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Growth Stocks

CAE INC. $33 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 318.6 million; Market cap: $10.5 billion; Price-to-sales ratio: 2.4; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

1 min read

Pat McKeough

Dividend Stocks

Lower interest rates will fuel your returns

The shares of these two utilities continue to rise, mainly because falling interest rates make their high dividend yields more appealing to income-seeking investors. As well, their new projects will give them even more room for dividend hikes.

CANADIAN UTILITIES LTD....

2 min read

Pat McKeough

Growth Stocks

Lawsuit risk overshadows spinoff benefit

Maple Leaf Foods’ investors stand to gain from its plan to spin off of its fresh pork operations. The company’s new processing facilities should also cut its operating costs. However, the stock will probably make little progress, particularly as it faces a major lawsuit.

MAPLE LEAF FOODS INC....

2 min read

Pat McKeough

Growth Stocks

AI will help with turnaround

TELUS INTERNATIONAL (CDA) INC. $5.68 remains a buy, but only for aggressive investors. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $1.6 billion; Price-to-sales ratio: 0.5; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) now operates as Telus Digital Experience....

1 min read

Pat McKeough

Energy Stocks

Higher cash flow on tap for Cenovus

CENOVUS ENERGY INC. $22 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $39.6 billion; Price-to-sales ratio: 0.7; Dividend yield 3.3%; TSINetwork Rating: Average; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion in 2024 on exploration and upgrades.

Those investments will lift the company’s full-year output to between 785,000 and 810,000 barrels a day (its oil sands projects in Alberta account for 76% of that total)....

1 min read

Pat McKeough

Growth Stocks

Balance your portfolio with aggressive stocks

A key element of a successful portfolio is a diversity of holdings, including conservative and, for many investors, aggressive stocks. Still, as a general rule, we recommend limiting aggressive investments to no more than 20% of your overall holdings.

You can further cut your risk by sticking with high-quality aggressive stocks such as the three we analyze below....

6 min read

Pat McKeough

Blue Chip Stocks

Good quarter for CIBC

CANADIAN IMPERIAL BANK OF COMMERCE $95 is a buy. The bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 942.3 million; Market cap: $89.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.cibc.com) cut its loan-loss provisions in its fiscal 2024 fourth quarter, ended October 31, 2024, by 22.6%, to $419 million from $541 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Finning is less risky than it seems

Finning supplies Caterpillar heavy equipment and support services to resources companies, so its revenues tend to move up and down with commodity prices.

To offset that cyclical risk, the company typically signs long-term support contracts when it sells new equipment, which gives its predictable revenue streams....

4 min read

Pat McKeough

Spinoffs

Here’s our Spinoff Stock Portfolio for January 2025

You Can See Our Spinoff Stock Portfolio For January 2025 Here.

Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees....

1 min read

Pat McKeough

Spinoffs

Brazil Potash down 20% since IPO

BRAZIL POTASH CORP. $12 is a hold. The company (New York symbol GRO; Resources sector; Shares outstanding: 39.5 million; Market cap: $474.0 million; No dividends paid; Takeover Target Rating: Medium; www.brazilpotash.com) is a Toronto-based mineral exploration and development company....

1 min read

Pat McKeough

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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.