transcontinental
TC Transcontinental is a leader in flexible packaging in the United States, Canada and Latin America. It is also Canada’s largest printer.
Read More
Close
RIOCAN REAL ESTATE INVESTMENT TRUST $23 (www.riocan.com) is a buy. The REIT owns all or part of 167 shopping centres and other properties across Canada, including 10 under development. RioCan continues to find new tenants for the stores formerly occupied by the now-bankrupt Hudson’s Bay Company. It has lined up three new tenants—Longo’s, GYMVMT by GoodLife Fitness, and Mark’s—to take over the empty HBC location at the Georgian Mall in Barrie, Ontario. The additional rental income will support its monthly distributions of $0.965 a unit; the annual rate of $1.158 yields 5.0%. RioCan REIT is a buy.
TRANSCONTINENTAL INC. $5.51 will now cut its annual dividend rate from $0.90 a share to between $0.20 and $0.24 a share. Based on the midpoint of that range, the $0.22 payment yields a solid 4.0%. That seems sustainable, as the company’s annual dividend payments are just 22% of its projected annual free cash flow (regular cash flow less capital expenditures) of $82 million.
The dividend cut follows the recent sale of Transcontinental’s plastic packaging operations to U.S.-based ProAmpac Holdings Inc. for $2.10 billion in cash. Transcontinental is now focused on its commercial printing business in Canada, including advertising flyers and in-store promotional displays. Retailers are increasingly moving to digital pricing on shelves to trim labour costs and more easily adjust pricing to better compete.
The dividend cut follows the recent sale of Transcontinental’s plastic packaging operations to U.S.-based ProAmpac Holdings Inc. for $2.10 billion in cash. Transcontinental is now focused on its commercial printing business in Canada, including advertising flyers and in-store promotional displays. Retailers are increasingly moving to digital pricing on shelves to trim labour costs and more easily adjust pricing to better compete.
In some cases, companies will sell a business instead of spinning it off. That gives them cash for new investments, dividends and buybacks. Here are two recent examples.
LEON’S FURNITURE LTD. $23(www.leons.ca) is a buy. The retailer gets less than 15% of its products from the U.S., which limits its risk to tariffs. It should also benefit from the “Buy Canadian” trend. As well, Leon’s still aims to set up a new real estate investment trust (REIT) that will hold its real estate assets....
3M COMPANY $153 remains a buy for long-term gains. The company (New York symbol MMM; Income-Growth Portfolio, Manufacturing sector; Shares outstanding: 542.9 million; Market cap: $83.1 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Average; www.3m.com) spun off its Health Care division as a separate firm, called Solventum Corp....
Transcontinental continues to benefit from its 2018 purchase of a U.S.-based plastic packaging firm. That cut its reliance on its traditional commercial printing operations, particularly as advertisers and publishers shift to online platforms. A new cost-cutting plan should also push its earnings higher in the next few years and support its high yielding dividend.
TRANSCONTINENTAL INC....
SUNCOR ENERGY INC., $52.37, Toronto symbol SU, is a buy.
The company is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. It also operates four refineries (three in Canada and one in Colorado), along with over 1,800 Petro-Canada gas stations.
Suncor now expects to spend between $6.1 billion and $6.3 billion on exploration and upgrades in 2025....
The company is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. It also operates four refineries (three in Canada and one in Colorado), along with over 1,800 Petro-Canada gas stations.
Suncor now expects to spend between $6.1 billion and $6.3 billion on exploration and upgrades in 2025....
BOMBARDIER INC., Toronto symbols BBD.A $96.77 and BBD.B $96.77, is still a hold for aggressive investors.
The company now focuses solely on making private luxury and business jet planes following the sale of its passenger railcar business to France’s Alstom SA in January 2021.
The stock fell 7% this week after U.S....
The company now focuses solely on making private luxury and business jet planes following the sale of its passenger railcar business to France’s Alstom SA in January 2021.
The stock fell 7% this week after U.S....
TC ENERGY INC., $62.65, Toronto symbol TRP, is a buy.
TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.
On October 1, 2024, the company will complete the spinoff of its oil pipeline business as separate company South Bow Corp....
TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.
On October 1, 2024, the company will complete the spinoff of its oil pipeline business as separate company South Bow Corp....
TC ENERGY INC., $63.27, Toronto symbol TRP, is a buy.
TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.
On October 1, 2024, the company will complete the spinoff of its oil pipeline business as separate company South Bow Corp....
TC generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and seven power plants.
On October 1, 2024, the company will complete the spinoff of its oil pipeline business as separate company South Bow Corp....