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It is important to note that some types of investments provide more security than others. Investors seeking safe investment options should look for well-established companies with hidden assets among other key characteristics.
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.
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.
BCE INC. $52.87 (Toronto symbol BCE; Shares outstanding: 848.1 million; Market cap: $44.1 billion; TSINetwork Rating: Above Average; Dividend yield: 5.0%; www.bce.ca) has sold its 15% stake in the Globe and Mail newspaper to Woodbridge Co., the private firm controlled by the Thomson family. Woodbridge now owns 100% of the Globe.
The company didn’t say how much it received, but the sale will let it focus on its main media businesses, including CTV Television, specialty channels, radio stations and their related websites.
In the second quarter of 2015, the media division’s earnings rose 2.4% from a year earlier and accounted for 9.8% of BCE’s total.
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The company didn’t say how much it received, but the sale will let it focus on its main media businesses, including CTV Television, specialty channels, radio stations and their related websites.
In the second quarter of 2015, the media division’s earnings rose 2.4% from a year earlier and accounted for 9.8% of BCE’s total.
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ISHARES CANADIAN UNIVERSE BOND INDEX ETF $31.67 (Toronto symbol XBB; buy or sell through brokers) mirrors the performance of the Canadian Universe Bond Index. The 929 bonds in the portfolio have an average term to maturity of 10.34 years. The fund’s MER is 0.33%.
The bonds in the index are 71.3% government and 28.7% corporate.
The fund yields 2.8%, compared to the Short-Term Bond Fund’s 2.4%. Its yield to maturity is 1.93%, 0.85% above the Short-Term Fund. That reflects the added risk of holding long-term bonds.
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The bonds in the index are 71.3% government and 28.7% corporate.
The fund yields 2.8%, compared to the Short-Term Bond Fund’s 2.4%. Its yield to maturity is 1.93%, 0.85% above the Short-Term Fund. That reflects the added risk of holding long-term bonds.
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ISHARES CANADIAN SHORT-TERM BOND INDEX ETF $28.69 (Toronto symbol XSB; buy or sell through brokers) mirrors the performance of the DEX Short-Term Bond Index. This index consists of a range of investment-grade federal, provincial, municipal and corporate bonds with one- to five-year terms to maturity. The fund holds 430 bonds with an average term to maturity of 2.98 years. The bonds in the index are 64.8% government and 35.2% corporate. The fund’s MER is 0.28%.
The iShares Canadian Short-Term Bond Index Fund yields 2.4%, but this high yield is due to the fact that some of the fund’s bonds pay above-market interest rates. As a result, they trade above their face value. When these bonds mature, holders will only get the bonds’ face value, meaning the portfolio will incur predictable capital losses. These losses will offset some of the appeal of the above-market yields.
The key figure when looking at the long-term return of this fund is yield to maturity. This yield takes into account the series of capital losses the fund will experience as its above-market-rate bonds mature. The iShares Canadian Short-Term Bond Index ETF’s yield to maturity is around 1.08%—less than the 2.4% yield but still higher than the 0.42% you’d earn by investing in, say, a one-year T-bill.
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The iShares Canadian Short-Term Bond Index Fund yields 2.4%, but this high yield is due to the fact that some of the fund’s bonds pay above-market interest rates. As a result, they trade above their face value. When these bonds mature, holders will only get the bonds’ face value, meaning the portfolio will incur predictable capital losses. These losses will offset some of the appeal of the above-market yields.
The key figure when looking at the long-term return of this fund is yield to maturity. This yield takes into account the series of capital losses the fund will experience as its above-market-rate bonds mature. The iShares Canadian Short-Term Bond Index ETF’s yield to maturity is around 1.08%—less than the 2.4% yield but still higher than the 0.42% you’d earn by investing in, say, a one-year T-bill.
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BROOKFIELD RENEWABLE ENERGY PARTNERS L.P. $35.71 (Toronto symbol BEP.UN; Units outstanding: 265.2 million; Market cap: $9.8 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.1%; www.brookfieldrenewable.com) owns 209 hydroelectric generating stations, 38 wind farms and five natural-gas-fired plants. In all, it has over 7,000 megawatts of generating capacity.
Roughly 26% of that capacity is in Canada, with another 51% in the U.S. and 16% in Brazil.
In the three months ended June 30, 2015, Brookfield’s cash flow per share fell 28.4%, to $0.53 from $0.74 a year earlier. That’s because below-normal rainfall slowed the company’s hydroelectric production. The units trade at 15.5 times Brookfield’s forecast 2015 cash flow of $2.30 a share. They yield 6.1%.
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Roughly 26% of that capacity is in Canada, with another 51% in the U.S. and 16% in Brazil.
In the three months ended June 30, 2015, Brookfield’s cash flow per share fell 28.4%, to $0.53 from $0.74 a year earlier. That’s because below-normal rainfall slowed the company’s hydroelectric production. The units trade at 15.5 times Brookfield’s forecast 2015 cash flow of $2.30 a share. They yield 6.1%.
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