oil and gas
These two leading industrial firms have maintained their dividends—despite the economic shocks caused by COVID-19. Their balance sheets also remain strong. We expect both will continue to recover along with the economy.
FINNING INTERNATIONAL INC. $26 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 162.1 million; Market cap: $4.2 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K....
FINNING INTERNATIONAL INC. $26 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 162.1 million; Market cap: $4.2 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K....
CIMAREX ENERGY CO. $34 is a buy. The company (New York symbol XEC; Resources sector; Shares outstanding: 102.0 million; Market cap: $3.5 billion; Dividend yield: 2.5%; Takeover Target Rating: Medium; www.cimarex.com) produces and explores for natural gas and oil....
TOURMALINE OIL CORP. $18 is a hold. The company (Toronto symbol TOU; Resources sector; Shares outstanding: 272.3 million; Market cap: $4.9 billion; Dividend yield: 3.1%; Takeover Target Rating: Medium; www.tourmalineoil.com) is a Canadian oil and natural gas exploration, development and production company....
The coronavirus pandemic presents both of these industrials with unique challenges. However, each has streamlined operations and is prepared to weather this crisis to prosper in the future. We see both stocks as buys.
GOODYEAR TIRE & RUBBER $10.65 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 233.1 million; Market cap: $2.5 billion; No dividends paid) is one of the world’s largest tire makers....
GOODYEAR TIRE & RUBBER $10.65 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 233.1 million; Market cap: $2.5 billion; No dividends paid) is one of the world’s largest tire makers....
ENBRIDGE INC. $40 is a buy. The company (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.0 billion; Market cap: $80.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 8.1%; TSINetwork Rating: Above Average; www.enbridge.com) operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S....
We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your overall portfolio. The four oil producers we analyze below still have substantial reserves; they’re also doing a good job of cutting their costs. That puts them in a strong position to increase profits as the global economy recovers from COVID-19.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
CENOVUS ENERGY, $4.78, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $5. billion; TSINetwork Rating: Average; No dividends paid; www.cenovus.com) has agreed to acquire rival oil producer Husky Energy Inc....
A: Caterpillar Inc., $167.04, symbol CAT on New York (Shares outstanding: 541.5 million; Market cap: $88.4 billion; www.caterpillar.com), is the world’s largest maker of earth-moving equipment, including tractors, scrapers, graders, compactors, loaders and pipe layers....
Due to concerns over the ability of Canada’s Big Five banks, including TD, to absorb bad loans as a result of COVID-19, regulators have ordered them to freeze their dividends to preserve capital.
However, TD has little exposure to borrowers hit hard by the pandemic....
However, TD has little exposure to borrowers hit hard by the pandemic....
For over 50 years, TC Energy (formerly called TransCanada Corp.) has rewarded investors with dependable dividends. While demand for oil and gas has dropped due to COVID-19, TC’s high-quality regulated operations will continue to give it plenty of predictable cash flows for dividends....