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Globe Investor High-yielders hiking dividends, new asset allocation ETFs and Hydro One’s stock surge: What you need to know in investing this week

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.



Four new ‘one ticket solution’ ETFs make debut as their popularity soars

The number of exchange-traded fund products that offer so-called one-ticket solutions to building a portfolio continues to grow in Canada amid their surging popularity, Clare O’Hara writes. Four new such “asset allocation” ETFs started trading this past Tuesday on the Toronto Stock Exchange: three from RBC iShares, bringing the bank’s total offerings in the space to five, and one from CI Financial. With the latest additions, there are now 30 asset allocation ETFs in Canada with combined assets under management of $4-billion, according to data provided by National Bank Financial.

Read more: Billionaire Bill Gates invests more than US$92-million in this large-cap Canadian dividend stock

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Three high-yielding stocks that just raised their payouts

When a company raises its dividend, it isn’t just putting more money in shareholders’ pockets, John Heinzl writes. It’s also sending a signal that the business is doing well and has the growing revenues and cash flows to sustain the dividend at the new, higher level. A dividend increase, in other words, is a quick and dirty way to identify strong companies – the same sort of companies whose share prices tend to rise over the long run. That’s why I focus on stocks that raise their dividends regularly. Here’s a look at three companies that hiked their distributions recently and have a high probability of continuing to raise their payouts.

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

Hydro One’s shares are surging – and it’s still an attractive stock

Hydro One is on a tear and there is a good reason why: The Ontario government finally appears to have left the utility alone, David Berman writes. The shares have surged 29.5 per cent over the past 12 months (not including dividends), ploughing through recent market volatility. The performance has easily beaten the broad S&P/TSX Composite Index, which is essentially flat over the same period.

Now, investors can look at Hydro One without being distracted by Ontario Premier Doug Ford’s meddling on executive compensation and expansion plans - and they should be able to recognize several reasons to stick with the stock. Although Hydro One’s valuation is no longer pointing to a bargain, the stock is still attractive.

What Canadian portfolio managers are buying, selling and thinking amid the latest bout of market volatility

Worries about slowing global growth, trade wars and that upside-down yield curve have sent stocks tumbling this month, including the Toronto stock market’s worst plunge this year on Wednesday. Is it a buying opportunity, or should investors sell to avoid a further drop in their portfolios? Staying put could also be the best strategy. The Globe and Mail spoke with a handful of Canadian portfolio managers about their take on the recent market volatility and how they’re reacting.

Read more: Two indicators to help investors decide if they should batten down hatches

Jump on these three ETFs to capitalize on the recent surprise windfall for bond investors

I’ve been advising readers for a long time to ensure they have some bond holdings to cushion their portfolios against a potential stock-market decline, Gordon Pape writes. Until recently, those investments were not generating great returns, but now all that has changed; bonds not only act as an insurance policy, they are also contributing to your bottom line. The dramatic decline in yields has been a surprise windfall for bond investors (prices rise as yields drop). For most people, the easiest way to add bonds to a portfolio is to buy ETFs that invest in them. Here are three I recommend.

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What investors need to know for the week ahead

Canada’s big banks begin reporting third-quarter earnings in the week ahead, starting with Royal Bank of Canada on Wednesday, followed by Canadian Imperial Bank of Commerce on Thursday. Other companies releasing their latest results include Home Depot, Target and Lowe’s. Economic data on tap include: Canadian manufacturing sales and orders for June (Tuesday); Canada’s inflation figures and U.S. existing home sales for July (Wednesday); Canadian wholesale trade for June (Thursday); Canadian retail sales for June and U.S. new home sales for July (Friday). And U.S. Federal Reserve chair Jerome Powell speaks at Jackson Hole, Wyo., on “Challenges for Monetary Policy” on Friday.

Related: Fed in a hole: World market themes for the week ahead

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