Latest Stock Advice
Sun Life Financial Inc. and Manulife Financial Corp. each offers a combination of solid earnings growth, ongoing share repurchases, and impressive dividend yields.
Groupe Dynamite Inc. is a high‑quality specialty retailer with gains ahead.
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.
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How to identify the top copper mining stocks—and how to best to fit them into your portfolio
INNERGEX RENEWABLE ENERGY $12.84 (Toronto symbol INE; Shares outstanding: 103.9 million; Market cap: $1.3 billion; TSINetwork Rating: Extra Risk; Dividend yield 5.0%; www.innergex.com) operates 27 hydroelectric plants, six wind farms and one solar power facility in Quebec, Ontario, B.C. and Idaho. The company gets 77% of its power from hydroelectric plants, 22% from wind and 1% from solar. In contrast to Brookfield, Innergex is growing slowly, mostly by building its own hydroelectric and wind facilities, rather than through acquisitions. Right now, the company has four projects under construction. But like Brookfield, Innergex makes sure it has firm long-term power-purchase contracts in place before it starts building new plants....
ENBRIDGE INC. $46.75 (Toronto symbol ENB; Shares outstanding: 867.6 million; Market cap: $40.8 billion; TSINetwork Rating: Above Average; Divd. yield: 4.5%; www.enbridge.com) has agreed to sell 56.6 million common shares at $40.70 a share to several major brokerage firms to raise $2.3 billion. Enbridge will put that cash toward $18.2 billion in spending on new pipelines, wind farms and other projects between 2016 and 2019. The company has already secured shipping commitments from oil producers and other clients. That should cut the risk for these new projects. The extra cash flow from the new operations will allow Enbridge to increase its dividend by 10% to 12% a year through 2019; the current annual rate of $2.12 a share yields 4.5%. However, the stock is somewhat expensive at 21.0 times its projected 2016 earnings of $2.23 a share....
IBM $136.30 (New York symbol IBM; Shares outstanding: 970.1 million; Market cap: $130.4 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%; www.ibm.com) will buy Truven Health Analytics, a private firm that provides hospitals and pharmaceutical companies with analytic data services. Truven will become part of IBM’s Watson Health business. It uses advanced artificialintelligence technology to process and analyze large volumes of data, including patient records, drug information and insurance claims. That helps hospitals and clinics reduce errors and cut their costs. IBM will pay $2.6 billion for Truven when it completes the purchase later this year....
PENGROWTH ENERGY $1.18 (Toronto symbol PGF; Shares outstanding: 543.0 million; Market cap: $564.8 million; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta. Pengrowth has suspended its $0.01-a-share quarterly dividend in response to the sharp decline in oil prices. It will also reduce its capital spending to between $60 million to $70 million in 2016, from $184 million in 2015. The company also laid off workers. That should save it $25 million in 2016. In addition, Pengrowth aims to sell $600 million of less important properties. These funds will probably go toward paying down its $2.1 billion debt. That’s now 3.7 times its depressed market cap....