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Big utilities keep adding green projects

Given government mandates to cut greenhouse gas emissions, these three utility companies continue to invest in renewable power. That should lift their appeal for big institutional investors, which increasingly focus on ESG (environmental, social, and governance) scores.

While most renewable energy projects rely on government subsidies, these three draw almost all of their earnings from regulated operations (including renewable projects)....

6 min read

Pat McKeough

Blue Chip Stocks

This high yield looks safe

CANADIAN IMPERIAL BANK OF COMMERCE $55 is a buy. The bank (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 924.0 million; Market cap: $50.8 billion; Price-to-sales ratio: 2.2; Dividend yield: 6.3%; TSINetwork Rating: Above Average; www.cibc.com) is the smallest of Canada’s Big Five banks by market cap.

Rising interest rates and inflation are prompting CIBC to set aside more funds for potential future loan losses....

1 min read

Pat McKeough

Blue Chip Stocks

We still see TD’s future as bright

The shares TD Bank have dropped 24% from their recent peak of $109 in February 2022. That’s mainly because rising interest rates have forced it set aside more funds for potential loan defaults. At the same time, higher interest rates could trigger a recession, which would cut demand for new loans....

4 min read

Pat McKeough

How To Invest

Q: May I get your recommendation on Autodesk? It looks like a good stock for the future. Thank you.

A: Autodesk Inc., $212.48, symbol ADSK on Nasdaq (Shares outstanding: 213.8 million; Market cap: $46.8 billion; www.autodesk.com), is a maker of three-dimensional (3D) design, engineering and entertainment software.

The company’s software offerings target the architecture, engineering, construction, product design, manufacturing, media and entertainment industries....

3 min read

Pat McKeough

How To Invest

Q: Pat: Can I get your take on Crocs (CROX)? Thank you.

A: Crocs Inc., $93.06, symbol CROX on Nasdaq (Shares outstanding: 61.6 million; Market cap: $5.7 billion; www.crocs.com), makes casual footwear for men, women, and children. It is best known for its molded ‘Crocs’ shoes featuring Croslite, a non-toxic foam material that aims to give its footwear a soft, comfortable feel.

In February 2022, the company completed the $2.5 billion acquisition of Hey Dude, a privately owned casual footwear brand based in Italy....

2 min read

Pat McKeough

How To Invest

Q: Pat, I am 75 years old and have a million-dollar-plus investment portfolio, mainly in blue chip, dividend-paying stocks. I recently bought some of the BMO International Dividend ETF. Could you give me your opinion on this ETF? Note—I’ve been an Inner Circle member for years.

A: BMO International Dividend ETF, $21.63, symbol ZDI on Toronto (Units outstanding: 20.1 million; Market cap: $434.8 million; www.bmoetfs.cawww.bmoetfs.ca), offers exposure to a portfolio of high-yield dividend-paying companies in developed markets....

1 min read

Pat McKeough

How To Invest

Q: Pat: With electric vehicles coming to the forefront, what do you think of Ivanhoe Electric as a buy? Thanks.

A: Ivanhoe Electric Inc., $21.16, symbol IE on Toronto (Shares outstanding: 103.8 million; Market cap: $2.2 billion; www.ivanhoeelectric.comwww.ivanhoeelectric.com), aims to produce copper and other minerals, such as cobalt and nickel, necessary for the production of electric vehicles (EVs) and clean-energy technology.

Ivanhoe currently owns the Santa Cruz copper project in Arizona, which it believes is the second-largest copper deposit in the U.S....

3 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of September 12, 2023

With our recent Spotlight Report on Canadian Tire, I opened with a quote from one of the first highly successful investors I ever had the privilege of meeting. While talking about the stock market, he casually mentioned, “I’m a rich man today because I was smart enough to buy Canadian Tire stock at $0.50, and too stupid to sell when it hit $2.00.”

The quote deserves to be repeated more often, since it simplifies a key rule for successful investing: Don’t be too quick to sell a winner....

2 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, September 8, 2023

CANADIAN SOLAR INC., $26.25, symbol CSIQ on Nasdaq, is one of the world’s largest manufacturers of solar photovoltaic modules and solar energy and battery storage solutions. Founded in 2001, it went public in 2006, selling shares at $15 each.

On August 17, 2023, the Ontario-based company announced it would deliver 1,200 megawatt hours of energy storage solutions to its Papago Storage project in Arizona....

9 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, September 8, 2023

WAJAX CORP., $29.03, is a buy. Through their shares, 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.

The company’s customers are spread across the resources, construction, manufacturing and transportation industries.

Wajax is now acquiring Sault Ste....

9 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.

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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.

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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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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.