oil and gas
Dear client,
Oil prices have moved up to $45 U.S. from their January 2016 low of $34. Even so, crude prices are likely to remain volatile over the next year or so.
We feel most investors will benefit from keeping about 10% to 15% of their stock portfolios in the resources sector.
We also recommend sticking to larger integrated oil producers such as Imperial Oil....
Oil prices have moved up to $45 U.S. from their January 2016 low of $34. Even so, crude prices are likely to remain volatile over the next year or so.
We feel most investors will benefit from keeping about 10% to 15% of their stock portfolios in the resources sector.
We also recommend sticking to larger integrated oil producers such as Imperial Oil....
While Imperial Oil (see page 111) is our top oil stock, we also like the outlook for these three industry firms.
They have all cut their costs, which should rapidly expand their earnings and cash flow as crude prices continue to recover. Moreover, their high-quality reserves should last decades.
SUNCOR ENERGY INC....
They have all cut their costs, which should rapidly expand their earnings and cash flow as crude prices continue to recover. Moreover, their high-quality reserves should last decades.
SUNCOR ENERGY INC....
PRECISION DRILLING CORP. $5.99 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 293.2 million; Market cap: $1.8 billion; Price-to-sales ratio: 1.7; Dividend suspended in March 2016; TSINetwork Rating: Extra Risk; www.precisiondrilling.com) provides contract-drilling services to land-based oil and gas producers, mainly in North America....
ENERPLUS CORP. $9.05 (Toronto symbol ERF; Shares outstanding: 240.5 million; Market cap: $2.3 billion; TSINetwork Rating: Speculative; Dividend yield: 1.3%) produces oil and gas from properties in Western Canada—Alberta, Saskatchewan and B.C.—as well as North Dakota and Montana in the western U.S....
Pennsylvania-based Vanguard Group is one of the world’s largest investment management companies. In all, it administers almost $3 trillion U.S. across 175 mutual funds and ETFs.
Generally speaking, Canadians are unable to buy mutual funds that are registered in the U.S....
Generally speaking, Canadians are unable to buy mutual funds that are registered in the U.S....
ROYAL BANK OF CANADA $83 (Toronto symbol RY; Income Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 1.5 billion; Market cap: $124.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.0%; Dividend Sustainability Rating: Highest; www.rbc.com) is Canada’s largest bank with assets of $1.15 trillion.
Royal recently paid $5.5 billion U.S....
Royal recently paid $5.5 billion U.S....
Like most Canadian banks, TD has consistently raised its dividend over the last 20 years. The bank’s continued success at finding new areas for revenue growth should sustain those increases.
TORONTO-DOMINION BANK $60 (Toronto symbol TD; Income Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 1.9 billion; Market cap: $114.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.7%; Dividend Sustainability Rating: Highest; www.td.com) gets 62% of its earnings from Canadian retail banking; that operation serves 15 million customers through 1,157 branches.
In the U.S., the bank operates 1,264 branches along the East Coast, from Maine to Florida....
TORONTO-DOMINION BANK $60 (Toronto symbol TD; Income Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 1.9 billion; Market cap: $114.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.7%; Dividend Sustainability Rating: Highest; www.td.com) gets 62% of its earnings from Canadian retail banking; that operation serves 15 million customers through 1,157 branches.
In the U.S., the bank operates 1,264 branches along the East Coast, from Maine to Florida....
Knowing the ins and outs of how to invest in oil stocks will help you cut your risk—and boost your gains
Which do you think leads to better performance: the bottom-up approach or the top-down approach? The answer may surprise you
A: Aecon Group Inc., $17.66, symbol ARE on Toronto (Shares outstanding: 57.4 million; Market cap: $1.0 billion; www.aecon.com), is one of Canada’s largest infrastructure developers....