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Growth Stocks

TELUS INTERNATIONAL (CDA) INC. $30 is a buy for aggressive investors. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 266.6 million; Market cap: $8.0 billion; Price-to-sales ratio: 2.4; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) operates call centres on behalf of over 650 corporate clients in 30 countries....

1 min read

Pat McKeough

Value Stocks

Shareholders approve takeover offer

HOME CAPITAL GROUP INC. $41 is a hold. The company (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 42.6 million; Market cap: $1.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.5%; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.

Home Capital’s shareholders have voted to accept a friendly takeover offer of $44.00 a share from Smith Financial Corp....

1 min read

Pat McKeough

Dividend Stocks

These four utilities are still better than bonds

While rising interest rates have spurred income-seeking investors to buy bonds, we still prefer high-quality utilities like these four. Their regulated businesses cut your risk and give them lots of cash flow for dividends. Canadian investors also benefit from the dividend tax credit.

ENBRIDGE INC....

6 min read

Pat McKeough

Energy Stocks

Suncor narrows its focus

SUNCOR ENERGY INC. $47 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.44 billion; Market cap: $67.7 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.4%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands....

1 min read

Pat McKeough

Blue Chip Stocks

This railway has a bright future

CN Rail failed in its attempt to buy U.S. railway Kansas City Southern, which will instead merge with Canadian Pacific Railway. Still, following its rejected offer, CN hired a new CEO in January 2022. That move helped kick-start a growth plan for CN, which will increase value for shareholders and satisfy the demands of an activist investor.

Railways are highly cyclical, and the stock has moved mostly sideways since the start of 2022 on concerns rising inflation and interest rates will slow the economy.

However, CN’s long-term outlook remains strong, as its focus on efficiency will keep fuelling its earnings....

4 min read

Pat McKeough

How To Invest

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

You can see our Exchange-traded Funds Portfolio for April 2023 here.

ETFs in brief

Traditionally, exchange-traded funds were set up to mirror the performance of a specific stock-market index....

1 min read

Pat McKeough

ETFs

Some semiconductor stocks offer less risk

The semiconductor industry has experienced strong growth over the past two decades. This is expected to continue as demand for technologically advanced products such as autonomous vehicles, 5G mobile applications, artificial intelligence (AI), and cloud computing, continues to rise.

Still, the market for basic memory-type conductors is cyclical and subject to large price, supply, and demand swings....

3 min read

Pat McKeough

ETFs

Focus on stocks with strong fundamentals

To gain a better understanding of the stock market’s performance, portfolio managers often divide markets into smaller segments. Large, medium, and small companies are one way used to divide the market. Another is to divide the market into individual industry segments such as energy, consumer or healthcare.

A less followed method is to divide the market according to “factors.” In the context of investing, a factor is any characteristic that helps explain the long-term risk and return performance of an asset....

3 min read

Pat McKeough

ETFs

Here are new ETFs for Canadian investors

With the goal of tapping into the popularity of high-yield investments, RBC recently launched an ETF that invests in Canadian dividend-paying companies—but with a covered call strategy. Meanwhile, we also look at an ETF focused on using leverage in bull markets but switching to short positions in bear markets.

RBC CANADIAN DIVIDEND COVERED CALL ETF $20.07 (Toronto symbol RCDC) invests in large-cap, dividend-paying Canadian companies—and sells covered call options on its stock holdings.

The ETF launched in January 2023 with an MER of 0.64%....

1 min read

Pat McKeough

ETFs

Hindenburg targeted just one specific stock group

Hindenburg Research is known for producing reports aimed at companies with apparent poor corporate governance and controls.

In the process, the firm may take short positions in a target company with the expectation of profiting when their report is published.

In the past, Hindenburg has published reports on companies such as the electric truck maker Nicola Corporation, Bloom Energy, HF Foods, Pershing Gold, Tecnoglass, Riot Blockchain, and Aphria.

In several cases, the allegations of corporate governance failures turned out to have merit and the share prices of those stocks fell sharply and never recovered....

1 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.

Jonathan Chevreau
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

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.