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Value Stocks

BANK OF NOVA SCOTIA $66 is a buy. The stock (Toronto symbol BNS; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.2 billion; Market cap: $79.2 billion; Price-to-sales ratio: 2.6; Dividend yield: 6.2%; TSINetwork Rating: Above Average; www.scotiabank.com) is down 28% since the start of 2022, mainly due to concerns that rising interest rates will lead to a jump in loan writeoffs.

However, its credit quality remains strong....

2 min read

Pat McKeough

Dividend Stocks

Acquisition is already paying off

TELUS CORP. $29 is a buy. The company (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.4 billion; Market cap: $40.6 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.telus.com) recently acquired LifeWorks Inc....

1 min read

Pat McKeough

Growth Stocks

Thomson’s plan sets you up for more gains

Thomson Reuters continues to benefit from a new restructuring plan, which is cutting its costs and improving the appeal of its products. Upcoming sales of its stake in the London Stock Exchange will also give it more cash to reward investors.

THOMSON REUTERS CORP....

2 min read

Pat McKeough

Dividend Stocks

Downturn cuts AUM and earnings

IGM FINANCIAL INC. $37 is a buy. The company (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 239.2 million; Market cap: $8.9 billion; Price-to-sales ratio: 2.6; Dividend yield: 6.1%; TSINetwork Rating: Above Average; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider....

1 min read

Pat McKeough

Dividend Stocks

These four can also handle higher rates

Rising interest rates have dampened investor enthusiasm for high-yielding utility stocks. That’s because higher rates add to a utility’s interest costs and, at the same time, they increase the appeal of competing bonds by spurring their yields.

However, these four utilities get most of their revenue from rate-regulated businesses....

5 min read

Pat McKeough

Growth Stocks

Big earnings jump for Finning

FINNING INTERNATIONAL INC. $31 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.7 million; Market cap: $4.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South America, the U.K....

1 min read

Pat McKeough

Blue Chip Stocks

Higher rates lift BMO’s outlook

Rising interest rates are generally good news for banks, as higher rates increase the income from new and renewing loans. On the other hand, higher rates also increase the risk that borrowers will fall behind in their loan payments.

We feel that Bank of Montreal will ultimately benefit from higher rates, as more-stringent lending standards since the 2008 financial crisis greatly reduce the risk of big loan losses....

4 min read

Pat McKeough

ETFs

Consumer-focused ETFs add stability

Consumer companies such as Walmart, Kellogg and Nestle provide basic goods that consumers need, even during a recession. It is therefore not surprising that these companies have relatively consistent revenue and profit histories and are able to maintain their dividends even during tough economic times.

These providers of consumer staples are also part of a very select group that help protect investor portfolios during market downturns.

How bear market affects certain sectors

When stock markets drop, most stocks will fall along with the market....

2 min read

Pat McKeough

ETFs

Europe’s troubles make top firms cheaper

High inflation, rising interest rates and the war in Ukraine have all combined this year to hurt European economies and stocks prices.

Still, Europe is home to some of the world’s leading companies—and many of them are now trading are attractive prices.

The top holdings of the European-focused ETFs we looked at on pages 111 and 112 are all high-quality, global leaders in their respective industries.

Not only do these companies overall have strong track records of profitable growth, but they also have balance sheets with the financial strength to see them through difficult times.

The table above right shows the credit ratings of the top ETF holdings as provided by the main rating agencies—a rating of A or above indicates a strong ability to service debt....

2 min read

Pat McKeough

ETFs

Here are new ETFs for Canadian investors

This month we highlight a U.S. small and mid-cap ETF that aims to invests in companies with long-term competitive advantages. We also look at a “green” bond ETF from CI Asset Management.

VANECK MORNINGSTAR SMID MOAT ETF $25.76 (New York symbol SMOT) invests in U.S.-domiciled small and medium-size companies.

The ETF aims to track the Morningstar Small-Mid Cap Moat Focus Index....

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.

Chuck J.
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.