CAE Inc.

Welcome to your latest issue of Dividend Advisor.


This month, we highlight several attractive, high-yield stocks we recommend to you as buys. They include Extendicare, which offers you a high 6.0% yield while serving the rapidly growing senior-care market....
TC Energy (TransCanada’s new name) is now developing a whopping $30.3 billion in new pipelines and other projects—all of them set to add considerable value for investors. You should expect the company to complete $10 billion of that work by the end of 2019. The remainder will come by 2023....
Investors in CAE—a long-time favourite of ours—have seen a 35% gain this past year, alone. We feel there’s lots more growth ahead. That’s because rising air travel volumes continue to spur demand for CAE’s pilot-training services. The company’s improved earnings also give it room to keep raising your dividends.


CAE INC., $33, is a buy. The company (Toronto symbol CAE; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 266.2 million; Market cap: $8.8 billion; Dividend yield: 1.3%; Dividend Sustainability Rating: Above Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....
Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects.

CAE INC., $33, is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $8.7 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) has opened three new pilot training centres in Europe—two in England and one in Italy....
CAE INC. $36 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.1 million; Market cap: $9.5 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.1%; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....
CAE INC. $32 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $8.5 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....
CAE expects global air travel volumes to rise 3.6% each year for the next decade. That’s good news for the company, which is the leading supplier of flight simulators and pilot-training services to the airline industry. In fact, CAE has roughly 70% of the global civilian simulator market.


The company also continues to expand its military training operations....
CAE INC. $26 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 266.3 million; Market cap: $6.9 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.5%; TSINetwork Rating: Average; www.cae.com) continues to win pilot-training contracts.


For example, it recently won a deal to train pilots for U.K.-based airline easyJet....
Prospects for all three of these companies from our Aggressive Growth Portfolio continue to improve, either through acquisitions or cost cuts. Still, each stock fell sharply in 2018 and will likely remain depressed in 2019.


Instead of selling, however, we continue to recommend investors hold their shares....