The shares of IGM Financial are up over 20% since the start of 2024, as rising stock market values have lifted the fee income it earns on the assets under its management. The company’s outlook remains bright, as more baby boomers will turn to professional advisors as they retire....

CENOVUS ENERGY INC. $24 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 3.0%; TSINetwork Rating: Average; www.cenovus.com) reported that its net debt (total debt less cash balances) fell to $4.0 billion in July 2024 from $5.06 billion at the end of 2023.


Under the company’s new shareholder return policy, once net debt falls to $4.0 billion, it will return 100% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks.


That bodes well for more dividend hikes....

CANADIAN IMPERIAL BANK OF COMMERCE $83 is a buy. The shares of this bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 937.2 million; Market cap: $77.8 billion; Price-to-sales ratio: 3.1; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.cibc.com) are up about 60% in the past year....

TC Energy has now completed the spinoff of its oil pipeline business as South Bow. Investors received 0.2 of a South Bow share for every TC share they held. They will not be liable for capital gains taxes until they sell their new shares.


The split will let TC Energy better focus on its natural gas pipelines and power plants....

Note the following analysis was published just before announcement of TD’s settlement with U.S. banking regulators. Please see here for our update on the stock following that news....

These high-yielding utility stocks continue to move up, as falling interest rates make them more attractive to income-seeking investors. Lower interest rates will also make it easier for them to fund their new projects and acquisitions. That ultimately makes room for more dividend increases.


FORTIS INC....

OVINTIV INC. $58 is a buy. The energy producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).


The company is now considering selling its Uinta operations, which account for about 5% of its overall production....

ETFs in brief


Exchange-traded funds are set up to mirror the performance of a stock-market index or sub-index....

Collectively, U.S. banks and insurance companies have performed well over the past year, beating the S&P 500 by a comfortable margin. Canadian financials also produced a strong performance. Still, banks generally have high debt, which occasionally can cause significant share price drops....

Prominent investor Warren Buffett once remarked that “Common yardsticks such as dividend yield, the ratio of price to earnings or to book value, and even growth rates have nothing to do with valuation except to the extent they provide clues to the amount and timing of cash flows into and from the business.”


Stock analysis that examines a company’s free cash flow can cut through the unpredictability of how the business chooses to report its earnings....