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Growth Stocks

YUM CHINA HOLDINGS INC. $45 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 391.0 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 15,800 outlets, mainly under the KFC and Pizza Hut banners.

Despite slowing economic growth in China, it still expects to reach 20,000 outlets by 2026....

1 min read

Pat McKeough

Growth Stocks

Adding AI should spur their profits

These two software makers are adding artificial intelligence (AI) tools to their programs. That should make them more appealing to their customers and continue to fuel their earnings.

ADOBE INC. $442 is a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 435.3 million; Market cap: $192.4 billion; Price-to-sales ratio: 9.3; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format.

Adobe continues to benefit from its decision a few years ago to switch to selling programs as ongoing subscriptions instead of one-time purchases....

2 min read

Pat McKeough

Growth Stocks

AI demand will drive Cisco higher

CISCO SYSTEMS INC. $60 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $240.0 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.7%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of products that link and manage computer networks.

Cisco also continues to see strong demand for products related to artificial intelligence (AI), as those software programs require faster data transfer speeds and capacity.

Orders related to AI totalled $300 million in its fiscal 2025 first quarter, ended October 26, 2024, and should reach $1.0 billion for the full year.

The stock is up 14% in the past year....

1 min read

Pat McKeough

Dividend Stocks

Verizon lifts its capital spending

VERIZON COMMUNICATIONS INC. $40 is a buy. The telecom provider (New York symbol VZ; Income Portfolio, Utilities sector, Shares outstanding: 4.2 billion; Market cap: $168.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 6.8%; TSINetwork Rating: Average; www.verizon.com) added 568,000 wireless phone subscribers under long-term contracts (net of cancellations) in the fourth quarter of 2024, up 26.5% from 449,000 a year earlier....

1 min read

Pat McKeough

Value Stocks

Better products will cut their risk

These top foodmakers continue to adjust their portfolios, including launching new products, as well buying and selling various brands. These moves should spur their long-term earnings growth and cut their risk. Even so, we see only two of the three as buys for you right now.

GENERAL MILLS INC....

4 min read

Pat McKeough

Growth Stocks

Earnings set to rise in 2025

DANAHER CORP. $224 is still a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.3 million; Market cap: $161.8 billion; Price-to-sales ratio: 7.7; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research labs and municipal water utilities.

Danaher often uses acquisitions to enhance its expertise in certain areas....

1 min read

Pat McKeough

Blue Chip Stocks

Our three top U.S. picks for 2025

For our 2025 top buys, we’ve chosen three stocks, one from each of our WSSF Portfolios—Conservative, Aggressive and Income.

These three companies are leaders in their individual markets. That puts them in a strong position to profit from secular trends such as the ongoing shift to electronic payment systems, the rapid spread of new artificial intelligence programs, and the rising need for faster communication networks....

4 min read

Pat McKeough

How To Invest

Q: Pat: I’ve noticed a lot of TV ads for reverse mortgages lately. What’s your view on these? Thanks for all your advice over the last few years!

A: If you’re looking at a reverse mortgage for your own home, I see them as appealing only in highly specialized situations. You’d want to use a reverse mortgage only if you feel that selling your home is out of the question, and if you’ve exhausted all sources of income that do not involve heavy costs such as a big capital-gains tax bill.

Before taking out a reverse mortgage, make sure you consider all other housing or financial options open to you....

1 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of January 28, 2025

Here’s Part One of the most-recent letter I sent to our Portfolio Management clients in November 2024:

“Note: The views of Robert Francis Kennedy Jr. (better known as RFK Jr.) make up a large part of references in this letter to the quality of the food, health and medical industries in the U.S....

16 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, January 24, 2025

VULCAN MATERIALS CO., $277.54, symbol VMC on New York, operates mostly in the U.S. and is the nation’s largest supplier of construction aggregates. These are raw materials extracted from pits and quarries, and primarily include crushed stone, sand and gravel....

8 min read

Pat McKeough

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Investors Association of Canada
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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.