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Growth Stocks

HOME CAPITAL GROUP INC. $28 remains a hold. The company (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 42.6 million; Market cap: $1.2 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.1%; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.

Mortgage originations in the second quarter of 2022 jumped 42.8% from a year earlier....

1 min read

Pat McKeough

Mining Stocks

Record profits for Teck

TECK RESOURCES LTD. $41 is a buy. The company (Toronto symbol TECK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 531.1 million; Market cap: $21.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.2%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking....

1 min read

Pat McKeough

Dividend Stocks

Earn better returns with these utilities

Investors fear that rising interest rates will boost the appeal of bonds and hurt the shares of these high-yielding utility stocks. However, bond investors have to treat interest payments they receive as regular income. As a result, they pay higher taxes on their income compared to dividend payments from Canadian firms that qualify for a tax credit....

6 min read

Pat McKeough

Dividend Stocks

Re-opening boosts RioCan

RIOCAN REAL ESTATE INVESTMENT TRUST $21 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 303.9 million; Market cap: $6.4 billion; Price-to-sales ratio: 5.6; Distribution yield: 4.9%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 202 shopping centres and other properties, as well as 12 projects under development.

RioCan continues to benefit as the economy re-opens....

1 min read

Pat McKeough

Blue Chip Stocks

Acquisition will push CP higher

This is the fourth year in a row that we’ve selected CP Rail as your #1 Conservative Buy. We’re particularly excited as the company’s upcoming merger with U.S.-based railway Kansas City Southern could spur the stock higher for many years to come.

While big acquisitions are always risky, adding KCS will greatly extend CP’s reach in the U.S....

4 min read

Pat McKeough

ETFs

Not all high yield ETFs are created equal

High yields, especially in what is still a relatively low interest-rate environment, have lots of appeal for many income investors. But ETF investors should look beyond the historical distribution yield for any danger signs.

The managers of ETFs use various strategies to generate high yields for their unitholders....

3 min read

Pat McKeough

ETFs

Rising interest rates impact real estate

Apart from the overall market decline, higher interest rates in Canada and the U.S. are the main reason for weakness in the shares of real-estate firms and REITs. So far this year, ETFs holding U.S. and Canadian REIT have lost around 20% of their value.

However, the outlook for almost all segments of the real estate market are now quite positive....

3 min read

Pat McKeough

ETFs

We see one of these new ETFs as a buy

This month we highlight both a copper exchange traded fund from Horizons and a high-income ETF from Harvest Portfolio Group.

HORIZONS COPPER PRODUCERS INDEX ETF $20.20 (Toronto symbol COPP) aims to track the Solactive North American Listed Copper Producers Index....

1 min read

Pat McKeough

ETFs

South Korea’s ‘ants’ drove many stocks to new highs

Driven by a retail trading frenzy, the Korea Exchange advanced by 120% from its bottom in March 2020 until mid-2021.

Large, global companies, such as Samsung, Posco, LG Electronics, Hynix, and Hyundai, performed well, but more speculative stocks such as Celltrion, Kakao, and Seegene soared between 250% and 1,100% as retail investors engaged in frenzied day trading.

The Korea Exchange is home to 2,448 companies with a market value of $2.6 trillion, about the same size as the Toronto Stock Exchange....

1 min read

Pat McKeough

ETFs

Still-bright outlook for investors in South Korea

This East Asian country managed the COVID-19 pandemic well, with the government implementing massive stimulus programs to boost the economy. All this has set South Korea up for a strong post-pandemic rebound. Meanwhile, many stocks now trade at attractive valuations....

4 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.