investment

An investment is an asset or property acquired to generate income or gain appreciation. Appreciation is the increase in the value of an asset over time. It requires the outlay of a resource today, like time, effort, and money, for a greater payoff in the future or for generating a profit.

An investment involves using capital in the present to increase an asset’s value over time.

Investments may include bonds, stocks, real estate, or alternative investments.

Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.

In business contexts, investments are financial; however, consider how some people spend time to make higher incomes in the future (i.e. invest in a college education).

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Tax Shelters
Yes, you can collect up to $49,284 in dividends every year, and not pay a single dime in income tax. You simply have to know how to invest with the tax code in mind. You need a guide in front of you that cuts through the maze of Canada’s tax laws and concentrates on the rulings that are most important to investors. You have to know where you can save and where you can gain with smart tax planning. That’s why we put together the TSI Network Tax Guide for Canadian Investors 2015.

Our tax guide is written from an investor’s point of view. This sets it apart from most tax guides. It is invaluable for both tax planning and overall portfolio planning. It puts special focus on the tax laws and tax strategies that mean the most to Canadian investors. We draw on our long experience in investment advice. With this background, we have created a concise guide, complete with seven tables for quick and easy reference.

With this guide, you approach your taxes, and the person you have chosen as your tax preparer or advisor, with a strong base of knowledge. You’ll have the ability to ask your tax accountant the right questions, or even handle your own taxes with confidence.

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Investment Counsellor
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

Westport Innovations (symbol WPT on Toronto; www.westport.com) develops technology that lets engines operate on gaseous fuels, such as natural gas or hydrogen.

The company also has a 50/50 joint venture with Cummins Inc. (symbol CMI on New York) called Cummins Westport Inc. The partnership sells a range of low-emission alternative-fuel engines for medium-duty trucks.

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PLEASE NOTE: Next week, Wall Street Stock Forecaster will reveal its #1 pick for 2015. Don’t miss this unique opportunity to profit. INTERNATIONAL BUSINESS MACHINES CORP., $155.87, New York symbol IBM, reported better-than-expected earnings this week. But that’s mainly due to cost cuts, as demand for the company’s mainframes and computer services has weakened. In the three months ended December 31, 2014, IBM earned $5.8 billion, down 13.0% from $6.65 billion a year earlier. Per-share earnings fell 5.7%, to $5.81 from $6.16, on fewer shares outstanding....
BROADRIDGE FINANCIAL SOLUTIONS $46.55 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 120.0 million; Market cap: $5.6 billion; Dividend yield: 2.3%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada. Without one-time items, Broadridge earned $37.0 million, or $0.30 a share, in its fiscal 2015 first quarter, which ended September 30, 2014. That’s down 22.9% from $48.0 million, or $0.39 a share, a year earlier. The company paid employees higher commissions on new sales and performance bonuses. It also expanded its sales and marketing capabilities. Broadridge typically makes about half of its profits in its fiscal fourth-quarter ended June 30. That’s the busiest period for processing proxies and annual reports for its clients....
Mining Stocks
Pat McKeough responds to many requests from members of his Inner Circle for specific stock 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 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 uranium mining and exploration stock. Uranium Energy Corp. has one producing mine and several development-stage projects in Texas as well as exploration projects elsewhere. Pat examines the prospects for this junior in light of the growing demand from nations that still have millions living without electricity. He balances that against the competitive and regulatory issues that nuclear power faces in the U.S. and Canada as it competes with liquefied natural gas (LNG) as a fuel source.

Q: Hi, Pat: I would like your opinion on Uranium Energy Corp. Thank you.

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H&R REIT $22.71 (Toronto symbol HR.UN; Units outstanding: 274.1 million; Market cap: $6.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.9%; www.hr-reit.com) is selling part ownership of 101 industrial properties in Canada and the U.S. for $731 million. In all, these buildings comprise 19.5 million square feet. The buyers include the Canadian Public Sector Pension Investment Board.

H&R will keep a 50% interest in the Canadian properties and a 49.5% stake in the U.S. portfolio. It will keep managing these assets and will receive fees for doing so. H&R will retain full ownership of 14 other industrial properties.

The REIT will use the proceeds to pay down debt and buy more shopping malls and office buildings.

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Stock Investing
Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

In August 2014, Gannett announced it would split into two companies. One will focus on newspapers and their associated websites, and the other will hold its TV stations and stand-alone websites.

The stock is down 11% since the spinoff announcement, mainly because investors are worried about falling advertising revenue.

Still, studies have shown that after the first few months, spinoffs tend to outperform groups of comparable stocks for several years. That’s mainly because companies will only take on the costs of a spinoff when they have reason to believe it will boost the value of both the new and remaining businesses.

GANNETT CO., INC. (New York symbol GCI; www.gannett.com) is the largest newspaper publisher in the U.S., with 82 dailies, including USAToday, its flagship paper.

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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $39.54 (Toronto symbol AP.UN; Units outstanding: 74.7 million; Market cap: $3.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.7%; www.alliedreit.com) owns 138 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.9 million square feet of leasable area.

Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to retail space. They usually feature exposed beams, interior brick and hardwood floors.

Allied bought $400 million of properties in 2012 and $182.4 million in 2013. In the first three quarters of 2014, it added seven more for $210.0 million.

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Retirement Planning
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 advice on successful investing, and on successful retirement planning. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away.

Tip of the week: “When you work out a plan for your retirement, make sure that you aren’t basing your future income on over-optimistic calculations that will end up leaving you short.”

As the deadline for RRSP contributions approaches, many investors are confident they are taking concrete steps toward a secure retirement. But are those steps based on realistic calculations?

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RIOCAN REAL ESTATE INVESTMENT TRUST $29.55 (Toronto symbol REI.UN; Units outstanding: 313.9 million; Market cap: $9.2 billion; TSINetwork Rating: Average; Dividend yield: 4.8%; www.riocan.com) should be able to weather Target Corp.’s decision to close its 133 Canadian stores with minimal effect on its revenue and profits.

RioCan has Target as its seventh-largest tenant, with 26 locations, but the stores account for just 1.9% of the REIT’s annualized rental revenue.

Many of the Target stores are in established malls, so RioCan should be able to rent them to new tenants, perhaps at higher rates. Meanwhile, RioCan says the leases on the 26 locations are guaranteed by the U.S. parent company, Target Corp., for more than a decade.

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