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Wajax offers improving prospects—plus a high yield

Wajax investors benefit from the company’s (symbol WJX on Toronto) sales and servicing of cranes, forklifts and other heavy equipment. Wajax also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions.

WAJAX CORP., $26.95, is a buy. The company (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares outstanding: 21.8 million; Market cap: $586.1 million; Dividend yield: 5.2%) has customers spread across the resources, construction, manufacturing and transportation industries.

1 min read

Pat McKeough

Growth Stocks

Calian plans to sharpen its focus

CALIAN GROUP, $48.57, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares outstanding: 11.3 million; Market cap: $551.0 million; Dividend yield: 2.3%) now plans to sell parts of its business and also seek new board members.

That’s after it entered into a co-operation agreement with 5%-shareholder Plantro Ltd. Planto has been pressuring Calian to sell its underperforming IT and cyber solutions division, which includes its two U.S. offices.

1 min read

Pat McKeough

Growth Stocks

Tap the prospects of these two leaders

Garmin is a leader in GPS devices and software for a range of markets. ADT keeps signing up new security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. We think both stocks are attractive buys.

GARMIN LTD., $189.62, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Average) (Shares outstanding: 192.3 million; Market cap: $36.5 billion; Dividend yield: 1.9%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

2 min read

Pat McKeough

These ‘AI buys’ should spur your returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use.

1 min read

Pat McKeough

Growth Stocks

Chipotle should see lower beef prices

CHIPOTLE MEXICAN GRILL, $31.00, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 1.3 billion; Market cap: $41.0 billion; No dividends paid.) continues to be hurt by high beef prices, especially for its smoked brisket. However, prices may now be entering a downward trend.

1 min read

Pat McKeough

Growth Stocks

Texas Roadhouse has three dining concepts

TEXAS ROADHOUSE, $167.20, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (texasroadhouse.com; Shares outstanding: 66.2 million; Market cap: $11.1 billion; Dividend yield: 1.6%) is a full-service, casual-dining restaurant chain with 806 locations spread across 49 U.S. states and 10 foreign countries.

Each of those restaurants operates under one of three banners—Texas Roadhouse (736 locations), sports restaurant Bubba’s 33 (54), and Jaggers (16).

2 min read

Pat McKeough

Growth Stocks

Eli Lilly teams up with Nvidia on artificial intelligence

ELI LILLY & CO., $1,049.60, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 896.5 million; Market cap: $939.4 billion; Dividend yield: 0.6%) believes the supercomputer and its AI capabilities will help identify new molecules and speed up the years-long development process. The company will use the system for other functions such as improving clinical trials, manufacturing and sales.

1 min read

Pat McKeough

Growth Stocks

Adobe adds more AI

ADOBE INC., $318.11, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 418.5 million; Market cap: $133.2 billion; No dividends paid) makes programs that let computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs.

1 min read

Pat McKeough

Value Stocks

Intact’s acquisitions building value

INTACT FINANCIAL, $282.38, is a Power Buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 177.7 million; Market cap: $50.2 billion; Dividend yield: 1.9%) is Canada’s largest provider of property and casualty coverage: its policies cover more than five million individuals and businesses. Intact Insurance, Canada BrokerLink and belairdirect are its major brands.

In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in 2017. The Minnesota-based insurance holding company focuses on property-casualty coverage. Through its businesses, the firm provides a range of specialty insurance products (marine, sports, entertainment and more).

2 min read

Pat McKeough

Spinoffs

Here’s our Spinoff Stock Portfolio for December 2025

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. The parent will only spin off the unwanted subsidiary if it can’t sell the stock for what it feels it’s worth.

1 min read

Pat McKeough

Testimonials

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.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

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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.