general electric

TENNANT CO. $72 (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.6 million; Market cap: $1.3 billion; Priceto-sales ratio: 1.6; Dividend yield: 1.2%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floorcleaning equipment, including scrubbers, sweepers and polishers....

STATE STREET CORP. $79 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 385.7 million; Market cap: $30.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to the operators of mutual funds and pension plans....

GENERAL ELECTRIC CO. $32 (New York symbol GE; Income-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.9 billion; Market cap: $284.8 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.0%; Dividend Sustainability Rating: Above Average; www.ge.com) is a leading maker of industrial machinery, including jet engines, power plant equipment and locomotives....

All of the Big Five banks hold our highest Dividend Sustainability Rating, but only two have announced payout increases for the first half of fiscal 2017.


BANK OF MONTREAL $97 (Toronto symbol BMO; Income-Growth Dividend Payer Portfolio, Finance sector; Shares o/s: 645.8 million; Market cap: $63.5 billion; Priceto-sales ratio: 3.1; Dividend yield: 3.6%; www.bmo.com Dividend Sustainability Rating: Highest) will increase its quarterly dividend by 2.3%, to $0.88 a share from $0.86....

All five of Canada’s big banks have moved up strongly in the past year, as demand for new mortgages and loans remained strong. They have also built up their online and mobile banking operations, which will cut their future operating costs. We like all of them, but TD and Bank of Nova Scotia are our favourites for new buying.


ROYAL BANK OF CANADA $88 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.5 billion; Market cap: $132.0 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.rbc.com) paid $5.5 billion U.S....

We still think investors will profit most—and with the least risk—by buying shares of well-established, dividend-paying stocks with strong business prospects.

These are companies that have leading positions in healthy industries. They also have strong management that will make the right moves to remain competitive in a changing marketplace.

Stocks such as these give investors an additional measure of safety in today’s volatile markets....

Characteristics of the best energy company stocks you should know about when adding them to your portfolio

The big banks in Canada face several challenges. These include low interest rates, which cut the amount they earn on new loans, and competition from smaller firms that use new online technologies (called “fintech”) to attract customers.

However, they (including CIBC—see page 91) are cutting their costs and making acquisitions....

If you decide to invest in alternative energy, we recommend that you pay attention to these key risks.

State Street Corp. is streamlining its operation to cut $100 million from its annual costs and has also acquired General Electric’s asset management business.