A Member of Pat McKeough’s Inner Circle recently asked for his advice on a pair of funds specializing in the energy sector.

Pat likes the relatively high yields and the fact each fund holds mostly high-quality stocks. However, he warns these funds are concentrated in just a few stocks and are vulnerable should oil and gas prices drop.

Energy Select Sector SPDR ETF (Symbol XLE on New York; www.ssga.com), provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

The fund’s MER is just 0.10%. The ETF yields 3.4%. However, its distribution payout and yield could drop if oil and gas prices enter a declining trend.

The ETF holds mostly high-quality stocks, but you should note that Chevron makes up a high 21.7% of its assets, and Exxon Mobil comprises 22.6%. That carries risk.

Inner Circle: This fund is nearly identical to the first

Vanguard Energy ETF (Symbol VDE on New York; investor.vanguard.com), holds companies involved in the exploration and production of energy products such as oil, natural gas and coal.

The fund’s MER is just 0.10%. The ETF yields 3.2% (but again, that yield could drop if oil and gas prices decline).

This ETF also holds mostly high-quality stocks, but, here again, investors should note that Chevron makes up a high 17.0% of its assets. Exxon Mobil comprises another 20.4%.

Recommendation in Pat’s Inner Circle: Energy Select Sector SPDR ETF and Vanguard Energy ETF are both holds.

Some savvy acquisitions and other corporate transactions should boost the firm’s success across a variety of health technologies. This suggests there’s plenty of room to move higher once increased revenues and earnings continue to roll in.

Meanwhile, the stock trades at 24.1 times the company’s 2023 earnings forecast.

THERMO FISHER SCIENTIFIC INC. (Symbol TMO on New York; www.thermofisher.com) lets you tap this leading manufacturer of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagents.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

The shares are now up 71.7% for our subscribers since we first recommended the stock in the May 2020 issue of Power Growth Investor at $325.83 a share. We still think they have room to move higher.

Thermo Fisher recently agreed to buy The Binding Site Group, a global leader in specialty diagnostics. The seller is a group led by European private equity firm Nordic Capital and the sales price is $2.6 billion.

Serving clinicians and laboratory professionals worldwide, The Binding Site provides specialty diagnostics and instruments to improve the diagnosis and management of blood cancers and immune system disorders.

Headquartered in Birmingham, U.K., The Binding Site has more than 1,100 employees globally. It had annual sales of more than $220 million in fiscal 2022 and is expected to add $0.07 a share to Thermo Fisher’s annual earnings.

Growth Stocks: Power deal should boost ESG appeal with investors

Thermo Fisher recently signed an eight-year power purchasing agreement with Enel North America to buy a portion of the output of the Seven Cowboy wind project in western Oklahoma. Thermo Fisher will purchase approximately 400,000 megawatt hours of renewable electricity, equal to half of the company’s current U.S. electricity needs.

As part of the company’s emissions-reduction strategy, Thermo Fisher plans to eventually transition most locations globally to renewable energy. Today, more than 60 sites worldwide are fully powered by renewable electricity, including seven facilities that generate 3.5 megawatts of solar power and 3 megawatts of wind energy. Another 15 megawatts of solar power projects are planned.

The Seven Cowboy Wind project is expected to be operational by the second half of 2023.

All in all, expanding its use of renewable power should enhance Thermo Fisher’s appeal with big institutional investors, who increasingly target firms with high environmental, social, and governance (ESG) scores.

Overall, Thermo Fisher has relied on acquisitions for growth; it also has a high P/E and low yield. That combination leaves the company’s shares vulnerable to a sharp setback on bad corporate news or overall stock market weakness.

Still, the company’s success with health technology could produce substantial gains.

A good example is a recently gained FDA clearance for advanced blood tests that can help detect wheat and sesame allergies for patients at risk of a severe allergic reaction.

The new test can help identify patients with a sesame allergy who are at risk of a severe anaphylactic reaction. And despite being the third most common food allergy, wheat is often misdiagnosed and confused with other digestive disorders like gluten intolerance and celiac disease. The new test can help patients avoid unnecessary diet restrictions.

Recommendation in Power Growth Investor: Thermo Fisher Scientific Inc. is a buy.

Even though oil and gas prices are down about a third from their recent peaks, they remain elevated compared to the past few years. Those high prices are letting this firm pay down debt, which cuts its risk. It’s also increasing the cash it sends to shareholders.

All these factors, plus the possibility of increased future oil and gas prices, make this firm a very attractive prospect and we strongly recommend it.

Meanwhile, the stock trades at just 3.5 times the company’s cash flow forecast.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

CENOVUS ENERGY INC., (Toronto symbol CVE; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy Inc. (Toronto symbol HSE) in a friendly all-stock takeover on January 1, 2021.

The combined firm is now Canada’s third-largest producer of oil and natural gas, and the country’s second-largest refiner.

In August, the company agreed to buy the 50% of the oil refinery in Toledo, Ohio, that it doesn’t already own from U.K.-based oil giant BP plc (New York symbol BP). The facility, which opened in 1919, supplies the U.S. Midwest with gasoline and diesel fuels.

In exchange, Cenovus will pay $300 million U.S. in cash, plus an additional sum for the value of oil in that facility’s inventory. To put that price in context, Cenovus’s cash flow was $3.1 billion (Canadian), or $1.53 a share, in the second quarter of 2022. It expects to complete the transaction by the end of this year.

Energy Stocks: Revenues and cash flow rocket due to higher prices

Due to the sales of less-important properties and shutdowns for maintenance, Cenovus’s production in the three months ended September 30, 2022, fell 3.3%, to 777,900 barrels a day (81% oil, 19% natural gas) from 804,800 barrels a year earlier.

However, the company’s realized crude oil price rose 25.7%. As a result, revenue in the quarter jumped 37.6%, to $17.47 billion from $12.70 billion. That beat the consensus forecast of $14.8 billion.

Cenovus’s cash flow also gained 29.6%, to $1.49 a share from $1.15. However, that missed the consensus estimate of $1.63 a share.

The company is using its improving cash flow to cut its net debt (total debt less cash balances), from $13.1 billion after the Husky acquisition, to $5.28 billion as of September 30, 2022.

Thanks to that lower debt level, Cenovus is now returning 50% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks. As a result, the company will pay you a special dividend of $0.114 a share on December 2, 2022. That’s in addition to its regular quarterly dividend of $0.105 a share; the annual rate of $0.42 yields 1.7%.

Once its net debt is below $4.0 billion, the company plans to return 100% of its free cash flow to shareholders.

Investors can expect the company’s cash flow per share to reach $7.64 in 2022, and the stock trades at just 3.5 times that forecast.

Recommendation in Canadian Wealth Advisor: Cenovus Energy Inc. is a buy.

Increased selling prices led to a 3% jump in revenue for this company during the most-recent quarter.

However, lower volumes and iffy demand going forward suggest the company’s growth will be challenged in the near term. The stock trades at a high 32.0 times the company’s future earnings forecast.

MCCORMICK & CO. INC. (New York symbol MKC; www.mccormickcorporation.com) makes spices, seasonings and flavours.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

In its fiscal 2022 third quarter, ended August 31, 2022, McCormick’s sales rose 3.0%, to $1.60 billion from $1.55 billion a year earlier. That beat the consensus forecast of $1.59 billion.

If you factor out currency rates, sales improved 6%. That gain is entirely because the company increased its selling prices, which offset lower volumes, as well as the sale of its operations in Russia and a smaller business in India.

However, while most restaurants have fully re-opened their dining areas, it’s likely customer traffic will remain depressed for the next few months. McCormick’s exposure to China (the Asia/Pacific region supplies 12% of its sales) is another risk factor should future pandemic shutdowns be deemed necessary.

Growth Stocks: Earning fall off and look unlikely to recover

If you exclude unusual items, earnings per share fell 13.8%, to $0.69 from $0.80. That missed the consensus estimate of $0.72.

McCormick now expects to earn between $2.63 and $2.68 a share for all of fiscal 2022, down about 13% from its fiscal 2021 earnings of $3.05 share. The stock currently trades at a somewhat high 32.0 times the midpoint of that new range. The $1.48 dividend yields 1.7%.

Recommendation in Wall Street Stock Forecaster: McCormick & Co. Inc. is a hold.

If identified correctly, the benefits of investing in new technology can provide a boost to your portfolio returns

The success or failure of new tech stocks depends on a variety of factors. A company may start out with a promising business plan. But it needs all sorts of things to prosper in the long run: the right employees, a favourable economic and regulatory climate, a favourable competitive environment, positive research outcomes, adequate financing, perhaps the right merger partner or acquisition—the list is long.

There may be benefits to investing in new technology though, especially if the technology looks like it has a good chance to be commercially viable and is not merely speculative or conceptual.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

Take a realistic view of the benefits of investing in new technology

When listening to predictions, especially gloomy ones, keep in mind that nobody can consistently predict the future. Also remember that the most widely accepted gloomy predictions are especially prone to fail. That’s because people, as individuals, react to and prepare for predictions of doom. They work on the problem before its predicted arrival time. Sometimes that offsets it entirely.

The ultimate example tied to technology came on the first day of this century, with the non-arrival of the so-called “millennial bug,” or Y2K for short.

In the late 1990s, computer consultants warned that at the stroke of midnight on January 1, 2000, computers around the world would freeze up because of a problem with their data-storage limits. Computers used to use just two digits to designate a year. So they wouldn’t be able to tell what came after 1999; ‘00’ could mean 1900 or 2000. The problem had a simple fix, however. By the last day of 1999, most computer owners had attended to it. Damage from the predicted crisis was negligible.

Other technological concerns have since developed, particularly in regards to the limits of artificial intelligence (AI) and driverless cars. The logical flaw here is that exploding computer power at shrinking cost is a technological advance. But there are social, legal and practical limits to how quickly business can translate these technological gains into real-world progress (or problems, depending on how you look at it).

The funny thing is that fears about job losses from driverless cars and AI are common right now, just when a shortage of workers—not a surplus—is an immediate problem for business.

Instead of worrying about a jobless future, focus on how future shortage of workers may lead to a couple of economically healthy developments:

  • A rise in wages, as growing companies bid against each other to expand and improve their workforce. Rising wages tend to spur consumer spending, which fuels additional growth; and
  • A rise in capital spending. Businesses will need to improve their tools and equipment, so their better-paid workers will be able to expand their output and earn their higher pay. This raises productivity, which also spurs growth.

These two factors can feed on each other. They can lead to a lengthy boom in the economy and the stock market. We don’t need to guess when the boom will start, or how long it will last. We just need patience.

Subscribe to Canadian Wealth Advisor to build wealth safely and securely.

Discover what savvy investors know before they invest so they can get the benefits of investing in new technology while it is still growing

There’s a delicate balance between risk and reward with tech stocks.

Many new tech stocks are brought to the public through major investment banks, but are still unknown to most investors. This makes new tech stocks even more intriguing to some investors.

The best tech stocks are on a rapid growth path and will continue growing. Some of the best technology companies eventually become so successful that they start paying dividends. Investors should also scour a technology stock’s financial statements to glean any hints of hidden value such as research and development or other valuable long-term assets.

Successful tech stocks can experience enormous growth. However, technology stocks are also susceptible to lots of market volatility—and negative news can throw tech stocks into steep declines.

Fast-changing technology offers huge opportunities when investing in new tech stocks. However, fast change can also bring dangers. Technology stocks may have a role in your portfolio, but you should be well aware of the risks involved with high growth securities like tech stocks.

What you need to know about a stock before attempting to reap the benefits of investing in new technology

  • Is there a history of success?
  • Often tech stocks will offer different classes of shares that come with various shareholder voting rights. Investors can save money by purchasing the lower priced shares.
  • A strong reputation helps win new contracts.
  • High cash and low debt aids new product development.
  • High research and development budgets let tech stocks keep adding profitable new products to their lines and improving existing ones.

Look to companies that spend on research and development to get the benefits of investing in new technology

Research and development spending has the potential to pay off with dramatic long-term returns. That’s because the products that grow out of this spending will help tech firms increase their sales and profits over the longer term.

Download this free report now to learn strategies for building wealth over time.

We see high research spending as an especially powerful ingredient for technology stocks that will profit from a global economic recovery. That’s because they’ll be ready with new and improved products that businesses and consumers will want to use when they increase their technology spending.

Many new tech stocks start as speculative pennies. What would lead you to invest in these types of stocks?

What indicators do you look at to determine which tech stocks might make good additions to your portfolio?

Technology stocks generally move up and down with the overall economy. Now that a recession seems likely, businesses and consumers are scaling back their spending on new computers and software.

However, we feel now—ahead of the next cyclical upswing—is a good time to add high-quality tech stocks with solid long-term outlooks. Companies like this one, with positive revenues and earnings from a subscription model, remain excellent long-term prospects.

The stock trades at just 22.1 times the company’s forward earnings forecast.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

ADOBE INC. (Nasdaq symbol ADBE; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs.

The firm operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format.

In recent years, Adobe has also invested in creating three-dimensional content, a field dominated by video-game centric firms like Unity Software. Such content is expected to factor prominently in the metaverse, the virtual world that Meta Platforms and others are counting on for future revenue growth.

Three-dimensional objects have long been labour-intensive for artists to create, but the new tools from Adobe are designed to make it faster and easier to make the digital objects.

Adobe’s “3D Capture” tool will let users take a series of photos of a real-world object with nearly any camera—including smartphones—and then meld the photos together into a three-dimensional digital object.

A second new Adobe tool lets artists switch between editing a three-dimensional object on a desktop computer to manipulating it with their hands in a virtual reality headset. The software lets virtual artists get a similar feeling to sculpting clay—which remains in use today in designing cars and other objects—while also having the precision of working on a computer.

Growth Stocks: Revenues and earnings both rise with help from high R&D

Adobe’s decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases continues to pay off for investors.

The company also continues to benefit from its November 2018 acquisition of marketing-automation firm Marketo for $4.75 billion. That firm helps brands track their customers’ actions online, from the time they get an email to the time they purchase a product. Marketo then provides those brands with that information, which they use to create more-personalized promotions.

In Adobe’s fiscal 2022 third quarter, ended September 2, 2022, revenue rose 12.7%, to a record $4.43 billion from $3.94 billion. Overall earnings rose 6.6%, to $1.60 billion from $1.50 billion. Due to fewer shares outstanding, earnings per share climbed 9.3%, to $3.40 from $3.11.

The company spends a high 17% of its sales on research to stay ahead of the competition. Its balance sheet is nonetheless very strong: it holds cash of $5.76 billion, while its long-term debt is just $3.63 billion.

Adobe also continues to enhance its expertise with acquisitions. It just agreed to buy collaboration software company Figma for around $20 billion in cash and stock. Figma specializes in cloud-based collaboration tools that aim to help teams better create and build web applications.

The company will probably earn $13.63 a share for all of fiscal 2022, and the stock trades at a reasonable 22.1 times that forecast.

Recommendation in Wall Street Stock Forecaster: Adobe Inc. is a buy.

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that specializes in consumer medical products and solutions.

Pat likes the firm’s recent acquisition, which should let the company better serve the aging U.S. population. The company’s essential products are also unlikely to become obsolete. However, Pat warns that the company’s high debt could be problematic.

OWENS & MINOR INC. (Symbol OMI on New York; www.owens-minor.com) is a healthcare logistics and supply-chain expert. It sells both its own medical products and those of third-party suppliers.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

Headquartered in Mechanicsville, Virginia, the company operates in two segments:

Products & Healthcare Services (77% of sales) distributes medical and surgical supplies to acute-care facilities. Patient Direct (23%) operates a direct-to-consumer segment that supplies testing and monitoring supplies to diabetes patients.

In March 2022, the company paid $1.6 billion for Indianapolis-based Apria Inc. Apria supplies home healthcare equipment and related services for in-home patient care. Owens & Minor combined Apria with its Byram Healthcare unit, which delivers medical supplies to the homes of chronic patients. Apria has annual revenue of about $1.14 billion.

In the three months ended September 30, 2022, the company’s revenue fell slightly, to $2.497 billion from $2.502 billion a year earlier. Revenues were higher in its Patient Direct business due to its Apria acquisition and the continued strength of its Byram unit. However, that was more than offset by lower demand for its products in hospitals. That demand fell because its clients have elevated inventory levels and had lower-than-expected procedure volume.

Excluding one-time items, the company made $31.4 million, or $0.41 a share. That was down 44.4% from $56.5 million, or $0.74. The decline was due to higher expenses and supply-chain disruptions, as well as increased interest expense.

Inner Circle: Debt is high but the recent purchase should contribute significantly

Going forward, Owens & Minor faces both opportunities and challenges—investors are understandably more concerned about the challenges. That’s why the stock is down 54% so far in 2022. That includes a big drop in early October 2022 when it released its third-quarter results and outlook.

Near-term weakness in hospital demand due to inventory buildup and reduced procedures due to labour and supply chain disruption are ongoing challenges.

What’s more, the company’s long-term debt after the Apria purchase is now at $2.5 billion, up from $947.5 million at the start of 2022. That’s a very high 1.7 times its market cap of $1.5 billion.

Despite those challenges, the Apria purchase should be a big positive for Owens & Minor. Specifically, it lets the company better serve the aging population in the U.S.—from the treatment of chronic conditions to the rising preference for home care. All of that bodes well for the growth of Owen & Minor’s home health care segment.

Meanwhile, the long-term outlook for the company’s leading position in the medical and surgical supply distribution business is strong. Owens & Minor focuses on single-use consumable products, which have low levels of technological obsolescence and are essential to healthcare in a wide range of settings.

Recommendation in Pat’s Inner Circle: Owens & Minor Inc. is a hold.

A decline in disposable face mask sales partly explained a 3.7% drop in sales for this company during the most-recent quarter.

Earnings beat consensus forecasts, however, and a new spinoff is on the way which should increase shareholder value.

Meanwhile, the stock trades at just 12.6 times the company’s 2022 earnings forecast.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

3M COMPANY (New York symbol MMM; www.3mcanada.ca) makes over 60,000 consumer and industrial goods, including air purifiers, adhesives, bandages and components for medical devices. Its main brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.

In September 2022, the company merged its Food Safety business with Neogen Corp. (Nasdaq symbol NEOG) in a split-off transaction. 3M investors that opted to participate now hold 50.1% of the combined firm, with Neogen shareholders owning 49.9%.

The merged company is a leading supplier of equipment that food makers use to detect pathogens and other harmful substances in their products. As part of the deal, 3M received a cash payment of $828 million.

If you exclude costs related to the Neogen transaction and other unusual items, 3M’s earnings in the three months ended September 30, 2022, rose 4.3%, to $2.69 a share from $2.59 a year earlier. That beat the consensus estimate of $2.60 a share.

Blue Chip Stocks: Shares look cheap despite a recent revenue miss

However, revenue in the quarter fell 3.7%, to $8.62 billion from $8.94 billion. The drop was partly due to a $130 million decline in sales of disposable face masks as the COVID-19 pandemic eased. That missed the consensus revenue forecast of $8.71 billion.

Due to rising cost for materials and the negative impact of the higher U.S. dollar, 3M now expects to earn between $10.10 and $10.35 a share in 2022, down from its earlier range of $10.30 to $10.80 a share. The stock trades at 12.6 times the midpoint of that new range. That’s a reasonable multiple, particularly as 3M still plans to spin off its Health Care division as a separate company in 2023.

The company last raised its quarterly dividend with the March 2022 payment. Investors now receive $1.49 a share, up 0.7% from $1.48. The new annual rate of $5.96 yields a high 4.6%. 3M has paid dividends continuously for over 100 years and has increased that rate each year for the past 64 years.

3M has increased its annual dividend rate by an average 4.9% in the past 5 years. Its TSI Dividend Sustainability Rating is Above Average.

Recommendation in Wall Street Stock Forecaster: 3M Company is a buy.

With a focus on renewable energy, this power generator holds a lot of conceptual appeal due to its renewable energy focus. What’s more, this firm supports its high dividend by selling its wind and other power under long-term guaranteed contracts. This includes sales to its blue-chip parent company.

To further cut risk, the company also focuses on operating in safe jurisdictions.

Meanwhile, the stock trades at 17.6 times the company’s forward earnings forecast for 2023.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

TRANSALTA RENEWABLES INC. (Toronto symbol RNW; www.transaltarenewables.com) owns 29 wind and solar farms, 13 hydroelectric facilities, eight natural gas generation plants, and one battery storage facility. Those projects are in Canada, the U.S. and Australia. TransAlta Corp. (Toronto symbol TA) holds 64% of the company.

TransAlta first sold shares in TransAlta Renewables on August 9, 2013, at $10 a share. After the IPO, TransAlta owned 80% of the renewables business.

Due to acquisitions and the building of new plants, TransAlta Renewables’ revenue rose 18.4%, from $259 million in 2016 to $462 million in 2018. Revenue then dipped 3.5% to $446 million in 2019 as lower production from its existing wind farms offset the contribution of acquisitions. Revenue fell 2.2% to $436 million in 2020 on lower demand from its gas-fired plants.

Cash flow improved 15.9%, from $245 million in 2016 to $284 million in 2017. Due to more shares outstanding, cash flow per share gained just 10.0%, from $1.10 to $1.21. Cash flow slipped to $1.15 a share (or a total of $295 million) in 2018, before falling again to $1.11 a share (or $293 million) in 2019. It rose to $1.14 a share (or $304 million) for 2020.

Dividend Stocks: Revenue is up strongly to support the high payout

TransAlta Renewables last raised its monthly dividend by 6.8% with the September 2017 payment, from $0.07333 a share to $0.07833. The new annual rate of $0.94 yields a high 6.8%.

In the quarter ended June 30, 2022, revenue jumped 51.1%, to $139.0 million from $92.0 million a year earlier. The increase came from higher-than-average wind power production, plus acquisitions. Cash flow per share increased 22.2%, to $0.33 from $0.27.

Wind power generation relies heavily on government subsidies and political support to make it profitable. However, TransAlta Renewables cuts risk by selling its power under long-term, guaranteed agreements. One of its main customers is its parent (TransAlta Corp.), which is also a benefit.

Right now, its average contract life is 11 years.

Recommendation in Dividend Advisor: TransAlta Renewables is a buy.

A spinoff should help this company remain focused on its core offering of computer chips for personal computers and data centres.

In the meantime, it’s looking to grow its ability to make chips for other firms by building advanced plants.

The stock trades at 14.9 times the company’s 2022 earnings forecast.

How Successful Investors Get RICH

Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor.

How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.

INTEL CORP. (Nasdaq symbol INTC; www.intel.com) is the world’s leading maker of computer chips: its products power 90% of all personal computers and more than 80% of all data centres.

Intel has now filed the initial paperwork as part of its plan to sell shares in its Mobileye business through an initial public offering (IPO).

The company acquired Israel-based Mobileye, which makes chips for self-driving cars, for $15.7 billion in 2017.

Intel now plans to sell 41 million shares in Mobileye to the public for $18 to $20 each. The new shares will trade on the Nasdaq exchange under the “MBLY” symbol.

The company will retain control of Mobileye through class B (10 votes per share) common shares; the class A common shares carry 1 vote per share. In all, Mobileye will have an initial market cap of about $20 billion.

The company expects to receive $820 million from the offering. That’s equal to less than 1% of its current market cap (the total value of all outstanding shares) of $123.4 billion.

Dividend Stocks: Expansion plans include plants in two U.S. states

Intel will use the cash from the Mobileye IPO to fund its plan to increase its ability to make chips for other companies.

Under that strategy, the company plans to build two chipmaking plants in Ohio at a cost of $20 billion. These facilities will make its most advanced chips when they begin operating in 2025. Subsidies and tax credits from the passage of the new CHIPS and Science Act in the U.S. Congress will help offset some of those costs.

The company plans to build two new chipmaking facilities in Arizona. Those new plants should begin operating in 2023.

Intel has now signed a new deal with Brookfield Infrastructure Corp. (New York symbol BIPC) that will help cover the $30 billion cost of these new plants.

Under this agreement, Brookfield will pay 49% of the cost, with Intel paying the remaining 51%, or $15.3 billion. That’s equal to 12% of Intel’s $123.4 billion market cap.

In exchange for this funding, Brookfield will receive 49% of the future revenue from these new plants.

This deal should help Intel attract other partners to fund its new plants in Ohio.

With the March 2022 payment, Intel raised your quarterly dividend by 5.0%. Investors now receive $0.365 a share instead of $0.3475. The new annual rate of $1.46 yields 5.0%.

Intel has paid dividends continuously since 1992. That payment has risen an average 7.0% annually over the last 5 years. The company’s TSI Dividend Sustainability Rating is Above Average.

Recommendation in Dividend Advisor: Intel Corp. is a buy.

The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.

This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.

The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.

We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.

We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.

We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.

What personal information do we collect?

The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.

Automatic Information: We receive and store certain types of information whenever you interact with us. For example, like many websites, we use "cookies," and we obtain certain types of information when your web browser accesses TSI Network.

Information from Other Sources: For reasons such as improving personalization of our service (for example, providing better product recommendations or special offers that we think will interest you), we might receive information about you from other sources and add it to our account information. We also sometimes receive updated delivery and address information from our shippers or other sources so that we can correct our records and deliver your next purchase or communication more easily.

We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.

Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.

To make the visitor’s experience on our website easier, we may use per-session “cookies” (session identifiers) to track the state of the visitor session. This “cookie” is destroyed when your session with our website is over.

Cookies are alphanumeric identifiers that we transfer to your computer's hard drive through your web browser to enable our systems to recognize your browser and to provide features like "Remember Me" for our paying subscribers. Cookies are also used during the ordering process to help ensure your order is handled correctly. We do not extract any information about individual users or their computers as a part of this process.

The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, cookies allow you to take full advantage of some of TSI Network's most useful features, and may be required to access certain areas of our website.

Internet Protocol (or IP) addresses are collected for all visitors to this site. This information is used for the purposes of traffic analysis.

Does TSI Network Use the Information It Receives?

"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.

Purchases of Merchandise: TSI Network websites may offer individuals the opportunity to purchase branded or other merchandise online. In connection with those purchases, customers may be asked to submit personal information, such as shipping addresses and credit card information, which is required to complete the transaction. TSI Network may also offer a Membership program, through which purchasers of its products may receive discounts on their online purchases. Membership registration may involve the submission of personal information to TSI Network and assignment of a user ID and password.

Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.

Promotional Offers: We may make our postal mailing list available to organizations offering products or services that might interest you. If you prefer NOT to receive these offers, please send an email with your name and address to privacy@thesuccessfulinvestor.com with "Do Not Rent Name" in the subject line. We do NOT make our email list available outside our organization.

Protection of TSI Network and Others: We release account and other personal information when we believe release is appropriate to comply with law; enforce the terms of the Legal notices that accompany this policy; or protect the rights, property or safety of TSI Network, our users or others. This includes exchanging information with other companies and organizations for fraud protection and credit risk reduction.

In addition to these limited disclosures of personal information, TSI Network may provide its affiliates or unaffiliated third parties with aggregate information about visitors to our sites. For example, we might disclose the median ages of visitors to our websites, or the numbers of visitors to our websites that come from different geographic areas. Such aggregate information will not include information of any individual visitors to our websites.

TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.

With Your Consent: Other than as set out above, you will receive notice when information about you might go to third parties, and you will have an opportunity to choose not to share the information.

Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.

We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.

TSI Network requires persons and companies to which it discloses personal information to restrict their use of such information to the purposes for which it has been provided by TSI Network, to adequately protect the information, and not to disclose that information to others. TSI Network cannot be responsible, however, for any damages caused by the failure of unaffiliated third parties to honour their privacy obligations to TSI Network. Similarly, TSI Network is not responsible for the privacy policies and practices of other websites that are linked to our websites.


We’re always happy to receive feedback, comments and ideas from TSI Network visitors, and we encourage you to add your perspective to any issue by leaving your comments on the site.

To make sure users get the most out of the site’s comments function, we’ve provided a few guidelines:

  • Do not post threatening, harassing, defamatory, or libelous material.
  • Do not intentionally make false or misleading statements.
  • Do not offer to sell or buy any product or service.
  • Do not post material that infringes copyright.
  • Do not post information that you know to be confidential or sensitive or otherwise in breach of the law.
  • TSI Network will not accept responsibility for information posted in the comments.

Please note that we reserve the right to delete or edit all comments. As well, we may close posts to further comments at our discretion. If a user repeatedly abuses our comment policy, we may also revoke that user’s access to our comments section.

By commenting on TSI Network, you agree that you retain all ownership rights in what you post on the site, and that you will relieve us from any and all liability that may result from those postings.

Special Note for Parents

TSI Network does not sell products for purchase by children. If you are under 18, you may use TSI Network's site only with involvement of a parent or guardian

How do we protect your personal information?

TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.

How do we maintain the integrity of your personal information?

TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: privacy@thesuccessfulinvestor.com.

How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints

If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.

If you do not want to receive promotional offers, please notify TSI Network by sending an email to privacy@thesuccessfulinvestor.com.

How can you ask questions about our Privacy Policy and access your personal information?

The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.

What Choices Do I Have?

  • As discussed, you can always choose not to provide information even though it might be needed to make a purchase or to take advantage of TSI Network features.
  • You can add or update certain information as explained in the section "How Can I Change My Information?"
  • If you do not want to receive email or other mail from us, please notify TSI Network by sending an email to privacy@thesuccessfulinvestor.com.
  • The "Help" portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. However, you will not be able to use important features of TSI Network sites if you do not use cookies.

Changes to this Policy

This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.

TSI Network may revise this Policy from time to time.

Legal Notices and Disclaimers

The contents of this web site and our publications are based upon sources of information believed to be reliable, but no warranty or representation, expressed or implied, is given as to their accuracy or completeness. Any opinion reflects the Successful Investor’s judgment at the date of publication and neither the Successful Investor, nor any of its affiliated companies, nor any of their officers, directors or employees, accepts any responsibility in respect of the information or recommendations contained in the publications or on this web site. Moreover, the information or recommendations are subject to change without notice.

Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.