Latest Stock Advice
Top pick Yum Brands Inc. gives you sales growth, steady EPS growth, and a solid dividend
Teck Resources Ltd. is a solid bet on higher copper prices with its big merger winning approvals
Toromont Industries Ltd. should see continued earnings growth thanks to its leading market share and Canada’s plan to increase spending on infrastructure projects.
Top pick Barrick Mining just raised its dividend a whopping 140% as it generates record earnings and continues its strategic asset reorganization.
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How to identify the top copper mining stocks—and how to best to fit them into your portfolio
A Member of Pat McKeough’s Inner Circle asked for his advice on an ETF that focuses on Canadian finance firm common shares, preferred shares and corporate bonds.
Pat likes the high distribution rate but warns that rate may be unsustainable....
Pat likes the high distribution rate but warns that rate may be unsustainable....
IGM FINANCIAL INC. $36 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 243.6 million; Market cap: $8.8 billion; Price-to-sales ratio: 2.9; Dividend yield: 6.3%; TSINetwork Rating: Above Average; www. igmfinancial.com) is Canada’s largest independent mutual fund provider. Power Financial owns 60.1% of IGM. The company has two main divisions. Investors Group offers mutual funds and other services, such as portfolio management, through 5,300 affiliated advisors. This business forms close relationships with clients, which helps it retain them. In 2015, its redemption rate for long-term funds was 8.7%, well below the industry average of 15.4%. The other division, Mackenzie Financial, sells funds through independent brokers....
HOME CAPITAL GROUP INC. $36 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 70.0 million; Market cap; $2.5 billion; Price-to-sales ratio: 4.2; Dividend yield: 2.7%; TSINetwork Rating: Average; www.homecapital.com) is a mortgage lender that serves borrowers who fail to meet the stricter standards of larger, traditional lenders, such as banks. Home Capital offers most of its loans through 4,000 independent mortgage brokers. In July 2015, it cut ties with 45 of them after it uncovered inaccurate information on loan applications. Specifically, these brokers falsified borrowers’ annual incomes but not their credit scores and property values. So far, Home Capital has reviewed 40% of these loans. Based on the results, it could renew 90% of these mortgages. The company expects to complete these reviews by the end of 2016....
EMERA INC. $47 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 145.3 million; Market cap: $6.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.emera.com) has reached a deal to increase its ownership of Emera (Caribbean) Inc. From 95.6% to 100.0%. This publicly traded subsidiary holds Emera’s interests in power utilities in Barbados, Dominica and St. Lucia. Emera will cut administrative costs by taking full control. The company will pay roughly $16.5 million in cash and Emera stock for the additional stake. To put that in context, Emera earned $330.0 million, or $2.26 a share, in 2015....
FINNING INTERNATIONAL INC. $19 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.0 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Canada, South America and the U.K. Its main customers are in the oil, mining, forest-products and construction industries. The company continues to cut costs as low commodity prices hurt equipment demand. Finning recently announced plans to eliminate about 500 jobs by mid-2016. That’s in addition to the 1,900 workers, or 13% of its global workforce, laid off last year. Because of the moves, Finning has already reduced its annual expenses by $150 million, and expects higher savings this year....