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Spinoffs & Takeovers Hotline – Friday, May 12, 2023

CENTRAL GARDEN & PET CO., $36.78, symbol CENT on Nasdaq, provides a range of products to pet owners and residential and commercial gardeners. Central’s more than 65 brands include Pennington, Nylabone, Kaytee, Amdro and Aqueon.

Founded in 1980, the company has made several acquisitions to grow both segments of its business.

One major purchase was the February 2021 acquisition of Green Garden Products, a Massachusetts-based provider of vegetable, herb, and flower seeds, as well as seed starters and plant nutrients....

8 min read

Pat McKeough

How To Invest

Here’s our Exchange-traded Funds Portfolio for June 2023

You Can See Our Exchange-Traded Funds Portfolio For June 2023 here.

ETFs in brief

Exchange-traded funds are set up to mirror the performance of a stock-market index or sub-index....

1 min read

Pat McKeough

ETFs

Ways ETFs determine their stock weightings

Most of the large and popular exchange-traded funds are passively managed index-tracking funds. Passive fund management for ETFs involves investing to mirror the holdings and performance of a specific stock-market index. The indexes that form the basis of these ETFs are provided by major index providers such as MSCI, S&P, FTSE and Solactive.

Meanwhile, the methods used to construct those major indexes can dramatically influence their composition and performance....

2 min read

Pat McKeough

ETFs

The risks and rewards of high-yielding ETFs

Exchange-traded funds offering regular income have grown in popularity lately, especially during the low interest rate years of 2020 to 2021. But with interest rates moving higher over the past 18 months, ETF managers have to become more creative in their efforts to offer appealing yields to investors....

3 min read

Pat McKeough

ETFs

Two new ETFs for Canadian investors

Royal Bank is the partner of BlackRock for the distribution of the iShares ETFs in Canada. But the Royal Bank platform also hosts a considerable number of RBC branded ETFs. The Bank recently expanded its ETF roster by adding RBC-branded ETFs that mirror existing actively managed mutual funds.

RBC NORTH AMERICAN GROWTH ETF $20.47 (NEO exchange symbol RNAG) invests in U.S....

1 min read

Pat McKeough

ETFs

Warren Buffett likes Japan’s investment outlook

On August 30, 2020, the day of his 90th birthday, billionaire investor Warren Buffett announced that his Berkshire Hathaway company (symbol BRK.B on New York) had acquired a little over 5% of each of five Japanese trading companies, or Sogo Shosha as they are called in Japan.

The five are Itochu Corp., Marubeni Corp, Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp....

1 min read

Pat McKeough

ETFs

Japan offers investors a bright future

The Japanese economy ranks third in the world and hosts some of the most-profitable global corporations.

The economy is, however, facing a declining and rapidly aging population. Still, an older population also presents opportunities, and Japanese companies are already coming up with innovative and technology-driven aids for the elderly....

5 min read

Pat McKeough

ETFs

High-yield ETFs—two buys, one avoid

High interest rates mean dividend-paying stocks must increasingly compete for investor interest with bonds and other fixed-income instruments. However, focusing on sustainable dividends still offers an attractive and growing income stream for investors—as long as you avoid the riskier strategies that some ETF managers use to boost their yields (see supplement on page 60).

Here are three ETFs that aim to provide high-yield exposure to Canadian, as well as U.S., dividend payers.

VANGUARD FTSE CANADIAN HIGH DIVIDEND ETF $42.00 (Toronto symbol VDY; TSINetwork ETF Rating: Aggressive; Market cap: $2.1 billion) tracks the FTSE Canada High Dividend Yield Index....

4 min read

Pat McKeough

ETFs

Pass on this ETF: iShares GSCI Commodity Dynamic Roll Strategy ETF

ISHARES GSCI COMMODITY DYNAMIC ROLL STRATEGY ETF $26.17 (New York symbol COMT) invests in a broad range of commodities. At the end of March 2023, the fund’s asset were effectively distributed to energy (57%), agriculture (19%), industrial metals (12%), and livestock (8%)....

1 min read

Pat McKeough

ETFs

Tap into robots and artificial intelligence

The growing commercial use of robots and computers with sophisticated learning and problem-solving skills continues to change the manufacturing and service sectors.

Here is a look at two exchange-traded funds that provide easy access to companies now leading the development of robotics, artificial intelligence (AI) and automation.

GLOBAL X ROBOTICS & ARTIFICIAL INTELLIGENCE ETF $25.57 (Nasdaq symbol BOTZ; TSINetwork ETF Rating: Aggressive; Market cap: $1.7 billion) invests in companies that benefit from the growing use of robotics and artificial intelligence.

The fund invests globally: the U.S....

3 min read

Pat McKeough

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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.