Pat McKeough

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.

As early as 1980, Pat was recognized as #1 in the world of published investment advice by the Washington, DC–based Newsletter Publishers Association, and he was the first multi-year winner of The Globe and Mail’s stock picking contest.

Both CBS MarketWatch and The Hulbert Financial Digest recognized Pat as one of North America’s top stock analysts. The Wall Street Journal called him “one of only four investment newsletter advisors who have managed to serve their readers well over the long haul.”

A best-selling Canadian author, he wrote Riding the Bull, his 1993 book that predicted the stock-market boom of the last half of that decade. Through his many television appearances, he is well-known to investors for his insightful analysis and his candid, unpretentious style.

Bottom line: Pat’s conservative, reduced-risk strategy is a proven approach to safe investing.

Posts by the author

ETFs

When to buy an ETF for maximum return

To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.

6 min read

Growth Stocks

The Best High-Risk Stocks to Invest In for Aggressive Investors

5 min read

Wealth Management

5 Steps to a Successful Retirement Investment Plan

4 min read

How To Invest

ISHARES S&P/TSX 60 INDEX ETF $20.09

ISHARES S&P/TSX 60 INDEX ETF $20.09 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index—the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.18% of assets, and it yields 2.9%. The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include. The index’s top holdings are Royal Bank, 8.6%; TD Bank, 7.7%; Bank of Nova Scotia, 5.9%; CN Railway, 4.6%; Suncor Energy, 4.4%; Bank of Montreal, 3.9%; BCE, 3.8%; Enbridge, 3.6%; Canadian Natural Resources, 3.1%; CIBC, 3.0%; and Brookfield Asset Management, 2.8%....

1 min read

How To Invest

ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $21.88

ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $21.88 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highestyield Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of the ETF’s assets. The fund’s MER is 0.55%, and it yields 4.3%. iShares Canadian Select Dividend’s MER is higher than, say, the iShares S&P/TSX 60 Index ETF because it’s more actively managed. Most market indexes are set up so that the stocks in the index are those with the highest market capitalization and also the most widely traded. However, the iShares Canadian Select Dividend Index ETF aims to zero in on the 30 stocks that it sees as having the highest dividend yields—and yet also the best propects for dividend growth and sustainability. The fund’s top holdings are CIBC, 8.4%; Agrium, 7.4%; Bank of Montreal, 6.0%; Royal Bank, 5.8%; Bank of Nova Scotia, 5.0%; BCE, 4.5%; IGM Financial, 4.1%; Laurentian Bank of Canada, 4.1%; National Bank, 4.0%; TransCanada Corp., 4.0%; TD Bank, 3.5%; and Emera, 3.1%....

1 min read

How To Invest

SPDR S&P 500 ETF $205.01

SPDR S&P 500 ETF $205.01 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. companies chosen based on their market cap, liquidity and industry group. The index’s highest-weighted stocks are Apple, ExxonMobil, Microsoft, Facebook, Johnson & Johnson, JPMorgan Chase, AT&T, General Electric, Berkshire Hathaway and Wells Fargo. The fund’s MER is just 0.11%, and it yields 2.1%. SPDR S&P 500 ETF is a top ETF pick for 2016.

1 min read

How To Invest

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $176.32

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $176.32 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average. This ETF’s top holdings are Goldman Sachs, IBM, Home Depot, Travelers Cos., Johnson & Johnson, UnitedHealth, United Technologies, McDonald’s, 3M and Boeing. The fund’s expenses are about 0.17% of its assets, and it yields 2.4%. SPDR Dow Jones ETF is a buy.

1 min read

How To Invest

POWERSHARES QQQ ETF $105.05

POWERSHARES QQQ ETF $105.05 (Nasdaq symbol QQQ; buy or sell through brokers; www. invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds stocks representing the Nasdaq 100 Index. That consists of the 100 largest shares on the Nasdaq exchange by market cap. The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial firms. The fund’s expenses are about 0.20% of its assets. It yields 1.2%. The index’s highest-weighted stocks are Apple, Microsoft, Texas Instruments, Alphabet Inc., Cisco Systems, Intel Corp., Amazon.com, Gilead Sciences, Comcast and Facebook....

1 min read

How To Invest

ISHARES MSCI CANADA INDEX FUND $24.16

ISHARES MSCI CANADA INDEX FUND $24.16 (New York symbol EWC; buy or sell through brokers; ca.ishares.com) holds the stocks in the Morgan Stanley Capital International Canada Index. The fund has a 0.48% MER and yields 2.4%. The index’s top holdings are Royal Bank, 7.9%; TD Bank, 7.1%; Bank of Nova Scotia, 5.4%; CN Railway, 4.2%; Suncor Energy, 4.0%; Bank of Montreal, 3.6%; Enbridge, 3.3%; Canadian Natural Resources, 2.8%; and CIBC, 2.8%. If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index ETF (see previous page). You’ll pay about a third of the management fees....

1 min read

How To Invest

GREAT-WEST LIFECO $36.60

GREAT-WEST LIFECO $36.60 (Toronto symbol GWO; Shares outstanding: 993.2 million; Market cap: $36.4 billion; TSINetwork Rating: Above Average; Yield: 3.8%; www.greatwestlifeco.com) is one of Canada’s largest insurance firms. The company also offers mutual funds and wealth management services. Power Financial owns 67.2% of Great-West. In the past few years, the insurer has expanded its presence in Ireland. In July 2013, it paid $1.75 billion for Irish Life, that country’s largest pension manager and life insurance provider. Irish Life has now announced two purchases: it is buying Aviva Health, and increasing its stake in GloHealth from 49% to 100%....

1 min read

How To Invest

RIOCAN REIT $27.17

RIOCAN REIT $27.17 (Toronto symbol REI.UN; Units outstanding: 322.4 million; Market cap: $8.8 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.riocan.com) formed a 50/50 joint venture in July 2012 with ALLIED PROPERTIES REIT $35.35 (Toronto symbol AP.UN; Units outstanding: 78.5 million; Market cap: $2.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.alliedreit.com). Their goal was to purchase buildings in urban areas and “intensify” their revenue and cash flow, mainly by adding tenants. RioCan manages the retail portion of these developments, while Allied handles the office portion. The partners own the King-Portland Centre in downtown Toronto, among others. They are now building a new office/retail structure on the site. This week, online shopping firm Shopify Inc. agreed to become the anchor tenant for the building. RioCan and Allied expect to complete this project in 2018....

1 min read

How To Invest

BCE INC. $59.10

BCE INC. $59.10 (Toronto symbol BCE; Shares outstanding: 868.1 million; Market cap: $50.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also offers satellite and Internet TV across the country. In the three months ended March 31, 2016, the company’s earnings per share rose 1.2%, to $0.85 from $0.84 a year earlier. Revenue increased slightly, to $5.27 billion from $5.24 billion. Revenue from wireless services (30% of the total) rose 5.3% as the company’s network upgrades continued to attract new subscribers. BCE also benefited from the rising use of smartphones. It can charge higher service fees for those devices than for regular cellphones....

1 min read