canadian

We’ve often said that growth by acquisition is riskier than growth from a company’s existing operations. That’s because the buyer of something rarely knows as much about it as the seller. That knowledge gap exposes the buyer to an above-average risk of unpleasant surprises.

Of course, some companies do a better job than others when acquiring assets....
INTACT FINANCIAL CORP., $311.35, is a buy. The stock (symbol IFC on Toronto) offers investors exposure to Canada’s largest provider of property and casualty insurance. Intact insures more than five million individuals and businesses. Its major brands are Intact Insurance, Canada BrokerLink and belairdirect.

In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S....
TORONTO-DOMINION BANK, $94.77, Toronto symbol TD, remains a buy for patient, income-seeking investors.

With the January 2025 payment, TD raised your quarterly dividend by 2.9%, to $1.05 a share from $1.02. The new annual rate of $4.20 yields a solid 4.4%.

The bank recently settled charges over lapses in the anti-money laundering processes at its U.S....
ROYAL BANK OF CANADA, $173.94, Toronto symbol RY, is a buy.

The bank continues to benefit from its March 2024 purchase of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion.

HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally....
These two Canadian insurers continue to offer investors strong long-term growth prospects, as well as dependable dividends. We see both as solid long-term buys.


MANULIFE FINANCIAL CORP. $44 is a buy. The company (Toronto symbol MFC; Conservative-Growth Payer Portfolio; Finance sector; Shares outstanding: 1.7 billion; Market cap: $74.8 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.manulife.ca) is Canada’s largest life insurer....
RioCan’s units fell recently in response to the bankruptcy of retailer Hudson’s Bay Company. However, it looks like the REIT will be able to release these stores to new tenants on comparable or better terms.


Meantime, RioCan continues to benefit from its focus on Canada’s biggest cities given their strong population growth (up 77% since 2017) and rising household income (up 45%)....
We continue to recommend that investors diversify their Finance sector holdings beyond the major banks.


Here are three non-bank firms we recommend. Their commitment to developing new products will let them keep dominating their niche markets....
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