WilliamMLeighty634 blog

Broader stock markets have been calming down in recent sessions. This could change as the American tech titans pull the curtain on their own slate of earnings results. As the recession comes in at full speed, investors must ask themselves how they plan to navigate this tough market. GICs (Guaranteed Investment Certificates) are looking very attractive here, with yields well above 4.1%. Similarly, various bond funds of mixed duration (think universe bond indices and corporate bonds) offer yields of nearly 3%. Personally, I’m a big fan of GICs here, provided you’re also investing some money into “risky” assets like stocks, REITs, equity ETFs, and royalty funds. Why risk your money ahead of a recession when you can score a guaranteed 4% or so from a non-cashable (which implies some lock-in) GIC over the timespan of 12-18 months? Indeed, GICs do seem like a great deal. If you’ve been checking in on GIC rates for a few years, you’ll know that GICs are close to bountiful as they’ve bee...

The market correction is giving buy-and-hold investors a chance to buy some top TSX dividend stocks at cheap prices for a self-directed Registered Retirement Savings Plan (RRSP) portfolio. One popular investing strategy involves buying top Canadian dividend stocks and using the distributions to acquire new shares. TD Bank TD (TSX:TD) has a compound annual dividend growth rate of better than 10% over the past 25 years. The stock is currently out of favour due to the general pullback in bank stocks in the past two months and a company-specific issue connected to an acquisition. Investors are concerned that TD might overpay for its planned purchase of First Horizon, a regional bank in the United States with operations located in the southeastern part of the country. From a strategic perspective, the deal makes sense. TD already has a network of branches running from Maine right down the east coast to Florida. Adding First Horizon would make TD a top-six bank in the American market...

With a 4.8% dividend yield and a rapidly growing business, AltaGas (TSX:ALA) is a stock that’s worth your attention. You see, AltaGas’s business has been booming, as the company perfects its marriage of safety and growth. And AltaGas’s stock price is not far behind. AltaGas stock is up 4.4% so far in April. Is it a buy after recently reported earnings? new company For those of you who don’t know, AltaGas is an energy infrastructure giant with more than $20 billion in assets and a strong position in two distinct areas. The first is the utilities business, which is comprised of regulated natural gas utilities. The second is AltaGas’s midstream segment. This business includes natural gas gathering and processing assets as well as natural gas export terminals. These terminals support AltaGas’s global export platform. The last five years have been good to AltaGas. Revenue has grown 230% over these years to $14 billion in 2022. Also, net earnings have gone from net losse...

TD (TSX:TD) and Suncor (TSX:SU) are off their 12-month highs. Contrarian investors with an eye for value are wondering if the latest market correction offers a good opportunity to buy one of these TSX dividend stocks at an undervalued price. TD TD is Canada’s second-largest bank with a current market capitalization near $148 billion. The stock trades close to $81 per share right now. That’s not far from the 12-month low around $77 and down from the $93 point the stock hit in February. The latest downturn in the bank sector is due to recent failures in regional banks in the United States. Investors are increasingly concerned that deposit flight could ramp up, as customers move cash to the largest institutions. A wave of panic selling could put the entire financial system at risk, and that is worrying the markets. The U.S. government stepped in to settle things down in March and has said it will continue to do so to stabilize the sector. As such, the bouts of volatility should ...

The Tax-Free Savings Account (TFSA) is a magical piggy bank because money grows tax-free before your eyes. Its crafters want Canadians to use the tax-advantaged account, save, and earn tax-free income for life. If you want the magic to work, contribute regularly and hold income-producing assets in the account. A $30,000 investment in a dividend stock that pays a 4% dividend will generate $1,200 in tax-free income in one year. However, you can get more with high-yield stocks like TransAlta Renewables (TSX:RNW) and Transcontinental Inc. (TSX:TCL.A). With an average dividend yield of 6.885% and $15,000 worth of shares each, the annual payout is $2,065.50. Ready for clean energy expansion The landscape in the power markets is changing. Investors are looking to add more green stocks to their portfolios. TransAlta Renewables is the largest generator of wind power in Canada. This $3.4 billion renewable power company invests in highly contracted renewable and natural gas power generati...

Investors had high expectations from Whitecap Resources (TSX:WCP), and it delivered. The Canadian mid-cap upstream energy company reported its first-quarter earnings on April 26, 2023. It reported higher production, mainly due to its completed acquisitions. While realized oil and gas prices tumbled nearly 20% during the quarter year over year, Whitecap’s funds flow only decreased by 10%. Whitecap Resources impresses in Q1 2023 Whitecap Resources has returned 10% in the last 12 months and 760% in the last three years. It seems well on track to increase dividends in the next few quarters. The stock currently yields a decent 5%, which is a premium to some Canadian energy giants. The potential dividend hike will increase its yield further, making it a more appealing bet in the current environment. Whitecap Resources saw its production reach 155,124 barrels of oil equivalent per day in Q1 2023, representing a decent 17% hike year over year. The production growth was mainly due to ...

A market correction can be scary, but it also gives pensioners a chance to buy top TSX dividend stocks at discounted prices for a self-directed Tax-Free Savings Account (TFSA) focused on generating reliable passive income. TFSA benefit for retirees Seniors who collect the Old Age Security (OAS) pension have to watch their income levels. The Canada Revenue Agency implements an OAS pension recovery tax once net world income tops a minimum threshold. The number to watch in the 2023 income year is $86,912 in earnings. Every dollar above that amount triggers a $0.15 clawback on the OAS payments that will be made in the July 2024 to June 2025 payment term. Income of $87,000 seems like a lot, but it doesn’t take long for someone who receives a decent work pension, Canada Pension Plan, OAS, Registered Retirement Income Fund payments, and other income to top that amount. One way to reduce or avoid the OAS clawback is to shift investments from taxable accounts to the TFSA. Retirees hav...

Goeasy (TSX:GSY) remains one of the most oversold dividend stocks out there right now. Yet, it’s also one of those oversold stocks that remain down from outside influences. So today, we’re going to look at dividend stock goeasy, and why it’s a solid buy right now, even with that outside pressure. Government weighs in Goeasy stock was doing incredibly well over the last few years, with the move to online banking and finance providing a major opportunity during the pandemic. Since then, the finance and loan provider stock has come down, yet not from lack of performance. Goeasy stock continues to be a dividend stock with a solid history behind it, proving even during dire times it can hit record earnings levels. Yet, a recent announcement from the Federal Government back in March sent shares downwards. The Canadian government announced in its 2023 budget that it would lower the “criminal rate of interest” from 47% to 35%. While analysts certainly knew this would have an effect o...

Dividend-growth stocks are excellent investment options for future retirees building retirement wealth. Besides the growing income streams, the share prices could appreciate over time. Three established dividend growers stand out if you want to ensure a cushy living in the sunset years. TC Energy (TSX:TRP), Allied Properties (TSX:AP.UN), and Canadian Imperial Bank of Commerce (TSX:CM) are among the best choices for their impressive dividend-growth streaks. You can have a substantial nest egg when you finally decide to retire. Vital operations TC Energy owns a vast network of natural gas and crude oil pipelines — not to mention storage facilities and power-generation plants. The $56.77 billion company is a solid investment for long-term growth, given 23 consecutive years of dividend hikes. At $55.51 per share (+4.64% year to date), the dividend yield is 6.7%. The operations of the pipeline operator are vital to North America’s oil and gas midstream industry. Its 3,000-mile-l...

Are you looking for some quality dividend stocks to add a little extra income to your portfolio? If so, now is a good time to go shopping. Many dividend stocks are currently way down from their all-time highs, sporting higher yields than they had before. Energy stocks are currently way down from their peak levels, seen in the summer of 2022, and bank stocks are still slightly down from their pre-crisis levels. This year has seen some big moves in the broad market indexes, but it’s mostly been tech and growth that have benefitted. Dividend stocks are, in many cases, down for the year, meaning that bargains are beginning to become available. In this article, I will explore three high-yield buys for 2023. Bank of Nova Scotia Bank of Nova Scotia (TSX:BNS) is one of Canada’s cheapest and highest-yielding bank stocks. At today’s price, it has a 6% dividend yield, which is higher than the average for Canada’s Big Six banks. Why is BNS stock so cheap and high yielding? For one ...

Suncor (TSX:SU) continues to trail its TSX oil sands peers in the oil-sector recovery. Investors with a contrarian strategy are wondering if Suncor is now undervalued and good to buy for a portfolio focused on dividends and total returns. Oil market outlook West Texas Intermediate oil trades for close to US$78 per barrel at the time of writing. That’s down from the surge above US$120 per barrel last year but still a lucrative level for most oil producers. The market volatility investors witnessed in the past three years will likely continue over the medium term, although the range between the peaks and troughs should narrow. Oil bears say a global recession will slow the recovery in the energy sector in the coming 12-18 months. At the same time, they expect the expansion of electric vehicle production and renewable energy installations to eat into long-term demand for gasoline and fossil fuels used to generate electricity. Bulls, however, say soaring demand for air travel an...

When it comes to undervalued stocks, the cyclical nature of the stock market offers plenty of options for Canadian investors to consider on the TSX right now. Amid the macroeconomic factors impacting publicly traded companies, several high-quality stocks have also declined on the stock market. Identifying and investing in beaten-down stocks trading below intrinsic values can help you leverage massive capital gains for wealth growth. Today, I will discuss a top Canadian agriculture stock, Nutrien (TSX:NTR). As the largest potash producer and third-largest nitrogen fertilizer producer worldwide, Nutrien stock can be a top stock to consider. However, its share prices have declined significantly in recent months. We will discuss whether this agriculture stock can be worth adding to your portfolio in May 2023. Nutrien stock’s performance in the last year As the chart above shows, Nutrien stock is not having the best year. Nutrien stock started 2023 on a strong note, climbing b...

It’s official: The Federal Reserve now predicts that a recession will hit the U.S. starting later this year. On April 15, NPR reported that the Federal Reserve predicted a “mild recession” starting sometime in the Fall or Winter months, followed by a recovery in 2024. The fact that many economists are predicting a recession isn’t news. People have been forecasting a 2023 recession since early 2022. However, the fact that the Fed is predicting one lends extra credibility to the claim that one will occur, since the Fed has access to some of the best economic data anywhere on earth. If the U.S. does enter a recession, like the Fed predicts, the effects will likely spill over to Canada. The Canadian and U.S. economies are deeply intertwined, as the U.S. is Canada’s largest trading partner. Therefore, a slowdown in economic activity South of the border will likely be felt here as well. In this article, I will explore some ways you could invest to prepare for a future U.S. recession....

The bear market is the best time to buy good companies, but you can’t make a profit out of your discounted holdings until the bull market comes. This is why most investors delay the purchase of these discounted stocks until there are strong signs and indications of a bull market building up. They may lose some of the discounts, but it’s usually balanced by the time factor. After a month-long bullish phase, the TSX is going down again, and if you are looking for the right discount stocks to buy before the next bull market comes, two should be at the top of your watchlist. fashion company Fashion falls squarely under discretionary spending, which usually goes down when the economy is weak and interest rates are high. High-interest rates discourage people from using their credit cards on purchases that might not be necessary. The current economy is not too weak, but the high-interest rates are still a factor, but so far, they haven’t been enough to trigger a full crash for a st...

The Canadian market started May 2023 on a weak note, as falling oil prices amid growing concerns about a recession weighed on energy stocks. After rallying by 130 points during the intraday trading, the TSX Composite Index gave up these gains later to end Monday’s volatile session with a 21-point drop at 20,615. Despite losses in the shares of energy and real estate companies, handsome gains in other notable market sectors, such as consumer and industrials, limited the index’s losses. Top TSX Composite movers and active stocks Denison MinesBallard Power Systems, and Secure Energy Services were the worst-performing TSX stocks for the day, as they plunged by at least 3.6% each. In contrast, Cargojet (TSX: CJT) rose nearly 4% yesterday to $105.83 per share after it announced its March quarter results. In the first quarter of 2023, the revenue of the Mississauga-based air cargo services provider witnessed a minor year-over-year decline of 0.7% to $231.9 million, as the demand...

Canadians seeking out passive income need to be careful. While dividend stocks are great, we’re about to enter a recession. This could lead to many dividend stocks cutting their dividends to create income needed to recover after a downturn. That’s why today, I’m going to focus on safe passive income. If your focus is on creating that passive income for the near term and growth in the long term, then here is exactly what I would do. First, how much will you invest? You don’t want your investment to suddenly turn to ash, which is why I’m suggesting an amount around $5,000. That’s a large sum, but, again, we’re investing in a safe stock. So, it’s not going to drop down to nothing. That means you can take it out if need be in the near future, though, of course, investing for the long term is always best. Now, if $5,000 doesn’t work for your budget, that’s fine! Instead, do what works for you and your savings. Just because I’m using this as an example doesn’t mean you have to. Ins...

Passive income. It’s one of the most common financial goals for Canadian investors. Everybody likes making money on a stock trade, but what could be better than a stock that pays you income year in and year out? Such are the kinds of stocks that Warren Buffett and other long-term investors made their fortunes on. This raises a question: Is it possible to make a truly substantial amount of money – let’s say $1,000 per month – with just dividend stocks? Such a thing would be very helpful if it could be done. Consider that, $1,000 per month is more than what the average Canadian gets from the Canada Pension Plan (CPP). If you take the average CPP payment ($811) and add $1,000 per month in dividend income to it, you get to a sum of money that could potentially pay all of your bills. In this article, I will explore the topic of making money with dividend stocks. I will show how much money you’d need to invest to get $1,000 a month in dividend income. I will reveal a stock that...