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Signet Jewelers Ltd. is still subject to changes in consumer confidence, but it’s making smart moves to spur growth
Sun Life Financial Inc. and Manulife Financial Corp. each offers a combination of solid earnings growth, ongoing share repurchases, and impressive dividend yields.
Top pick Yum Brands Inc. gives you sales growth, steady EPS growth, and a solid dividend
Nutrien Ltd. offers exposure to potash and nitrogen prices, a stable retail base and strong profitability.
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Tax shelters in Canada aim to reduce or eliminate your tax liability, they are great ways for Canadian investors to cut their tax bills.
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INTERNATIONAL FLAVORS & FRAGRANCES INC. $105 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 80.7 million; Market cap: $8.5 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.iff.com) makes over 36,000 compounds that improve the taste of food and the smell of consumer products. IFF recently paid $311 million for Lucas Meyer Cosmetics, a Quebec-based company that supplies ingredients to makers of cosmetics and personal care products. It also acquired Henry H. Ottens Manufacturing, a private Philadelphia-based firm that makes flavourings for major food makers. IFF paid $199.2 million for this business....
GE and ABB (see box) continue to cut costs and sell less important assets, which puts them in a better position to withstand the slowdown in global growth. These moves will also spur their earnings when economic expansion picks up. GENERAL ELECTRIC CO. $25 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $252.5 billion; Price-to-sales ratio: 1.7; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.ge.com) has received approval from U.S. and European regulators for its alliance with France’s Alstom SA, a leading maker of parts for power plants and transmission gear. Under the deal, GE will form three 50/50 joint ventures with Alstom: one will combine their electrical grid operations, while a second will focus on products for renewable energy projects. The third will hold Alstom’s nuclear power equipment division....
ABB LTD. ADRs $17 (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.3 billion; Market cap: $39.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.abb.com) makes transformers, transmission systems and circuit breakers for electrical utilities. The Switzerland-based firm also produces automation systems and robotics for industrial clients. Due to slowing economic growth in China and developing countries, the company now expects its revenue to grow by 3% to 6% each year to 2020. That’s down from its earlier forecast of 4% to 7% annual growth. ABB is also reorganizing into four new divisions: Discrete Automation and Motion, Power Grids, Electrification Products and Process Automation. This change will make it easier for ABB to sell the Power Grids division, which makes transmission and distribution equipment for utilities. This business’s sales have slowed, and it faces strong competition from bigger firms like GE/Alstom....
TEXAS INSTRUMENTS INC. $47 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.0 billion; Market cap: $47.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) has increased its quarterly dividend by 11.8%, to $0.38 a share from $0.34. The new annual rate of $1.52 yields 3.2%. It has now raised its payout annually for the past 12 years. In addition, the chipmaker has increased its share repurchase authorization by $7.5 billion. As a result, it can now buy back up to $9.3 billion of its shares, which is equal to 20% of its market cap. There are no time limits for these repurchases. Since 2005, it has bought back 40% of its outstanding shares. Texas Instruments is a buy....