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 high-yielding TSX stock has returned more than 40% so far this year - and more sizzling gains are likely ahead
With barbecue season here, Canadians are filling up the propane tanks, John Heinzl writes. And judging by the surging stock price of Superior Plus Corp., they’ve already been filling up their portfolios with shares of Canada’s largest propane distributor. Toronto-based Superior has posted a sizzling total return, including dividends, of more than 40 per cent in 2019 – more than double the total return of the S&P/TSX Composite Index over the same period. The gain reflects solid first-quarter results and a recent decision to explore the sale of its specialty chemicals division to become a pure-play propane company. Even after the recent run-up in the shares, analysts say there could be more gains ahead. Here are five reasons that Superior could continue to give investors tasty returns.
More from John Heinzl: An RESP lesson learned the hard way
Gordon Pape: Through the daily market drama, my Buy and Hold Portfolio continues to exceed expectations
It’s easy for investors to get caught up in the drama of the daily headlines, Gordon Pape writes. Unfortunately, that sometimes leads to emotional buy/sell decisions that are later regretted. That’s why he created a Buy and Hold Portfolio with a simple goal: invest in great stocks and then hold on to them, no matter what the market is doing. The objective is to generate decent cash flow (all the stocks but one pay dividends), minimize downside potential, and provide slow but steady growth. Here’s what the portfolio comprises, how they’ve performed over six months and changes to the holdings.
What a go-ahead on Trans Mountain will mean for long-suffering TSX energy investors
The recovery of Canada’s beleaguered energy industry was on the line this past Tuesday, when the federal government announced the reapproval of the Trans Mountain pipeline expansion. While the move is far from the last word on the contentious pipeline, Tim Shufelt writes, it’s seen as a clear positive for energy stocks. Recently, several mid-sized Canadian energy companies have hit either record lows, or lows not seen in at least 15 years, including Seven Generations Energy Ltd., Arc Resources Ltd., Peyto Exploration & Development Corp. and Tourmaline Oil Corp.
More from Tim Shufelt: Why this top analyst has a sell rating on each of the Big Six banks
This strategist’s bold call at the start of this year was right on the mark. Here’s what he’s now predicting for the TSX
At the beginning of the year, Laurentian Bank’s chief strategist Luc Vallée made a bold recommendation that turned out to be a great call. While investors were cautious, he was bullish, telling investors that now was the time to put cash to work and buy stocks. Several months later, the S&P/TSX Composite Index had advanced 16 per cent year-to-date, closing at a record high on April 23. Jennifer Dowty recently spoke with Mr. Vallée to get his market outlook for the balance of 2019 – energy stocks, financials and how a catalyst to lift the markets could be right around the corner.
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Rosenberg: It’s time for an investing history lesson
The pundits who watch bubblevision see the S&P 500 going to new nominal highs, while those who watch the tapes know better – that we are exactly where we were 10 months ago, David Rosenberg writes. Since that time, all your portfolio has done is pick up the dividend – the total return in the stock market is just 2 per cent. Go to the bond market, and the 10-year T-note has generated in excess of a 10-per-cent total positive return in the same time frame.
Even within the S&P 500, the sector composition has a recessionary feel to it. Since first hitting 2,900 back in August of last year, the best-performing sectors have by far been the ones you want to own in a lower growth/lower rate environment – utilities (plus 13.3 per cent), real estate (plus 12.9 per cent), consumer staples (plus 8.6 per cent), and communication services (plus 5.6 per cent). The sectors that have lagged the most – in fact, declined outright – were energy, materials, financials and industrials.
What investors need to know for the week ahead
In the week ahead, leaders of the G20 countries will be meeting in Japan starting on Friday. The markets will be watching whether the world’s two largest economies, United States and China, can resolve their trade dispute. Companies reporting earnings this week include FedEx, Constellation Brands, BlackBerry, Corus, AGF, General Mills, Accenture, Nike and Shaw Communications. Economic data on tap include: Canadian wholesale trade for April and U.S. new home sales for May (Tuesday); U.S. goods trade deficit and durable goods orders for May (Wednesday); U.S. corporate profits for the first quarter (Thursday); Canada’s real GDP for April, as well as U.S. personal income and spending for May (Friday).