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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IMPERIAL OIL LTD. $40 (Toronto symbol IMO; Conservative Growth and Income Portfolios, Shares outstanding: 847.6 million; Market cap: $33.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.4%; TSINetwork Rating: Average; www.imperialoil.ca) plans to expand its oil sands operations in the Cold Lake area of northern Alberta. In 2015, Cold Lake supplied 158,000 barrels a day, or 43% of Imperial’s average daily production of 366,000 barrels a day. This expansion will cost $2 billion. It should produce an additional 50,000 barrels a day by 2022. Imperial’s expertise with solvent assisted, steam-assisted gravity drainage technology should help cut its operating costs. That process also creates fewer greenhouse gasses than conventional extraction methods. Imperial Oil is a buy.
BLACKBERRY LTD. $9.21 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 521.2 million; Market cap: $4.8 billion; Price-to-sales ratio: 2.0; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) provides secure wireless communication services, mainly to businesses and government agencies. In the fiscal year ended February 29, 2016, BlackBerry’s revenue fell 35.2%, to $2.2 billion from $3.3 billion a year earlier (all amounts except share price and market cap in U.S. dollars). Smartphones supplied 40% of total revenue, followed by the fees it charges wireless carriers to access its networks (37%). The software it installs on its clients’ email servers contributed 23% of revenue. Without unusual items, the company lost $0.19 a share, compared to a profit of $0.08 in 2014. BlackBerry holds cash of $2.6 billion, or $5.03 a share. Its longterm debt of $1.3 billion is a manageable 27% of its market cap....
CENOVUS ENERGY INC. $18 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 833.2 million; Market cap: $15.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.1%; TSINetwork Rating: Average; www.cenovus.com) owns oil sands projects and conventional wells in Western Canada. It ships its oil to its 50%-owned refineries in Illinois and Texas. Due to low oil prices, Cenovus has shrunk its workforce by 31% since the start of 2015. These cuts should save it $200 million this year; it lost $403 million, or $0.49 a share, in 2015. The cuts should also help Cenovus quickly expand profits when oil prices recover. Cenovus is still a buy.
CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.9 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.0%; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators and operator of pilot-training schools in over 30 countries. The company recently won several contracts for flight simulators and related equipment from military clients in Canada, the U.S., the U.K. and Australia. In all, these deals are worth $175 million, or 7% of the company’s $2.4 billion of annual revenue. CAE’s military businesses supply 35% of its sales. That cuts its reliance on cyclical commercial airlines....