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AT&T Inc. offers a 4.2% yield at an attractive valuation as it’s tapped to generate over $18 billion in free cash flow while continuing to build ultrafast wireless and fibre-optic networks.
Top pick North West Company offers a 3.1% yield as a defensive retailer with entrenched remote markets.
Twilio Inc. adds AI capabilities to stay ahead of rivals and win more strategic multi-year partnerships.
FedEx Corp. looks set to sustain its growth, and the spinoff of its Freight division will unlock shareholder value
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LOBLAW COMPANIES $70.28 (Toronto symbol L; Shares outstanding: 410.2 million; Market cap: $28.3 billion; TSINetwork Rating: Above Average; Dividend yield: 1.5%; www.loblaw.ca) currently operates over 1,100 supermarkets and 1,300 Shopper Drug Mart pharmacies across Canada. In the three months ended March 26, 2016, Loblaw earned $338 million, or $0.82 a share. That’s up 12.3% from $301 million, or $0.72, a year earlier. Sales rose 4.8%, to $13.9 billion from $13.6 billion. Excluding gas station revenue, same-store sales rose 2.6% at Loblaw. They rose 6.3% at Shoppers Drug Mart. The company now plans to spend $1 billion to open 50 new locations and renovate 150 stores. Choice Properties REIT (Toronto symbol CHP.UN) will contribute an additional $300 million to the construction projects. Loblaw owns 83.0% of the REIT, which gets 91% of its rental revenue from its supermarkets and drug stores....
MANITOBA TELECOM SERVICES $37.43 (Toronto symbol MBT; Shares outstanding: 78.3 million; Market cap: $2.9 billion; TSINetwork Rating: Average; Dividend yield: 3.5%; www.mts.ca) has attracted a $3.1 billion takeover offer from BCE Inc. (see page 38). Under the deal, Manitoba Tel shareholders can choose either $40 in cash or 0.6756 shares of BCE for every MBT share they hold. However, BCE plans to limit its overall cash spending, so most Manitoba Tel investors will likely receive 55% of their payout in stock and the remainder in cash....
ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $13.31 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index, which is made up of 35 gold stocks from Canada and around the world. The ETF began trading on March 23, 2001. Its MER is 0.61%. The fund’s top holdings are Barrick Gold at 14.6%; Newmont Mining, 12.4%; Goldcorp, 11.2%; Franco-Nevada, 8.7%; Agnico-Eagle Mines, 6.8%; Randgold Resources (ADR), 6.2%; Kinross Gold, 4.5%; and AngloGold Ashanti (ADR), 4.4%. iShares S&P/TSX Global Gold Index is a hold.
GLOBAL X SILVER MINERS ETF $32.963 (New York symbol SIL; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Silver Miners Index. That index includes 21 international firms that mine, refine or explore for silver. It was developed by Germany-based Structured Solutions AG. Canadian firms make up 50.5% of the fund’s holdings, but it also includes miners in the U.S. (22.0%) and Mexico (21.0%). Its MER is 0.65%. The ETF’s top holdings are Tahoe Resources Inc. at 11.5%; Silver Wheaton, 11.1%; Fresnillo plc 10.7%; First Majestic Silver, 7.7%; Industrias Penoles, 7.3%; Coeur Mining, 6.0%; Pan American Silver, 5.7%; Hecla Mining, 5.1%; Fortuna Silver Mines, 4.7%; Alamos Gold, 4.7%; Mag Silver, 4.4%; and Silver Standard Resources, 3.8%....