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IBM, $146.86, is still a buy. The company (New York symbol IBM; Shares o/s: 911.0 million; Market cap: $133.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%) has now agreed to sell its weather business to private equity firm Francisco Partners....

1 min read

Pat McKeough

Energy Stocks

High dividend yields add to their appeal

The shares of oil and gas stocks remain high as energy demand remains strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But, to cut risk, you should stick with producers that have positive cash flow even in times of low energy prices....

2 min read

Pat McKeough

Dividend Stocks

Primaris offer a high yield

PRIMARIS REIT, $13.60, is a buy. The trust (Toronto symbol PMZ.UN; Units outstanding: 97.3 million; Market cap: $1.3 billion; TSINetwork Rating: Average; Yield: 6.0%; www.primarisreit.com) owns 36 enclosed and open air shopping malls in Canada totalling 11.4 million square feet....

1 min read

Pat McKeough

Dividend Stocks

These REITs focus on the best markets

While rising interest rates have increased the appeal of bonds and hurt REITs in the past year, Choice Properties and H&R remain excellent ways for investors to earn income. We see both as buys.

CHOICE PROPERTIES REIT, $13.29, is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Units o/s: 327.9 million; Market cap: $9.7 billion; TSINetwork Rating: Average; Yield: 5.6%; www.choicereit.ca) owns 702 retail, industrial, office space and residential properties with 63.8 million square feet of gross leasable area....

2 min read

Pat McKeough

ETFs

Tap solar’s bright outlook

INVESCO SOLAR ETF, $58.28, is a buy for aggressive investors. The ETF (New York symbol TAN; buy or sell through brokers) tracks solar-related companies (including technology firms and utilities) listed on global exchanges.

The fund’s top holdings are First Solar (China; solar panels) at 11.6%; Enphase Energy (U.S.; home solar systems), 8.9%; SolarEdge Technologies (Israel; solar-power batteries), 7.2%; Xinyi Solar (China; solar panels), 5.4%; GCL Technology (China; polysilicon), 5.3%; and Sunrun (U.S.; solar panels), 4.5%. The ETF charges a relatively high MER of 0.69%.

Renewable stocks have drifted down since early 2021; that follows big run-ups in 2020 on President Biden’s support for sun, wind and hydro power—plus strong investor interest in stocks gaining from environmental concerns....

1 min read

Pat McKeough

ETFs

Buy these two ETFs for U.S. and global gains

Generally speaking, Canadians are blocked from buying mutual funds that are registered in the U.S. unless those funds are also registered with provincial securities commissions. (Moreover, some Canadian mutual funds are only available in a limited number of provinces.)

Investors in this country can, however, buy exchange-traded funds, or ETFs, listed on U.S....

2 min read

Pat McKeough

Blue Chip Stocks

TD shares are cheap

TD BANK, $83.43, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $152.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.td.com) continues to benefit from rising interest rates, which let it earn higher interest income on its loans.

In the three months ended July 31, 2023, revenue rose 12.2%, to $13.01 billion from $11.60 billion a year earlier.

Concerns over higher interest rates and inflation have also prompted TD to set aside $766 million for potential loan losses, up 118.2% from $351 million a year earlier....

1 min read

Pat McKeough

Dividend Stocks

Pembina yields a very high 6.3%

Most of Pembina’s pipelines operate under long-term contracts. That helps lower the company’s risk in today’s uncertain economy. Meanwhile, Pembina’s investors tap a high, sustainable dividend yield. That adds to the stock’s appeal and also supports its share price.

PEMBINA PIPELINE, $42.17, is a #1 Buy for 2023. The company (Toronto symbol PPL; Shares outstanding: 549.2 million; Market cap: $23.0 billion; TSINetwork Rating: Average; Dividend yield: 6.3%; www.pembina.com) operates pipelines that carry half of Alberta’s conventional oil and almost all of B.C.’s oil....

1 min read

Pat McKeough

How To Invest

Q: Pat, when balancing economic sectors in my portfolio, where do I assign these two ETFs that you recommend as buys: XDV and SPY? Thank you.

A: Both of these ETFs hold stocks in most or all of the five main economic sectors: Finance, Utilities, Resources, Consumer and Manufacturing.

The iShares Canadian Select Dividend Index ETF, $26.84, symbol XDV on Toronto (Units outstanding: 57.5 million; Market cap: $1.5 billion; www.blackrock.com/ca), holds 30 of the highest-yielding Canadian stocks....

1 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of August 29, 2023

This country’s traditional retailers, like Canadian Tire, face rising competition from big U.S. chains, like Walmart and Costco, as they continue to expand in Canada. As well, consumers are now spending less on non-essential items as they adjust to high prices and interest rates.

We feel Canadian Tire will overcome any challenges, as it has for over 100 years....

13 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
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Financial Post Columnist
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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

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.