holding company

PEMBINA PIPELINE CORP., $41 is a buy. The company (Toronto symbol PPL; Utilities sector; Shares outstanding: 550.0 million; Market cap: $22.6 billion; Dividend yield: 6.1%; Takeover Target Rating: Medium; www.pembina.com) has now agreed to acquire Inter Pipeline Ltd....

Holding companies often own a variety of unrelated businesses. As a result the shares of those complex companies tend to trade for less than the value of their assets.


One of the best ways to reduce or eliminate this “holding company discount” is for the firm to sell or spin off some its holdings.


George Weston is a great example....

Canadian Utilities remains a great pick for income-seeking investors. In fact, in our TSI Dividend Advisor newsletter, the company earns our “Highest” Dividend Sustainability Rating. That measures how likely a company is to maintain—or, even better, keep raising—its dividend....

Empire, the holding company that owns the Sobeys grocery chain, hopes that its purchase of Ontario supermarket chain Longo’s will help it compete with rivals Loblaw and Metro, as well as U.S. giants Walmart and Costco.


We feel the company will apply the lessons it learned following its disastrous 2013 purchase of the Safeway chain in Western Canada for $5.8 billion....

Here’s an Excerpt from a recent issue of Advice for Inner Circle Pro Members:


“It’s a mistake to let predictions guide your investments, but especially so at times like now, when new ideas and differences of opinion are continually streaming into the markets....

IAC/INTERACTIVE CORP. $238 is a buy. The Internet and media company (Nasdaq symbol IAC; Manufacturing & Industry Sector; Shares outstanding: 85.3 million; Market cap: $20.3 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) still plans to spin off its Vimeo business as a separate company....

BCE may have disappointed some aggressive investors in the past five years—it’s now roughly in the middle of its $50 to $65 price range for that period. However, income-seekers are no doubt pleased at the rise in its dividend, from $2.60 a share in 2015 to the current 2021 rate of $3.50, in the midst of an historic depression in bond interest rates and other sources that investors rely on for income.

While BCE’s payout has climbed, the company and its industry have made fundamental progress that’s likely to pay off with substantial gains in the next five years.

We’re used to—and quite happy with—the variable performance we’ve received over the years from BCE....

Investors value simplicity over complexity in their stock purchases. Power Corp. offers you top-quality assets, but in the past its complex holding-company structure has undercut its investment value. Power recently underwent a major reorganization to simplify its structure....

Intact Financial dropped along with the market when COVID-19 first hit—the stock fell to as low as $104.81 in March 2020. But the shares have rebounded 39%, close to all-time highs, as investors again appreciate Intact’s underlying business strength. Meantime, we think this Power Buy is poised to keep moving even higher.


INTACT FINANCIAL, $145.60, is a buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (www.intactfc.com; Shares outstanding: 143.0 million; Market cap: $25.9 billion; Dividend yield: 2.3%) is Canada’s largest provider of property and casualty coverage: it insures more than five million individuals and businesses....

Fortis Inc. is a long-term favourite of ours for both growth and income. It now yields 3.9%. The company gets most of its revenue from regulated electrical and gas operations in North America, which gives it steady cash flow for its dividend. In fact, it now plans to raise its annual dividend rate by 6% each year through 2025....