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Value Stocks

Here are three key updates on your portfolio

CARRIER GLOBAL CORP. $59 is a buy. The company (New York symbol CARR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 842.2 million; Market cap: $49.7 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.carrier.com) continues to benefit from strong demand for its heating and cooling equipment from the operators of artificial intelligence datacentres. In 2025, sales to datacentres doubled $1 billion, and will probably rise another 50% to $1.5 billion in 2026.

2 min read

Pat McKeough

Value Stocks

Molson expands beyond beer

MOLSON COORS BEVERAGE CO. $41 is a hold. The beer brewer (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 187.9 million; Market cap: $7.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.7%; TSINetwork Rating: Average; www.molsoncoors.com) has agreed to pay an undisclosed amount for Atomic Brands, which makes ready-to-drink cocktails under the Monaco Cocktails brand.

1 min read

Pat McKeough

Value Stocks

Two solid buys emerged from this breakup

We often remind investors that spinoffs are a great way for companies to unlock value. In fact, 3M is now up 55% since it spun off its health products business as Solventum. While that new firm has dropped 5% since the split, we still like its long-term prospects.

3M COMPANY $148 is a buy. The company (New York symbol MMM; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 531.2 million; Market cap: $78.6 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.3m.com) makes more than 60,000 industrial and consumer items, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchgard protection and Thinsulate insulation.

2 min read

Pat McKeough

Growth Stocks

AI will help FICO compete

FAIR ISAAC CORP. $1,043 remains a buy for highly aggressive investors. The company (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 23.7 million; Market cap: $24.7 billion; Price-to-sales ratio: 13.3; Dividend suspended June 2017; TSINetwork Rating: Average; www.fico.com) is best known for its FICO Scores software. It lets lenders make better decisions about customer creditworthiness.

1 min read

Pat McKeough

Growth Stocks

These fallen Financials are now a bargain

A great way to diversify your Finance sector holdings is with non-banking firms such as T. Rowe Price and Broadridge. Both are leaders in their niche markets, which cuts their risk. Each stock is down in the last year, but we believe their long-term value remains unchanged. They also have long histories of raising their dividends.

T. ROWE PRICE GROUP INC. $90 is a buy. The company (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 222.6 million; Market cap: $20.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 5.8%; TSINetwork Rating: Average; www.troweprice.com) is a leading seller of mutual funds and wealth management services.

2 min read

Pat McKeough

Growth Stocks

RTX should see uptick in orders

RTX CORP. $195 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $253.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.rtx.com) has three divisions: Pratt & Whitney makes jet engines; Collins Aerospace makes aircraft control systems; and Raytheon makes a variety of military equipment such as missile defence and radar systems.

1 min read

Pat McKeough

Growth Stocks

Falling cocoa costs benefit Mondelez

MONDELEZ INTERNATIONAL INC. $57 is still a buy for long-term gains. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.3 billion; Market cap: $74.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.mondelezinternational.com) makes snack foods such as cookies and chocolate bars.

1 min read

Pat McKeough

Growth Stocks

ADRs make it easy to buy foreign stocks

We believe most U.S. stocks—especially those with significant global operations—already provide ample international diversification for investors.

That said, we still recommend a select number of non-U.S. companies that trade as American Depositary Receipts (ADRs) on U.S. exchanges. ADRs make international investing straightforward: you can buy them just like any domestic stock, without navigating foreign currencies, overseas market rules, or language barriers. In addition, dividends are typically converted into U.S. dollars by the depositary bank or broker before being paid to you.

5 min read

Pat McKeough

Growth Stocks

Microsoft extends AI deal

MICROSOFT CORP. $371 remains a buy for aggressive investors. The world’s largest software maker (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.4 billion; Market cap: $2.7 trillion; Price-to-sales ratio: 9.3; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.microsoft.com) has extended its deal with 27%-owned Open AI, the developer of the popular ChatGPT chatbot.

1 min read

Pat McKeough

Dividend Stocks

Telcos offer stability in volatile times

Over the past few years, AT&T and Verizon have sold their media and other non-core businesses to sharpen their focus on core telecommunications operations. They have also made big investments in their wireless and Internet networks.

Those moves are now beginning to pay off—despite the current downturn, AT&T shares are up 5% over the past year, while Verizon’s have gained 16%. In addition, each stock is still attractively priced in relation to its earnings per share, at the same time offering above-average dividend yields. That makes them great picks for long-term investors.

4 min read

Pat McKeough

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The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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Investors Association of Canada
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Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.