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Growth Stocks

TELUS INTERNATIONAL (CDA) INC. $10 remains a buy for aggressive investors. The operator of call centres (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 274.0 million; Market cap: $2.7 billion; Price-to-sales ratio: 0.8; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) paid $1.17 billion in January 2023 for 86% of WillowTree (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Use our updates to enhance your portfolio: ATCO, Bombardier & SNC-Lavalin

ATCO LTD. (class I non-voting) is a buy. The company (Toronto symbols ACO.X [class I non-voting] $38 and ACO.Y [class II voting] $38; Income Portfolio, Utilities sector; Shares outstanding: 113.4 million; Market cap: $4.3 billion; Price-to sales ratio: 0.9; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.atco.com) gets 80% of its revenue from its stake in Canadian Utilities Ltd....

2 min read

Pat McKeough

Value Stocks

Lower costs will boost earnings

BANK OF NOVA SCOTIA $60 is a buy. The bank (Toronto symbol BNS; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.2 billion; Market cap: $72.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 7.1%; TSINetwork Rating: Above Average; www.scotiabank.com) is cutting 3% of its global workforce as it aims to improve its long-term efficiency in the face of higher interest rates and inflation....

1 min read

Pat McKeough

Value Stocks

Narrower focus will help both of them

Insurer Great-West and mutual fund seller IGM are re-organizing their operations. These moves will let them better focus on their main businesses and spur their long-term profits. However, we prefer IGM for your new buying.

GREAT-WEST LIFECO INC....

2 min read

Pat McKeough

Value Stocks

Linamar’s outlook remains bright

The big three U.S. automakers—General Motors, Ford and Stellantis—recently agreed to new contracts with unionized auto workers. As a group, those customers account for just over half of Linamar’s total revenue, so labour peace cuts its risk. The company is also doing a good job preparing for the shift to electric vehicles (EVs), particularly as governments plan to ban the sale of new gasoline-powered cars and trucks over the next few years.

LINAMAR CORP....

2 min read

Pat McKeough

Value Stocks

CIBC raises your dividend

CANADIAN IMPERIAL BANK OF COMMERCE $58 is a buy. The bank, (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 924.0 million; Market cap: $53.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 6.2%; TSINetwork Rating: Above Average; www.cibc.com) in response to rising interest rates and inflation, set aside $541 million in its fiscal 2023 fourth quarter, ended October 31, 2023, to cover potential future loan losses....

1 min read

Pat McKeough

Energy Stocks

Imperial Oil buys back more stock

IMPERIAL OIL LTD. $75 is a buy. The oil producer (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $45.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.7%; TSINetwork Rating: Average; www.imperialoil.ca) is using its strong cash flow to reward investors with higher dividends and stock buybacks.

In December 2023, the company plans to buy back up to $1.5 billion of its shares through a Dutch auction process....

1 min read

Pat McKeough

Growth Stocks

Challenging times for these food producers

These four food and beverage makers face several obstacles to earnings growth, including rising costs for ingredients and labour and higher interest expenses. As a result, they have raised their selling prices to offset those higher input costs. They are also adding new products in response to changing consumer tastes.

We like the long-term prospects of all four, but see only Andrew Peller as a buy for right now.

SAPUTO INC....

6 min read

Pat McKeough

Value Stocks

Earnings should rise in 2024

BANK OF MONTREAL $117 is a buy. The bank (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 720.9 million; Market cap: $84.3 billion; Price-to-sales ratio: 2.5; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bmo.com) completed its $13.8 billion U.S....

1 min read

Pat McKeough

Dividend Stocks

Good time to buy more Enbridge

Enbridge, like all high-yielding utility stocks, has struggled in the past year as rising interest rates increase the appeal of competing bonds. Higher interest rates also make it more expensive for the company to make acquisitions and fund new growth projects.

However, Enbridge’s rate-regulated operations give it plenty of steady cash flow to service its debt....

4 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.