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How To Invest

Q: Thanks, Pat, for all the advice during this crazy market. It’s a timely question: what do you think of the Invesco S&P SmallCap Health Care ETF? Thanks again.

A: The Invesco S&P SmallCap Health Care ETF, $139.65, symbol PSCH on Nasdaq (Units outstanding: 2.4 million; Market cap: $335.2 million; www.invesco.com), invests in smaller U.S. firms involved in the health-care industry....

1 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of January 24, 2023

Here’s Part Two of the most-recent letter I sent to our Portfolio Management clients in October 2022:

“Side-stepping the Thucydides Trap

Thucydides was a fourth-century BC Athenian historian and general. He’s remembered for his book about the Peloponnesian War (431–404 BC), which was fought between the Peloponnesian League (led by Sparta) and the Delian League (led by Athens)....

14 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, January 20, 2023

NUVEI CORP., $43.35, symbol NVEI on Toronto, produces software to help businesses worldwide process payments. Founded in 2003, Nuvei’s clients are largely in the online gambling and retail segments and the broader financial services industry.

The company’s technology platform aims to let merchants accept payments in 150 currencies....

12 min read

Pat McKeough

How To Invest

Dividend Advisor Hotline – Friday, January 20, 2023

CANADIAN UTILITIES LTD. (class A non-voting) is a buy.

The company (Toronto symbols CU [class A non-voting] $37.96 and CU.X [class B voting] $38.10) distributes electricity and natural gas in Alberta and Australia. It also owns or invests in 7 non-regulated power plants—1 in Canada, 2 in Mexico, 3 in Australia and 1 in Chile....

5 min read

Pat McKeough

How To Invest

The Successful Investor Hotline – Friday, January 20, 2023

BANK OF MONTREAL, $132.29, Toronto symbol BMO, remains a buy.

This week, U.S. banking regulators approved the bank’s acquisition of California-based Bank of the West from France’s BNP Paribas.

Bank of the West provides a variety of retail and commercial banking services to over 1.8 million customers through 514 branches in 24 states, mainly in the Western and Midwestern regions of the U.S....

4 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, January 20, 2023

CORTEVA INC., $62.36, is a buy. The company (symbol CTVA on New York) is a leading developer of new seeds and crop chemicals, including herbicides and insecticides, for the agriculture industry. Corteva separated from DowDuPont in June 2019.

China recently approved imports of eight genetically modified (GM) food crops....

5 min read

Pat McKeough

How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 20, 2023

PROCTER & GAMBLE CO., $142.97, New York symbol PG, is a buy.

The company is one of the world’s largest makers of household and personal-care goods. Major brands include Tide (laundry detergent), Pampers (diapers), Gillette (razors), Crest (toothpaste) and Vicks (cold remedies).

In its fiscal 2023 second quarter, ended December 31, 2022, Procter’s sales fell 0.9%, to $20.77 billion from $20.95 billion a year earlier....

5 min read

Pat McKeough

Growth Stocks

ResMed makes a savvy buy

RESMED INC., $225.97, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.5 million; Market cap: $33.1 billion; Dividend yield: 0.7%) makes medical devices used to treat patients with sleep apnea as well as chronic obstructive pulmonary disease and other respiratory conditions.

With each machine ResMed sells, it acquires a long-term replacement-parts customer....

1 min read

Pat McKeough

Growth Stocks

Your niche financials have gains ahead

ACI Worldwide and Broadridge both have winning business models in expanding markets. We believe that will lead to strong growth in future years. Both are buys.

ACI WORLDWIDE, $26.38, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares o/s: 114.0 million; Market cap: $3.0 billion; No divds.) is a leading software provider for processing transactions by credit cards, debit cards, ATMs, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

Merck’s strong R&D and cash holding are big pluses

Merck spends a very high 25% of its sales on research. That goes into developing new drugs but also into finding more profitable uses for its current drugs. A big cash holding of $11.2 billion also gives Merck lots of financial strength—and room for dividend hikes. It’s a Power Buy.

MERCK & CO....

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.