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Signet Jewelers Ltd. is still subject to changes in consumer confidence, but it’s making smart moves to spur growth
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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.
A history of consumer loyalty, big store upgrade initiatives and smart acquisitions keep Canadian Tire among our favourite dividend stocks
Here’s a phenomena you may have noticed: Current economic problems sometimes provide solutions for problems inherited from previous years or decades.
For example, from the late 1990s through the mid-2000s, many employers and economists worried about a coming labour shortage. The baby boomers, who make up a large part of the North American workforce, are nearing retirement age. Specialists were leaving the workforce faster than they can be replaced. Younger people tend to switch jobs more often than older workers. They are also slow to accept entry- or low-level jobs. They are reluctant to go into apprenticeship or industrial-training programs.
Employers and economists worried about the risk of falling productivity and rising wages. After all, employers were likely to bid up wage levels, to attract scarce new workers who would need expensive training. This could provoke severe inflation.
Then the 2007-2009 recession and stock-market slide came along. It solved the problem, at least temporarily. Joblessness rose, as businesses re-structured and made do with fewer workers. Insecurity led many boomers to work longer than they planned. They felt their savings, investments and pensions were inadequate for their retirement needs. They also worried about the financing of the Canada Pension Plan and U.S. Social Security.
After all, soaring numbers of retirees were entitled to income from these plans, due to the retirement of the boomers and extended lifespans from modern medicine. At the same time, growth in the worker/taxpayer population was slowing. This was partly due to a continuing drop in the birth rate—the so-called “birth dearth”. So, fewer working taxpayers would have to support a growing number of pensioners.
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For example, from the late 1990s through the mid-2000s, many employers and economists worried about a coming labour shortage. The baby boomers, who make up a large part of the North American workforce, are nearing retirement age. Specialists were leaving the workforce faster than they can be replaced. Younger people tend to switch jobs more often than older workers. They are also slow to accept entry- or low-level jobs. They are reluctant to go into apprenticeship or industrial-training programs.
Employers and economists worried about the risk of falling productivity and rising wages. After all, employers were likely to bid up wage levels, to attract scarce new workers who would need expensive training. This could provoke severe inflation.
Then the 2007-2009 recession and stock-market slide came along. It solved the problem, at least temporarily. Joblessness rose, as businesses re-structured and made do with fewer workers. Insecurity led many boomers to work longer than they planned. They felt their savings, investments and pensions were inadequate for their retirement needs. They also worried about the financing of the Canada Pension Plan and U.S. Social Security.
After all, soaring numbers of retirees were entitled to income from these plans, due to the retirement of the boomers and extended lifespans from modern medicine. At the same time, growth in the worker/taxpayer population was slowing. This was partly due to a continuing drop in the birth rate—the so-called “birth dearth”. So, fewer working taxpayers would have to support a growing number of pensioners.
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Progressive Waste Solutions Ltd., $36.29, symbol BIN on Toronto (Shares outstanding: 109.3 million; Market cap: $4.0 billion; www.progressivewaste.com), is one of North America’s largest waste-management companies, collecting and disposing of non-hazardous solid waste for businesses, municipalities and homes in six provinces and 10 states.
In the three months ended June 30, 2015, Progressive’s revenue fell 4.0%, to $493.0 million from $513.5 million a year earlier (all amounts except share price and market cap in U.S. dollars). Excluding the effect of the higher U.S. dollar, revenue rose 0.4%. Earnings per share declined 29.3%, to $0.29 from $0.41, mostly due to costs related to flooding in Texas.
Progressive holds cash of $39.6 million, or $0.35 a share. Its $1.6 billion of long-term debt is a high, but manageable, 55% of its $4.0-billion market cap.
The stock trades at 30.8 times this year’s forecast earnings of $1.18 a share. Progressive’s profits could rise to $1.48 a share in 2016, and the stock trades at 24.5 times that estimate. The company has just raised its dividend by 6.3%; the shares now yield 1.9%.
Progressive Waste Solutions is okay to hold.
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In the three months ended June 30, 2015, Progressive’s revenue fell 4.0%, to $493.0 million from $513.5 million a year earlier (all amounts except share price and market cap in U.S. dollars). Excluding the effect of the higher U.S. dollar, revenue rose 0.4%. Earnings per share declined 29.3%, to $0.29 from $0.41, mostly due to costs related to flooding in Texas.
Progressive holds cash of $39.6 million, or $0.35 a share. Its $1.6 billion of long-term debt is a high, but manageable, 55% of its $4.0-billion market cap.
The stock trades at 30.8 times this year’s forecast earnings of $1.18 a share. Progressive’s profits could rise to $1.48 a share in 2016, and the stock trades at 24.5 times that estimate. The company has just raised its dividend by 6.3%; the shares now yield 1.9%.
Progressive Waste Solutions is okay to hold.
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Newmarket Gold, $1.40, symbol NMI on Toronto (Shares outstanding: 134.3 million; Market cap: $188.0 million; www.newmarketgoldinc.com), has its shares listed in Canada, but its three 100%-owned operating gold mines—Fosterville, Cosmo and Stawell—are in Australia.
Newmarket recently merged with Crocodile Gold. The combined company has more than 200,000 ounces of annual production.
In the three months ended June 30, 2015, Newmarket’s revenue fell 4.6%, to $66.0 million from $69.2 million a year earlier (all figures except share price and market cap in U.S. dollars).
The company earned $12.1 million, or $0.10 a share, up sharply from $3.9 million, or $0.03. Cash flow was $24.2 million, or $0.21 a share, a 55.1% increase from $15.6 million, or $0.13, a year ago. The gains came from lower costs and improved efficiency.
In the latest quarter, Newmarket produced 55,998 ounces of gold, up 3.7% from 54,024 ounces. However, it sold its gold for an average of $1,196 an ounce, down 7.4% from $1,291. It forecasts 2015 output of 205,000 to 220,000 ounces.
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Newmarket recently merged with Crocodile Gold. The combined company has more than 200,000 ounces of annual production.
In the three months ended June 30, 2015, Newmarket’s revenue fell 4.6%, to $66.0 million from $69.2 million a year earlier (all figures except share price and market cap in U.S. dollars).
The company earned $12.1 million, or $0.10 a share, up sharply from $3.9 million, or $0.03. Cash flow was $24.2 million, or $0.21 a share, a 55.1% increase from $15.6 million, or $0.13, a year ago. The gains came from lower costs and improved efficiency.
In the latest quarter, Newmarket produced 55,998 ounces of gold, up 3.7% from 54,024 ounces. However, it sold its gold for an average of $1,196 an ounce, down 7.4% from $1,291. It forecasts 2015 output of 205,000 to 220,000 ounces.
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