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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.
In some ways, stock buyback benefits are better than dividends. In particular, they give you a tax-deferral option that you don’t get with cash dividends.
EMERA INC. $42 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 145.3 million; Market cap: $6.1 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.5%; TSINetwork Rating: Average; www. emera.com) is buying Teco Energy (New York symbol TE), which supplies electricity and natural gas to 1.05 million customers in Tampa Bay, Florida and surrounding areas. A separate subsidiary distributes gas to 510,000 customers in New Mexico. This a big purchase for Emera, which will pay $6.5 billion U.S. in cash. If you include Teco’s debt, the deal is worth $10.4 billion U.S., or 2.3 times Emera’s current market cap.
After Emera completes the purchase in mid-2016, it will have $20 billion U.S. of assets (56% in Florida, 23% in Canada, 10% in New England, 6% in New Mexico and 5% in the Caribbean).
Regulated utilities will provide 80% of the combined company’s earnings.
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After Emera completes the purchase in mid-2016, it will have $20 billion U.S. of assets (56% in Florida, 23% in Canada, 10% in New England, 6% in New Mexico and 5% in the Caribbean).
Regulated utilities will provide 80% of the combined company’s earnings.
...
CANADIAN PACIFIC RAILWAY LTD. $190 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 161.3 million; Market cap: $30.6 billion; Price-to-sales ratio: 4.5; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 22,000-kilometre rail network between Montreal and Vancouver, as well as hubs in the U.S....
A large number of stocks fall into a grey area. We wouldn’t advise buying them, but they are “okay to hold,” in our view.
The stock market and presidential elections have a relationship that can be summed up by what is known as the “four year rule.”