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Looking for investing ideas? Here’s your weekly digest of the Globe’s latest insights and analysis from the pros, stock tips, portfolio strategies plus what investors need to know for the week ahead.



Dividend growth stars that could be a bargain right now

Stocks that are dividend growth champions typically have a fan base of investors that helps keep the share price on the rise, Rob Carrick writes. But there are exceptions from time to time that could present a buying opportunity. Here are some dividend growers with weak share prices among the stocks in the S&P/TSX 60 index of big blue chips with the highest five-year dividend growth rate. They include a major bank and some energy plays.

Another potential bargain for dividend growth hunters is Canadian Tire, which has produced five-year dividend growth of 20.8 per cent and a one-year loss of 20 per cent. The shares are up substantially over the past five years, however.

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Related: Canadian Tire, Cineplex and more investing stars and dogs for the week

More from Rob Carrick: Banks are offering cash and iPads to people opening new chequing accounts - should you bite?

How to earn $52,000 tax free - no offshore account required

Interested in making tens of thousands of dollars a year without paying any tax? Sure, you could open a Swiss bank account or stash your funds in the Cayman Islands, John Heinzl writes. But here he shows you a perfectly legal way to earn more than $50,000 a year without paying a dime to the Canada Revenue Agency. The secret? Invest in dividend stocks.

Most investors understand that dividends are taxed at significantly lower rates than interest or employment income. What many may not understand is that the dividend tax credit, when combined with the basic personal credit available to all Canadians who pay income tax, can slash the tax on dividends to zero – even when dividend income is well into five figures.

Read more: John Heinzl’s model dividend growth portfolio as of July 31, 2019

How retirees can hold stocks, make money and still play defence in their portfolios

Some encouraging words for all the retirees who hold defensive stocks in sectors like utilities, pipelines and consumer staples: You’re doing the right thing, Rob Carrick writes. A report from the fund managers at Capital Group says that low-beta stocks -- those that are less volatile than the benchmark stock index -- are a good fit for investors with a shorter time horizon, including those nearing retirement. And the ETF world has plenty of options for focusing on low beta stocks, including the BMO Low Volatility Canadian Equity ETF.

Read more: Check out the Canadian and U.S. equity instalments of The Globe’s ETF Buyer’s Guide for more of these funds.

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Bond yields plunge, stoking fears of global recession

Bond markets are sounding an alarm that the risk of a global recession is rising, Tim Shufelt writes. As the U.S.-China trade dispute puts the health of the global economy into question, bond yields on government debt around the world are undergoing a swift descent.

Negative interest rates are spreading throughout Europe and Japan, and the yield curve is inverted in both Canada and the United States. An inverted yield curve means longer-term interest rates are lower than short-term rates, which has often been a warning sign that the economy is about to slow down or contract after 10 years of expansion since the global financial crisis.

Read David Rosenberg: Investors, be as liquid as possible. These are truly historic and dangerous time

Related: Bond market turmoil: Home buyers and mortgage shoppers have new reason to celebrate

Gordon Pape’s mailbag: GIC and ETF suggestions, starting late with TFSAs and other investing dilemmas

A reader asks Gordon Pape to weigh in on putting money in a guaranteed investment certificate or growth exchange-traded fund: We’re talking apples and oranges here – the safety and low return of a GIC or the risk but potentially higher return of a stock ETF. Before you make any decision, you need to decide on your priorities.

  • For a GIC, you’ll find better returns at smaller financial institutions than big banks. Oaken Financial is offering 2.85 per cent for two years while EQ Bank has a posted rate of 2.65 per cent.
  • If you want to invest in an ETF there are lots of good ones around. The Vanguard Growth ETF Portfolio is very new and has an unimpressive one-year return of 4.4 per cent (to June 30). By contrast, the BMO Low Volatility Canadian Equity ETF (mentioned by Rob Carrick above) posted a gain of 11.75 per cent over the same period.

You can read more readers’ questions answered here.

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What investors need to know for the week ahead

It’s another busy week ahead for corporate earnings. Among the companies releasing their latest results are CannTrust Holdings, Canopy Growth, Barrick Gold, Ivanhoe Mines, Metro, Park Lawn, Great Canadian Gaming, Aimia and Newcrest Mining. Economic data on tap include: U.S. budget balance for July (Monday); U.S. inflation figures for July (Tuesday); Canadian existing home sales and MLS Home Price Index, as well as U.S. retail sales for July (Thursday); U.S. housing starts and building permits for July (Friday).

Looking for more money ideas and opinions?

A soaring growth stock trading at a reasonable valuation with an expected return of 50%

This week’s market volatility makes for a good time to use the 'magic formula’ in selecting stocks

An outperforming stock yielding 5.7% to put on your radar during this market volatility

Beware the tax rules that apply to incorporated employees

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