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Focus on lower prices will drive them higher

These two leading retailers continue to cut their selling prices. That continues to spur customer traffic and to lift their earnings. Moreover, both have long histories of annual dividend hikes.

LOBLAW COMPANIES LTD. $181 is a buy. This retail giant (Toronto symbol L; Conservative-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 303.6 million; Market cap: $55.0 billion; Dividend yield: 1.1%; Dividend Sustainability Rating: Highest; www.loblaw.ca) operates 1,113 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills....

2 min read

Pat McKeough

Dividend Stocks

New plants prepare these techs for growth

These tech leaders are spending heavily on new plants and other facilities. While that has hurt their earnings growth, the investments set the stage for stronger growth over the next few years—and higher dividends.

MICROSOFT CORP. $423 is a buy. The software giant (Nasdaq symbol MSFT; High-Growth Dividend Payer Portfolio; Manufacturing sector; Shares outstanding: 7.4 billion; Market cap: $3.1 trillion; Dividend yield: 0.8%; Dividend Sustainability Rating: Highest; www.microsoft.com) will raise your quarterly dividend by 10.7% in December 2024, to $0.83 a share from $0.75....

3 min read

Pat McKeough

Dividend Stocks

Growth plus regular dividend hikes

BROADRIDGE FINANCIAL SOLUTIONS INC. $236 is a buy. The company (New York symbol BR; High-Growth Payer Portfolio, Finance sector; Shares outstanding: 116.9 million; Market cap: $27.6 billion; Dividend yield: 1.5%; Dividend Sustainability Rating: Above Average; www.broadridge.com) is best known for processing and distributing proxies and regulatory filings.

Broadridge has raised its dividend each year since Automatic Data Processing spun it off to its shareholders in 2007....

1 min read

Pat McKeough

Dividend Stocks

A rising stock market supports these yields

Fee income at these two firms rises and falls with the value of the mutual funds and other securities they manage. Today’s rising stock market has pushed up their earnings, at the same time it helps to support their high yields.

IGM FINANCIAL INC....

2 min read

Pat McKeough

Dividend Stocks

New projects lift Brookfield’s revenue

BROOKFIELD RENEWABLE PARTNERS L.P. $37 is a buy. The partnership (Toronto symbol BEP.UN; High-Growth Dividend Payer Portfolio, Utilities sector; Units outstanding: 659.2 million; Market cap: $24.4 billion; Distribution yield: 5.4%; Dividend Sustainability Rating: Above Average; www.bep.brookfield.com) owns 239 hydroelectric generating stations, 230 wind farms, 226 solar facilities, and 7,211 distributed generation and energy storage sites.

With the March 2024 payment, Brookfield raised the quarterly distribution by 5.2%....

1 min read

Pat McKeough

Dividend Stocks

Expanding cash flow means strong distributions

These two REITs continue to add quality properties to their portfolios. They also continue to renew expiring leases at higher rental rates. That extra cash flow should help them keep raising your distributions.

CHOICE PROPERTIES REIT $14 is a top pick for 2024. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 723.7 million; Market cap: $10.1 billion; Distribution yield: 5.4%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) owns 705 properties, with 66.2 million square feet of retail, industrial, mixed-use and residential space....

2 min read

Pat McKeough

Dividend Stocks

A Yield to Caution

PIZZA PIZZA ROYALTY CORP. $13.28 (Toronto symbol PZA; Shares outstanding: 32.9 million; Market cap: $436.9 million; Dividend yield: 7.0%; www.pizzapizza.ca) holds certain trademarks and trade names used by Pizza Pizza restaurants in Canada.

Those exclusive names are licensed to Pizza Pizza for 99 years....

1 min read

Pat McKeough

Dividend Stocks

Regular increases sustain its appeal

Starting in 2011, telecom Telus began rewarding its shareholders with twice yearly dividend increases. Under the current version of the plan, the company committed to increasing the annual rate by between 7% and 10% from 2023 through the end of 2025.

More dividend increases beyond 2025 seem likely now that Telus has largely completed a multi-year plan to expand its 5G cellular and fibre-optic networks....

2 min read

Pat McKeough

How To Invest

What do you think about G Mining going forward? Thanks for all your great advice.

A: G Mining Ventures Corp., $10.43, symbol GMIN on Toronto (Shares outstanding: 221.9 million; Market cap: $2.3 billion; Resources & Commodities sector; TSINetwork Rating: Speculative; No dividends paid; www.gmin.gold), acquires development-stage gold projects and then works to commercialize them....

2 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of November 26, 2024

The Bank of Canada and other central banks are now cutting their benchmark lending rates as inflation returns to pre-pandemic levels.

That’s good news for utility stocks like Fortis, which carry large debt loads to finance investments in new power plants and other projects....

8 min read

Pat McKeough

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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.