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Updating your Income-Growth Payer: Fortis

FORTIS INC. $55 is a buy. The company (Toronto symbol FTS; Income-Growth Portfolio, Utilities sector; Shares outstanding: 482.2 million; Market cap: $26.5 billion; Dividend yield 4.1%; Dividend Sustainability Rating: Highest; www.fortisinc.com) is the main supplier of electrical power in Newfoundland and PEI....

1 min read

Pat McKeough

Dividend Stocks

Strong pipeline underpins AbbVie’s dividend

AbbVie’s earnings will likely drop 20% in 2023 as its main drug, Humira, faces new competition in the U.S. from generics. However, the company has several promising drugs in its development pipeline that should spur its revenue and earnings for years to come. That should let AbbVie keep raising your dividend, as it has done each year since becoming a separate firm in 2013.

ABBVIE INC....

2 min read

Pat McKeough

Dividend Stocks

Falling steel prices weigh on Russel

RUSSEL METALS INC. $36 is a buy. The company (Toronto symbol RUS; Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.1 million; Market cap: $2.2 billion; Dividend yield: 4.2%; Dividend Sustainability Rating: Above Average; www.russelmetals.com) is one of the largest metals distributors in North America with more than 30,000 end customers.

Russel has paid regular quarterly dividends of $0.38 a share since the third quarter of 2014; the annual rate of $1.52 yields a high 4.2%.

The company’s revenue in the three months ended December 31, 2022, fell 4.1%, to $1.10 billion from $1.15 billion a year earlier....

1 min read

Pat McKeough

Dividend Stocks

Here are key updates on 3 dividend payers: Andrew Peller, Broadridge & Kraft Heinz

ANDREW PELLER LTD. $5.01 (A shares) remains a buy. Canada’s second-largest winemaker (Toronto symbol ADW.A; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 43.1 million; Market cap: $215.9 million; Dividend yield: 4.9%; Dividend Sustainability Rating: Above Average; www.andrewpeller.com) last raised your quarterly dividend by 10% with the July 2021 payment....

2 min read

Pat McKeough

Dividend Stocks

New contracts will lift its revenue

TRANSCONTINENTAL INC. $15 is still a buy. Canada’s largest commercial printing company (Toronto symbol TCL.A; Cyclical-Growth Portfolio, Consumer sector; Shares outstanding: 86.6 million; Market cap: $1.3 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Above Average; www.tctranscontinental.com) last raised your dividend with the April 2020 payment....

1 min read

Pat McKeough

Dividend Stocks

Earn steady income from cyclical upswing

The improving outlook for cyclical commodity prices is prompting mining firms to order more equipment from Finning and Toromont. Both firms are also benefitting as governments spend more on infrastructure projects. Those higher orders will fuel their profits—and your dividends.

FINNING INTERNATIONAL INC....

2 min read

Pat McKeough

Dividend Stocks

New businesses let them reward investors

Top insurers Manulife and Sun Life recently rewarded investors with sizeable dividend hikes. That’s partly due to the contributions of recent acquisitions. We feel these purchases will continue to pay off. Moreover, both stocks trade at attractive multiples to their projected earnings.

MANULIFE FINANCIAL CORP....

2 min read

Pat McKeough

Dividend Stocks

More outlets should fuel more hikes

MCDONALD’S CORP. $269 is a buy. This company (New York symbol MCD; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 732.4 million; Market cap: $197.0 billion; Dividend yield: 2.3%; Dividend Sustainability Rating: Highest; www.mcdonalds.com) is the world’s largest fast-food chain with over 40,000 restaurants in 119 countries....

1 min read

Pat McKeough

Dividend Stocks

Payments look safe despite rising inflation

So far, U.S. consumer confidence has held up in the face of rising inflation and interest rates. However, there are signs that higher rates could cut spending in 2023, which would likely weigh on the profit growth of these two consumer-products giants. Even so, their dividends look solid.

PEPSICO INC....

2 min read

Pat McKeough

Dividend Stocks

T. Rowe Price lifts your dividend

T. ROWE PRICE GROUP INC. $112 is a buy. The asset manager (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 224.3 million; Market cap: $25.1 billion; Dividend yield: 4.4%; Dividend Sustainability Rating: Above Average; www.troweprice.com) provides financial advice and products to individuals and institutions worldwide.

The company will now raise your quarterly dividend by 1.7%....

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.

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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.