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Dividend Advisor Hotline – Friday, December 16, 2022

CANADIAN IMPERIAL BANK OF COMMERCE, $55.44, Toronto symbol CM, remains a buy for long-term gains.

CIBC is now raising your quarterly dividend by 2.4% with the January 2023 payment. Investors will then receive $0.85 a share instead of $0.83. The new annual rate of $3.40 yields a high 6.1%.

As well, starting with this payment, the bank will let shareholders automatically re-invest their dividends in new common shares at a 2% discount to the market price.

The stock has dropped 14% since the start of December, mainly due to concerns that rising interest rates will slow demand for new residential mortgages and refinancing....

7 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, December 16, 2022

DREAM OFFICE REIT, $14.90, is still a buy. The REIT (symbol D.UN on Toronto), sold 138 properties in 2016 as part of a new strategic plan. Due to those sales, in July 2017, Dream cut its monthly distribution to $0.0833 a unit from $0.125. The new annual rate of $1.00 yields a high 6.7%.

Dream now has 27 office properties, including two under development....

6 min read

Pat McKeough

How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 16, 2022

PFIZER INC., $51.43, New York symbol PFE, is your #1 Income Buy for 2022.

The company is one of the world’s largest makers of prescription drugs. Its top-selling brands include Eliquis (stroke), Ibrance (breast cancer) and Prevnar (pneumonia).

Pfizer has increased its dividend rate each year since 2011....

5 min read

Pat McKeough

How To Invest

The Successful Investor Hotline – Friday, December 16, 2022

BANK OF MONTREAL, $120.63, Toronto symbol BMO, remains a buy.

In December 2021, the bank agreed to acquire California-based Bank of the West from France’s BNP Paribas for $16.3 billion U.S.

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....

5 min read

Pat McKeough

Spinoffs

Our stock updates help protect your gains

TMX GROUP LTD. $139 is a hold. The company (Toronto symbol X; Finance sector; Shares outstanding: 55.6 million; Market cap: $7.7 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.tmx.com) owns Canada’s two primary stock exchanges, the Toronto Stock Exchange and the Montreal Exchange, as well as clearing entities for domestic Canadian markets (CDS and CDCC).

TMX Group is now paying an undisclosed sum for Boston-based Wall Street Horizon Inc....

2 min read

Pat McKeough

Spinoffs

Hold off on this IPO for now: Pineapple Financial Inc.

PINEAPPLE FINANCIAL INC. (www.gopineapple.com) is a Toronto-based mortgage broker and technology firm. Its exclusive software helps homebuyers search and apply for mortgages from over 40 lenders. It also provides a variety of back-office services to mortgage brokers and agents to help them with email marketing and data reporting.

Pineapple now plans to raise up to $17 million U.S....

1 min read

Pat McKeough

Spinoffs

We prefer the former parent right now

On August 3, 2021, L Brands (old New York symbol LB) became two separate firms: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.

Both stocks initially rose after the split....

2 min read

Pat McKeough

Spinoffs

This takeover is still in limbo

TEGNA INC. $20 is still a hold. The company (New York symbol TGNA; Consumer sector; Shares outstanding: 222.9 million; Market cap: $4.5 billion; Dividend yield: 1.9%; Takeover Target Rating: Highest; www.tegna.com) owns 64 TV stations and two radio stations in 51 U.S....

1 min read

Pat McKeough

Spinoffs

You should pass on these two spinoffs

Entertainment firms continue to rebound following easing COVID-19 restrictions and venue re-openings. These two companies now aim to further boost value with spinoffs. Still, neither stock currently inspires our confidence.

LIBERTY MEDIA GROUP operates a variety of communications and entertainment businesses through three tracking stocks: Liberty SiriusXM Group (Nasdaq symbols LSXMA, LSXMB, and LSXMK) operates satellite radio and online streaming services, as well as concert promoter Live Nation; Braves Group (Nasdaq symbols BATRA and BATRK) owns the Atlanta Braves professional baseball club; and Formula One Group (Nasdaq symbols FWONA and FWONK) owns the commercial rights to the famous motor racing series.

Note: Tracking stocks give investors financial exposure to a specific aspect of a larger company’s business, but usually come with limited or no voting power....

2 min read

Pat McKeough

Spinoffs

Starboard likes what it sees

VERTIV HOLDINGS CO. $14 is a hold. The company (New York symbol VRT; Manufacturing & Industry sector; Shares outstanding: 377.3 million; Market cap: $5.3 trillion; Dividend yield: 0.1%; Takeover Target Rating: Medium; www.vertiv.com) makes equipment for datacentres, such as uninterruptible power supplies, room cooling systems and server racks.

Private equity firm Platinum Equity acquired this business from Emerson Electric in December 2016....

1 min read

Pat McKeough

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Investors Association of Canada
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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.