diversification
What is diversification?
Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.
What is diversification?
With rising revenues from its theme parks and hotels, high-yielding dividend stock Cedar Fair offers investors both income and growth.
iShares Core S&P 500 Hedged ETF (CAD-Hedged), $23.17, symbol XSP on Toronto (Units outstanding: 125.4 million; Market cap: $2.9 billion; www.blackrock.com), holds the stocks in the S&P 500 Index, which is comprised of 500 major U.S. stocks chosen by market size, liquidity and industry group.
The index’s 10 highest-weighted stocks are Exxon Mobil, Apple, Berkshire Hathaway, Microsoft, Wells Fargo, General Electric, AT&T, Johnson & Johnson, JPMorgan Chase & Co. and Pfizer. It has a 1.6% dividend yield.
iShares Core S&P 500 Hedged ETF (CAD-Hedged) is hedged against movements of the U.S. dollar against the Canadian dollar. The fund’s Canadian-dollar value rises and falls solely with the movements of the stocks in its portfolio.
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The index’s 10 highest-weighted stocks are Exxon Mobil, Apple, Berkshire Hathaway, Microsoft, Wells Fargo, General Electric, AT&T, Johnson & Johnson, JPMorgan Chase & Co. and Pfizer. It has a 1.6% dividend yield.
iShares Core S&P 500 Hedged ETF (CAD-Hedged) is hedged against movements of the U.S. dollar against the Canadian dollar. The fund’s Canadian-dollar value rises and falls solely with the movements of the stocks in its portfolio.
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Cott Corp., $13.87, symbol BCB on Toronto (Shares outstanding: 109.7 million; Market cap: $1.5 billion; www.cott.com), is a leading maker of beverages for retailers and distributors. It also makes drinks for companies that sell them under their own labels.
Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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Cott makes a range of products in a variety of packaging and sizes, including carbonated soft drinks, juice and juice-based beverages, flavoured water, tea and energy drinks, as well as alcoholic beverages.
The company has over 60 plants and 180 warehouses in the U.S., Canada, the U.K. and Mexico. North America supplies 80% of its revenue and 65% of its earnings. Around 26% of its beverage sales come from Wal-Mart.
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Chorus Aviation, $5.61, symbol CHR.B on Toronto (Shares outstanding: 114.6 million; Market cap: $685.4 million; www.flyjazz.ca), formerly known as Jazz Air Income Fund, is Air Canada’s main regional affiliate. Chorus owns Jazz Air, Canada’s largest regional airline and second-biggest airline overall, based on the number of planes it operates and routes it flies. Jazz Air and Air Canada have a capacity purchase agreement (CPA) under which Air Canada buys almost all of Jazz’s seats based on predetermined rates. The company’s current CPA with Air Canada provides the stable long-term cash flow it needs to maintain its monthly dividend and buy new aircraft....
In the complex drug industry, Pfizer’s effective growth strategies—such as biosimilar drugs—make it one of our top U.S. dividend stocks.
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