Top pick Barrick Mining just raised its dividend a whopping 140% as it generates record earnings and continues its strategic asset reorganization.
Warner Music Group Corp. is well-positioned for higher-margin catalog revenues, added streaming adoption, and new AI monetization opportunities.
ARC Resources keeps returning its cash flow to shareholders through a growing dividend and substantial share buybacks.
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Investing in high-risk investment opportunities may look like a quick way to supercharge your portfolio gains—but it’s more likely to kill those gains
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CANADIAN PACIFIC RAILWAY LTD. $192 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.0 million; Market cap: $29.4 billion; Price-to-sales ratio: 4.2; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) has abandoned its plan to merge with U.S.-based railway Norfolk Southern Corp. (New York symbol NSC). The combination would have created North America’s largest railway. Norfolk rejected CP’s latest offer of about $30 billion U.S. in cash and shares. In addition, U.S. transportation regulators probably would have blocked any deal no matter how CP structured the transaction. CP’s shares gained 5% on the news. That’s because big acquisitions like this usually come with substantial risk. In addition, investors feel that CP will now use some of the cash it had for the takeover to buy back shares....
EMERA INC. $47 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 148.2 million; Market cap: $7.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns or invests in power plants and natural gas pipelines in the U.S. and the Caribbean. Emera recently agreed to purchase TECO Energy (New York symbol TE). It supplies electricity and natural gas to 1.05 million customers in Tampa Bay, Florida. A separate subsidiary distributes gas to 510,000 clients in New Mexico. The company will pay $10.4 billion U.S., including TECO’s debt. Emera will probably sell new shares to help pay off the short-term loans it needs to finance the deal....
FORTIS INC. $40 (Toronto symbol FTS; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 283.1 million; Market cap: $11.3 billion; Price-to-sales ratio: 1.7; Dividend yield 3.8%; TSINetwork Rating: Above Average; www.fortisinc.com) owns electrical utilities across Canada and in the U.S. and Caribbean. It also distributes natural gas in British Columbia. In February 2016, Fortis agreed to buy ITC Holdings Corp. (New York symbol ITC), which owns 25,100 kilometres of high-voltage power lines in the U.S. Midwest. Fortis is paying $6.9 billion U.S. in cash and shares; ITC shareholders will own 27% of the combined company. Fortis will also list its shares on the New York Stock Exchange; its shares will continue to trade in Toronto....
CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $35 and CU.X [class B voting] $35; Income Portfolio, Utilities sector; Shares outstanding: 267.0 million; Market cap: $9.3 billion; Price-to-sales ratio: 2.8; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.canadianutilities.com) distributes electricity and natural gas in Alberta and Australia. It also operates 15 power plants in Canada (13) and Australia (2). ATCO Ltd. (see right) owns 53.1% of the company. Due to lower power prices in Alberta and the sale of its information technology subsidiary, the company’s earnings in 2015 dropped 50.5%, to $352 million from $711 million in 2014. Per-share earnings fell 56.0%, to $1.11 from $2.52 on more shares outstanding. Without unusual items, earnings fell 16.0%. Revenue declined 9.3%, to $3.3 billion from $3.6 billion. In December 2015, the company completed and started operating a 485-kilometre power line in eastern Alberta. This is the longest transmission line in Alberta’s history. Other new projects include a gas pipeline and power plant in Mexico, and four underground gas-storage facilities in Alberta....