Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

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.



Three top dividend stock picks from the portfolio of an award-winning fund manager

It’s not just what he owned in his dividend portfolio, but what he didn’t own that helped money manager René Fantin of Stone Asset Management outperform the market in recent years, Brenda Bouw writes. “We like to own companies that are able to consistently deliver results, and we avoid sectors and securities that are either too volatile or lack the room for either growth or dividend growth,” says Fantin, who manages four dividend funds, including the Stone Dividend Growth Class fund, a Lipper Award winner this year for its performance. Read more here, including the funds top five holdings, what he’s sold out of plus why Telus, AES and TFI International are his three picks.

Read more: The Mawer New Canada fund is closed to new investors, but you can find the $2.5-billion fund manager’s three small-cap stock picks here.

Story continues below advertisement

Full list: The 2020 Lipper Fund Award top mutual fund and ETF group winners

BMO predicts big gains ahead for the TSX and S&P 500

BMO Capital Markets’ chief investment strategist Brian Belski, one of the Street’s more reliably bullish prognosticators, doesn’t believe skyrocketing COVID-19 cases and spreading lockdowns will get in the way of the equity market’s upward trajectory, Darcy Keith writes. This past week, he released his 2021 market outlook, setting a year-end S&P 500 target of 4,200 - a more than 17-per-cent rise from current levels. For the S&P/TSX Composite index, he set a target of 19,500, a rise of more than 15 per cent that would bring it to record highs. Read more here about his forecast assumptions, sector recommendation changes and why he’s advising investors to lighten up on utilities.

With stocks and ETFs, don’t be myopic about yield

It’s a common mistake, particularly with new investors, to evaluate a stock or ETF based solely on its dividend yield. Stocks with puny yields can produce outsized gains if they’re reinvesting their cash internally at high rates of return – think of tech stocks such as Amazon or Facebook that pay no dividends at all. And stocks with high yields can deliver disappointing results. In some cases, an exceptionally high yield can be a danger sign that may portend a dividend cut.

In my model Yield Hog Dividend Growth Portfolio, I try to get the best of both worlds by identifying stocks with above-average yields that will also produce dividend and capital growth over the long run. Read more here, including answers to other reader questions.

More from John Heinzl: Beyond Meat, Target and more investing stars and dogs for the week

Gordon Pape: Looking for stability and good yields? This ETF may unlock a largely ignored market

Canadian preferred shares have not been kind to investors, Gordon Pape writes. The overall performance of U.S. preferreds, however, has been much better. I suggest the easiest way for Canadian investors to take a position is by investing in an exchange-traded fund managed by a team that specializes in these securities. Consider the Brompton Flaherty & Crumrine Investment Grade Preferred ETF, with a 4.7-per-cent yield. Here’s why I like it.

More from Gordon Pape: Here’s how to prepare your portfolio for further pandemic-related turbulence

Story continues below advertisement

Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up here.

Have bank stocks turned the corner?

Bank investors, meet your new best friend: a steeper yield curve, David Berman writes. Canada’s Big Six bank stocks have risen nearly 15 per cent since the start of November, on average, and are now down less than 4 per cent for the year. The gain this month has outpaced both the S&P/TSX Composite Index and the S&P 500 over the same period, after bank stocks lagged the benchmarks throughout most of 2020.

To be sure, there are several factors working in the banks’ favour right now. But the role of the yield curve, which compares short-term government bond yields with longer-term government bond yields, is a welcome tailwind that could help lift bank stocks even as vaccine euphoria wears off – that is, if the yield curve plays along. Read more here.

What investors need to know for the week ahead

In the week ahead, U.S. markets will be closed on Thursday for the Thanksgiving holdiay. Companies reporting their latest financial results in the coming week include BRP, Best Buy, Alimentation Couche-Tard, HP, Dell and Deere.

Economic data on tap include: Canada’s wholesale trade for October (Monday); Canadian manufacturing sales for October (Tuesday); U.S. durable goods orders, new home sales plus personal income and spending for October (Wednesday).

Looking for more investing ideas and opinions?

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies