Q: I would like your opinion on why it seems companies don’t seem to split their shares as much as they did in the past, when values exceed a threshold amount of, say, $100.00 a share. If they did, it would make it much easier for small investors, like myself, to afford good quality stocks that have become too expensive. Can you explain why it seems that stocks very rarely split these days?

A: When a company splits its shares, it is simply cutting itself up into a different number of pieces, without changing its fundamental value. It wants its stock to trade in a price-per-share range that seems reasonable to investors.

Mechanics of a split: If a stock’s… Read More

Two ETFs may be the best choices in bonds

Two ETFs may be the best choices in bonds

The Bank of Canada cut its benchmark interest rate in March to 0.25% from 1.75%. The move was meant to spur the economy after COVID-19 hit. Whether the bank holds that rate steady, or cuts it even further, depends on the country’s economic growth and… Read More

CP sets a grain record

CANADIAN PACIFIC RAILWAY $363.51, is a buy. The company (Toronto symbol CP; shares outstanding: 135.6 million; Market cap: $49.3 billion; Rating: Above Average; Dividend yield: 1.0%) operates a 22,000-kilometre rail network between Montreal and Vancouver.
CP shipped a record 8.41 million tonnes of Canadian grain in the quarter ended June… Read More

CP sets a new grain record

CANADIAN PACIFIC RAILWAY LTD. $358 remains your #1 Conservative stock for 2020. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 135.6 million; Market cap: $48.5 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.cpr.ca) shipped a record 8.41 million… Read More

These ETFs offer you low-fee bond exposure

The Bank of Canada cut its benchmark interest rate to 0.25% from 1.75% in March. The move was meant to spur the economy after COVID-19 hit. Whether the bank holds that rate steady, or cuts it even further, depends on the country’s economic growth and… Read More