Latest Stock Advice
Top pick Barrick Mining just raised its dividend a whopping 140% as it generates record earnings and continues its strategic asset reorganization.
These aren’t space startups: discover 7 dividend-paying aerospace and defense contractors tied to NASA’s Artemis mission (from TSI’s latest Globe and Mail column).
Top pick Linamar Corp. is trading cheaply despite delivering higher sales and profits.
Gen Digital Inc. is trading quite cheaply for a firm that just grew revenue nearly 26% while providing plenty of cash flow for innovation, dividends and buybacks.
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POTASH CORP. OF SASKATCHEWAN $21 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 836.5 million; Market cap: $17.6 billion; Price-to-sales ratio: 3.2; Dividend yield: 6.6%; TSINetwork Rating: Average; www.potashcorp.com) earned $1.52 a share in 2015, down 16.5% from $1.82 in 2014 (all amounts except share price and market cap in U.S. dollars). Revenue declined 11.7%, to $6.3 billion from $7.1 billion. High global potash inventories have cut demand, while record North American harvests have hurt crop prices, leaving farmers with less to spend on fertilizers. In response, Potash Corp. has suspended production at its $2.2-billion (Canadian) potash mine in Picadilly, New Brunswick, which only started up in early 2015. It also cut its dividend by 34.2%; the new annual rate of $1.00 U.S. a share yields 6.6%....
ROYAL BANK OF CANADA $66 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.5 billion; Market cap: $99.0 billion; Price-to-sales ratio: 2.9; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.rbc.com) is selling its RBC General Insurance subsidiary to Aviva Canada. This business mainly sells home and auto insurance. As part of the sale, Royal’s customers can also access all of Aviva’s insurance products for the next 15 years. The sale makes sense, as regulators prevent Canadian banks from selling insurance policies through their branches. That limits Royal’s ability to expand this business. However, the bank will continue to sell life and health insurance through separate offices and online....
BCE has outperformed the market during the current downturn: the stock has gained 7.9% since the start of 2016, compared to a 6.3% decline in the S&P/TSX Composite Index. The company continues to benefit from upgrades to its wireless and fibre-optic Internet and TV networks. These improvements have helped it attract new customers, and hang on to existing ones. More-reliable networks will also help BCE handle new competitors. That includes cable company Shaw Communications, which is buying wireless carrier Wind Mobile. The stock is trading just below its recent peak of $59 in October 2015. Even so, it’s still attractive in relation to BCE’s projected earnings. The company’s strong prospects give it plenty of room to keep raising its dividend....
SUNCOR ENERGY INC. $30 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.4 billion; Market cap: $42.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.9%; TSINetwork Rating: Average; www. suncor.com) is Canada’s largest oil producer. It also operates four refineries and 1,500 Petro-Canada gas stations, which supply 63% of its revenue. The company produced an average of 577,800 barrels of oil equivalent a day in 2015, up 8.0% from 534,900 barrels in 2014. Suncor’s oil sands projects accounted for 80% of its output. However, Suncor lost $2.0 billion, or $1.38 a share, mainly because it wrote down the value of its reserves in response to the oil-price drop. It also wrote down its operations in Libya and some of its offshore projects. But without unusual items, Suncor earned $1.01 a share. In 2014, it earned $4.6 billion, or $3.15 a share....