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.
This stock has returned an average of 50% a year for the past decade - and is still a top rated name on the TSX
An unlikely company can claim the title of best-performing Canadian stock over the past 10 years, Tim Shufelt writes. Boyd Group Income Fund, which started out replacing windshields in Winnipeg in 1990, has transformed itself into one of the premiere growth stocks on the Toronto Stock Exchange. Over the past decade, Boyd’s shares have increased by nearly 5,000 per cent, making it the top performer in the S&P/TSX Composite Index over that time. After accounting for dividends, Boyd’s stock has returned an average of more than 50 per cent, every year, for 10 years. It has continued on a steep upward trajectory, as the company has manoeuvred through the fragmented collision repair industry in North America with a potent mix of acquisitions and growth from within.
Three solid stocks that yield more than 5 per cent
Dividend stocks have been on a roll. That’s the good news. The bad news? As stock prices have surged amid falling interest rates, dividend yields have gone south. That means investors looking for income are having a harder time finding juicy payouts. Even in today’s shrinking-yield environment, it’s still possible to find enticing payouts – without taking on undue risk, John Heinzl writes. Here he looks at three well-established companies that yield more than 5 per cent: a power company, a REIT and a bank. What’s more, all three have a track record of raising their dividends.
More from John Heinzl: Riffing on RRIF withdrawal strategies
Is it time to worry about bank stocks?
It’s becoming clear why Canadian bank stocks are trading at low valuations: With the fiscal second-quarter earnings season nearly over, investors have seen uneven profit growth and rising loan losses. Based on results from the biggest five banks – Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal (which did boost its dividend) and Canadian Imperial Bank of Commerce – there is little reason to cheer. But investors who rely upon banks for steady dividend growth and strong long-term returns have a few key reasons to look beyond the hiccups this earnings season, David Berman writes.
Bay Street praises CNRL’s acquisition of Devon Energy, but will shareholders benefit?
Bay Street is praising Canadian Natural Resources Ltd. for striking a bargain when the oil producer scooped up the Alberta assets of U.S.-based Devon Energy Corp. for $3.8-billion, in a deal announced this week. But for all the gushing from investment bankers, will long-suffering shareholders benefit from the deal? David Berman and Jeffrey Jones write CNRL’s share price, along with much of Canada’s floundering energy sector, is languishing at levels seen in 2007 – and recent deal-making has failed to spark any bullish enthusiasm among investors.
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Where can investors turn as market jitters grow? History says: stocks
The worrisome shape of today’s yield curve is one of the major reasons for stock markets’ current conniptions. At least by one measure, the curve inverted in late March and has done so again in recent weeks.
This would seem to be very bad news for stocks. But not so fast. Robeco’s numbers show that during similar episodes since the late 1970s, the strongest-performing asset class has been – believe it or not – stocks. Ian McGugan writes that historically, at least, the best place to have been during such treacherous times was the S&P 500, the last place you would expect to find refuge.
What investors need to know for the week ahead
In the week ahead, U.S. Fed chair Jerome Powell will speak in Chicago on Tuesday at the Conference on Monetary Policy Strategy, Tools and Communication Practice. On Wednesday morning, Canadian labour productivity for Q1 is released. On Friday, Canadian and U.S. employment for May are released. G20 finance ministers and central bank governors will meet in Japan on June 8 and 9.
Companies reporting earnings this week include Dell Technologies Inc. and Nike Inc. (Monday), Salesforce.com Inc. (Tuesday), Canaccord Genuity Inc. (Wednesday), Beyond Meat Inc., Hudson’s Bay Company, Reitmans Canada Ltd., Saputo Inc. and Transcontinental Inc. (Thursday).