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These small caps are boosting investor value

Here are two small-cap firms using acquisitions and spinoffs to improve their prospects. These moves should give them more room to increase their dividends.

LEON’S FURNITURE LTD. $21 is a buy. The retailer (Toronto symbol LNF; High-Growth Payer Portfolio, Consumer sector; Shares outstanding: 68.0 million; Market cap: $1.4 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Average; www.leons.ca) operates 303 stores that sell furniture and home appliances, mainly under the Leon’s, The Brick, and Appliance Canada banners.

With the January 2024 payment, the company raised your quarterly dividend by 12.5%, to $0.18 a share from $0.16....

2 min read

Pat McKeough

Dividend Stocks

Lower capital spending frees up cash

These two U.S. telecom firms have now completed major upgrades to their wireless networks. Those upgrades should help them attract new users. As well, the lower capital spending bodes well for dividend increases.

AT&T INC. $17 is a buy. The company (New York symbol T; Income-Growth Portfolio, Utilities sector; Shares outstanding: 7.2 billion; Market cap: $122.4 billion; Dividend yield: 6.5%; Dividend Sustainability Rating: Above Average; www.att.com) is the largest wireless (cellphone) carrier in the U.S., with 241.5 million subscribers....

3 min read

Pat McKeough

Dividend Stocks

Research will spur this chipmaker

TEXAS INSTRUMENTS INC. $164 is a buy. The company (Nasdaq symbol TXN; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 909.3 million; Market cap: $149.1 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.ti.com) makes analog computer chips, which convert touch, sound and pressure into electronic signals.

With the November 2023 payment, Texas Instruments increased your quarterly dividend by 4.8%, to $1.30 a share from $1.24....

1 min read

Pat McKeough

Dividend Stocks

These foodmakers are reliable payers

These two foodmakers have held steady their dividends in the past few years as they adapt their businesses to changing consumer tastes. As a result, their current dividends look safe.

CAMPBELL SOUP CO. $43 is a buy. The company (New York symbol CPB; Conservative-Growth Payer Portfolio, Consumer sector; Shares outstanding: 298.1 million; Market cap: $12.8 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Above Average; www.campbellsoupcompany.com) sold most of its international and refrigerated-foods businesses in 2018....

2 min read

Pat McKeough

Dividend Stocks

Brookfield raises your distribution

BROOKFIELD RENEWABLE PARTNERS L.P. $32 is a buy. The partnership (Toronto symbol BEP.UN; High-Growth Dividend Payer Portfolio, Utilities sector; Units outstanding: 665.2 million; Market cap: $21.3 billion; Distribution yield: 6.0%; Dividend Sustainability Rating: Above Average; www.bep.brookfield.com) owns 237 hydroelectric generating stations, 172 wind farms, 211 solar facilities, and 6,408 distributed generation and energy storage sites.

With the March 2024 payment, Brookfield will raise your quarterly distribution by 5.2%....

1 min read

Pat McKeough

Dividend Stocks

High-quality properties support these payouts

These two REITs focus on urban properties in Canada’s biggest cities. Those high-quality assets should continue to help them attract tenants and sustain their distributions.

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $18 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units o/s: 128.0 million; Market cap: $2.3 billion; Dist....

2 min read

Pat McKeough

Dividend Stocks

A Yield to Caution: Exchange Income Corp.

EXCHANGE INCOME CORP. $47 (Toronto symbol EIF; Shares outstanding: 47.2 million; Market cap: $2.2 billion; Dividend yield: 5.6%; www.exchangeincomecorp.ca) operates in aviation and manufacturing.

The Aviation unit (60% of its revenue) serves communities in Manitoba, Ontario, Nunavut and eastern Canada through regional airlines....

1 min read

Pat McKeough

Dividend Stocks

Your BCE income is still dependable

Due to slowing revenues at its landline and media operations, BCE is now cutting 9% of its workforce. It’s also selling 45 of its 103 radio stations. These moves should cut its costs by $150 million to $200 million in 2024. The annual savings should rise to $250 million starting in 2025.

Meantime, the company should continue to benefit from strong demand for mobile phone service due to the launch of new smartphones and the expansion of its ultrafast 5G wireless networks....

3 min read

Pat McKeough

How To Invest

Here’s our WSSF Income-Seeking Portfolio for March 2024

You Can See Our WSSF Income-Seeking Portfolio For March 2024 Here.

We designed our TSINetwork Ratings to give you an idea of the investment quali...

1 min read

Pat McKeough

Growth Stocks

Updating your Income stocks: Quaker Chemical, AT&T & McCormick

QUAKER CHEMICAL CORP. $199 (www.quakerhoughton.com) remains a buy for long-term gains. The company completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

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Investors Association of Canada
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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.