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Activist investors are circling: uncover dividend-paying companies with resilient payouts and strong fundamentals from TSI’s latest Globe and Mail feature.
Nutrien Ltd. offers exposure to potash and nitrogen prices, a stable retail base and strong profitability.
Groupe Dynamite Inc. is a high‑quality specialty retailer with gains ahead.
Teck Resources Ltd. is a solid bet on higher copper prices with its big merger winning approvals
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When investing in rare earth metals, you need to look at the unique geographical and political environment the mining company produces in.
There will always be stocks you’ll wish you bought, especially after you see their growth. Here’s what to look for so you won’t miss out.
PENGROWTH ENERGY CORP. $0.91 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 543.0 million; Market cap: $494.1 million; Price-to-sales ratio: 0.8; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has suspended its $0.01-a-share quarterly dividend in response to the sharp decline in oil prices. It will also reduce its capital spending to between $60 million to $70 million in 2016, from $184 million in 2015. The company has also laid off workers, which should save it $25 million in 2016, and aims to sell $600 million of less important properties. It will probably put these funds toward its $2.1-billion debt, which is now a high 4.3 times its depressed market cap. Pengrowth is a hold....
IGM FINANCIAL INC. $33 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 244.8 million; Market cap: $8.1 billion; Price-to-sales ratio: 2.7; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.igmfinancial.com) had $131.0 billion worth of assets under management as of January 31, 2016, down 9.9% from $145.5 billion a year earlier. The company’s fee income rises and falls with the value of the mutual funds and other securities it manages, so its revenue and earnings decline when the price of these assets falls. The drop is mainly due to the recent volatility in global stock markets. In January 2016, the S&P/TSX Composite Index fell 1.4%, while the S&P 500 Index declined 5.1%. However, IGM sells most of its funds through its own salesforce. This leaves it less dependent on selling through the brokerage industry than its competitors. This salesforce also lets IGM form close relationships with clients, and keep redemption rates down....
ENCANA CORP. $4.86 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 849.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.encana.com) plans to spend $1.5 billion to $1.7 billion upgrading its properties in 2016, down 25% from 2015 (all amounts except share price and market cap in U.S. dollars). Even with the drop, it expects production at its four main oil projects—Montney (B.C.), Duvernay (Alberta) and Eagle Ford and Permian (both in Texas)—will rise 12% this year. It has also cut its annual dividend rate by 78.6%, to $0.06 a share from $0.28. In addition, Encana has eliminated the 2% price discount it offered to shareholders who chose to reinvest their dividends in new shares. In all, these moves will save $185 million a year. Encana is still a buy for long-term gains....
RESTAURANT BRANDS INTERNATIONAL INC. $43 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 467.6 million; Market cap: $20.1 billion; Priceto- sales ratio: 2.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.rbi.com) is the world’s thirdlargest fast-food operator, after McDonald’s and Yum Brands, with 4,845 Tim Hortons and 14,669 Burger King outlets locations in 100 countries. The company recently announced that its North American locations plan to use only eggs from chickens raised outside of cages. The move will help enhance its appeal with health-conscious, environmentally aware consumers. It will also help it compete with other fast-food chains also switching to cage-free eggs. Farmers need time to adjust, so Restaurant Brands plans to complete the switch by 2025....