holding company

Utilities stocks fell in 2023 on strong and competing demand for bonds as interest rates spurred bond yields. Higher interest rates also increased the borrowing costs for utilities as they undertook new projects and upgrades.


However, it now looks like interest rates will come down in the next few months....

On August 3, 2021, the old L Brands holding company (old New York symbol LB) split into two separate firms: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.


Both stocks are now down about 40% since the split....

POWER CORP. OF CANADA $37 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 660.4 million; Market cap: $24.4 billion; Dividend yield: 5.7%; Dividend Sustainability Rating: Above Average; www.powercorporation.com) has several primary investments, including controlling stakes in Canadian financial services firms Great-West Lifeco (insurance) and IGM Financial (mutual funds)....

The shares of these two utilities have suffered in 2023 as higher interest prompted investors to shift into bonds. It now looks like rates will fall in 2024, which should lift their share prices. Meantime, their high-quality assets will continue to let them keep raising their dividends.


CANADIAN UTILITIES LTD....

Intact Financial is now close to its recent, all-time high—and the shares are up a spectacular 382% since we first recommended them at $42.95 in our April 2010 issue. We think this Power Buy is poised to keep moving even higher for you, our subscribers.


INTACT FINANCIAL, $207.00, is a buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 175.3 million; Market cap: $36.6 billion; Dividend yield: 2.1%) is Canada’s largest provider of property and casualty coverage: it insures more than five million individuals and businesses....

MASONITE INTERNATIONAL CORP., $86.83, symbol DOOR on New York, is a maker of interior and exterior doors for new construction as well as renovation and remodelling. The company’s client list has grown to more than 6,500 customers worldwide since operations started in 1925....

A: Interactive Brokers Group Inc., $80.08, symbol IBKR on Nasdaq (Shares outstanding: 107.0 million; Market cap: $33.9 billion; www.interactivebrokers.com), is a technology-driven U.S....

PROCTER & GAMBLE CO., $147.16, New York symbol PG, is a top pick for 2023.

The company is one of the world’s largest makers of household and personal-care goods. Major brands include Tide (laundry detergent), Pampers (diapers), Gillette (razors), Crest (toothpaste) and Vicks (cold remedies).

Procter has paid shareholder dividends for 133 years and has increased its payout annually for the past 67 years....

WYNDHAM HOTELS & RESORTS INC., $73.66, is still a buy. The company (symbol WH on New York) is the world’s largest hotel franchiser, with 851,000 rooms spread across 9,100 hotels in 95 countries. Its portfolio of 24 brands includes Super 8, Days Inn, Wyndham Grand, Ramada, La Quinta and Wyndham.

This week, the company rejected an unsolicited takeover offer from rival Choice Hotels International, Inc....

POWER CORP. OF CANADA $36 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 667.1 million; Market cap: $24.0 billion; Dividend yield: 5.8%; Dividend Sustainability Rating: Above Average; www.powercorporation.com) has several primary investments, including controlling stakes in Canadian financial services firms Great-West Lifeco (insurance) and IGM Financial (mutual funds)....