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.
Don’t panic over Loblaw’s 20% one-day plunge
A reader asks John Heinzl: “I was alarmed to see that my Loblaw Cos. Ltd. shares took a steep dive on Nov. 2, but I am even more confused as to why the drop doesn’t show up on GlobeInvestor.com charts. What caused the decline and why doesn’t your website show it?” He responds: “Loblaw did indeed suffer a big tumble on Nov. 2 – it fell 20.1 per cent. But let me assure you that you didn’t actually lose any money in the process.” Here’s his look at the complex transaction behind the move.
Read more John Heinzl: Bombardier, Freshii and more of this week’s investing stars and dogs
A quiet rule change will make it tougher for Canadians with a HELOC to get a second mortgage
Got a home-equity line of credit (HELOC)? Want to get a new mortgage? Lenders are about to make your life harder, Robert McLister writes. Canada’s No. 1 player in HELOCs, Toronto-Dominion Bank, just changed a key policy. For people applying for a separate new mortgage and keeping their existing HELOC, TD is requiring that applicants prove they can afford a theoretical monthly payment based on the limit – not the outstanding balance – of that HELOC. TD joins a small number of other lenders, including Royal Bank of Canada, in applying this new policy.
Read more: Finally, mortgage renewals have entered a new era
Read Rob Carrick: The case for 30-year mortgages as a financial stress reliever for new buyers
These three high-octane dividend stocks have fallen on tough times and might now be buys
Have you checked out the price charts lately for Dollarama, Premium Brands and BRP? Anyone who owned these high-octane stocks over the past several years made out exceptionally well, but recently all three have done a face-plant, John Heinzl writes. But here’s the silver lining. As their prices have come down, so have their lofty P/E multiples. Their dividend yields, meanwhile, have gone up. Now that the froth has come off these stocks, here’s a look at why each of them tumbled and whether now is a good time for investors to step in.
Companies that raised their dividends this week include Telus, Canadian Tire, Nutrien and Sun Life. Manulife announced an increase the previous week.
Updated: John Heinzl’s model dividend growth portfolio as of Oct. 31, 2018
What BlackRock’s chief strategist is predicting for the TSX, loonie, bank stocks and interest rates
The second half of 2018 has been painful for many Canadian investors, at least to date, Jennifer Dowty writes. Since the beginning of July, the S&P/TSX Composite Index has reported more down days than up days, taking the S&P/TSX into negative return territory year-to-date. Is this market weakness a buying opportunity? Kurt Reiman, BlackRock’s chief investment strategist for Canada, shares his thoughts on equity markets and how investors should position themselves in the face of heightened market volatility.
Read more: This fund manager looks for ‘under the radar’ stocks. Here’s what he’s been buying
Further reading: Fund manager nearly doubles TSX returns by using dividend ‘core and more' strategy
The ‘blazingly simple’ portfolio that just keeps on winning
Ten stocks in just four sectors – financial services, industrials, utilities and pipelines. Can you possibly achieve a decent return without exposure to sectors such as energy, materials, consumer staples, technology and health care? Looking over the past 18 years, the answer has been yes. The annualized return since the beginning of 2000 for the Canadian Essentials Portfolio was 13.1 per cent, including dividends, while the S&P/TSX Composite Index made 7.6 per cent on a total return basis over the same time frame. These numbers were delivered recently by the man behind the CEP, a retired political science professor named Mike Henderson. Check out Rob Carrick’s take and the list of holdings here.
What investors need to know for the week ahead
Companies reporting earnings this week include Aurora Cannabis, Canopy Growth, Walmart, Canaccord Genuity, CAE, Loblaw, Cineplex, Premium Brands, Macy’s Park Lawn and Sprott. Economic data on tap include: U.S. budget deficit for October (Tuesday); U.S. inflation for October (Wednesday); Canadian existing home sales for October and motor vehicle sales for September, plus U.S. retail sales for October (Thursday); Canadian manufacturing sales for September and international securities transactions for September (Friday). Canadian and U.S. bond markets are closed Monday.
Looking for more investing ideas and opinions?
Gordon Pape’s mailbag: TFSA withdrawals, converting RRSPs and the impact of rising rates
This REIT is overvalued and is a strong candidate to sell to lock in a profit
Real estate windfall: When aging parents sell the house, where should the money go?
Canada’s grand cannabis experiment is likely to end badly for this producer
David Rosenberg: This is the investing approach to take heading into 2019
How much do you need to save for retirement? Here’s what historical data show
Canadian bonds vs. stocks: A trend-following strategy for impressive returns
‘Don’t mess with the IRS’: The snowbird’s guide to foreign ownership, health care and U.S. taxation
Defensive stocks that can hold rivals at bay
ETFs for each stage as you progress toward retirement