WilliamMLeighty634 blog

Investors who missed the big rally off the 2020 crash are getting another chance to buy top TSX stocks at cheap prices to start a TFSA retirement portfolio focused on dividends and total returns. Bank of Montreal Bank of Montreal (TSX:BMO)(NYSE:BMO) trades near $124 per share at the time of writing compared to the 2022 high above $154. The current dividend yield is 4.5%, and more payout hikes should be on the way in the coming years. Bank of Montreal has paid a dividend every year since 1829. The board increased the distribution by 25% late in 2021 and bumped it up another 4.5%, when the company announced the fiscal Q2 2022 results. Looking ahead, Bank of Montreal should deliver solid revenue and profit growth. The bank is in the process of buying Bank of the West for US$16.3 billion in a deal that will give Bank of Montreal’s existing American subsidiary, BMO Harris Bank, a significant presence in the California market and add more than 500 branches to the U.S. business. N...

Suncor Energy (TSX:SU)(NYSE:SU) is among the top gainers of 2022. It peaked at $53.62 on June 9. Last it crossed this level in 2018 and 2008. But oil has a cyclicality that prevents it from staying high for a long time. Determining when and which decline is cyclical is difficult to say. For that, you have to follow the global oil manga.  The global oil story: Where is it heading?  The global oil story has four key parties: Russia, the Organization of the Petroleum Exporting Countries (OPEC), Europe, and the United States. These four parties are divided into two sides, Eastern and Western, after Russia invaded Ukraine. There are many loose ends in the fabric of the global oil supply that continue to keep oil prices high.  On one side is Russia, one of the largest exporters of oil and natural gas to Europe. Europe’s primary replacement for Russia is Saudi Arabia, a founding member of OPEC. Now, Russia is a member of OPEC+, and Saudi Arabia doesn’t want to sever its ties wit...

Some simple investing tips can be applied to Canadians in retirement now or are retirement planning for the future in a volatile stock market. These tips can help you focus on what matters.  Focus on the long term No short-term capital should be invested in stocks, because stocks are volatile by nature. Even when the fundamentals for a business stay strong or defensive, a poor macro environment can still cause a selloff in quality stocks. This is why when investing in stocks for retirement, investors should have an investment horizon of at least three to five years — the longer, the better. Money that you need to spend within the year should definitely stay as cash and cash equivalents. The Motley Fool noted that “across the 10 bear markets since 1950, the longest was 929 days and the shortest was 33 days.” 929 days is just over 2.5 years. So, for Canadians who are super cautious, it’s likely safe to have the cash you need to live on for about 2.5 years in something l...

Tyler Tysdal and Robert Hirsch Share Knowledge in the Business World At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help. Contact Freedom Factory Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur. Contact Tyler Tysdal at Freedom Factory Freedom Factory 5500 Greenwood Plaz...

Find Out What Your Business Is Worth Contact Freedom Factory At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help. Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur. Contact Tyler Tysdal at Freedom Factory Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village,...

After rallying consistently for months, Canadian energy stocks have started falling lately due to the broader market selloff. Also, the growing possibility of a recession has triggered concerns about the demand outlook for energy products, taking the prices of energy products downward. However, these demand concerns might be overblown, as economic activities across the globe continue to rise in the post-pandemic world, which could keep the strength in energy demand intact. Given that, the recent dip in energy stocks could be an opportunity for long-term investors to buy them cheap. Let’s take a look at two of the best energy stocks with good dividends that look attractive amid the ongoing market correction. Suncor Energy stock Suncor Energy (TSX:SU)(NYSE:SU) is the first dividend-yielding energy stock that I find worth considering right now. It’s a Calgary-headquartered oil and gas company with a market cap of $67.7 billion. While SU stock trades with solid 49% year-to-date...

Global growth is weakening. Consumers are cutting back on spending which is pushing companies to lay off workers. Unemployed workers, in turn, spend less, which creates a vicious cycle that could lead to a recession.  An economic downturn isn’t set in stone, but the likelihood is steadily increasing. Investors need to prepare right away. But picking the right safe haven is tricky. Here’s a look at which asset class could be safest.  Stocks Canada’s stock market is dominated by financial and energy companies. The top five holdings in the iShares S&P/TSX 60 Index ETF (TSX:XIU) are all banks and oil producers. On paper, these stocks look cheap. The fund is trading at a price-to-earnings ratio of 14.77. However, that ratio could be deceptive. Earnings could drop in a recession. Consumers could default on the loans and mortgages banks have provided while demand for energy is tamed in a downturn. The fund could see some downward pressure if the economy dips.  It’s al...

Warren Buffett famously said that investors should buy the stocks of great companies and hold them forever. At the Motley Fool, we take Buffett’s advice to heart and believe in the power of a long-term perspective when it comes to investing. Although everyone likes to find a good, undervalued stock, sometimes it is better to buy the stock of a great company at an okay price, as opposed to the stock of a mediocre company at a good discount. The stocks of businesses with sustainable, excellent performance make ideal buy-and-hold stocks. For this reason, new Canadian investors should focus on the stocks of blue-chip companies with excellent fundamentals, understandable business models, essential products and services, wide economic moats, solid financial ratios, and good management. Canadian Pacific Railway My beginner stock pick today is Canadian Pacific Railway (TSX:CP)(NYSE:CP). CP has a network of 13,000 route miles of track spanning Canada and the United States and has be...

The Dow Jones Industrial Average (DJIA)is a famous stock market index that tracks a portfolio of blue-chip U.S. stocks. First published in 1896 and initially comprising 12 companies, the DJIA evolved into the most widely quoted indicator of U.S. stock market activity. Currently, the DJIA holds a total of 30 stocks — all leaders in their respective industries with sustained earnings performance over a significant period of time. The DJIA is a price-weighted stock index, meaning that the component stocks are held in proportions based on their price and not market caps, like other indexes. Notable underlying stocks include Walmart Walt Disney Coca-Cola Home Depot Microsoft Goldman Sachs McDonald’s Visa Boeing Apple Johnson & Johnson 3Mand JP Morgan Chase & Co, representing a diverse, balanced mix of sectors. Thanks to the proliferation of exchange-traded funds (ETFs), Canadian investors have easy means of gaining exposure to the Dow Jones Industrial Average. Today, I’l...

The market correction is giving retirees and other TFSA investors a chance to buy top TSX dividend stocks at undervalued prices for a portfolio focused on passive income. Telus Telus (TSX:T)(NYSE:TU) trades for $29 per share at the time of writing compared to more than $34 in April. Investors who buy the shares at the current level can pick up a 4.65% dividend yield and wait for the distribution to increase over the coming years. Telus intends to raise the dividend by 7-10% annually through at least 2025. The board typically hikes the payout twice per year. Investors seeking predictable dividend growth should consider this stock in the current environment where economic uncertainty remains a major concern. Telus provides essential internet and mobile services to Canadian businesses and households. Customers are unlikely to cut these subscriptions during a recession. Telus is wrapping up its copper-to-fibre transition and continues to expand its 5G network. These initiatives h...

The Canadian stock markets managed to put up a stellar performance for most of the first half of the year, owing to the contribution of a strong bull run by Canadian energy stocks. However, the strong run did not last too long. Rising inflation rates had been a concern for a while in Canada and the United States. Bringing inflation under control requires enacting stringent monetary policies. The Bank of Canada (BoC) and the U.S. Federal Reserve introduced a series of interest rate hikes in an attempt to cool down inflation rates. The latest U.S. Fed meeting saw an interest rate increase of 75 basis points — the highest jump since 1994. The initial positive reaction from investors, considering that the Fed is willing to act to control inflation, wore off in 24 hours. Markets went into a steep decline south of the border and here in Canada. The energy sector also went through a pullback, causing the S&P/TSX Composite Index to buckle. The Canadian benchmark index is down by a...

We’ve heard a lot of recession talk of late, and it’s probably not going away anytime soon, even if the broader markets are dealt some sort of relief. The economy is in a tough spot right now. Economic growth could really slow as central banks begin to tighten. It’s never fun when the punch bowl is taken away by an authority. That said, it’s necessary and is only part of a healthy long-term economy. The way I see it, it’s far better to rip the band-aid off now — with big, front-loaded interest rate hikes — than to have to deal with the consequences of persistent inflation and an overheating economy. Inflation is a terrible thing for everybody. It weighs on company margins and hurts consumers who can barely afford to keep up with the surging costs of living. Recession looming? Could 2022 and 2023 really be that bad? Indeed, the 1970s type of inflation was really bad. And it’s a comparable to the type of environment we’re in currently. Still, I’d argue the current environment is ...

Investing in stocks could be risky, especially for short-term investors. However, stocks are also an inexpensive way to start a dependable passive-income stream. For instance, several top divided-paying stocks continue to pay and grow their dividends regularly amid all market conditions.  Thankfully, the TSX has several such stocks that have paid and raised dividends for 20 years or more. Moreover, the strength in their businesses and solid earnings base indicate that those companies could continue to enhance their shareholders’ value through higher dividend payments for decades.  Let’s look at three Canadian companies that could continue to enhance their shareholders’ value through dividend payments. Fortis Fortis (TSX:FTS)(NYSE:FTS) is a safe stock to invest in for regular dividend income. It operates a conservative utility business that generates resilient cash flows irrespective of the market condition. Thanks to its solid cash flows and visibility over future payo...

As summer starts to heat up, TSX energy stocks have drastically cooled off. The S&P/TSX Capped Energy Index is down over 17% since the start of June. That is a drastic shift considering TSX energy stocks have vastly outperformed almost all sectors in 2022. The market is concerned about a recession. Consequently, investors are starting to predict that high oil prices will eventually force a decline in overall energy demand. While this could occur, there are still reasons to be optimistic in the sector. Plenty of reasons to keep liking TSX energy stocks this summer Firstly, while oil is down, it is still near multi-year highs. Oil trades for around US$110 per barrel, which is still significantly elevated over the past multi-year average. Secondly, there are no actual indications that energy demand is declining. While some demand may subside due to a recession, many analysts believe demand will continue to grow in 2022 and 2023. Thirdly, TSX energy stocks are in the best f...

Amid the rising inflation, the Federal Reserve of the United States has raised interest rates by 0.75% earlier this month. The increase in interest rates has raised borrowing costs. Growth stocks, which require higher capital to fund their growth initiatives, could witness an increase in their interest expenses, thus contracting their margins. So, the growth stocks have witnessed a substantial selloff over the last few weeks. Meanwhile, the steep pullback offers an excellent entry point for long-term investors. So, investors with over 10 years of investment horizon can accumulate the following three small-cap stocks that could deliver superior returns in the long run. WELL Health Technologies First on my list is WELL Health Technologies (TSX:WELL), which aids healthcare professionals in providing omnichannel solutions. Given the convenience and accessibility, more people are adopting virtual healthcare services, expanding the addressable market for WELL Health. The company ...

Canadian investors can still find some excellent stocks on the TSX today. There are several strong options to consider, but today, I’m going to focus on three. These three have recently been upgraded by analysts and have strong growth behind them. Vermilion Energy Vermilion Energy (TSX:VET)(NYSE:VET) has been put in a strong position due to the recent exposure to Europe as well as the increase in gas prices there and around the world. Its recent acquisitions put it in a strong position for strong cash flow through 2023, and it should now outperform the strong oil and gas sector. Vermilion stock fell back during recent years to a point where now the TSX stock offers strong value at its current share price. That’s even after 60% growth year to date. It now expects cash flow to increase from $2.2 billion in 2022 to $2.4 billion in 2023, reaching a net debt target of $1.2 billion this year. The stock remains valuable trading at 4.53 times earnings and has a potential upside of 57...

Tech stocks, crypto, and even gold — everything has been on a tear this year. However, one pocket that has really played well and stood out among the broader market is energy stocks. TSX energy stocks have soared 60% this year, while Canadian stocks at large have dropped 10%! However, in the last few weeks, this divergence has notably narrowed, as oil and gas names tumbled. Canada’s leading oil sands producer Suncor Energy (TSX:SU)(NYSE:SU) declined almost 20% in the last two weeks, which is in line with its peer TSX energy stocks. Rising recession fears have been a key factor that brought down energy commodity prices in June, which was mirrored in oil and gas stocks. Recession to weigh on oil stocks? A potential recession would dent the global energy demand and would weigh on crude oil prices. However, according to energy economists, supply would still fall short compared to demand, even in case of a recession. So, energy stocks might soon bottom out and could climb back u...

Equity markets have been plummeting since the start of this year, as red-hot inflation forced central banks around the world to raise benchmark interest rates. The Canadian S&P/TSX 60 Composite Index entered correction territory with a 10.18% decline year to date. This comes after commodity prices witnessed a steep decline last week amid recessionary concerns and COVID-related alerts in China. All eyes are on equities, as the earnings season begins in the following weeks. While the economic slowdown has driven several analysts on Bay Street to adjust their earnings guidance, the quarterly results releases for top TSX stocks are crucial in determining the stock market performance in the near term. In 2022, the Canadian stock market has remained relatively resilient compared to its U.S. counterpart, thanks to its broad exposure to commodities markets. Let’s look at three TSX giants that are on track to report earnings this week. limentation Couche-Tard With a $57.14 billi...

While oil and gas stocks are at cyclical peaks, renewable energy stocks are oversold. A few months back, the world talked about carbon emissions and the urgency to reduce them. But energy shortage has shifted the attention to oil and gas as an immediate solution to the winter energy crisis. This has created an opportunity for value investors to lock in a dividend yield of over 5.5%.  The value proposition of renewable energystocks The energy industry is seeing a shift where the oil and gas development is slowing and that of renewable energy is rising. The last two years have been exciting for the renewable energy industry, as the United States accelerated its CO2 efforts. When Joe Biden became the U.S. president, renewable energy stocks surged because of his clean energy proposition.  Then came the Russia-Ukraine war. Instead of dampening hopes, the war accelerated investment in renewables. Europe and America identified wind and solar energy as a way to reduce dependence on Ru...