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
Learn which Canadian sectors have historically delivered more dependable dividends—and why. This safety-first guide explains the cash-flow mechanics, key risks (rates, regulation, credit cycles), and how to build a balanced income mix without chasing yield.
PEMBINA PIPELINE $52.77 (Toronto symbol PPL; Shares outstanding: 327.0 million; Market cap: $16.8 billion; TSINetwork Rating: Average; Dividend yield: 3.3%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil.

Pembina bought rival Provident Energy, which extracts, transports and stores NGLs, for $3.2 billion in 2012.

This acquisition is paying off: in the quarter ended June 30, 2014, Pembina’s cash flow rose 27.3%, to $191.0 million from $150.0 million a year earlier. Cash flow per share gained 20.4%, to $0.59 from $0.49, on more shares outstanding. Pipeline expansions and strong profit margins at Provident were the main reasons for the gains.

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ISHARES AUSTRALIA INDEX FUND $27.34 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 72 largest Australian stocks. Its MER is 0.48%.

The fund’s top holdings include Commonwealth Bank of Australia, 11.1%; BHP Billiton, 10.0%; Westpac Banking Corp., 9.2%; Australia and New Zealand Banking Group, 7.8%; National Australia Bank, 6.9%; Wesfarmers, 4.3%; Woolworths, 3.9%; CSL Ltd., 3.1%; Woodside Petroleum, 2.4%; Rio Tinto, 2.3%; Telstra Group, 2.0%, Macquarie Group, 1.4%; and Westfield Group, 1.3%.

Australia benefits from its stable banking and political systems. It is also rich in natural resources and close to key Asian markets with vast potential, including India and China.

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ISHARES S&P INDIA NIFTY 50 INDEX FUND $30.98 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to invest in the 50 largest, most liquid Indian securities.

Indian stocks have moved up steadily since the May 2014 election of Narendra Modi as prime minister.

India still needs to modernize its transportation,communications and electrical infrastructure. It also needs to reform its inefficient, corrupt bureaucracy.

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ISHARES CDN REIT SECTOR INDEX FUND $16.64 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds the 15 Canadian real estate investment trusts in the S&P/TSX Capped REIT Index.

iShares CDN REIT’s expenses are 0.60% of its assets. The fund yields 5.0%.

The ETF’s largest holding is RioCan REIT at 19.3%, followed by H&R REIT (14.7%), Canadian REIT (7.8%), Dream Office REIT (7.0%), Calloway REIT (6.4%), Boardwalk REIT (6.3%), Canadian Apartment REIT (6.2%), Allied Properties REIT (5.8%), Cominar REIT (5.4%), Artis REIT (5.0%), Chartwell REIT (4.6%), Granite REIT (4.5%), Crombie REIT (2.4%), Northern Property REIT (2.2%) and Dream Global REIT (2.1%).

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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $44.50 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.6%; Enersis SA (electricity), 9.2%; Empresas Copec SA (conglomerate), 7.9%; Empresa Nacional de Electricidad (electricity), 6.7%; LATAM Airlines, 5.5%; Cencosud SA (retailer), 4.9%; Empresas CMPC (pulp and paper), 4.8%; Banco de Chile, 4.6%; Banco Santander Chile (banking), 4.5%; and Quimica y Minera de Chile (mining), 4.1%.

The fund’s industry breakdown is: Utilities, 25.1%; Financials, 17.8%; Consumer Discretionary, 13.2%; Materials, 12.9%; Consumer Staples, 10.0%; Industrials, 8.1%; Energy, 7.8%; Telecommunications, 2.4%; and Information Technology, 1.9%.

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ISHARES MSCI GERMANY FUND $29.36 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index. This index aims to replicate 85% of the German stock market’s market capitalization. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 9.3%; Siemens (engineering conglomerate), 8.4%; BASF (chemicals), 8.0%; Daimler (autos), 6.6%; Allianz (insurance), 6.6%; SAP (software), 6.0%; Deutsche Telekom, 4.0%; BMW, 3.3%; and Volkswagen AG, 3.1%.

The fund’s industry breakdown includes: Consumer Discretionary, 21.7%; Financials, 16.1%, Materials, 14.6%; Industrials, 13.7%; Information Technology, 7.0%; Utilities, 4.9%; Telecommunication Services, 4.4%; Health Care, 4.1%; and Consumer Staples, 3.8%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $65.24 (New York Exchange symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 18.6%; Hyundai Motor Co., 5.5%; SK Hynix Semiconductor, 3.9%; Posco (steel), 3.4%; Naver (Internet content), 3.3%; Shinhan Financial, 3.2%; Hyundai Mobis (auto parts), 3.0%; Kia Motors, 2.5%; KB Financial, 2.3%; and LG Chemical, 2.0%.

The fund’s industry breakdown is as follows: Information Technology, 33.1%; Consumer Discretionary, 19.5%; Financials, 14.1%; Industrials, 12.7%; Materials, 9.1%; Consumer Staples, 5.7%; Energy, 1.9%; Utilities, 1.8%; Telecommunication Services, 1.1%; and Health Care, 0.8%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $45.58 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

Its geographic breakdown includes China, 17.6%; South Korea, 16.0%; Taiwan, 11.9%; Brazil, 11.3%; South Africa, 7.8%; India, 6.7%; Russia, 4.7%; Mexico, 4.7%; Malaysia, 3.9%; and Indonesia, 2.7%.

The fund’s top holdings are Samsung Electronics (South Korea), 3.2%; Taiwan Semiconductor (computer chips), 2.4%; Tencent Holdings (China: Internet), 2.0%; China Mobile, 1.7%; China Construction Bank, 1.3%; Naspers (South Africa: media and Internet), 1.2%; Industrial & Commercial Bank of China, 1.2%; Itau Unibanco Holding (Brazil: banking), 1.2%; and Gazprom (Russia: gas utility), 1.0%.

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ISHARES MSCI JAPAN INDEX FUND $11.93 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The fund’s top holdings include Toyota, 5.8%; Mitsubishi UFJ Financial, 2.8%; Softbank Corp., 2.4%; Honda Motor, 2.0%; Sumitomo Mitsui Financial, 1.9%; Mizuho Financial Group, 1.6%; Japan Tobacco, 1.4%; Hitachi, 1.4%; Canon, 1.4%; and Takeda Pharmaceutical, 1.3%.

The fund’s industry breakdown includes: Consumer Discretionary, 20.5%; Financials, 20.1%; Industrials, 19.9%; Information Technology, 10.9%; Consumer Staples, 6.8%; Health Care, 6.2%; Materials, 5.7%; Telecommunication Services, 5.6%; Utilities, 2.4%; and Energy, 1.3%.

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