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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.
MCKESSON CORP. $198 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 232.0 million; Market cap: $45.9 billion; Price-to-sales ratio: 0.3; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.mckesson .com) is buying UDG Healthcare’s wholesale distribution operations. These businesses deliver prescription drugs and other products to drugstores in Ireland and Northern Ireland. McKesson also recently agreed to acquire 281 Sainsbury’s pharmacies in the U.K.
The company expects to complete these purchases in the first half of 2016. It will pay roughly $600 million for both of these businesses, which together should add $0.10 to $0.14 a share to its annual earnings. To put these figures in context, McKesson earned $2.6 billion, or $11.11 a share, in the fiscal year ended March 31, 2015.
These purchases are part of the company’s plan to cut its reliance on North America, which accounts for 90% of its revenue. However, using acquisitions to expand adds risk.
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The company expects to complete these purchases in the first half of 2016. It will pay roughly $600 million for both of these businesses, which together should add $0.10 to $0.14 a share to its annual earnings. To put these figures in context, McKesson earned $2.6 billion, or $11.11 a share, in the fiscal year ended March 31, 2015.
These purchases are part of the company’s plan to cut its reliance on North America, which accounts for 90% of its revenue. However, using acquisitions to expand adds risk.
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DIEBOLD INC. $30 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.0 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.7%; TSINetwork Rating: Average; www.diebold.com) continues to move ahead with a major restructuring aimed at improving its efficiency and shifting its focus from building automated teller machines to services and software.
The changes should save Diebold a total of $200 million by the end of 2017. It plans to devote $100 million of that to acquisitions and other investments.
Meantime, Diebold’s earnings fell 46.6% in the three months ended June 30, 2015, to $22.2 million, or $0.34 a share. A year earlier, it earned $41.6 million, or $0.64. If you exclude restructuring costs, earnings per share declined 6.4%, to $0.44 from $0.47. However, its gross profit margin improved to 26.0% from 25.5%.
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The changes should save Diebold a total of $200 million by the end of 2017. It plans to devote $100 million of that to acquisitions and other investments.
Meantime, Diebold’s earnings fell 46.6% in the three months ended June 30, 2015, to $22.2 million, or $0.34 a share. A year earlier, it earned $41.6 million, or $0.64. If you exclude restructuring costs, earnings per share declined 6.4%, to $0.44 from $0.47. However, its gross profit margin improved to 26.0% from 25.5%.
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BRIGGS & STRATTON CORP. $20 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 44.4 million; Market cap: $888.0 million; Price-to-sales ratio: 0.5; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.briggsandstratton.com) is the world’s largest maker of lawn mower engines.
The company also makes a wide variety of other home and garden equipment, such as portable power generators, pressure washers and snow blowers. About 30% of its revenue comes from overseas markets.
In its 2015 fiscal year, which ended June 30, 2015, Briggs’overall sales rose 1.9%, to $1.89 billion from $1.86 billion in fiscal 2014.
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The company also makes a wide variety of other home and garden equipment, such as portable power generators, pressure washers and snow blowers. About 30% of its revenue comes from overseas markets.
In its 2015 fiscal year, which ended June 30, 2015, Briggs’overall sales rose 1.9%, to $1.89 billion from $1.86 billion in fiscal 2014.
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MTS SYSTEMS CORP. $56 (Nasdaq symbol MTSC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 14.9 million; Market cap: $834.4 million; Price-to-sales ratio: 1.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.mts.com) makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures. This helps its clients reduce errors and costs. The company also makes sensors for industrial equipment.
MTS’s strong reputation continues to help it win new orders: in its fiscal 2015 third quarter, which ended June 27, 2015, it attracted $154.0 million worth of orders, up 2.9% from $149.6 million a year earlier.
However, the company’s sales declined 7.9%, to $133.9 million from $145.5 million a year earlier. Overseas markets account for 74% of MTS’s total sales, so the high U.S. dollar hurts their contribution. If you exclude currency rates, sales fell 2%.
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MTS’s strong reputation continues to help it win new orders: in its fiscal 2015 third quarter, which ended June 27, 2015, it attracted $154.0 million worth of orders, up 2.9% from $149.6 million a year earlier.
However, the company’s sales declined 7.9%, to $133.9 million from $145.5 million a year earlier. Overseas markets account for 74% of MTS’s total sales, so the high U.S. dollar hurts their contribution. If you exclude currency rates, sales fell 2%.
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