high dividend

Pat McKeough responds to many requests from members of his Inner Circle for specific advice on buying stocks 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 one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle. Recently an Inner Circle member asked us about a Canadian stock that is tapping into the economic growth of Western Canada. WesternOne operates through a series of smaller acquisitions that build up its business in construction heating, aerial equipment and modular buildings. Pat looks at the company’s expanding business and the potential risks and rewards of its growth-by-acquisition strategy in a very competitive market. Q: Pat, could you give me your opinion on WesternOne, please?...

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 further gains ahead.

PEMBINA PIPELINE $44.90 (Toronto symbol PPL; Shares outstanding: 323.0 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; 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 bought rival Provident Energy for $3.2 billion in 2012....

Ottawa continues to impose new rules on Canada’s main wireless firms in an effort to encourage more competition. These measures include restricting the new radio frequencies (or spectrum) they can buy, cutting wireless contract terms from three years to two and capping roaming charges. Meanwhile, new rules will force TV providers to let subscribers buy the channels they want, instead of having to purchase a package....

Capstone Infrastructure Corp., $4.03, symbol CSE on Toronto (Shares outstanding: 93.0 million; Market cap: $390.8 million; www.capstoneinfrastructure.com), is an electricity producer with 439 megawatts of capacity. It operates gas, wind, hydro, biomass and solar facilities and is currently developing wind farms with a total of 79 megawatts of capacity. 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 continues to look for acquisitions. That adds risk, especially since it has previously added a wide range of operations, including solar and biomass, and made acquisitions as far away as Sweden....

AURICO GOLD (Toronto symbol AUQ; www.auricogold.com) operates the El Chanate gold mine in Mexico, which produced 71,864 ounces in 2013. The company’s Young-Davidson gold mine in Northern Ontario reached full production in 2013, with total output of 120,738 ounces. The project’s output should rise to over 152,000 ounces this year....

Last week we turned to our newsletter on aggressive investing, Stock Pickers Digest, to discuss two energy stocks embarked on big growth projects (see the article here). Today we analyze two high-yielding energy stocks we cover regularly in our newsletter for conservative investing, Canadian Wealth Advisor. CRESCENT POINT ENERGY CORP. (Toronto symbol CPG; www.crescentpointenergy.com) produces oil and natural gas in Western Canada. Its output is weighted 91% toward oil and 9% to gas....

BIRCHCLIFF ENERGY (Toronto symbol BIR; www.birchcliffenergy.com) develops, produces and explores for oil and natural gas, mainly in the Peace River Arch area near the Alberta/B.C. border. About 81% of its output is gas. The remaining 19% is oil....

RUSSEL METALS (Toronto symbol RUS; www.russelmetals.com) is one of North America’s largest metal distributors. It serves 39,000 clients at 53 locations in Canada and 12 in the U.S....

Pembina Pipeline and Veresen both trade at high multiples to their cash flow per share. But both have strong growth prospects, as well as high dividend yields. We think they have further gains ahead.

PEMBINA PIPELINE $39.96 (Toronto symbol PPL; Shares outstanding: 320.0 million; Market cap: $12.8 billion; TSINetwork Rating: Average; Div....

Redknee Solutions Inc. $5.81, symbol RKN on Toronto (Shares outstanding: 95.6 million; Market cap: $575.6 million; www.redknee.com), sells software and services that help wireless and wireline (or traditional telephone) providers manage and bill for voice, messaging and data services. Redknee has over 200 clients in 90 countries. In March 2013, the company acquired the Nokia Siemens Networks’ Business Support Systems unit, which provides billing and customer service to over 130 telecommunication firms. In the three months ended September 30, 2013, Redknee’s revenue jumped to $57.4 million from $14.5 million a year earlier, mostly due to the Nokia Siemens acquisition. The company lost $269,000, or $0.01 a share, down from a profit of $1.9 million, or $0.03, partly because of costs to integrate the purchase....