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....
These two leading food makers continue to benefit from the recent drop in the Canadian dollar, which enhances the value of their overseas sales. However, both trade at high multiples to their projected earnings. That could hurt their share prices if the dollar rebounds. SAPUTO INC. $40 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 392.9 million; Market cap: $15.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.4%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese. It also operates dairies in the U.S., Australia and Argentina. The company’s sales rose 2.8% in its fiscal 2016 third quarter, which ended December 31, 2015, to $2.9 billion from $2.8 billion a year earlier. It gets 65% of its sales from outside Canada, and the lower Canadian dollar added $261 million to the latest quarter’s sales. Lower selling prices for cheese and butter cut sales by $191 million....
SHAWCOR LTD. $28 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.5 million; Market cap: $1.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting. It also makes electrical wire and protective sheaths. In 2015, its revenue fell 4.2%, to $1.8 billion from the $1.9 billion in 2014. That’s because weaker demand for its pipeline coating services offset the benefit of the low Canadian dollar. Favourable exchange rates added $106.5 million to ShawCor’s revenue in 2015. Earnings rose 3.6%, to $98.2 million from $94.9 million, thanks to fewer losses from its joint ventures. Due to more shares outstanding, per-share profits fell 0.7%, to $1.52 from $1.53. ShawCor’s backlog was $452 million at the end of 2015. Currently, it has $900 million worth of bids outstanding on new jobs. It also expects to bid on an additional $500 million worth of contracts. ShawCor’s strong reputation should continue to help it win bids....
TRANSCANADA CORP. $49 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 702.3 million; Market cap: $34.4 billion; Price-to-sales ratio: 3.1; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.transcanada.com) has cancelled its contracts to buy electricity from three coal-fired power plants in Alberta. That’s because higher costs to comply with the province’s new carbon taxes and emission controls have hurt the profitability of these deals. As a result, TransCanada will record a non-cash, after-tax charge of $175 million. That’s equal to 10% of its 2015 earnings of $1.8 billion, or $2.48 a share. However, cancelling these deals will improve its cash flow and earnings. TransCanada is a buy.
LOBLAW COMPANIES LTD. $71 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 410.1 million; Market cap: $29.1 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.loblaw.ca) purchased the Shoppers Drug Mart chain in March 2014 for $12.3 billion in cash and shares. The company now operates over 1,100 supermarkets and 1,300 drug stores across Canada. Thanks to its purchase of Shoppers, Loblaw’s sales have jumped 45.3%, from $31.3 billion in 2011 to $45.4 billion in 2015. Earnings fell 13.9%, from $2.88 a share (or a total of $811 million) in 2011 to $2.48 a share (or $696 million) in 2013. With the addition of Shoppers, earnings rose to $3.06 a share (or $1.2 billion) in 2014 and $3.46 a share (or $1.4 billion) in 2015....