Updating Cenovus Energy, Bank of Nova Scotia and Loblaw Companies

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CENOVUS ENERGY $17.33 (Toronto symbol CVE; Shares outstanding: 833.2 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 3.7%; www.cenovus.com) plans to spend $1.4 billion to $1.6 billion on upgrades to its oil and gas properties in 2016. That’s down about 19% from $1.8 billion to $1.9 billion in 2015. The company will spend 80% of the funds budgeted for 2016 on maintaining existing wells and refineries. It will use the remaining 20% to expand its oil sands projects. Meantime, Cenovus is doing a good job of cutting costs in response to lower oil prices. For 2016, it expects per-barrel operating costs at its Foster Creek and Christina lake oil sands projects to be 15% lower than 2014. The company feels it can pay for its upgrades and maintain its $0.64 dividend, which yields 3.7%, even if oil prices stay around $40 U.S. a barrel in 2016. Cenovus is still a buy. BANK OF NOVA SCOTIA $55.16 (Toronto symbol…