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These high-quality utilities still top bonds

Rising interest rates continue to weigh on the stock prices of Canadian Utilities LTD. and its parent firm ATCO. That’s because investors can now earn comparable yields from bonds with less risk. However, they pay more tax on interest income than dividends. As well, it’s possible that interest rates will decline in 2024, which should spur these high-quality utilities.

CANADIAN UTILITIES LTD....

2 min read

Pat McKeough

Energy Stocks

Ovintiv’s narrower focus will pay off

In the past few years, Ovintiv, formerly known as Encana, has narrowed its focus to four key properties with large reserves. The company is also doing a good job cutting its operating costs. That puts it in a strong position to profit from the recent rise in oil prices and to keep rewarding investors with higher dividends and share buybacks.

OVINTIV INC....

2 min read

Pat McKeough

Blue Chip Stocks

This dividend still looks safe

BCE INC. $52 is a buy. The telecom giant (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 912.0 million; Market cap: $47.4 billion; Price-to-sales ratio: 2.4; Dividend yield: 7.4%; TSINetwork Rating: Above Average; www.bce.ca) has dropped 20% from its recent peak of $65 in May 2023....

1 min read

Pat McKeough

Value Stocks

Transcontinental cuts its cyclical risk

Shares of Transcontinental are down 30% in the past year on slowing demand at its commercial printing business. However, it continues to expand its packaging business, which cuts its exposure to the cyclical printing market. It’s also doing a good job controlling costs, which will let it keep paying its current dividend rate.

TRANSCONTINENTAL INC....

1 min read

Pat McKeough

Value Stocks

We prefer food sellers over food producers

Under pressure from the federal government, Canada’s leading grocery chains have agreed to a series of measures to lower prices for consumers. Those include discounts, price-matching campaigns, and price freezes. The government is also looking at ways to get food producers to lower their prices.

We feel food sellers like Loblaw and Metro, with their high market shares, are in a better position to adapt than food producers like Saputo and Maple Leaf Foods....

6 min read

Pat McKeough

Growth Stocks

CGI buys Miami firm

CGI INC. $138 is your #1 Aggressive Buy for 2023. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 235.5 million; Market cap: $32.5 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services.

CGI fuels its growth with a “Build and Buy” strategy....

1 min read

Pat McKeough

How To Invest

Here’s our Aggressive-Growth portfolio for November 2023

You Can See Our Aggressive Growth Portfolio For November 2023 Here.

If you’re like most investors, you should invest the major portion of your money in stocks from our Conservative Growth Portfolio....

1 min read

Pat McKeough

Growth Stocks

These two have more growth ahead

In April 2020, we promoted real-estate service providers FirstService and Colliers from Power Growth Investor to The Successful Investor, our flagship newsletter.

Since then, FirstService has gained 57%. That’s largely because homeowners have continued to upgrade their properties even after the pandemic....

4 min read

Pat McKeough

Value Stocks

New products set to fuel sales

MOLSON COORS CANADA INC. is still a hold. The brewer (Toronto symbols TPX.A $83 and TPX.B $82; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 216.5 million; Market cap: $18.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.7%; TSINetwork Rating: Average; www.molsoncoors.com) aims to spur its long-term growth by focusing on its core brands and expanding its line of premium priced products....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: RioCan, SNC-Lavalin & Leon

RIOCAN REAL ESTATE INVESTMENT TRUST $18 (www.riocan.com) is a buy. The REIT owns all or part of 193 shopping centres and other properties across Canada, as well as 11 projects under development. RioCan plans to spend between $400 million and $450 million on new developments in 2023....

1 min read

Pat McKeough

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Investors Association of Canada
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Financial Post Columnist
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Subscriber since 1996. Inner Circle Member Since 2006
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Inner Circle Pro subscriber

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.