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....
SUNCOR ENERGY INC. $35 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $52.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.3%; TSINetwork Rating: Average; www. suncor.com) has now acquired 84.2% of Canadian Oil Sands (Toronto symbol COS). That firm owns 36.74% of the Syncrude oil sands project in northern Alberta. The takeover gives Suncor 48.74% of Syncrude, and allows it to improve the project’s efficiency and profits. Under the terms of its takeover offer, Canadian Oil Sands investors each received 0.28 of a Suncor share for every share they own. If you include Canadian Oil Sands’ debt, the deal is worth $6.6 billion. Suncor expects to acquire the remaining shares in the next few weeks. Suncor is a buy....
CANADIAN IMPERIAL BANK OF COMMERCE $96 (www.cibc.com) earned $2.55 a share in the quarter ended January 31, 2016. That’s up 8.1% from $2.36 a year earlier. Strong gains at the bank’s main personal and business banking operations offset weaker earnings from wealth management and securities trading....
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....
ROYAL BANK OF CANADA $73 (www.rbc.com) recently completed its $7.1-billion acquisition of Los Angeles-based City National Bank. This business added $53 million to its latest quarterly profits. Even so, Royal’s overall earnings fell 0.4%, to $2.45 billion from $2.46 billion a year earlier; earnings per share fell 4.2%, to $1.58 from $1.65, on more shares outstanding....