high dividend

Capstone Infrastructure Corp., $3.28, symbol CSE on Toronto (Shares outstanding: 93.4 million; Market cap: $318.1 million; www.capstoneinfrastructure.com), is an electricity producer with 449 megawatts of capacity. It operates gas, wind, hydro, biomass and solar facilities and is developing wind projects capable of generating a total of 79 megawatts. Capstone also invests in utilities, including a 33.3% stake in a municipal-heating business in Sweden and 50% of a regulated water utility in the U.K. The company plans to keep looking for acquisitions to boost its cash flow per share. But that adds risk, especially since it has previously added a wide range of operations, including solar and biomass, and made acquisitions in foreign markets like Sweden....

Pat McKeough responds to many requests from Members of his Inner Circle for advice on specific investments as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle Members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday. This week an Inner Circle member asked us about several real estate investment trusts (REITs) that focus on industrial properties. Dream Industrial REIT, formerly Dundee Industrial REIT, owns buildings spread fairly evenly across Canada. Pure Industrial REIT also owns buildings across the country, but with almost half of them in Ontario. Both host a number of well-established tenants. Pat looks at the revenues and cash flow generated by these two REITs and their ability to sustain their distributions and high dividend yields. Q: Hi, Pat. I have a significant weighting in real estate investment trusts, including these two industrial REITs: Dream Industrial REIT and Pure Industrial REIT. Can you please comment on industrial REITs in general and these specifically? Thanks....

Pembina Pipeline and Veresen both trade at high multiples to their per-share cash flow, but both have strong growth prospects and high dividend yields. We think they have gains ahead. PEMBINA PIPELINE $39.55 (Toronto symbol PPL; Shares outstanding: 336.0 million; Market cap: $13.5 billion; TSINetwork Rating: Average; Dividend yield: 4.4%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil. Pembina also owns extensive facilities to extract, process and store NGLs....

We wish all of our readers a great year-end holiday and a healthy, happy and prosperous New Year. Please note that our next daily will appear on Friday, December 26.

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.

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When they look for stocks to buy, investors sometimes fall into a habit of focusing on those with a particularly attractive reading on a single investment measure. These readings include a low per-share ratio of price-to-earnings, a low price-to-book-value ratio, or a high dividend yield. This seems like a quick, easy way of spotting an investment bargain. However, most investment measures fall on a spectrum that ranges from suspiciously cheap to extraordinarily expensive. For example, suppose you decide you will only consider buying stocks with a per-share price-to-earnings ratio of 10.0 or less. That way, you hope to get more earnings for each dollar you invest. But the “e” or earnings in the p/e only covers earnings, or an earnings estimate, for a single year. The year your low p/e covers may coincide with a peak in the company’s earnings, for any number of reasons....

Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.

BROOKFIELD RENEWABLE ENERGY PARTNERS L.P. (Toronto symbol BEP.UN; www.brookfieldrenewable.com) owns 196 hydroelectric generating stations, 11 wind farms and two natural-gas-fired plants. In all, it has 6,700 megawatts of generating capacity.

Roughly 31% of that capacity is in Canada, with another 52% in the U.S. and 17% in Brazil.

In the quarter ended September 30, 2014, Brookfield’s cash flow per share fell 46.3%, to $0.22 from $0.41 a year earlier. That’s because below-normal rainfall slowed the company’s hydroelectric production. However, rainfall averages out over time: in the nine months ended September 30, cash flow per share fell just 4.1%, to $1.65 from $1.72....

Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.

BCE is facing regulatory hurdles, but the company is improving its services while keeping its operating costs down. That should let it maintain its high dividend yield.

BCE INC. (Toronto symbol BCE; www.bce.ca ) is Canada’s largest provider of telephone services, with 5.0 million customers in Ontario and Quebec. It also has 2.2 million high-speed Internet customers and 2.3 million TV subscribers.

BCE also sells wireless services to 7.8 million customers across Canada, and its Bell Media segment owns CTV Television, specialty channels and radio stations.

The company recently offered to buy the 56% of Bell Aliant (Toronto symbol BA) that it doesn’t already own. Bell Aliant sells phone and Internet services to 2.3 million clients in Atlantic Canada and rural Ontario and Quebec. It also provides wireless services through an alliance with BCE.

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These two telecom firms face the same regulatory hurdles as Telus (see page 101). But like Telus, they’re improving their services while keeping their operating costs down. That will let them both maintain their high dividend yields, but we prefer BCE for its greater geographic reach. BCE INC. $48 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 827.7 million; Market cap: $39.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.1%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest provider of telephone services, with 5.0 million customers in Ontario and Quebec. It also has 2.2 million high-speed Internet customers and 2.3 million TV subscribers. BCE also sells wireless services to 7.8 million customers across Canada, and its Bell Media segment owns CTV Television, specialty channels and radio stations....

Retirement is a subject we’re asked about all the time. And it’s one that we deal with on a practical day-to-day basis with our Successful Investor Wealth Management clients. That’s why I’ve just released a new Special Report: Your 12-Step Countdown to the Retirement You Want. Just like our other Special Reports, we make it available to our readers free of charge. You can download it here. In this report, we present a progression of 12 steps that successful investors take to ensure a secure and rewarding retirement. A fulfilling retirement is not simply a matter of accumulating sufficient wealth to give you peace of mind. It is equally a matter of knowing what you will do—in effect, ensuring that you will be as active and productive with your time as you were during your working days....

Pat McKeough responds to many requests from members of his Inner Circle for specific investment advice, as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “Our Top U.S. Stocks” on Thursday. Recently an Inner Circle member asked us about a leading Canadian specialty food maker. Premium Brands draws two-thirds of its revenue from retail and the rest from food services. The company continues to expand aggressively and Pat assesses the flurry of acquisitions it has made in recent years. He considers the high debt Premium has assumed to make its acquisitions and whether it can continue to maintain its high dividend. Q: Pat: Can you please give me your opinion of Premium Brands for income and gains in the specialty food sector? Thanks....