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Intact Financial is now hitting new highs—and the shares are up a spectacular 364% since we first recommended them at $42.95 in our April 2010 issue. We think this Power Buy is poised to keep moving even higher for our subscribers.

INTACT FINANCIAL, $199.33, is a buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (www.intactfc.com; Shares outstanding: 175.4 million; Market cap: $35.2 billion; Dividend yield: 2.0%) is Canada’s largest provider of property and casualty coverage: it insures more than five million individuals and businesses....

2 min read

Pat McKeough

Spinoffs

Carveout should unlock value

VOLKSWAGEN AG is a hold. The German automaker (Manufacturing sector; Shares outstanding: 5.0 billion [preferred and common]; Market cap: $177.6 billion; Dividend yield: 3.8%; Takeover Target Rating: Medium; www.volkswagenag.com) has its main listing on the Frankfurt Stock Exchange, but it also trades on the U.S....

1 min read

Pat McKeough

Spinoffs

Our stock updates help protect your gains

VALVOLINE INC. $28 is a buy. The company (New York symbol VVV; Manufacturing sector; Shares outstanding: 177.0 million; Market cap: $5.0 billion; Dividend yield: 1.8%; Takeover Target Rating: Medium; www.valvoline.com) is a leading provider of automotive services and a marketer and supplier of premium branded lubricants.

In September 2016, Ashland Global Holdings Inc....

2 min read

Pat McKeough

Spinoffs

This spinoff is just getting started

Medical device maker Becton Dickinson completed the spinoff of its diabetes-products business (embecta) in April 2022. Investors received one share of embecta for every five common shares of Becton they held.

So far, the new firm is down 16%, while the former parent in down 10%....

2 min read

Pat McKeough

Spinoffs

IBM spinoff off to a rough start

KYNDRYL HOLDINGS INC. $10 is a hold. The company (New York symbol KD; Manufacturing & Industry sector; Shares outstanding: 226.8 million; Market cap: $2.3 billion; No dividends paid; Takeover Target Rating: Medium; www.kyndryl.com) took its current form on November 3, 2021, when International Business Machines Corp....

1 min read

Pat McKeough

Spinoffs

We prefer the parents, not the spinoffs

These two overseas firms are spinning off some of their smaller businesses, which helps unlock value. For your new buying, we still like their shares, but we suggest holding off for now on buying additional shares in their spinoffs.

ABB LTD. ADRs $27 is a buy. This Swiss-based company (New York symbol ABB; Manufacturing & Industry sector; ADRs outstanding: 2.1 billion; Market cap: $56.7 billion; Dividend yield: 3.3%; Takeover Target Rating: Medium; www.abb.com) is a leading maker of electrical transformers, transmission systems and circuit breakers for electrical utilities....

2 min read

Pat McKeough

Spinoffs

Cardinal settles with Elliott

CARDINAL HEALTH INC. $68 is a hold. The company (New York symbol CAH; Manufacturing sector; Shares outstanding: 272.5 million; Market cap: $18.5 billion; Dividend yield: 3.0%; Takeover Target Rating: Medium; www.cardinalhealth.com) distributes branded and generic drugs to pharmacies, hospitals and clinics in the U.S....

1 min read

Pat McKeough

Spinoffs

Media struggles attract activists

Media companies have struggled recently as advertisers shift their spending to online platforms. Rising inflation and interest rates are also hurting the subscription revenues of streaming services. As a result, activist investors are now demanding changes, including at these two media giants.

WALT DISNEY CO....

2 min read

Pat McKeough

Spinoffs

Alcon has a demographic edge

Swiss pharmaceutical giant Novartis spun off its eye-care business as Alcon in April 2019. Novartis shareholders received 1 Alcon share for every 5 Novartis shares they held.

As a separately traded stock, Alcon is now up 23%. It should continue to move higher as aging baby boomers need more of the company’s contact lenses and cataract surgery products....

2 min read

Pat McKeough

Spinoffs

Rebounding travel will spur these two

On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share investors held, they received one share each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure).

Both stocks continue to rebound from their 2020 lows as travel volumes return to pre-pandemic levels....

3 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.