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.
What analysts are saying in the wake of Facebook’s massive stock plunge
Facebook Inc. shares dived nearly 20 per cent in its biggest ever one-day percentage drop on Thursday, raising concerns on Wall Street and prompting at least three analyst downgrades. New growth drivers such as Instagram “frankly aren’t big enough” to overcome slowing growth and margin pressure over the near term, according to UBS. Other analysts, meanwhile, haven’t lost faith in the social-media giant. Here’s a roundup of what analysts have to say about the plunge.
Meet the DOCKS – the FAANGs of the TSX
Much ink has been spilled about the FAANG stocks in the U.S. Whichever way you want to define this group, it typically includes Facebook, Amazon, Apple, Netflix, and Google (Alphabet) and refers to some of the best-performing companies in the United States. As much as we talk about the FAANGs, top-performing companies in Canada tend to get overlooked. Yet they have been posting sneaky-but-stellar performances over the last few years. It’s time to meet the “DOCKS,” writes Ryan Modesto.
Mutual fund giant Fidelity to launch six dividend ETFs in Canada
Almost a year after it first began exploring the Canadian exchange-traded funds market, Canada’s fourth-largest mutual fund firm, Fidelity Investments Canada ULC, is set to launch its first set of ETFs this fall, writes Clare O’Hara. Fidelity has filed preliminary documents with regulators to launch six new smart beta dividend-yield strategies for Canadian ETF investors. Management fees for the funds are expected to range from 0.35 per cent to 0.45 per cent.
Rogers hasn’t raised its dividend in years and is still leaving its telecom peers in the dust
The last time Rogers raised its dividend was on Jan. 30, 2015 – nearly three and a half years ago. Since the start of 2015, Rogers’ total return – assuming all dividends were reinvested – was about 15 per cent on an annualized basis, compared to about 8.1 per cent for Telus and 6 per cent for BCE, writes John Heinzl. How did Rogers pull this off? Instead of raising its dividend, the company decided to channel its extra cash to capital spending and debt reduction, while also improving its customer service and reducing subscriber turnover. These moves have been paying off big time.
A tax-smart way to get the U.S. stock market into your TFSA
Is avoiding U.S. content in TFSAs the right approach? Rob Carrick answers. He points to an ETF that lets you invest in the U.S. market and deke around the withholding tax: the Horizons S&P 500 Index ETF (HXS-T). Instead of dividends, its unit price reflects the total return for the S&P 500. No dividends from HXS mean no withholding tax, letting you invest in the U.S. market with less cost and stress.
What investors need to know for the week ahead
Big items on the calendar this week include new GDP data and a U.S. Federal Reserve interest rate announcement. On Tuesday, Canadians will get a look at the country’s economy with the release of GDP figures for May and Canada’s producer price and raw materials indexes. On Wednesday, the U.S. Federal Reserve will announce its rate decision. The next day, Air Canada’s takeover offer for Aeroplan will expire, although Air Canada’s CEO said the airline is the only realistic bidder. Finally, trade will be front and centre on Friday with new data detailing Canadian exports and imports for June and the balance of trade. The consensus so far predicts a $2.3-billion surplus.