WilliamMLeighty634 blog

Most economies are flirting with recession if central banks remain firm on implementing more rate hikes to curb fast-rising inflation. Vanguard’s economic projections show a 50% probability of recession over the next 12-18 months. It said the odds have increased due to supply constraints of food and energy and other products and tight labour markets. Higher costs of living and a prolonged inflation will surely hurt many consumers and households. If you’re a Tax-Free Savings Account (TFSA) user, now would be a good to time to catch up on your contributions if finances allow. The versatile investment account is the best place to hold income-producing assets like stocks, because all gains or interest inside a TFSA are tax free. Also, earning passive income every month to boost your disposable income is possible. Most dividend payers on the TSX pay every quarter, although more than a handful pay monthly dividends. The top two picks in this select group trade at less than $50 per ...

As the broader market uncertainties continue to increase, investors can find a safe haven in dividend stocks. While macroeconomic uncertainties might impact the price performance of dividend stocks in the short term, these uncertainties might not affect the long-term growth outlook for most fundamentally strong, high-dividend-paying companies. In addition, investors can expect such stocks to continue rewarding their investors with strong dividend income, irrespective of market conditions and economic cycles. In this article, I’ll talk about one of the best dividend stocks investors can buy in Canada to hold forever. If you’ve ever invested in dividend stocks previously, chances are high that you either already own this stock or at least have heard about it. But I especially want to highlight the key benefits of owning this amazing stock to new investors here. Enbridge stock Enbridge (TSX:ENB)(NYSE:ENB) is a Calgary-based energy company with a market cap of about $109.3 bill...

It’s market periods like these that have the potential to expedite your retirement plans. It may not feel like it in the short term, but over the long term, patient investors willing to put cash to work today will be well rewarded in due time. After rebounding extremely well from the COVID-19 market crash in early 2020, growth stocks, particularly in the tech sector, have been hit hard over the past 12 months. There’s no shortage of top tech stocks on the TSX trading far below all-time highs right now. If you’re looking to get ahead on your retirement savings, now would be a wise time to be investing. I’d caution investors about the likelihood of volatility sticking around for a while longer. However, I firmly believe that it’s only a matter of time before strong, market-leading companies begin to see shares begin rising again. I’ve reviewed two growth stocks that are worth serious consideration at these prices. I’m a shareholder of one of these two companies alre...

The S&P/TSX Composite Index was down 212 points in early afternoon trading on September 29. Canadian and United States indexes have been throttled in the second half of September. Still, frustrated investors should be on the hunt for opportunities in this bout of turbulence. Today, I want to look at three TSX stocks that are discounted and hold nice potential for the future. Let’s jump in. This undervalued TSX stock is a top regional bank out west Canadian Western Bank (TSX:CWB) is an Edmonton-based regional bank stock. Its shares have plunged 38% in 2022 at the time of this writing. That has made up the bulk of this TSX stock’s losses in the year-over-year period. This bank unveiled its third-quarter fiscal 2022 earnings on August 26. It delivered revenue growth of 3% to $272 million. Meanwhile, loans and branch-raised deposits both increased 9% compared to the third quarter of fiscal 2021. Top financial institutions have been challenged in this rate-tightening environ...

Dividend stocks can be some of the best and most reliable long-term stocks to buy, but not every dividend stock should be considered safe. There are many businesses that could be under pressure in this environment, so while we want to buy stocks that offer attractive passive income, it’s crucial to ensure that these stocks can continue to earn a profit and return capital to shareholders through thick and thin. One red flag when looking at dividend stocks is a sky-high dividend yield. Usually, the higher the dividend yield, the better for passive-income seekers, but sometimes dividend yields that are too high can be a sign that the stock is at risk, and the dividend may need to be trimmed. In today’s environment, though, after many stocks have lost value, yields across the market have been rising. So, now there are several safe and reliable stocks to buy that offer impressive yields of 5% or even more. Therefore, if you’re looking to buy safe and reliable dividend stocks...

If you are looking for a TSXstock you can easily buy, hold, and own for decades, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) might be one to consider. Brookfield is a solid anchor stock for any Canadian portfolio. With over $750 billion of assets under management, it is one of the largest alternative asset managers in the world. It focuses its investments on real assets like infrastructure, renewables, real estate, and private equity. It also has forays in credit and insurance that are growing at attractive rates. Brookfield Asset Management: A diversified stock with multiple levers of growth One thing that makes Brookfield unique from other asset managers is that it invests its own capital alongside its investment partners (like pension funds, institutions, etc.). That means that not only does it collect fee revenues for the assets it manages, but it also collects a piece of the profits when assets are monetized. Brookfield also holds large ownership stakes in several ...

The most recent Canadian Retirement Survey conducted by Abacus Data for the Healthcare of Ontario Pension Plan (HOOPP) found that 75% of respondents believe a retirement income crisis is emerging. Furthermore, 66% of Canadians are very concerned about significant increases in the day-to-day cost of living. Rising interest rates and soaring inflation diminishes people’s ability to save for retirement. Nearly 83% are sure that if inflation remains out of control, they will have to push back their retirement dates. Common retirement income sources Old Age Security (OAS) is available to all Canadians 65 years or older, with or without employment histories. General revenues collected by the Canadian government fund the program for seniors or retirees. For the Canada Pension Plan (CPP), only employed and self-employed individuals who have contributed to the CPP Fund are eligible to receive this government-administered program. Since common retirement income sources in Canada are pa...

Your Tax-Free Savings Account (TFSA) wealth can be turned into a passive-income stream to help you deal with the higher costs of living. Indeed, with inflation at around 7%, it seems tempting to chase down the highest yielders, so you won’t be set back from persistent inflation. Chasing yields can be a dangerous game. It’s a bad idea, unless you’ve put in more than your share of due diligence. Higher dividend commitments can really limit a firm’s financial flexibility when the economic tides begin to go out. At this juncture, many believe that a recession is pretty much months (or weeks) away from becoming a reality. Some folks even think it’s arrived. Personally, I think there may be nothing to fear but the recession fear itself. Remember, central banks are in the driver’s seat. They aren’t going to hurt everyday consumers without reason. In prior pieces, I’d described rate hikes as a strong medicine with side effects. Right now, a lot of medicine is needed. The Fed will do its ...

Many seasoned investors will take advantage when the market is falling, like it is today. Buying stocks when prices are dropping is known as “buying the dip.” Some people even buy more stocks during a downturn to lower the overall average purchase price of their current holdings. However, first-timers should exercise caution and not simply buy on market weakness. Whitecap Resources (TSX:WCP), Rogers Sugar (TSX:RSI), and Stingray Group (TSX:RAY.A) are suitable stocks for beginners. Besides their low prices (not more than $10 per share), the businesses are easy to understand. More importantly, you can earn $100.82 every month on a $7,500 investment in each of the dividend stocks. The share prices could also appreciate when the market rebounds.        Quality energy stock Whitecap trades at $8.02 per share but isn’t losing year to date. The quality energy stock is beating the broader market at +9.68% versus -13.64%. If you’re investing today, the dividend yield is 5.18%....

Undervalued stocks can be one of the best ways to increase your portfolio returns. Especially if those companies are dividend stocks. You can use your dividend income to reinvest in your portfolio, allowing you to triple your portfolio far faster than if you were to just set it and forget it. And if there are three undervalued stocks I would pick, it’s these. CIBC Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the first I would choose for a few reasons. First, it’s one of the undervalued stocks in the banking sector. Canadians sold off their stocks during this market downturn. Fair enough. But CIBC stock and the Big Six Banks have all historically recovered within a year of these downturns. Now, CIBC stock is one of the undervalued stocks trading at just 8.7 times earnings. It’s also near oversold territory trading at 34 on the relative strength index. All this means, you can lock in its already high dividend yield, which is at 5.34%. But what makes CIBC stock the ...

Many new investors are focused on creating passive income through dividend stocks right now. This wasn’t the case a few years ago during the pandemic, when it seemed like growth stocks were the best bet. But times have changed, and it’s become obvious that during a downturn, it’s a good idea to have extra cash coming in. That’s why now is a great time to create a passive income portfolio. Stocks are going through a downturn, offering ultra-high dividend yields. But the key is finding the ones that will bounce back. So, let’s look at three TSX stocks that are likely to turn around quickly for a strong, enduring passive income portfolio. SmartCentres REIT It pretty much goes without saying that investors should consider a real estate investment trust (REIT) for passive income. However, not all are as great as SmartCentres REIT (TSX:SRU.UN). SmartCentres is well known and established for its retail locations, but it’s also been expanding into a new stage of revenue growth. This ...

Many investors, including me, dream of one day having their portfolios pay for day-to-day expenses. When that is achieved, it’s known as financial independence. One way to do that is by investing in stocks that pay dividends. Canadian stocks that have established long histories of paying dividends are known as Canadian dividend all-stars. In this article, I’ll discuss three such stocks that investors should consider buying today. This stock has one of the longest dividend-growth streaks in Canada When looking at Canadian dividend stocks, Fortis (TSX:FTS)(NYSE:FTS) should be one of the first companies that comes to mind. It provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. Fortis is notable for its long history of increasing its dividend. In fact, Fortis’s 48-year dividend-growth streak stands as the second longest active streak in Canada. To put that into perspective, Fortis has managed to...

Shares of Dye & Durham (TSX:DND) have staged a sharp recovery in the last three sessions, despite the ongoing broader market selloff. On Tuesday alone, DND stock jumped by 17.4% to $15.35 per share, extending its week-to-date gains to over 21%. By comparison, the TSX Composite Index has lost nearly 1% of its value in the first couple of days of the week after falling by 4.7% in the previous week. Before we discuss whether or not DND stock is worth buying right now, let’s find out what factors could be helping it defy the bear market gravity lately. Termination of Dye & Durham-Link Group deal Dye & Durham is a Toronto-based software company with a market cap of $1.1 billion that primarily focuses on providing cloud-based critical workflow solutions and information services to legal and business professionals. A sharp rally in DND stock started on Friday last week after it revealed that the Australian-based software giant Link Group has terminated discussions related ...

The Canadian banking sector, as a whole, has been under pressure. It actually moves in tandem with the Canadian stock market. Here’s the year-to-date price action of the banking sector (using BMO Equal Weight Banks Index ETF as a proxy), the Canadian stock market (using iShares S&P/TSX 60 Index ETF as a proxy), and Bank of Montreal (TSX:BMO)(NYSE:BMO) stock, which is our focus for this article. ZEB, XIU, and BMO data by YCharts Longer-term charts show a similar correlation between the three. However, taking into account dividend returns, the banking sector has been a better investment than the market because the sector tends to provide a higher dividend yield. For example, the recent yield of the BMO Equal Weight Banks Index ETF was 4.1% versus iShares S&P/TSX 60 Index ETF’s 3.3%. ZEB, XIU, and BMO Total Return Level data by YCharts The above is the 10-year total return chart. You’ll notice that BMO stock has outperformed both the banking sector and the broad Canadian...

2022 has been a stressful year for financial markets so far. The ongoing macroeconomic uncertainties have worried investors worldwide. The S&P/TSX Composite Index is down by 14.45% from its 52-week high as of this writing, reflecting the state of the Canadian economy this year. People new to investing might feel intimidated by the prospect of investing in a bear market. Despite the challenging market environment, not all stocks pose a considerable risk to your investment capital. If you are searching for stocks for beginners and prefer investing in a safe stock as a way to dip your feet, there are a few equity securities you can consider. Dollarama Dollarama (TSX:DOL) is one of the few stocks that have managed to remain resilient this year and outperform the broader market. As of this writing, Dollarama stock trades for $76.67 per share, up by almost 21% year to date. In contrast, the S&P/TSX Composite Index is down by 10.52% year to date. Dollarama stock has not just...

The S&P/TSX Composite Index is down by 14.45% from its 52-week high as of this writing. The decline in Canada’s benchmark equity index reflects the state of the entire stock market, indicating substantial discounts across the board. Most stocks listed on the TSX are trading at 20-50% discounts from their all-time highs, but you cannot consider not every discounted stock an undervalued stock. If you are a value-seeking investor searching for bargains, you should try to identify companies with the potential to deliver stellar long-term growth trading for discounted prices. Value stocks are companies trading for significantly lower than their intrinsic values, because the broader market has failed to value them based on their long-term growth potential. Today, I will discuss two arguably undervalued stocks you can consider adding to your portfolio if you are a value-seeking investor. goeasy goeasy (TSX:GSY) is a $1.77 billion market capitalization alternative financial ...

Growing concerns about economic growth have pushed oil prices back down. A barrel of West Texas Intermediate (WTI) crude oil currently trades for less than US$80. That’s roughly the same price it was before Russia invaded Ukraine in February. Oil stocks like Suncor Energy (TSX:SU)(NYSE:SU) are closely following this trend. The stock is 30% cheaper than it was at its peak in June. Investors must now consider what comes next. Where do oil prices go from here, and what does that mean for Suncor’s valuation? Here’s a closer look.  What’s next for oil prices? Predicting oil prices is a fool’s errand. Traders make the mistake of focusing exclusively on supply-and-demand dynamics, whereas oil prices are determined by a complex mix of geopolitics and macroeconomic trends.  Very few people predicted Russia’s invasion of Ukraine earlier this year. Even fewer believed oil prices would drop to pre-war levels, despite the ongoing conflict. Some experts, such as Pierre Andura...

RioCan (TSX:REI.UN) had a rough run during the pandemic, and the unit price has come under pressure again in recent months. Investors seeking high-yield passive income are wondering if this is a good opportunity to buy RioCan for their Tax-Free Savings Account (TFSA) portfolios. RioCan earnings RioCan saw net income for the first half of 2022 drop to $238.5 million from $252 million in the same period last year. On the positive side, funds from operations rose to $262.2 million from $233.6 million, and funds from operations per trust unit on a diluted basis came in at $0.85, up from $0.73 in the first half of 2021. RioCan is best known for being an owner and operator of shopping malls. The company started a transition process a few years ago when it sold off assets in secondary markets to focus investment on six core cities in Canada. The company is diversifying its revenue stream by building mixed-use properties that combine retail and residential space. RioCan also has a numb...