CAE Inc.

These two REITs have recently completed multi-year restructuring plans that shifted their focus to much more promising properties. Moreover, both have held your distributions steady during their restructuring, and we feel they’re poised to add to your income following the current COVID-19 crisis.


H&R REAL ESTATE INVESTMENT TRUST $8.46 is a buy. Through your units in this REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 286.7 million; Market cap: $2.4 billion; Dividend yield: 16.3%; Dividend Sustainability Rating: Above Average; www.hr-reit.com) you tap income from 455 properties: 33 office buildings, 311 retail developments, 87 industrial buildings and 24 residential properties....

Stock prices have dropped sharply in anticipation of a much wider spread of the coronavirus, and the deep economic setback that could result from its spread. That could happen—no one can predict the future. However, most sharp market downturns are temporary. Due to modern medicine and technology, the coronavirus impact is unlikely to get so big that it brings on a long-lasting stock-market decline.


Our advice is that if your stock holdings made sense for you a few weeks ago, in light of your investment goals, financial circumstances and temperament, then you should hang on to them.


You should also continue to follow our three-pronged Successful Investor strategy: Invest mainly in established companies; spread your money out across the five main economic sectors; and downplay or avoid stocks that are in the broker/media limelight.


But most important—with yields on many stocks currently so much higher than before the COVID-19 tumult and with many companies cutting their dividends—income investors need to pay close attention to our Dividend Sustainability Ratings.


In this, your latest issue of Dividend Advisor, you’ll also find several high-yielding stocks we recommend for new buying....

We designed our Dividend Sustainability Rating to help our readers zero in on companies that can continue to pay you dividends (or even raise them) during economic downturns.


The COVID-19 coronavirus outbreak has already forced many firms to cut or suspend their dividends....

GENUINE PARTS CO. $90 is a buy. The company (New York symbol GPC; Income-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 145.9 million; Market cap: $13.1 billion; Dividend yield: 3.5%; Dividend Sustainability Rating: Above Average; www.genpt.com) sells replacement auto parts through company-owned stores (under the NAPA banner) and independent outlets in North America, Europe, Australia and New Zealand....

CN has faced several challenges in the past few months, including an eight-day strike by conductors and yard workers and the impact of the U.S.-China tariff war on freight volumes. More recently, it had to suspend its operations in Eastern Canada due to blockades erected by First Nations protesters....

BROOKFIELD RENEWABLE PARTNERS L.P. $70 is a buy. Through units in the partnership (Toronto symbol BEP.UN; High-Growth Dividend Payer Portfolio, Utilities sector; Units outstanding: 308.6 million; Market cap: $21.6 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Above Average; www.bep.brookfield.com) you gain a stake in 219 hydroelectric generating stations, 108 wind farms and 4,907 solar-power facilities....

INTACT FINANCIAL CORP. $151 is a buy. The company (Toronto symbol IFC; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 143.0 million; Market cap: $21.6 billion; Dividend yield: 2.2%; Dividend Sustainability Rating: Above Average; www.intactfc.com) will raise its quarterly dividend with the March 2020 payment....

Investors focused on the oil and gas industry are increasingly challenged by weaker prices. But as we continue to point out, the industry’s best stocks—with the most sustainable dividends—are integrated producers (see box). They include Canadian powerhouses Suncor and Imperial Oil.


SUNCOR ENERGY INC....

Even as coronavirus fears prompt a shift to bonds, we continue to recommend these two utility stocks instead of those fixed-income government investments. While bonds now yield just 1.4%, the utility stocks below offer you much more appealing yields as well as strong growth prospects....

TEXAS INSTRUMENTS INC. $119 remains a buy. The company (Nasdaq symbol TXN; High-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 934.0 million; Market cap: $111.1 billion; Divd. yield: 3.0%; Divd. Sustainability Rating: Above Average; www.ti.com) is a leading maker of analog chips, which convert touch, sound and pressure into the electronic signals that computers can understand.


With the November 2019 payment, the company raised your quarterly dividend by 16.9%....