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Updating Our High-Growth Payers: Cisco Systems

CISCO SYSTEMS INC. $48 is a buy. The company (Nasdaq symbol CSCO; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 4.1 billion; Market cap: $196.8 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Above Average; www.cisco.com) makes hardware and software to link and manage computer networks.

With the April 2024 payment, Cisco raised your quarterly dividend by 2.6%....

1 min read

Pat McKeough

Dividend Stocks

Telus’s dividend looks sustainable

High-yielding utility stocks like Telus have suffered in the past few months as investors shift to bonds. High interest rates are also adding to their debt servicing costs. However, rates will probably come down in the next few months. As well, Telus’s improving cash flow will support its plan to keep raising your dividend.

TELUS CORP....

2 min read

Pat McKeough

Dividend Stocks

TNL expands in Asia

TRAVEL + LEISURE CO. $46 is a buy. The company (New York symbol TNL; Cyclical-Growth Payer Portfolio, Consumer sector; Shares outstanding: 71.0 million; Market cap: $3.3 billion; Dividend yield: 4.3%; Dividend Sustainability Rating: Average; www.travelandleisureco.com) is now the world’s largest vacation-ownership and exchange company with more than 245 timeshare resorts and 804,000 owners.

With the March 2024 payment, Travel + Leisure increased your quarterly dividend by 11.1% to $0.50 a share from $0.45....

1 min read

Pat McKeough

Dividend Stocks

Use these updates to boost your returns: T. Rowe Price, Emera & Gen Digital

T. ROWE PRICE GROUP INC. $111 is a buy. The asset manager (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 223.7 million; Market cap: $24.8 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Above Average; www.troweprice.com) provides financial advice and products to individuals and institutions worldwide.

T....

2 min read

Pat McKeough

Dividend Stocks

CN still sees higher 2024 earnings

CANADIAN NATIONAL RAILWAY CO. $168 is a buy. Canada’s largest railway (Toronto symbol CNR; Conservative-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 637.6 million; Market cap: $107.1 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Highest; www.cn.ca) raised your quarterly dividend by 7.0% with the March 2024 payment....

1 min read

Pat McKeough

Dividend Stocks

Market dominance protects your dividends

Dividend-seeking investors tend to shy away from small-cap stocks as they feel their payments are less secure than large cap firms. However, these two small caps dominate their niche markets, which offsets your risk.

CALIAN GROUP LTD. $55 is a buy. The company (Toronto symbol CGY; High-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 11.8 million; Market cap: $649.0 million; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.calian.com) provides business services to the healthcare, defence, security, aerospace, engineering, agriculture and technology industries.

Calian pays a quarterly dividend of $0.28 a share; the annual rate of $1.12 yields 2.0%....

2 min read

Pat McKeough

Dividend Stocks

68 years of rising dividends

PROCTER & GAMBLE CO. $163 is a buy. The stock (New York symbol PG; Income-Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $391.2 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Highest; www.pg.com) is one of the world’s largest makers of household and personal-care goods.

With the May 2024 payment, Procter will raise its quarterly dividend by 7.0%....

1 min read

Pat McKeough

Dividend Stocks

Loyal customers make Starbucks a buy

These two U.S. beverage-related stocks are taking steps to improve their long-term sales. We still like the outlook for both, as these actions should let them keep raising your dividends. However, we feel Starbucks, with its strong customer loyalty and international growth plans, is less vulnerable to competition from cheaper, generic brands.

PEPSICO INC....

2 min read

Pat McKeough

Dividend Stocks

These bank dividends still look solid

Accounting rules are forcing these two banks to set aside more funds for potential loan defaults in the current high interest rate environment. While that has hurt their earnings and pushed up their dividend payout ratios, savings from recent cost cuts should improve those ratios over the next year or two.

BANK OF MONTREAL $127 is a buy. The bank (Toronto symbol BMO; Income-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 725.5 million; Market cap: $92.1 billion; Dividend yield: 4.8%; Dividend Sustainability Rating: Highest; www.bmo.com) raised your quarterly dividend with the January 2024 payment by 2.7%, to $1.51 a share from $1.47....

2 min read

Pat McKeough

Dividend Stocks

Buy quality assets at a discount: Power Corp

POWER CORP. OF CANADA $37 is a buy. The conglomerate (Toronto symbol POW; Conservative-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 652.2 million; Market cap: $24.1 billion; Dividend yield: 6.1%; Dividend Sustainability Rating: Above Average; www.powercorporation.com) has several primary investments, including controlling stakes in Canadian financial services firms Great-West Lifeco (insurance) and IGM Financial (mutual funds)....

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
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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.

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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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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.