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.
Five solid stocks with dividends above 5%
Even though many dividend payers have started to recover from the interest rate-related sell-off earlier this year, plenty of companies still offer attractive valuations, above-average yields and solid prospects for dividend growth, John Heinzl writes. Here are five companies from his Yield Hog Model Dividend Growth Portfolio whose share prices are still well below their 52-week highs. That means you’ll be getting more dividends for every dollar you invest.
Read more: Three beaten-up stocks that are now seeing a bounce
Can I be barred from entering the U.S. if I own shares of a Canadian cannabis producer?
If you admit to smoking marijuana, or if you invest in or do business with a U.S.-based cannabis company, you could be asking for trouble at the U.S. border, John Heinzl writes. Sam Znaimer, a venture capitalist in Vancouver, was trying to travel to the United States in May when U.S. agents questioned him about his investments, which include stakes in the U.S. cannabis industry. He’s now barred for life from entering the United States. What if you’re a Canadian who holds shares of a Canadian-based marijuana producer such as Canopy Growth Corp. or Aurora Cannabis Inc.? Are you taking a risk at the U.S. border?
Read more: Who’s getting rich off cannabis? Insider trading data reveal the big sellers
Doug Ford may have created a buying opportunity in Canada’s renewable energy stocks
It’s too early to know if the new Ontario government will succeed in bringing down electricity rates as it promised during the recent election campaign. But it sure has brought down stock prices of independent power producers in a hurry, David Berman writes, setting up what could be an ideal buying opportunity for investors.
Read more: This stock is rebounding even though analysts hate it. Here’s why it could make a good buy
Gordon Pape: A little-known REIT I’m now recommending as the sector makes a surprise rebound
Real estate investment trusts should be taking a beating right now. They’re interest-sensitive securities, which means when rates rise, they should fall in value. They followed that rule early in the year, as the S&P/TSX Capped REIT Index dropped to below 156 in March. But since then, the sector has been on a roll, with the index closing on July 13 at just over 171. That’s a gain of almost 10 per cent at a time when we would normally expect to see a loss, Gordon Pape writes. As a result of all this activity, he’s adding a new REIT to his recommended list.
Legal showdown nears as CRA asks for $110-million in unpaid taxes from TFSA holders
A battle has erupted between the Canada Revenue Agency and day traders who argue that they’ve been unfairly targeted to repay millions of dollars in unpaid taxes because of their use of tax-free savings accounts, Clare O’Hara writes. The $110-million stems from audits conducted over a seven-year period ending March 31, 2018. Approximately 10 per cent of the $110-million resulted from audits that looked at TFSA accounts that were seen as carrying on a business, such as day trading, which can generate hefty returns through aggressive securities trading. The first TFSA test case, filed in 2015, is making its way to the Tax Court of Canada, with a trial date expected to be set this fall for some time in 2019.
Read more: Ten ideas to increase your after-tax investment returns
What investors need to know for the week ahead
Earnings season continues, with these companies set to report results this week: Alphabet, Amazon, A&W, Canadian National Railway, Facebook, Twitter, Boeing, Coca-Cola, 3M, Agnico Eagle, AT&T, Barrick, Goldcorp, Loblaw, McDonald’s, Starbucks, Cameco, Cenovus, Crescent Point, Ford, General Motors, Harley-Davidson, Husky Energy, Intel, Maple Leaf Foods, Precision Drilling, Suncor, T-Mobile, Verizon, UPS, ADM, Air Canada, American Airlines, Altria, Equifax, Teck Resources, Xerox, Imperial Oil.
Looking for more investing ideas and opinions?
Millennial looking to start investing asks: Should I go with Wealthsimple?
Netflix, TransCanada and more investing stars and dogs for the week
Bargain-hunting for strong performers in the Canadian small-cap space
These stocks are sensitive to rising interest rates – in a good way
Microsoft soars past US$800-billion in value after big quarterly results
Canada’s only actively managed cryptocurrency fund is 90 per cent in cash
Why you should consider opting out of your employer’s health benefits