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QUAKER CHEMICAL CORP. $163 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.0 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.1%; TSINetwork Rating: Average; www.quakerhoughton.com) acquired rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Value Stocks

Lower costs should fuel their recovery

The shares of these two makers of household products are down sharply from their recent peaks in 2021 as consumers curtailed their spending on non-essential items. Both firms are now aggressively cutting costs, which sets them up for future gains. However, Stanley is the better pick right now.

STANLEY BLACK & DECKER INC....

2 min read

Pat McKeough

Growth Stocks

Still vulnerable to cheaper brands

DIAGEO PLC ADR $169 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 562.5 million; Market cap: $95.1 billion; Price-to-sales ratio: 4.4; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages.

In the fiscal year ended June 30, 2023, Diageo’s sales rose 10.7%, to 17.11 billion British pounds (1 pound = $1.67 Canadian) from 15.45 billion pounds in 2022....

1 min read

Pat McKeough

Growth Stocks

GE’s recent spinoff is the better pick here

We’ve long told our readers that spinoffs are a great way for companies to unlock hidden value for their shareholders. A recent example is General Electric, which is breaking up into three smaller firms. GE is now up 35% since it announced that plan in November 2021; its new spinoff GE HealthCare has gained 20%....

2 min read

Pat McKeough

Value Stocks

Loan quality better than pre-COVID

AMERICAN EXPRESS CO. $159 is a buy. The company (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 747.2 million; Market cap: $118.8 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.5%; TSINetwork Rating: Average; www.americanexpress.com) was once best known for its travellers cheques....

1 min read

Pat McKeough

Growth Stocks

Record backlog cuts your risk

MOTOROLA SOLUTIONS INC. $278 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.0 million; Market cap: $46.4 billion; Price-to-sales ratio: 4.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and fire vehicles, as well as high-definition surveillance systems....

1 min read

Pat McKeough

Value Stocks

Keep holding these quality tech stocks

Technology stocks, as a group, have so far outperformed the broader stock market in 2023—the Dow Jones U.S. Technology Index is up 48% compared to the 15% gain for the S&P 500 Index. However, tech stocks are inherently cyclical and remain vulnerable to a potential recession.

To cut your risk, we recommend technology stocks with big market shares and the ability to tap into emerging trends like artificial intelligence (see Microsoft on page 81).

We also like other tech leaders like Apple, HP and HP Enterprise....

4 min read

Pat McKeough

Growth Stocks

Keysight will rebound

KEYSIGHT TECHNOLOGIES INC. $130 is still a buy for aggressive investors. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 177.8 million; Market cap: $23.1 billion; Price-to-sales ratio: 4.1; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes an array of devices for testing electronic equipment.

The stock dropped 10% recently on concerns that China’s slowing economy will hurt demand for its communication and chip testing equipment....

1 min read

Pat McKeough

Growth Stocks

Microsoft’s bet on AI is paying off

In January 2023, Microsoft increased its investment in OpenAI. That’s the start-up firm behind ChatGPT, which uses artificial intelligence (AI) software to interact with users in a conversational way and produce human-like written responses. The company has not yet revealed the size of this investment, but media reports suggest it was $10 billion.

Since then, Microsoft stock has jumped 36% on the expectation the company will use this AI technology to greatly improve the performance of its Azure cloud computing platform and its Bing search engine.

Microsoft also stands to gain from its upcoming acquisition of video game maker Activision Blizzard....

4 min read

Pat McKeough

How To Invest

Here’s our High-Growth Dividend Payer Portfolio for September 2023

You Can See Our High-Growth Dividend Payer Portfolio For September 2023 Here.

You can’t fake a record of dividends....

1 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.