WilliamMLeighty634 blog

Young investors with a modest Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio can still hit their goal of early retirement. One popular investing strategy that has helped many Canadian investors quit work in their 50s involves buying quality dividend-growth stocks and using the distributions to buy new shares. The power of compounding is a marvelous tool for building a retirement fund. Let’s take a look at two top TSX dividend stocks that look cheap to buy today and see how it works. BCE BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company with a market capitalization of close to $60 billion. The company’s size gives it the financial capacity to make the billions of dollars of investments required to protect its wide competitive moat. BCE has a $5 billion capital program on the go in 2022 that will see the business run fibre optic lines to the premises of 900,000 customers. The company is also expanding its 5G network after...

The market pullback is giving Registered Retirement Savings Plan (RRSP) investors a chance to buy top Canadian dividend stocks at undervalued prices for a self-directed portfolio focused on long-term total returns. TC Energy TC Energy (TSX:TRP)(NYSE:TRP) has raised its dividend in each of the past 22 years, and investors should see the distribution continue to grow at a steady pace. The energy infrastructure giant operates natural gas pipelines, oil pipelines, and power-generation facilities in Canada, the United States, and Mexico. The $28 billion capital program is largely focused on expanding the natural gas pipeline business, which already boasts 93,000 km of infrastructure. TC Energy has assets that connect the Marcellus and Utica shale plays in the United States to the Gulf Coast, where liquified natural gas (LNG) facilities cool the gas to the point where it becomes liquid and can be shipped to international buyers. In Canada, TC Energy is building the Coastal GasLink pi...

After a brief reprieve that started in Mid-June and ended Mid-August, the tech sector has started to fall again. The TSX Capped Information Technology Index has fallen 11% from its most recent peak and is on its way to neutralizing any recovery gains achieved in the last two years. What this means for Canadian investors is that there are still a lot of tech stocks with heavy discount tags that you might consider buying for an eventual recovery. It may not happen immediately, and the tech stocks may fall further, making the discount tags even heavier. But when these stocks do start recovering, and if they grow at the pace typical for Canadian tech stocks, the returns might be exceptional with the right stocks. But the question is whether Docebo (TSX:DCBO)(NASDAQ:DCBO) is one of those stocks. The company Like most tech companies at the cutting edge of their respective domain, Docebo is relatively young. The company was conceived in 2005 in Italy, and the idea was to create a ...

For investors planning to start a secondary income stream, stocks can be an attractive investment avenue. Stocks are cheap, and anyone can start investing with whatever amount they have. In this article, I’ll focus on shares that are trading under $20 and have attractive dividend yields, implying investors can make reliable passive income by investing in them at current levels.  lgonquin Power & Utilities Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) has a solid history of enhancing its shareholders’ value, which makes it an attractive stock for passive-income investors. It operates a regulated utility business that remains immune to economic cycles and generates solid cash to support its dividend payments. This makes it a safe stock for income investors.  It’s worth mentioning that Algonquin Power has raised its dividend for 12 years. Further, its dividend reflects a CAGR (compound annual growth rate) of 10% during the same period.  Its growing profitabil...

Convenience store giant Alimentation Couche-Tard (TSX:ATD) is an underrated growth stock. The stock has delivered a whopping total return of 24,640% since going public in 1999. However, the stock has been rangebound in recent years. It’s up just 24% since early 2020.  The paltry dividend yield doesn’t add much value either. However, there are three reasons to keep an eye on this stock.  Potential acquisition Couche-Tard pays out just 12% of its earnings in dividends. The company retains the rest to fuel growth via acquisitions. In recent years, the team has been unable to close a major acquisition deal which is why cash has been piling up. At the moment, Couche-Tard has roughly $2.14 billion in cash and cash equivalents on the book.  Eventually, the company needs to find a home for this cash hoard. The recent acquisition of the Wilsons Gas Stops chain in Atlantic Canada could be indicative of the company’s expansion plans. The company could also potentially raise the d...

When investing in real estate, many Canadian investors may first think of its income generation potential. A Canadian real estate investment trust (REIT) ETF, iShares S&P/TSX Capped REIT Index ETF, yields 3.77% at writing. This is income that’s 24% higher than the yield currently provided by the Canadian stock market using iShares S&P/TSX 60 Index ETF as a proxy. REITs for income Canadian investors commonly consider real estate investment trusts (REITs) for current income. One of iShares S&P/TSX Capped REIT Index’s highest-yielding holdings is NorthWest Healthcare Properties REIT (TSX:NWH.UN). The global healthcare REIT is positioned to grow, as its tentacles stretch across eight countries, including geographies such as Canada, Brazil, Europe, the United Kingdom, Australia, and New Zealand. It generates rental income from hospitals, other healthcare facilities, and medical office buildings. Its diversified real estate portfolio is defensive, maintaining a high occup...

Macroeconomic uncertainties are continuing to haunt investors across the globe in 2022. This is one of the key reasons why the TSX Composite Index, the main Canadian market benchmark, has lost more than 10% of its value in the last five months. Nonetheless, many fundamentally strong stocks continue to soar, despite broader market uncertainties and fears of a near-term recession. Their outperformance clearly reflects the underlying fundamental strength of such stocks and their ability to continue yielding strong returns, even in difficult economic times. In this article, I’ll highlight one such Canadian dividend stock to buy now that could keep rewarding you with solid monthly passive income as long as you want. Interestingly, this stock has an outstanding dividend yield of more than 7% at the moment. Freehold Royalties stock Freehold Royalties (TSX:FRU) is a Calgary-headquartered energy company with a market cap of about $2.2 billion. This company mainly focuses on managing a...

The stock market has been exceptionally volatile this year. The S&P/TSX Composite Index is down by 9.18% from its 52-week high at writing but up by around 10% since its July 2022 low. Rising inflation and the interest rate hikes to control it has created plenty of economic uncertainty. Many stock market investors have taken their money out of the markets to invest in safe-haven assets to protect their capital. Stocks across the board are trading below their all-time highs. Risk-averse investors might feel inclined to take their money and run. However, opportunistic investors use market uncertainty as a chance to invest in high-quality stocks trading at significant discounts. Finding undervalued stocks is not a matter of investing in stocks trading below their highest point. Identifying high-quality businesses with solid fundamentals and the ability to deliver stellar long-term returns is important. Many high-quality dividend stocks trade for substantial discounts due to marke...

Oil stocks are outperforming the market this year. The S&P/TSX Energy Index (the index of energy stocks on the Toronto Stock Exchange) is up 45% this year, and it entered a new up-trend last week. Energy stocks gave up some gains after hitting all-time highs this summer, but they could possibly end the year even higher than they went in June. As you’re about to see, governments around the world are scrambling to bring energy prices down, and at least one country — the U.S. — is having some success with it. However, the measures that are bringing down oil prices can’t last forever. In fact, the biggest measure the U.S. is taking to cool oil prices is scheduled to end in October. In this article, I will explore two factors that could take oil prices higher in the fourth quarter. The strategic petroleum reserve release The U.S. Strategic Petroleum Reserve (SPR) is a stockpile of oil that the U.S. keeps around for emergencies. It has 511 million barrels of oil in total, and t...

The S&P/TSX Composite Index was down 54 points in late-morning trading on Monday, August 29. Recession fears and an aggressive rate-tightening path have kept investors on their toes in the second half of 2022. Now, we may be facing another bout of market turbulence. Today, I want to look at three TSX stocks that are worth snatching up on the dip before the end of August. Let’s dive in. You can trust this top energy stock for decades to come Suncor (TSX:SU)(NYSE:SU) is a Calgary-based company that operates as an integrated energy company. Shares of this TSX stock have climbed 36% in 2022 at the time of this writing. The stock is up 89% in the year-over-year period. This stock and its peers in the energy sector have thrived due to rising prices in the oil and gas sector. Oil and gas prices have settled in the summer, but Suncor is still a stock that is worth holding for the long term. Last decade, former chief executive officer (CEO) Steve Williams said that Suncor would st...

The big Canadian bank stocks have been Canadians’ long-time favourites for dividend income. They tend to maintain their payout ratios in the 40-50% range, paying out safe dividends that investors can depend on for reliable passive income. This dividend income rises over time, as the banks are able to post stable earnings growth in the long run. The big Canadian bank stocks have dipped after reporting quarterly earnings. Other than slowed growth, they also anticipate a less-optimistic macroeconomic outlook. Therefore, they’re putting aside more reserve in preparation for this. Royal Bank of Canada (TSX:RY)(NYSE:RY) has dipped less than Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) stock. Is RBC stock or Scotiabank a better buy today? RBC stock: A better buy for long-term investors RBC stock could be a better buy on the dip for long-term investors who don’t prioritize on a high current income. The leading bank stock has delivered industry-beating total returns in the last decade, whi...

Canadian investors have a slew of cheap stocks at their disposal right now. But not all of them are an actual deal. Whether it’s companies that were popular before but are down now, or cyclical stocks that are up but will soon fall, investors need to consider their options carefully. That’s why today I’m going to look at three cheap stocks that are insanely priced yet performing well. So let’s get right to it. NorthWest REIT NorthWest Healthcare Properties REIT (TSX:NWH.UN) currently trades at a valuable 7.43 times earnings, with shares down about 2.5% year-to-date. It offers a juicy dividend yield of 6.18% as of this writing, and is able to cover its debts by using 88.4% of its equity. Despite being one of the cheap stocks out there that’s performing well, investors still seem wary. This is likely because of its ties to real estate, and the problem of rising interest rates. However, long-term investors would do well to consider this stock. It has an average lease agreement...

WSP Global (TSX:WSP) shares have climbed higher over the last few months, quietly creating returns for its shareholders. As of writing, shares are up 19% in the last three months and 13% in the last month alone. So, why are Canadian investors still ignoring WSP stock while it’s still down by 12% year to date? What’s going on? WSP stock is a consulting firm that helps governments, institutions, and private and public entities create infrastructure. This infrastructure spans the globe, hence the name. While infrastructure has always focused on a slew of projects from highways to railways, these days, there has been a shift. Now, WSP stock has taken a focus on clean energy infrastructure. What’s more, it’s on the war path to eye up takeover after takeover, as it aims to become the go-to company in terms of creating global infrastructure surrounding climate change. Most recently, its takeovers included RPS Group PLC in Britain for $975 million in debt, and it’s now raising $800 m...

Investing in stocks could really change someone’s life for the better. However, it’s essential that investors choose the right stocks and give their positions enough time to grow. Now, choosing the “right” stocks could mean very different things for different investors. When I look for the right stocks to hold in my portfolio, I aim to focus on stocks that could generate life-changing amounts of wealth. In this article, I’ll discuss three TSX stocks that could help set you up for life. This e-commerce company could be a generational stock By generational, think of what Apple has done for the consumer tech industry. When people think of a brand within that space, Apple is often one of the first names that comes to mind. It doesn’t matter if it’s with regards to phones or laptops, Apple is always right up there as a top competitor. I believe that Shopify (TSX:SHOP)(NYSE:SHOP) could end up being in a similar position but within the e-commerce industry. Shopify provides merchants w...

When investors hear about beating the market, the first idea that comes to mind is beating the market in terms of total returns. Some stocks might outperform under specific market conditions. However, those that can outperform in the long run are keepers. Another idea about beating the market can come from the income perspective. Are you making more income than what the market offers? First, let’s take a look at EQB (TSX:EQB) stock, which has beaten the market and its industry in the long run. This TSX stock is beating the market and its industry! The graph below illustrates how an initial $10,000 investment has grown over the past decade in EQB stock versus the Canadian stock market and its industry. The S&P/TSX 60 ETF is used as a proxy for the Canadian stock market, while an equal-weight bank ETF is used for the industry comparison. EQB stock beat the market and the industry by 87% and 45% in the past 10 years. XIU Total Return Level data by YCharts EQB is a domest...

There are a lot of growth stocks out there that deserve the attention of Canadian investors these days. After all, the TSX is full of them! Everywhere you look, there are strong companies that trade far below where they were at the beginning of 2022. But what’s to be said about the growth stocks that are up in 2022? Today, I’m going to take a look at the growth stocks that haven’t just trended up this year, but over the last three years. Why three years? Because that includes both the stock market crash back in 2020 as well as the recent pullback. This will give us a clearer picture to how these companies are performing after going through these tumultuous periods — even before the pandemic occurred. Tourmaline First up, there’s Tourmaline Oil (TSX:TOU), which is up 661% in the last three years alone. On the one hand, it’s perhaps not a surprise that Tourmaline stock is one of the growth stocks I’m talking about. After all, oil and gas companies have been popular growth stocks ...

The following TSX stocks offer handsome growth prospects for long-term investors. Royal Bank of Canada Canadian bank stocks have been trading weak since the beginning of the year. The biggest of them all, Royal Bank of Canada (TSX:RY)(NYSE:RY) has been no exception and has fallen almost 20% since its 52-week high. Notably, not-so-great fiscal third-quarter earnings released yesterday could weigh on the stock in the short term. So, RY stock might see more weakness, which could be an opportunity for long-term investors. Driven by an uncertain macro environment and weak performance from its capital markets division, RY reported a 17% earnings drop year over year in the latest quarter. Concerningly, the bottom line came down mainly due to $340 million in provisions for bad loans. Banks provisioning aggressively again could be a harbinger of imminent uncertainties and volatile markets. However, Royal Bank of Canada is a fundamentally attractive investment for long-term investors. ...

Many value investors have “favourite” sectors. Oil stocks tend to be popular, as do utilities and retailers. Investors can do well with any of them, if they’re wise about stock selection. But for my money, one value sector stands out above all the rest: Banking. Banking stocks are persistently cheap, yet unlike other value stocks, they’re not at risk of disruption. For example, there’s always the risk of electric vehicles and renewable energy taking oil down a notch, but with banks, there’s nothing on the horizon that will replace the business. And before you say “fintech,” I should point out that fintech companies still depend on banks for vital services. PayPal for example still depends on Wells Fargo for custodial services. There are other examples, too. So, banking is a proven sector that’s not disappearing any time soon. The question, then, is why are bank stocks so cheap? Why banking stocks are persistently cheap Bank stocks are persistently cheap for a number of reas...

When you are looking for reliable dividend stocks with high yields, there are relatively limited choices, especially if you are looking outside the REIT pool. But it’s still possible to lock in a healthy 6% or higher yield with a decent probability that the company will not slash its dividends in the future, though there is no certainty. propane company Superior Plus (TSX:SPB) has a propane (and its distillates) marketing and distribution business. It’s already the number one propane distributor in Canada (retail) and controls about 38% of the market. The position in the U.S. is not as lucrative (it’s the fourth-largest distributor), but it’s quite an accomplishment considering the market size. This leadership position in the market and the fact that the stock has mostly hovered around the baseline price between $10 and $12 since the Great Recession endorses the relative safety of the stock. It’s currently offering its investors a decent 6.3% yield, so you can start a monthly ...