We Prefer Dividends

Economic turmoil over the past few months, and the sharp drop in stock prices, have rekindled investor interest in bonds. This is understandable, since bonds provide steady income streams and a guarantee to repay the principal at maturity.

However, bond prices will likely fall over the… Read More

Railways are Safe Investments

Every portfolio needs a selection of mainstays that are safe investments, and we believe Canada’s two main railways can help provide these.

High fuel costs, flooding in the U.S. Midwest and a slowing economy have hurt earnings at Canada’s two main railways. However, both CP and… Read More

U.S. Problems Weigh on our Banks

Bank stocks have struggled since late last year, due to fears that the problems with subprime mortgages in the United States will spread to Canada. Most of Canada’s big five banks have some exposure to these troubled loans, and writedowns have hurt their recent earnings… Read More

Banks Still Have Long-term Appeal

All five of Canada’s biggest banks have been exceeding investor expectations since at least the mid-1990s. Investors always worry too much about the impact on the banks of each new ripple in interest rates and business statistics.

Bank profits and loan losses do go through swings,… Read More

Banks Can Handle a Slowdown

Investors have generally under-estimated the big five Canadian bank stocks for at least the past 33 years, which is when I started paying attention to them. As a result, the banks have been among the market’s top long-term performers throughout that period, while staying reasonably… Read More

CP Rail Still a Portfolio Mainstay

CANADIAN PACIFIC RAILWAY LTD. $64 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Above average) provides freight service through a 13,500- mile rail network between Montreal and Vancouver. It also operates in the U.S. Midwest and Northeast through subsidiaries. Alliances with… Read More