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Globe Investor Soaring pot stocks, TFSA tips and dividend shares bucking the trend: 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.



Sorry Canadian Tire, Bombardier and BlackBerry: A pot stock is now worth more than you

Canopy Growth is getting bigger by the day – and in doing so, it’s become more valuable than some iconic Canadian companies, Matt Lundy writes. Over a short span, Canopy’s market valuation has vaulted past some big names. On Tuesday, it leapt past Canadian Tire, and on Wednesday, it rose above Bombardier.

As David Milstead writes, Canopy has now overtaken Bausch Health, formerly known as Valeant Pharmaceuticals and once the most valuable company in Canada, as the biggest health-care company on the Toronto Stock Exchange. Following the announcement of its deal with Constellation Brands for a $5-billion investment, soaring Canopy is taking other pot stocks along for the ride.

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Related: Canadian marijuana stocks jump after Diageo reported to be discussing deal

Read more: A marijuana stock that stands out from the pack

How to grow your TFSA: Tips from financial bloggers to fatten your account

Looking for ways to pump up the growth in your tax-free savings accounts? Here are some tips from financial bloggers and do-it-yourself investors. One blogger’s portfolio mirrors his family’s monthly bills – mortgage and power payments translate into bank and utility stocks. Another invests in large-cap stocks, but ignores the dividend yield in favour of highest return on equity. And, not surprisingly, more than one has scored big on cannabis stocks.

Sick of a shrinking portfolio? Here are two dividend stocks that are bucking the trend

These are not good times for income-oriented investors, Gordon Pape writes. Rising interest rates have put downward pressure on many high-yielding stocks, reducing the market value of their portfolios. The dividends are still being paid. But people are getting edgy as they see the price of their shares pull back. No one likes a shrinking portfolio. Fortunately, there are a few dividend stocks that are bucking the trend.

Want to beat the TSX index? Look for stocks with these dividend yields

Canadian dividend stocks delivered out-sized returns to investors over the last 16 years, Norman Rothery writes. To reap their benefits it’s best to focus on stocks with generous yields while avoiding the extremes. A key advantage of dividend investing in Canada is that it tends to steer investors away from riskier areas of the market. For instance, speculative mining and energy companies rarely pay dividends. Similarly, ailing firms usually can’t afford to pay dividends. Mind you, dividends aren’t a perfect prophylactic against disaster. Seasoned dividend investors know to be wary of stocks with extremely high yields.

Using Dividend Yield to Beat the Market

From 2001 to 2017

Avg. annual outperformance vs. S&P/TSX Composite (pp)

6

5

4

3

2

1

0

1

-

2

-

3

-

4

-

1

2

3

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Highest

Lowest

Yield from high to low (deciles)

pp=percentage points

THE GLOBE AND MAIL, SOURCE: bloomberg

Using Dividend Yield to Beat the Market

From 2001 to 2017

Avg. annual outperformance vs. S&P/TSX Composite (pp)

6

5

4

3

2

1

0

-

1

-

2

-

3

-

4

1

2

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Highest

Lowest

Yield from high to low (deciles)

pp=percentage points

THE GLOBE AND MAIL, SOURCE: bloomberg

Using Dividend Yield to Beat the Market

From 2001 to 2017

6

5

Average annual outperformance vs. S&P/TSX Composite (pp)

4

3

2

1

0

-

1

-

2

-

3

-

4

1

2

3

4

5

6

7

8

9

10

Highest

Lowest

Yield from high to low (deciles)

pp=percentage points

THE GLOBE AND MAIL, SOURCE: bloomberg

Read more: Seeking high-yielding stocks (that aren’t likely to cut their dividend)

These brokers and robo-advisers offer money-saving deals for younger investors

One of the toughest jobs in investing is to start an account with little or no money and not get massacred by fees and commissions, Rob Carrick writes. If you’re a millennial investor with just a couple of thousand dollars in your account at an online brokerage, paying $10 to trade a stock or an exchange-traded fund and $25 per quarter in account maintenance fees is prohibitive. Robo-advisers are rightly thought of as a good spot for young adult investors, but some are more welcoming than others to people starting with tiny amounts.

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What investors need to know for the week ahead

The bank earnings rollout continues this week, with Bank of Montreal and Bank of Nova Scotia releasing quarterly results on Tuesday, and Canadian Western Bank, National Bank of Canada and Toronto-Dominion Bank on Thursday. This past week, RBC and CIBC raised their dividends – Scotiabank may follow suit. Also reporting this week: Best Buy, Tilray, WeedMD, Tiffany, Lululemon and Dollar Tree. Economic data on tap include GDP figures for the United States on Wednesday and Canada on Thursday, plus Canadian current account numbers on Wednesday.

Looking for more investing ideas and opinions?

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The Ten Commandments for a comfortable retirement

A REIT yielding 8.7% with steady monthly distributions

Ontario Teachers' Pension Plan moves from equities to inflation-sensitive investments

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Hey realtors and family members, stop pushing seniors to sell their homes

Most Canadian caregivers are paying too much tax. Here’s how to remedy that

Ten tips for lending money to your family

How a Toronto investor professor and CFA is beating the market through a 'four top picks’ strategy

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