A tax-free savings account can generally hold the same investments as an RRSP. This includes cash, mutual funds, publicly traded stocks, GICs and bonds.
However, you are best to hold lower-risk investments in your TFSA. That’s because you don’t want …read more »
CANADIAN UTILITIES LTD. (Toronto symbols CU $35 (class A non-voting) and CU.X $35 (class B voting); Income Portfolio, Utilities sector; Shares outstanding: 125.6 million; Market cap: $4.4 billion; Price-to-sales ratio: 1.6; SI Rating: Above Average) distributes electricity and natural gas in Alberta. It also operates power plants in other parts of Canada, the U.K. and Australia. ATCO Ltd. (Toronto symbols …read more »
With bonds yielding just 2% to 3%, we believe that income-seeking investors are better off sticking with high-quality utility stocks, such as these four electricity generators. All have consistently posted strong earnings, and have long histories of raising their dividends. Unlike bond-interest payments, which are taxed as regular income, their dividends qualify for the dividend tax credit. They also have …read more »
TRANSALTA CORP. $20 (Toronto symbol TA; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 197.8 million; Market cap: $4 billion; Price-to-sales ratio: 1.3; SI Rating: Average) operates over 50 electrical-power plants in Canada, the United States and Australia.
TransAlta uses coal to generate 60% of its electricity, and owns three coal mines (two in Alberta and one in Washington State). This helps …read more »
TRANSCANADA CORP. $30 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 619 million; Market cap: $18.6 billion; Price-to-sales ratio: 2.0; SI Rating: Above Average) has won a $320-million U.S. contract to build, own and operate a 310-kilometre natural-gas pipeline in Mexico. (It already owns a 130-kilometre gas pipeline in the country.) To put this in context, TransCanada earned …read more »
CAE INC. $7.25 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 254.9 million; Market cap: $1.8 billion; Price-to-sales ratio: 1.3; SI Rating: Average) makes flight simulators and trains commercial and military pilots. During its fiscal year ended March 31, 2009, CAE won $1.1 billion in military-related contracts, up 47% from the previous year. This is a …read more »
AGRIUM INC. $52 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 157 million; Market cap: $8.2 billion; Price-to-sales ratio: 0.8; SI Rating: Average) makes fertilizers from natural gas, mainly at five facilities in North America. It also owns 50% of a plant in Argentina. This business supplies 45% of its revenue, but 70% of its earnings.
Most of Agrium’s …read more »
PRECISION DRILLING TRUST, $5.84 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 241.2 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.7; SI Rating: Extra Risk) provides contract-drilling services in Canada and the United States through a fleet of 380 rigs.
Precision is raising cash to pay down debt related to last December’s $2-billion purchase Grey Wolf Inc., which operates …read more »
SHAWCOR LTD. $21 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 71.3 million; Market cap: $1.5 billion; Price-to-sales ratio: 1.1; SI Rating: Average) will pay a special dividend of $0.26 on May 29, 2009. It has also increased its regular quarterly dividend by 7.7%, to $0.07 a share from $0.065. The new annual rate of $0.28 …read more »
