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These two insurers remain a great choice for steady dividend income, despite the recent volatility of stock markets and the resulting hit to their asset management income.

MANULIFE FINANCIAL CORP. $22 is a buy. The company (Toronto symbol MFC; Conservative-Growth Payer Portfolio; Finance sector; Shares outstanding: 1.9 billion; Market cap: $41.8 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Above Average; www.manulife.ca) is Canada’s largest life insurer....

2 min read

Pat McKeough

Dividend Stocks

Shift to 5G will pay off for investors

These two leading U.S. telecoms are aggressively expanding their ultrafast 5G (fifth generation) wireless networks. 5G users tend to spend more than current 4G users, and that extra cash flow should support dividend increases over the next several years for investors in both firms.

AT&T INC....

3 min read

Pat McKeough

Dividend Stocks

Acquisition moves a step closer

NORTONLIFELOCK INC. $21 is a buy. The company (Nasdaq symbol NLOK; High-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 665.6 million; Market cap: $14.0 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Average; www.nortonlifelock.com) last raised its quarterly dividend by 7.0% with the December 2019 payment, to $0.125 a share from $0.075....

1 min read

Pat McKeough

Dividend Stocks

Earn high yields with these legacy tech firms

IBM and Cisco continue to reward investors with annual dividend hikes. Despite the current stock market weakness, we feel both firms will benefit from the ongoing shift to cloud computing platforms.

INTERNATIONAL BUSINESS MACHINES CORP. $123 is a buy. The company (New York symbol IBM, Conservative-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 896.3 million; Market cap: $110.2 billion; Dividend yield: 5.4%; Dividend Sustainability Rating: Above Average; www.ibm.com) is one of the world’s largest computer companies, with operations in over 175 countries.

IBM has raised its dividend for 27 consecutive years and has paid quarterly dividends every year since 1916....

2 min read

Pat McKeough

Dividend Stocks

Wells Fargo passes stress test

WELLS FARGO & CO. $41 remains a buy. The bank (New York symbol WFC; Conservative-Growth Payer Portfolio, Finance sector; Shares outstanding: 3.8 billion; Market cap: $155.8 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Average; www.wellsfargo.com) has passed the U.S....

1 min read

Pat McKeough

Dividend Stocks

High-quality properties support their payouts

These two REITs have held their distributions steady for the last several years. Going forward, dependable rental payments from their high-quality tenants and properties should continue to support their current payout levels.

CHOICE PROPERTIES REIT $13 is a buy. Canada’s biggest REIT (Toronto symbol CHP.UN; Cyclical-Growth Payer Portfolio; Manufacturing & Industry sector; Units outstanding: 723.5 million; Market cap: $9.4 billion; Distribution yield: 5.7%; Dividend Sustainability Rating: Above Average; www.choicereit.ca) owns 701 retail, industrial, office space and residential properties....

2 min read

Pat McKeough

Dividend Stocks

You should know the ins and outs of ... preferred shares

Preferred shares offer similar security to bonds, but can also provide investors a better after-tax yield. In addition, they rank ahead of common shares in the payment of dividends and in claims on the company’s assets.

Preferreds, however, are a fixed-return investment, so in general, they drop in value when interest rates go up (as they are likely to continue doing over the next year or so); they rise in value when interest rates go down.

As well, the underlying credit quality of the company issuing the preferred shares can be a negative factor; for example, when its share price falls, the value of its preferred shares typically fall, too.

However, if you want to own preferred shares as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold.

That’s especially true of preferreds from high-quality issuers, including the Big Five banks, many Canadian utility companies and other major issuers....

1 min read

Pat McKeough

Dividend Stocks

A Yield to Caution

PIZZA PIZZA ROYALTY CORP. $12.71 (Toronto symbol PZA; Shares outstanding: 24.6 million; Market cap: $312.7 million; Dividend yield: 6.4%; www.pizzapizza.ca) holds certain trademarks and trade names used by Pizza Pizza restaurants in Canada.

Those exclusive names are licensed to Pizza Pizza for 99 years....

1 min read

Pat McKeough

Dividend Stocks

A solid pick for turbulent times

Fears that higher interest rates and inflation will trigger a recession in Canada and other countries has caused the S&P/TSX Composite Index to drop 12% since the start of 2022.

However, BCE is down just 8% this year. That’s because consumers and businesses increasingly rely on its services, no matter the direction of the overall economy....

3 min read

Pat McKeough

Value Stocks

Updating your Conservative stocks: Diageo, BHP Group, & Canon

DIAGEO PLC ADRs $169 (www.diageo.com) is still a hold. The U.K.-based maker of premium alcoholic beverages reported that its sales in the fiscal year ended June 30, 2022 rose 15.4%, to 15.45 billion British pounds from 12.73 billion pounds in 2021 (1 pound = $1.48 Cdn.)....

1 min read

Pat McKeough

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.