Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

John Heinzl is the dividend investor for Globe Investor's Strategy Lab. Follow his contributions here. You can see his model portfolio here.

For some people, investing is all about the excitement of trying to score a quick profit.

For Norman Levine and Darren Sissons, it's more like watching paint dry.

Story continues below advertisement

The managing directors at Portfolio Management Corp. – which has more than $500-million invested on behalf of high net worth clients – look for companies that will deliver steady growth in earnings, dividends and share prices over many years.

"We're long-term global value investors and we like buying good-quality companies that pay dividends, and dividends that go up on a regular basis, and we like buying them generally when they're out of favour," says Mr. Levine, who focuses on North America.

A company might be experiencing a temporary setback, for example, or it might be overlooked by analysts and investors, causing its shares to be attractively valued.

"At any one point around the globe there's always somewhere where there's an opportunity," says Mr. Sissons, who focuses on international companies.

Here's a sample of the firm's holdings. Remember to do your own due diligence before purchasing any security, and be sure to research the tax consequences of investing in companies outside North America.

Power Financial (PWF-TSX)

Tuesday close: $37.40, up 6¢

Story continues below advertisement

Yield: 4 per cent

Power Financial used to raise its dividend twice a year. But then the financial crisis hit and the dividend didn't budge for six years. It wasn't until March that the company finally raised its dividend, after Canadian subsidiaries Great-West Lifeco Inc. and IGM Financial Inc. hiked their payments.

With the company's European operations also improving, Mr. Levine expects earnings growth to improve.

"This should allow Power Financial to resume its regular and frequent dividend increases," he says.

General Electric (GE-NYSE)

Close: $26.62 (U.S.), down 40¢

Story continues below advertisement

Yield: 3.5 per cent

General Electric plans to sell most of its finance operations to focus on its industrial businesses – a move that includes a share buyback of up to $50-billion (U.S.). "We believe the new GE will not only grow faster than the company has in the past, both organically and through acquisitions, but the market will, over time, put a higher value on GE's earnings as industrial earnings garner higher multiples than do financial services earnings," Mr. Levine says. The dividend has grown at an annualized 16 per cent over the past five years – having been cut by about two-thirds during the financial crisis – and it could grow even faster in the future, he says.

CCL Industries (CCL.B-TSX)

Close: $146.84, up 99¢

Yield: 1 per cent

CCL may not be a household name. But it makes the labels and containers for all sorts of household items – including beverages, foods and personal care products. The Toronto-based company has grown dramatically and is now the world's largest label maker. Yet only a handful of analysts follow the company, probably because it rarely issues shares, Mr. Levine says. "Labels worldwide is a highly fragmented business and we see CCL continuing to be the industry consolidator and to show additional sales and earnings growth through a series of accretive acquisitions," he says. He also expects the price-to-earnings multiple of 18 (based on 2016 estimates) to expand. The yield may be small, but the dividend should continue to grow, he says.

Story continues below advertisement

Jardine Matheson Holdings (JMHLY-OTC)

Close: $62.22 (U.S.), up 91¢

Yield: 3.4 per cent

Incorporated in Bermuda and operating out of Hong Kong, Jardine Matheson is a conglomerate with roots dating back to China in 1832. Its interests span a range of industries across Asia – including real estate, agriculture, construction, retailing, automobiles, financial services and mining. The company "is a way to play the pan-Asian wealth effect," Mr. Sissons says. The dividend has grown at a 4.2-per-cent annual pace over the past five years, and the company has an "excellent balance sheet and therefore expectations of continuing dividend growth exist." However, he says the company's Indonesian operations have struggled and a turnaround isn't priced into the stock, which has dropped about 8 per cent since January. The shares trade at a price-to-book value ratio of 1.12 – above the five-year low of 0.94, but well below the high of 1.31.

Prudential PLC (PUK-NYSE)

Close: $49.32 (U.S.), down 20¢

Story continues below advertisement

Yield: 2.3 per cent

Based in London, Prudential is an international insurance and asset management firm with operations in Asia, the United States and Britain. "The Asian business provides a platform to leverage the growing wealth of middle-class Asians," Mr. Sissons says. In the U.S. market, meanwhile, the company has built a strong presence in annuities. The dividend has grown at 9.1 per cent annualized over the past five years. "Underlying growth, a strong balance sheet and good risk management culture has and will continue to generate a growing stream of dividends," he says.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies