Bonds
In Canada, capital gains are taxed at a lower rate than interest. You can take advantage of that — and substantially cut your tax bill — if you structure your investments so that more of your income is in the form of capital gains.
(Our new free report, “Capital Gains Canada: 7 Secrets for Managing Your Canadian Capital Gains Tax Liabilities,” …read more »
When clients join our Successful Investor Wealth Management service, they often ask us whether they should hold bonds or focus more heavily on stocks. This is a particularly important question for investors who rely on their portfolios for income.
It’s important to note that there is no single “best portfolio” for every investor. Higher potential for loss comes with higher potential …read more »
Annuities have a lot of rigid terms that can work for or against you.
The main benefit of annuities is that they offer stable, predictable income. That may make them suitable for part of your assets, depending on your age, investment experience, the time you want to devote to your investments, your desire to leave an estate to your heirs …read more »
ISHARES CDN BOND INDEX FUND $29.67 (CWA Rating: Income) (Toronto symbol XBB; buy or sell through a broker) mirrors the performance of the DEX Universe Bond Index.
This index consists of a wide range of investment-grade Canadian government and corporate bonds with terms to maturity of more than one year. The 301 bonds in the portfolio have an average term to …read more »
ISHARES CDN SHORT BOND INDEX FUND $29.35 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through a broker) mirrors the performance of the DEX Short-Term Bond Index.
This index consists of a wide range of investment-grade federal, provincial, municipal and corporate bonds with between one- and five-year terms to maturity. The fund currently holds 183 bonds with an average term …read more »
We generally advise against investing in bonds right now, because today’s low interest rates make them unattractive. That’s especially so in light of the potential rise in inflation that may follow the heavy deficit spending and rapid expansion of the money supply that is now underway.
However, if you need stable income and want to hold bonds, here are two bond …read more »
INVACARE CORP. $25 (New York symbol IVC; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 32.3 million; Market cap: $807.5 million; Price-to-sales ratio: 0.5; Dividend yield: 0.2%; WSSF Rating: Average) makes wheelchairs, motorized scooters and other mobility and home-care products.
The company may have to pay $12 million to $14 million a year in new taxes. That’s because the U.S. Senate recently …read more »
When you join my Inner Circle service, you get my investing advice on your own personal investment questions, plus you get to see what other Inner Circle members have asked, along with our answers.
So you can get a sense of how our service works, and how our investing advice might help your portfolio, I’d like to share two recent …read more »
MANITOBA TELECOM SERVICES INC. $35 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 64.7 million; Market cap: $2.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 7.4%; SI Rating: Average) has raised $200 million by selling new 10-year bonds that yield 5.625%.
This cash will help the company fund a new high-speed wireless network that it is building in Manitoba in …read more »
MANITOBA TELECOM SERVICES $34.38 (Toronto symbol MBT; Shares outstanding: 64.7 million; Market cap: $2.2 billion; SI Rating: Average) has issued $200 million of new 10-year bonds, yielding 5.625%.
The company will probably use part of the cash to help pay for a new high-speed wireless network that it is building in Manitoba in partnership with Rogers Communications Inc. (Toronto symbol RCI.B). …read more »
