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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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When investing in rare earth metals, you need to look at the unique geographical and political environment the mining company produces in.
There will always be stocks you’ll wish you bought, especially after you see their growth. Here’s what to look for so you won’t miss out.
BMO U.S. High Dividend Covered Call ETF, $18.41, symbol ZWH on Toronto (Units outstanding: 14.7 million; Market cap: $270.6 million; www.etfs.bmo.com), uses covered calls to try to boost its cash flow so it can provide higher distributions to investors.
Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
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Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
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Slate Office REIT, $7.23, symbol SOT.UN on Toronto (Units outstanding: 30.5 million; Market cap: $220.5 million; www.slateam.com), owns 48 office and industrial properties in Atlantic Canada (46% of square footage), Ontario (33%) and Western Canada (21%). Slate changed its name from FAM REIT in March 2015.
In June, the trust completed its $430-million purchase of Fortis Properties Corp., Fortis Inc.’s commercial real estate portfolio. These properties, located in New Brunswick, Nova Scotia and Newfoundland and Labrador, include 10 office buildings, one mixed-use office complex and three shopping malls. In all, they comprise 2.8 million square feet of space.
Some notable Newfoundland properties included in the sale are Cabot Place, the Fortis Building and TD Place in St. John’s; the Fortis Tower and the Millbrook Mall in Corner Brook; the Fraser Mall in Gander; and the Marystown Mall.
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In June, the trust completed its $430-million purchase of Fortis Properties Corp., Fortis Inc.’s commercial real estate portfolio. These properties, located in New Brunswick, Nova Scotia and Newfoundland and Labrador, include 10 office buildings, one mixed-use office complex and three shopping malls. In all, they comprise 2.8 million square feet of space.
Some notable Newfoundland properties included in the sale are Cabot Place, the Fortis Building and TD Place in St. John’s; the Fortis Tower and the Millbrook Mall in Corner Brook; the Fraser Mall in Gander; and the Marystown Mall.
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Cott Corp., $13.87, symbol BCB on Toronto (Shares outstanding: 109.7 million; Market cap: $1.5 billion; www.cott.com), is a leading maker of beverages for retailers and distributors. It also makes drinks for companies that sell them under their own labels.
Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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Chorus Aviation, $5.61, symbol CHR.B on Toronto (Shares outstanding: 114.6 million; Market cap: $685.4 million; www.flyjazz.ca), formerly known as Jazz Air Income Fund, is Air Canada’s main regional affiliate. Chorus owns Jazz Air, Canada’s largest regional airline and second-biggest airline overall, based on the number of planes it operates and routes it flies. Jazz Air and Air Canada have a capacity purchase agreement (CPA) under which Air Canada buys almost all of Jazz’s seats based on predetermined rates. The company’s current CPA with Air Canada provides the stable long-term cash flow it needs to maintain its monthly dividend and buy new aircraft....