canadian

A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So, while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.

The underlying credit quality of preferred share issuers can be a negative factor in some cases; for example, when the issuer’s share price is falling.

So unlike GICs, which don’t fall in value, the prices of preferreds can decline along with stock markets.

If you want to own a preferred share as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold....

CANADIAN PACIFIC RAILWAY $475.99, is a buy. The company (Toronto symbol CP; shares o/s: 133.3 million; Market cap: $63.0 billion; Rating: Above Average; Dividend yield: 0.8%) has now agreed to acquire U.S.-based railway Kansas City Southern (New York symbol KSU) for roughly $29 billion U.S....

Business for our two top Canadian insurance recommendations remains steady despite COVID-19—and both have now rebounded to their all-time highs. Meanwhile, due to the pandemic, Canadian financial regulators have instructed federally regulated firms, including Manulife and Sun Life, to postpone their planned dividend increases....

The major Canadian and U.S. stock markets have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time to buy. We see ETFs as one way for you to profit from that rise, while cutting your risk.


The best of these funds offer a diversified group of stocks while charging you low management fees....

The Bank of Canada cut its benchmark interest rate to 0.25% in March 2020. That was meant to support economic activity after COVID-19 hit. Whether the bank continues to hold that rate steady, cuts it further or raises it depends on Canada’s economic growth and employment levels.


Meanwhile, today’s low interest rates make bonds unattractive....

George Weston now plans to sell off its 139-year-old Weston Bakery unit. That will give it lots of cash—potentially as much as $2.2 billion or more—to buy back shares or boost dividends. At the same time, a sale will help to reduce George Weston’s “holding company discount” (the tendency of holding companies to trade for less than the total value of their assets)....

The best stocks for long-term investment success—here’s a winning approach to take, and how to select them

A: The iShares S&P/TSX Composite High Dividend Index ETF, $22.23, symbol XEI on Toronto (Units outstanding: 44.7 million; Market cap: $993.7 million; www.blackrock.com/ca), aims to track the S&P/TSX Composite High Dividend Index....

When we look for the best Canadian value stocks, we start with a few basic ratios, but then go beyond these financial indicators for a deeper perspective

Canada’s banking regulator is now starting to unwind the special conditions it placed on banks and other lenders in response to the COVID-19 pandemic. Those moves, along with falling loan-loss provisions, should let these two banks resume regular dividend increases later this year.


ROYAL BANK OF CANADA $116 is a buy. Canada’s largest bank (Toronto symbol RY; Income-Growth Dividend Payer Portfolio; Finance sector; Shares outstanding: 1.4 billion; Market cap: $162.4 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Highest; www.rbc.com) last raised your quarterly dividend with the May 2020 payment....