acquisition

With a focus on renewable energy, these two power generators hold a lot of conceptual appeal for investors. Even more important to income-focused investors is their stable cash flows from a diverse mix of hydroelectric, wind and solar assets. That diversity, plus their long-term contracts, will let these utility firms continue to build out their operations and add to your sustainable dividends.


TRANSALTA RENEWABLES, $18.48, is a buy. The company (Toronto symbol RNW; Shares outstanding: 266.9 million; Market cap: $4.9 billion; TSI Rating: Extra Risk; Divd....

LOBLAW COMPANIES, $111.16, is a buy. The company (Toronto symbol L; Shares outstanding: 333.6 million; Market cap: $37.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.3%; www.loblaw.ca) has agreed to acquire Lifemark Health Group....

A: Planet Fitness Inc., $86.85, symbol PLNT on Nasdaq (Shares outstanding: 84.4 million; Market cap: $7.7 billion; www.planetfitness.com), is one of the largest and fastest-growing franchisors and operators of fitness centres in the U.S....

DESKTOP METAL INC., $4.61, symbol DM on New York, is a Massachusetts-based manufacturer of 3D printing systems.

Founded in 2015, the company believes that its 3D printing technology is up to 100 times faster than traditional legacy systems. Its customers include many of the major automotive manufacturers, including Ford, Toyota, Nissan, BMW, GM and Volkswagen....

CANADIAN PACIFIC RAILWAY LTD., $103.32, Toronto symbol CP, is your #1 Conservative Buy for 2022.

CP ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast.

The stock gained 3% this week after the company and the union representing 3,000 conductors, engineers, and train and yard workers have agreed to settle their current labour dispute through binding arbitration....

Genuine Parts has a long history of rewarding investors: the company has paid regular dividends since it became a public company in 1948. The company recently completed a big acquisition that should let it continue that impressive record. Genuine will also benefit from the slowdown of new car production due to the ongoing chip shortage, which should spur demand for replacement parts.


GENUINE PARTS CO....

MICROSOFT CORP. $299 is a buy. The tech giant (Nasdaq symbol MSFT; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares o/s: 7.5 billion; Market cap: $2.2 trillion; Dividend yield: 0.8%; Dividend Sustainability Rating: Highest; www.microsoft.com) raised your quarterly dividend by 10.7% with the December 2021 payment, to $0.62 a share from $0.56....

Pipeline operator Pembina continues to rebound from its March 2020 low of $15.27 as the economy re-opens following COVID-19 shutdowns. Despite the pandemic, the company held its dividend.


As well, a new deal to sell 40% of its Western Canadian gas processing to U.S.-based private equity investor KKR will let Pembina reward its investors with higher dividends and share buybacks later this year.


PEMBINA PIPELINE CORP....

OTIS WORLDWIDE CORP. $76 is a buy. The company (Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 425.0 million; Market cap: $32.3 billion; Price-to-sales ratio: 2.2; Dividend yield 1.3%; TSINetwork Rating: Average; www.otis.com) is the world’s largest maker of elevators and escalators.


In response to Russia’s invasion of Ukraine, Otis has stopped taking new elevator and escalator orders from customers in that country....

Technology stocks such as Alphabet (see page 31) and the three we analyze below tend to trade at somewhat high multiples to their earnings. That can scare away many more-conservative investors.


However, all of these firms are market leaders in their niche fields, which helps shield them from the chip shortages that are hurting tech companies like HP and HP Enterprise (see page 35)....