WilliamMLeighty634 blog

It’s earning season once again. And with earnings season comes dividend hike season for many companies. In Canada, a number of high-quality dividend stocks just raised their yields. For defensive investors, this is certainly an interesting time to be considering putting fresh capital to work. Indeed, dividend growth is an important factor every investor should consider. Here are three stocks I like in this regard right now. Top dividend stocks: Manulife One of the top dividend stocks worth looking at right now is Manulife (TSX:MFC)(NYSE:MFC). This leading Canadian insurer continues to provide investors with excellent yield and long-term growth potential. With a current yield of 4.5%, investors are being paid well to be patient with this stock. Like the other names on this list, I view Manulife as a long-term holding. This is a company that’s managed to raise its dividend each and every year over the past decade. This year, as soon as regulators allowed, the company hiked its ...

Dividend stocks — they’re invaluable. They supply us with income that can fund our retirement. They also supplement our wages. I think it’s the best “side hustle” out there. To passively earn money through no real effort … well. it’s the dream of many of the top investors. And it’s totally achievable. In this article, I present Northwest Healthcare Properties REIT (TSX:NWH.UN), a real estate investment trust (REIT) that owns and operates a lucrative portfolio of global healthcare real estate. It’s a top dividend stock to get your money working for you. In fact, it’s one of the best dividend stocks in Canada. “If you don’t find a way to make money while you sleep, you will work until you die” This quote is one of Warren Buffett’s most eye-opening quotes. It’s simple. We don’t want to work for the rest of our lives. We can’t even if we wanted to. That’s why it’s so necessary to get our money working for us. Investing provides this opportunity for us. Let’s focus on choosing the rig...

What happened? Energy stocks have been on a roll this year. It seems like they will dwarf last year’s epic ascent in 2022. At least the latest quarterly numbers and current oil and gas prices certainly hint that. One TSX energy stock that has been unstoppable since last year is Obsidian Energy (TSX:OBE)(NYSE:OBE). It is up 520% in the last 12 months and 120% in 2022. So what? Obsidian Energy reported its full-year 2021 earnings last week. Its free cash flow almost doubled to $218 million in 2021 relative to 2020. It continued to repay debt with the incremental free cash flow. Its net debt declined from $467 million to $413 million at the end of Q4 2021. Almost all the oil and gas producers are seeing record profits since the pandemic. However, the bigger reason behind the sentiment change is this crude oil rally has brought their balance sheets in so much superior shape that none of the previous rallies did. The supply constraints have already been pushing oil prices higher...

Most Canadians will have to file their taxes for 2021 by May 2, this year. While Canada is one of the most heavily taxed countries in the world, there are a few ways by which you can reduce your tax bill significantly. Let’s look at three tax breaks offered by the Canada Revenue Agency for 2022. Basic Personal Amount A non-refundable tax credit, the Basic Personal Amount, or BPA, can be claimed by all Canadians. The primary intention of the BPA is to provide a full reduction from federal income taxes to individuals with a taxable income below the threshold. The tax credit also provides a partial reduction to Canadians with a taxable income above the BPA. The BPA for the 2021 taxation year is $13,808, which will reduce your tax bill by $2,071 (15% of $13,808). RRSP One of the most popular retirement vehicles for Canadians, the RRSP (Registered Retirement Savings Plan) is an investment and savings account that can hold a number of qualifying investments ranging from stocks, E...

To say that Shopify (TSX:SHOP)(NYSE:SHOP) stock has had a less-than-ideal start to 2022 would be an understatement. The broad tech sector selloff has sustained for several months, resulting in a significant pullback in the tech giant’s performance on the TSX. The release of Shopify’s fourth-quarter earnings report for fiscal 2021 resulted in even worse news. Shopify stock declined by a massive 16% in one day of trading after the company released its Q4 2021 and full-year earnings report. Things have not improved since then for the ecommerce giant. At writing, Shopify stock is down by 48.51% year to date. All the pandemic-fueled gains posted by the tech company appear to have been erased. Is Shopify stock an undervalued stock that you should buy right now, or should you avoid it at all costs? Today, I will discuss the situation with Shopify stock to help you determine whether it might be worth adding to your portfolio at its current levels. Rising rates and shrinking growth ra...

TSX’s tech superstar is having a bad year following a so-so performance in 2021. On February 23, 2022, Shopify (TSX:SHOP)(NYSE:SHOP) sank to $799.22, or 29.4% from its mid-month closing price. Even before the Russia-Ukraine border crisis escalated, the market mover was on a down trend. The technology sector, in general, is in a slump because it’s not the place to be when inflation is rising. Shopify has lost significant momentum and was eventually dethroned by the Royal Bank of Canada as Canada’s most valuable publicly listed company. Its market cap is $107.13 billion compared to RBC’s $196.04 billion. While the phenomenal e-commerce platform hibernates, Absolute Software (TSX:ABST)(NASDAQ:ABST) could rise in prominence. The pandemic, and now the war, could heighten interest or importance of cybersecurity. CNN reports that the government websites in Ukraine were hit by a series of cyberattacks. The websites of the Ukrainian Cabinet of Ministers, ministries of foreign affairs, i...

Arbitrage opportunities are rare. This is an investment strategy where you can make a quick, low-risk return simply because of a mispricing in the market. Such an opportunity seems to have emerged this year in Shaw Communications (TSX:SRJ.B)(NYSE:SJR).  Here’s a closer look.  Merger arbitrage Merger arbitrage is a technique that generates a quick return when a publicly traded stock is trading at less than the merger price per share. For instance, if company A acquires company B for $10 a share but the stock trades at $8 on the stock exchange until the deal is closed, there’s a $2 merger arbitrage opportunity.  This seems to be the case in the Shaw-Rogers Communication (TSX:RCI.B)(NYSE:RCI) merger. Last year, the two companies announced a merge deal. This pushed Shaw stock up by more than 70% to record highs. The headline figure for the deal is $26 billion. However, shareholders have been offered $20 billion in cash, which implies a $40.5 per share deal.  Shaw stock is curre...

Anytime risk and uncertainty in markets heat up, investors look to lower-risk assets to help protect their capital. Therefore, in the current market environment, you may want to consider finding a top gold stock to buy for your portfolio. Gold has long been one of the safest assets you can buy, and already in recent weeks, the price of the precious metal has been surging. This week, gold hit an 18-month high and could continue to gain in price over the coming weeks. So if you’re looking for a top gold stock to buy, here are two of the best. massive gold producer with global operations Anytime you’re looking to buy a top gold stock for your portfolio, one of the best to consider is Barrick Gold (TSX:ABX)(NYSE:GOLD), the massive global gold operator. Barrick is well known by many as one of the largest and most dominant gold producers, which also produces a significant amount of copper. Owning a massive company like Barrick has some considerable advantages. Because it has m...

Dividend stocks allow you to start a truly passive, hands-off income. And if you choose the right/secure dividend stocks, you also don’t have to worry about the sustainability of your passive income. But that’s where things get tricky. Most Dividend Aristocrats offer decent, modestly high yields. For truly high yields, you need to venture out of the secure pool of Dividend Aristocrats with stellar dividend histories. But that’s not necessarily bad. Dividend stocks that aren’t Aristocrats don’t frequently slash or suspend their dividends. They need to maintain dividends to keep investors from pulling out, just like Aristocrats do. But the risk, while mild, is certainly a bit higher than it is with Aristocrats. The solution is a well-diversified dividend portfolio. If you are starting a passive income from a fully stocked Tax-Free Savings Account (TFSA) — which makes the most sense — consider allocating half or more of it to your passive income. That doesn’t necessarily have to o...

At writing, the S&P/TSX Composite Index is at its new all-time high, up by almost 23% year to date. The Canadian benchmark index has set new records several times throughout 2021. As such, many Canadian stocks are in overvalued territory. Value-seeking investors might not prefer making many moves on stocks trading for high share prices today. The TSX still boasts a few undervalued stocks trading for attractive valuations. It is a matter of looking at the right places if you want to find stocks that could provide you with significant long-term upside. It is crucial to be able to find undervalued stocks during market environments like this. Knowing how to find and invest in undervalued stocks can help you ensure that you are not paying too much for assets during a soaring bull market. You also do not want to invest in low-quality companies just because the companies look like they are trading for cheaper valuations. Today, I will discuss two high-quality undervalued stocks th...

There’s no question that Shopify (TSX:SHOP)(NYSE:SHOP) is one of the most popular growth stocks among Canadians. And lately, Shopify stock has been in the news, as it continues to sell off and get cheaper. Shopify is well known because of the incredible growth it’s achieved over the past few years. In the five years from 2017 to the end of 2021, investors of Shopify earned a total return of more than 2,900%. However, year to date, Shopify stock has lost more than half its value. A high-quality stock like this is certainly worth an investment while it’s cheap. However, there are other opportunities I believe offer even more value today. First, it’s important to consider a few things about Shopify. Its recent selloff is due to the earnings report released earlier this month. And the issues that investors have with the earnings report and guidance aren’t going to be resolved soon. Therefore, I wouldn’t expect a significant recovery in the share price anytime soon. In addition, Sho...

Not everything that’s on sale is worth buying, especially in the stock market. Some undervalued and discounted stocks aren’t going through a phase. They are in the process of a steady decline, which can culminate into disastrous capital losses. You are more likely to buy dividend stocks on sale because the inverse relationship of market value and yield is usually quite attractive. So, make sure you are buying into a company that can afford its dividends for years to come. commercial REIT Artis REIT (TSX:AX.UN) is an office-heavy commercial REIT, that is, 45% of its portfolio is made up of office properties, about 35% is industrial, and the rest is retail. The portfolio of 203 commercial properties is also spread out (quite evenly) in two countries: Canada and the U.S.. Almost similar net operating income was generated from the two countries in the last quarter. The REIT is on sale from two perspectives: value and price. It’s still about 8.5% down from its pre-pandemic peak a...

Among the subtle, under-the-radar growth stocks that’s quietly making headway in the market this year is Air Canada (TSX:AC). Indeed, Air Canada stock has gone through a whirlwind of turbulence for roughly two years. Recently, the biggest passenger airline of Canada declared its Q3 results, fuelling optimism among investors.  Let’s dive in to see whether these results could continue to propel Air Canada stock higher, or if risks could derail this discussion over the medium-term. ir Canada stock strengthened by earnings Let’s start with those positive earnings. As per Air Canada’s recent Q3 results, the company brought in $153 million in net cash flow this past quarter. That’s impressive. Indeed, for an airline that was bleeding cash for quite some time, positive cash flow is always a good thing. Air Canada attributes this success to substantial improvements in Aeroplan and Air Canada Vacations, cost controls, increase in key passenger geographic segments, favourable traffic...

Canadian e-commerce giant Shopify (TSX:SHOP)(NYSE:SHOP) has seen its market value plunge by 63% since the end of October 2021. The stock is down by another 5.6% in pre-market trading on February 24, as Russia confirmed its onslaught on Ukraine, dragging global indices significantly lower. Despite the ongoing pullback, Shopify stock is valued at a market cap of US$78 billion. Analysts tracking the stock expect it to increase sales by 31% to US$7.72 billion in 2022 and by 33% to US$10.3 billion in 2023. So, it’s trading at a forward price-to-2022-sales multiple of more than 10, which is expensive given the company is experiencing a steep deceleration in top-line growth. Shopify’s revenue rose by 86% year over year in 2020 and by 58% year over year in 2021. Comparatively, the company will be investing heavily in capital expenditures, which will hurt Shopify’s bottom line severely in 2022. Analysts expect Shopify’s adjusted earnings per share to narrow from US$8.18 in 2021 to US$6.12...

Will the Tax-Free Savings Account (TFSA) limit be higher in 2022? The Canada Revenue (CRA) will officially announce the new limit soon, although most users anticipate no change except for the increase in the cumulative contribution room. This year, and since 2019, the annual limit is $6,000. TFSA room began accumulating if you were 18 before 2009. If you have not opened an account yet, and the limit stays the same, you can contribute up to $81,500 in 2022. The investment account is now engrained in the lives of Canadians, much like the Registered Retirement Savings Plan (RRSP). Those with unused contributions should welcome the announcement, because the available room will be higher, including the carryover amount from 2021. Most Canadians with long-term financial goals max out their TFSAs every year to take advantage of the tax-free money growth. Preferred investments in a TFSA The vast majority of TFSA investors prefer to hold dividend stocks because of higher potential ret...

The Canadian population has long been having issues with debt and has not had much to show for in terms of savings for a rainy day. The pandemic came along in 2019 to turn the world on its head and gave a massive wake-up call to Canadians about the need to have long-term financial objectives and the discipline to follow through with them. The reality check has since spurred Canadians into taking proactive measures to improve their financial positions. Savings in 2021 reached record levels, with the chief economist at Alberta Central reporting that savings in Canada have reached around $230 billion. A popular way to make the most of your savings is to park your capital in tax-advantaged and registered investment accounts like the Registered Retirement Savings Plan (RRSP). Dividend investing is one of the best ways to make use of the contribution room in your RRSP. However, not many people manage to fully capitalize on the advantages offered by the RRSP, because they mishandle thei...

The stock market in Canada continued to plunge for the fifth consecutive session on Wednesday, as the Ukraine crisis kept investors wary of taking risks. The S&P/TSX Composite Index fell by 164 points, or 0.8%, for the day to settle at 20,744 — its lowest closing level in February so far. While rallying commodity prices helped Canadian energy and mining stocks inch up, the selloff in all other major sectors on the TSX intensified. Healthcare, industrials, and financials were among the worst-performing sectors in Canada. Also, largely weaker-than-expected corporate earnings pressurized the broader market further. Top TSX movers and active stock The shares of New Gold (TSX:NGD)(NYSE:NGD) plunged by 13.2% to $2.11 per share on Wednesday after the company released its Q4 financial results. The company’s total revenue for the quarter rose by 1.8% year over year to US$202.6 million. However, its adjusted net profit of US$24.7 million showcased an 11.5% decline from a year ago — als...

There’s no doubt that one of the most impressive and best stocks in Canada over the last five years has been Shopify (TSX:SHOP)(NYSE:SHOP), the e-commerce giant headquartered in Ottawa. At the end of 2016, the price of Shopify stock was just under $60 a share. That had increased to roughly $1,750 a share by the end of 2021 — a more than 2,900% gain and a compounded annual growth rate of 97.6%. However, since the beginning of the year, the stock has lost more than half of its value, leading many to wonder whether it’s a steal at this price or if the price of Shopify stock will continue to fall. So, why is Shopify stock down so severely, and is it worth a buy today? Why is Shopify’s stock price falling significantly? At first, Shopify was caught up in the tech stock selloff. Tech stocks and other higher-growth stocks that have more risk than established businesses have been some of the biggest losers lately, as investors rebalance their portfolios. So, as these companies saw ...

The Bank of Canada (BoC) announced that it would pursue a shift in monetary policy in October. This started with the suspension of its QE bond-buying program. Moreover, the BoC aims to hike interest rates after nearly two full years of accommodative policy in the face of the COVID-19 pandemic. Back in February, I’d discussed why the Canada housing market would be tough to slow down. The hot streak for Canadian real estate is in serious jeopardy. Let’s dive in. Why the Canada housing market has thrived in the face of the COVID-19 pandemic Some analysts believed that the COVID-19 pandemic would be the catalyst to stir a crash in the Canada housing market. There was some instability early on, but central banks worked to offer radical support to Canadian citizens. This accommodative policy spurred a scramble for real estate. Demand surged in this environment. This created a perfect storm, as Canada is still plagued by low supply. Moreover, historically low interest rates have led t...

There’s no doubt that clean energy is a great long-term investment. We’ve seen many of these companies go public recently. In addition, we’ve seen more major energy companies or power producers investing in renewable energy themselves, sometimes buying out up-and-coming companies altogether. And while the whole industry will offer opportunities for growth over the next several decades, some of the highest potential opportunities lie with cleantech stocks. These days the importance of cleaning up our emissions and switching to clean energy is no longer up for debate. Countries and massive companies continue to commit to cleaning up operations. What’s beneficial for a lot of these companies and countries is that costs have come down dramatically for cleaner energy and are now much more competitive. And while we have started to make good progress, reports continue to show it’s not enough. Renewable energy generation and switching to electrifying the transportation industry will only...