WilliamMLeighty634 blog

If you’re looking to get rid of debt in 2023, you may think you’ve chosen the worst time to do it. After all, this year, we’re supposed to enter a recession. And how are you supposed to pay off debt with interest rates and inflation up? Well, there is certainly a way. Not only that, but Canadians can make money as well! All it takes is consistency when it comes to your plan. So, let’s get to it. Step #1: Go over your budget … again You may have a budget already, but I sincerely think that you should go over that budget again. There are a few reasons. First off, it’s important to go over your budget at least once a year to see what’s changed. Perhaps you had a child. Maybe you got a new car. You might have moved. Or inflation has simply taken a hit on your finances. Whatever the reason, right now is a great time to go over the last three months and see how your cash flow has changed. From there, see what’s going to work in your new budget and what won’t. Step #2: Cut back! ...

Recently, Canadian Tire (TSX:CTC.A) stock has piqued the interest of investors. This is due in part to the stock’s modest but meaningful rise of 2% over the past month. The company’s emphasis on offering guaranteed value to customers has driven its sales growth over the years. The company’s brand factor, modern and contemporary store network, and global sourcing capabilities make for its competitive advantage in the Canadian market. Here are a few reasons why Canadian Tire can be a viable choice for investors at this moment.  Exceptional Q4 2022 and full-year performance In the fourth quarter (Q4) of 2022, Canadian Tire reported an 11.3% rise in its comparable sales, which is in line with the Q4 performance of FY 2021. The company’s diluted earnings per share increased to $9.09, and the normalized diluted EPS has increased to $9.34, showing growth rates of 9% and 11% respectively.  According to experts, this performance can be attributed to the company’s higher reve...

The looming fears of a recession, interest rate hikes, and inflation have not spared any publicly traded company on the TSX, creating a bear market environment. Even industry giants like BCE Inc. (TSX:BCE) have seen their valuations decline. As of this writing, Canada’s largest telecom stock trades for $60.70 per share, down by 18.07% from its 52-week high. While stocks from the telecom and utilities sectors tend to trade for lower valuations during high-interest-rate environments, BCE stock has seen a more pronounced downturn due to inflation impacting its earnings. Let’s take a look at some important facts about BCE stock right now to determine whether it can be worth considering for your self-directed investment portfolio at current levels. The telecom giant’s capital expense and fiscal growth BCE is the industry-leading telecom company in Canada. Boasting the most extensive network among its peers, it continues to improve its infrastructure through capital investments...

Winter just seems to keep dragging on, doesn’t it? After quite a warm one across Canada, we were still hit with storm after storm. Each claiming to be the worst of the decade? Century? Something like that. And honestly, our financial situations seem to have taken a similar route. So, don’t let this winter drag into your finances any longer. Enter spring with some cash coming in, and start building up your nest egg right away. To do that, I would recommend three dividend stocks like these ones. Canadian Utilities stock Canadian Utilities (TSX:CU) is one of the best companies to buy considering it’s currently the only Dividend King on the TSX today. That means you can look forward to even more growth in dividend income in the years to come. What’s more, utilities are a great buy during a downturn, because the world needs utilities, no matter what happens. Yet right now, Canadian Utilities stock remains a pretty good deal, trading at 17.16 times earnings. That means you can pick...

Beginning Tax-Free Savings Account (TFSA) investors have an ugly road ahead of them, with the U.S. Federal Reserve likely to keep raising interest rates. As rates soar, the relief bout of relief in tech could prove short-lived. In any case, I still think there’s value to be had in the high-multiple growth names for investors willing to stick it out. Battered tech stocks won’t recover overnight. Nobody knows if recent relief will end in tears. Regardless, new investors should be focusing on building wealth over the next 12 years, rather than the next 12 months or weeks. The following tech stocks, I believe, offer a great risk/reward scenario for those willing to brave the volatility en route to better long-term rewards. mazon It’s hard to be an investor when you’ve got big-name folks on the Street calling for blood. American e-commerce giant Amazon (NASDAQ:AMZN) has already lost more than half of its value from peak to trough. The company overinvested in capacity, weighing on ...

It’s raining dividends in the Canadian energy sector as companies distribute record cash flows generated in 2022 to investors, pay down debt, buy back their shares, and raise regular dividends. Although Canadian energy firms dominate the dividend stocks scheduled to increase or pay raised dividends this month, BCE Inc. (TSX:BCE) is among the best dividend growth stocks you can buy for higher dividends and passive income growth in 2023. I’ll discuss three TSX dividend stocks that you can buy before they pay raised dividends for the first time this year. Buy BCE stock for juicy dividends BCE Inc. stock investors will receive a bumped dividend in 2023. The $55 billion Canadian telecommunications firm achieved all its financial targets for 2022 and raised its quarterly dividends rate for 2023 by 5.2% in February to 96.8 cents per share. The raised dividend payout should yield nearly 6.4% annually. BCE has raised its common stock dividends for 14 consecutive years now. To rece...

Lithium is an elemental metal primarily used by electric vehicles, or EVs, to manufacture batteries. Given that EVs are expected to gain traction in several global markets, you can consider investing in lithium and benefit from the rising prices of this commodity. Lithium prices surged 400% in 2021, and you can gain exposure to a rapidly expanding commodity market by purchasing shares of companies that mine the metal. One such company that is involved in the lithium mining space is Lithium Royalty (TSX:LIRC), which also went public this week. Lithium Royalty IPO: All you need to know Lithium Royalty Corp. (LRC) went public on the TSX after it raised $150 million, which was the largest initial public offering (IPO) in Canada in almost a year, according to Bloomberg. The company sold 8.82 million shares at $17 per share and listed on the TSX yesterday (March 9). Lithium Royalty stock fell over 4% on its first day of trading, valuing it at a market cap of $870 million. Lithium...

“Four Biggest U.S. Banks Low $52 Billion in Market Value”: This is an eye-catching title of an article published by Wall Street Journal about 17 hours ago as of writing. Surely, it’s a staggering amount of money evaporated in the stock market in a single day yesterday. In early trading today, the four big American bank stocks JPMorgan ChaseBank of AmericaCitigroup, and Wells Fargo continued to lose altitude. However, they quickly regained their footing and turned green. Apparently, the selloff seemed to have been triggered by problems at Silicon Valley Bank, which trades as SVB Financial (NASDAQ:SIVB). In a press release on Wednesday, the bank revealed it sold about US$21 billion of securities from its securities portfolio, which will result in an after-tax loss of about US$1.8 billion for the first quarter. Financial Times wrote SVB “offloaded [the securities] in response to a decline in customer deposits.” This news has investors worried about the soundness of other U.S. banks. T...

Shopify (TSX:SHOP) is one of the most well-known stocks in Canada. For better or for worse, investors have been watching this stock’s performance very closely since its initial public offering. For the first five or so years, Shopify stock was on an absolute tear. It gained more than 1,000% between May 2015 and November 2021. Over that period, Shopify even managed to become Canada’s largest company by market cap. However, since then, Shopify stock has fallen heavily. Today, the stock sits more than 70% lower than its all-time highs. This recent performance has caused many investors to wonder whether Shopify’s best days are behind it. So, is Shopify an incredible bargain today? Or is it a deceptive trap, waiting for greedy investors to take the bait? I’ll discuss that in this article. Should investors buy Shopify today? Before giving my opinion on whether Shopify is an incredible bargain or a deceptive trap, it’s important to understand where Shopify is as a business tod...

Although last year was challenging for the broader equity markets, energy stocks delivered superior returns amid higher energy prices. Meanwhile, oil prices have cooled down substantially from their 52-week highs. However, analysts are bullish on oil amid supply concerns and growing demand. So, given the favourable environment, which among Suncor Energy (TSX:SU) and Canadian Natural Resources (TSX:CNQ) would be a better buy for investors? First, let’s look at their 2022 performance and growth prospects. Suncor Energy Last month, Suncor Energy reported a solid 2022 performance, which ended on December 31. Increased upstream production and higher realization of crude oil and refined product due to an improved business environment drove its financials. Its adjusted funds from operations increased by 76.5% to $18.1 billion, while its adjusted net income grew by 204% to $11.57 billion. However, higher operating expenses offset some growth. The company’s upstream production inc...

Millennials may have been dealt a tough hand, with a number of recessions hitting them in the pocketbook over the past two decades. That said, millennials still have time on their side and can dodge and weave through the dips that are bound to hit the markets. Broader stock markets experienced a bit of relief over the past week, but Fed chair Jerome Powell’s latest comments were anything but soothing. Investors can expect perhaps a few more rate hikes than expected. As the U.S. continues with its interest rate increases, Canada looks to have hit the pause button. Indeed, the effect has been detrimental to the loonie, which took another slide below US$0.73. Millennials: Plenty of value here on the TSX! Though there are prominent bargains in the U.S. markets, I’d argue that it’s wise for new Canadian investors to stay domestic — at least until value becomes more abundant in the U.S. exchanges to make the painful foreign exchange swap justifiable. There’s no shortage of value pl...

The failure of SVB Financial has sent a wave of fright across the U.S. banking scene. The shockwaves have been felt up here in Canada, with Big Six giants in TD Bank (TSX:TD) and Bank of Montreal (TSX:BMO) also feeling the selling pressure. Indeed, the collapse of SVB, or Silicon Valley Bank, seems mostly contained to the regional players with too much tech exposure. Further, SVB made a mistake by reaching a tad too far for a bit more yield at a time when risks in the fixed-income markets were elevated. Undoubtedly, mistakes were made, but investors need not panic over a contagion that works its way up to Canada. For now, regional banks are scarier plays. Many tend to be less diversified, both geographically and in the industries of the clients it serves. Further, Canada’s big banks are incredibly well capitalized. They could make it through a storm that’s far worse. As such, I view recent volatility in the Canadian bank stocks as completely overblown. At the end of the day, Cana...

Foolish readers may be more anxious than usual, as we have witnessed the collapse of Silicon Valley Bank, Signature Bank, and threats to even larger institutions, like Credit Suisse. The United States Federal Reserve and the Bank of Canada (BoC) have both pursued an aggressive rate tightening policy in response to soaring inflation that hit consumers hard in 2022. Those rate hikes have eaten into inflation rates, but now institutions that have gorged on cheap credit and historically low interest rates are being punished. Canadian investors may want to pursue dependable passive income to sidestep this bout of volatility. Today, I want to discuss how you can look to generate $1,000 per month in passive income. In this hypothetical scenario, we are going to look to mix it up with a Tax-Free Savings Account (TFSA) and a cash account. With this method, a nice chunk of our monthly passive income will be entirely tax free. Let’s jump in! Here’s the first passive-income vehicle I’d...

Canadians are fortunate to have the Tax-Free Savings Account (TFSA), a one-of-a-kind investment account, where money growth is tax free for a lifetime. Another outstanding feature is that withdrawals are also tax exempt. You need to contribute without exceeding the yearly contribution limits. Holding cash in a TFSA is okay, although it’s not advisable, because you can’t maximize portfolio gains with it. Accountholders can hold income-producing instruments such as bonds, guaranteed investment certificates (GICs), mutual funds, and exchange-traded funds (ETFs). However, most TFSA investors prefer dividend stocks. The TFSA’s value increases over the years, so you can use it to build wealth or boost your retirement fund. However, despite the fantastic advantages, do you have a real chance of growing the balance substantially? Blue-chip stocks Owning shares of Toronto-Dominion Bank (TSX:TD) and Canadian Natural Resources (TSX:CNQ) ensures uninterrupted income streams, because ...

The market is feeling the tremors as a 2008-like recession grapples US banks. While the Fed’s accelerated rate hikes from 0.25% to 4.5% in 12 months is a major cause, panic triggered the sell-off. Do not succumb to herd mentality and sell in panic. Now is the time to think about what Warren Buffett would do. “Be greedy when others are fearful.” Choosing an individual stock could be risky. That is where passive index ETFs come in.  What to do in the current market dip?  The TSX Composite Index has fallen 5.8% in 10 days, and a deeper dip is likely as news about the collapse of three US banks surfaced in less than a week. The bear market was long overdue as rising interest rates inverted the yield curve, making long-term deposits less valuable than short-term deposits. Such an inverted yield curve signals that a recession is in the making because it changes the direction of deposits as people pull out money from long-term savings.  The dip will pull down demand and slo...

The money or assets that a person leaves behind is called generational wealth. An amount handed down to at least one generation is legacy or family wealth. In the Great White North between 2016 and 2026, Willful.co says Canadians will hand down $1 trillion in personal wealth. It would be the largest intergenerational transfer of wealth in history. A recipient of generational wealth, children or grandchildren, gains a significant financial advantage, although the use is entirely up to them. Building generational wealth means acquiring or investing in assets; stock investing is one way to produce or accumulate wealth. Better still, hold the stocks in a Tax-Free Savings Account (TFSA) for tax-free money growth. Long-term value creation Quick-service restaurants are financially stable, but if you’re investing in the fast food industry, Restaurant Brands International (TSX:QSR) or RBI is the logical choice. The $27.7 billion company owns four iconic global brands. Firehouse Subs i...

Prime Minister Justin Trudeau will ensure that Canada plays a vital role in North America and become a reliable semiconductor supplier to the global economy. He wants Canadians to be part of the semiconductor ecosystem but admits the role still needs to be determined. Meanwhile, the federal government announced it would spend $240 million to help Canada expand its presence in photonics and semiconductor manufacturing. Regarding investment prospects in the semiconductor space, the choices are scant. The TSX Venture Exchange has promising names, except that microcap stocks are volatile. However, on the Toronto Stock Exchange, you can take positions and own the safest semiconductor chip stocks in March 2023. Celestica (TSX:CLS) and 5N Plus (TSX:VNP) have visible growth potential and could deliver outsized gains over time. As of this writing, the value stocks outperform the broader market. Record revenue growth Celestica caters to innovative companies and the world’s best bra...