Income Investing
Income investing is an investment strategy that works to promote current income to the investor, even at the expense of long-term capital appreciation. This investment strategy is often chosen by people living off their investment portfolio.
Pipelines have been in the news. Canada’s largest pipeline company, TransCanada Corporation (symbol TRP on Toronto) has made headlines with its ongoing disagreement with the U.S. government over the completion of its Keystone XL pipeline to the Gulf Coast. The Obama administration blocked the Nebraska section of the project last November, citing environmental concerns. TransCanada has submitted a proposal for …read more »
This is the latest in a series of video interviews in which Pat McKeough will give his 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, Pat responds to a question about …read more »
TELUS CORP. (Toronto symbols T and T.A; www.telus.com) gets most of its growth from wireless services. Its 7.3 million subscribers across Canada now supply 52% of its earnings.
The remaining 48% of Telus’s earnings comes from its wireline division, which mainly consists of 3.6 million traditional phone customers in B.C., Alberta and eastern Quebec. This division also includes 1.3 million Internet …read more »
Pat McKeough responds to many personal questions on specific stocks and other investing topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions.
This …read more »
ATCO and its main subsidiary, Canadian Utilities, have two major pluses that help them cut their risk: both get around two-thirds of their earnings from regulated power and gas utilities, and both have many clients under long-term contracts. The resulting stable revenue streams help them invest in new projects and raise their dividends.
ATCO LTD. (Toronto symbols ACO.X [class I non-voting] …read more »
EMERA INC. $33 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 122.2 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.1%; TSINetwork Rating: Average; www.emera.com) will invest an extra $83 million U.S. in seven American wind-power projects after its partner, Algonquin Power & Utilities Corp. (Toronto symbol AQN), dropped out of the joint venture. As a result, …read more »
TORSTAR CORP. $8.96 (www.torstar.com) recently bought Heartsong Presents Book Club, a publisher of Christian romance novels, for an undisclosed sum through its Harlequin book-publishing subsidiary. This purchase nicely complements Harlequin’s “Love Inspired” line of inspirational novels. Best Buy.
PENGROWTH ENERGY CORP. $9.90 (www.pengrowth.com) will focus on developing its western Canadian oil properties in 2012. Due to lower natural gas prices, it …read more »
All of our real estate investment trust (REIT) recommendations have moved up in the past year, but we still think they offer attractive long-term returns at relatively low risk. RioCan is particularly appealing because of its high-quality properties, reliable tenants and high occupancy rates.
RIOCAN REAL ESTATE INVESTMENT TRUST $25.79 (Toronto symbol REI.UN; Units outstanding: 267.0 million; Market cap: $6.9 billion; …read more »
RioCan REIT is our #1 safety-conscious pick for 2012. The trust would be a sound addition to the Manufacturing segment of almost any investor’s portfolio.
But if you want to hold a range of REITs, you can do so through the iShares CDN REIT Sector Index Fund, an ETF lets you hold 13 in all. And you’ll still have lots of …read more »
Ottawa’s tax on income trust distributions took effect over a year ago, on January 1, 2011.
Most trusts have already converted to corporations in response. Real estate investment trusts (REITs) are exempt, however, so they will remain as trusts.
All but one of our trust recommendations have converted. We still like the long-term outlook for all these picks, and we see them …read more »
