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AT&T INC. $18 is a buy. The telecom giant (New York symbol T; Income-Growth Portfolio, Utilities sector; Shares outstanding: 7.2 billion; Market cap: $129.6 billion; Dividend yield: 6.2%; Dividend Sustainability Rating: Above Average; www.att.com) merged its WarnerMedia business with Discovery Inc....

2 min read

Pat McKeough

Dividend Stocks

A new name but still a buy

GEN DIGITAL INC. $22 is a buy. The company (Nasdaq symbol GEN; High-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 581.3 million; Market cap: $12.8 billion; Dividend yield: 2.3%; Dividend Sustainability Rating: Average; www.gendigital.com) changed its name from NortonLifeLock (old symbol NLOK) following its September 2022 acquisition of European cybersecurity firm Avast plc for $8.1 billion....

1 min read

Pat McKeough

Dividend Stocks

Income from legacy-tech stocks looks safe

The market downturn has hit the technology sector particularly hard, as higher interest rates prompt businesses and consumers to cut their spending on new computers and software. Even so, we feel IBM and Intel’s latest moves will help protect their current dividend rates.

INTERNATIONAL BUSINESS MACHINES CORP....

2 min read

Pat McKeough

Dividend Stocks

Chevron rewards its investors

CHEVRON CORP. $175 is a buy. The company (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $332.5 billion; Dividend yield: 3.2%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....

1 min read

Pat McKeough

Dividend Stocks

New projects will spur their dividends

These pipeline operators get most of their cash flow from regulated businesses. Plans to expand those operations should give them more room to raise dividends in 2023.

TC ENERGY CORP. $55 is a buy. The company (Toronto symbol TRP; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 1.0 billion; Market cap: $55.0 billion; Dividend yield: 6.5%; Dividend Sustainability Rating: Highest; www.tcenergy.com) operates a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S....

2 min read

Pat McKeough

Dividend Stocks

Boost your returns with these U.S. banks

The shares of these two U.S. banks continue to rebound from their pandemic lows. Even though a slowing economy is forcing them to bolster their loan reserves, they remain well capitalized. That should let them return more cash to shareholders.

J.P....

3 min read

Pat McKeough

Dividend Stocks

Dream offers you reliable income

DREAM OFFICE REIT $15 is a buy. The REIT (Toronto symbol D.UN; Cyclical-Growth Dividend Payer Portfolio; Manufacturing sector; Units outstanding: 51.6 million; Market cap: $774.0 million; Dividend yield: 6.7%; Dividend Sustainability Rating: Average; www.dream.ca) sold 138 properties in 2016 as part of a new strategic plan....

1 min read

Pat McKeough

Dividend Stocks

Earn high yields from both parent and spinoff

H&R’s spinoff of its retail properties to Primaris let both REITs focus on what they do best. The split should also lift their long-term asset values and unit prices, and give them more cash flow for distributions.

H&R REAL ESTATE INVESTMENT TRUST $12 is a buy. The REIT (Toronto symbol HR.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 265.9 million; Market cap: $3.2 billion; Distribution yield: 5.0%; Dividend Sustainability Rating: Average; www.hr-reit.com) spun off most of its retail properties to Primaris REIT (see below) in January 2022.

The spinoff is part of H&R’s strategy to focus on its more-promising residential and industrial properties in Toronto, Montreal, Vancouver, and the U.S....

2 min read

Pat McKeough

Dividend Stocks

The ins and outs of...Dividend Reinvestment Plans

Some companies offer dividend reinvestment plans, or DRIPs, which allow shareholders to receive additional shares instead of cash dividends.

For a number of reasons, we think DRIPs are a good way for investors to slowly build wealth over a long period of time.

First, DRIPs eliminate the nuisance effect of receiving small cash-dividend payments.

Second, some DRIPs let you buy shares from your reinvested dividends at a 2% to 5% discount on the current share price.

Third, many DRIPs also allow you to buy additional shares on a monthly or quarterly basis without paying commissions.

Keep in mind, though, that while there is no harm in participating in a DRIP, too many investors select their investment ideas solely on the basis of the existence of the DRIP option.

We think the availability of a DRIP is only a bonus, rather than a reason to invest by itself....

1 min read

Pat McKeough

Dividend Stocks

A Yield to Caution: Medical Facilities

MEDICAL FACILITIES CORP. $8.19 (Toronto symbol DR; Shares o/s: 26.3 million; Market cap: $215.4 million; Divd. yield: 4.0%; www.medicalfacilitiescorp.com) holds majority interest in four U.S....

1 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
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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.

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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.