Goodman Group: one of the best REITs in the ASX 100 | Motley Fool Australia

Goodman Group: one of the best REITs in the ASX 100 | Motley Fool Australia: "Goodman Group (ASX: GMG) has many of the good qualities needed for steady earnings and investor returns.

Geographical diversity

It invests in and manages commercial and industrial properties in Australia, New Zealand, the UK, North America, Europe and Asia. The geographical diversification protects it from cyclical downturns involving most or all of its properties at the same time. It can also acquire properties in a region when it is depressed, and get more return when they recover later."

Financial strength

Its return on equity is 9.89%, which is toward the top end when compared to other REITs such as DEXUS Property Group (ASX: DXS) at 9.86%, GPT Group (ASX: GPT) at 8.34%, orLend Lease Group (ASX: LLC) at 12.79%.

Its debt levels are low, with a gross gearing of 38.55% and at the end of 30 June 2013, its $2.56 billion in long-term debt was only 4.53 times its $566.4 million NPAT, so borrowings are at a manageable level. Real estate investment commonly involves high gearing for borrowings.

It has $24 billion of assets under management and it generated $270 million in property income in 2013. In addition to its net income from investment sales, its FY 2014 full-year earnings guidance is an operating profit of $594 million. That works out to be a 6% rise in operating earnings per security to 34.3 cents per share (cps) and a 7% increase to distributions of 20.7 cps.

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Which retail REITs should you own? | Motley Fool Australia

Which retail REITs should you own? | Motley Fool Australia: "Westfield Group (ASX: WDC) owns and manages Westfield Shopping Centres and has interests in 91 centres domestically and abroad. It holds ownership in Westfield Retail Trust (ASX: WRT) and is currently seeking shareholder approval of a new business structure where the Australian-New Zealand assets will be split from the overseas assets.

Its PE is 15.8 and the dividend yield is 4.9%. The share price has been trending down since May 2013. Full year net profit for FY2013 was down 6.7% compared to FY2012. Margins may improve if the proposed new business structure is approved since the overseas assets currently are achieving better performance."



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Which retail REITs should you own? | Motley Fool Australia

Which retail REITs should you own? | Motley Fool Australia: "Federation Centres Ltd (ASX: FDC) owns and manages about $6.6 billion of shopping centres nationwide. It has a $3.4 billion market capitalisation and listed on the ASX in January 2013 after the company was restructured and formed from the assets of the former Centro Retail Australia.

Its PE is 14.4 and it has a 6.1% dividend yield. In 2013, it had a net profit of $212.7 million, up from the net loss in 2012. Its share price has been ranging between about $2.25 and $2.50. Currently it is $2.39.

In the first half of FY2014, underlying net profit was up 11.9% and distributions were up 13.6%."



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Which retail REITs should you own? | Motley Fool Australia

Which retail REITs should you own? | Motley Fool Australia: "Shopping Centres Australia Property Group Ltd (ASX: SCP) owns a portfolio of quality sub-regional and neighbourhood shopping centres as well as retail assets located on convenience retailing in Australia and New Zealand. The properties have stores related to Woolworths Limited (ASX: WOW), such as supermarkets and Big W.

Its PE is 14.7 and it offers a dividend yield of 4.8%. It listed on the ASX in November 2012, starting out at around $1.45 a share. Now it is $1.73. Its first half interim result was a statutory net profit of $43 million."



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Is Manulife Financial Corp. (USA) a Safe Pick Right Now? | The Motley Fool Canada

Is Manulife Financial Corp. (USA) a Safe Pick Right Now? | The Motley Fool Canada: "Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) really took it on the chin during the Great Recession, but the company has battled back and investors are wondering if this is the right time to start a position in the stock.

From crisis management to growth

Manulife slashed its dividend in half and raised $2.5 billion through an equity issue in order to shore up its balance sheet during the financial crisis.

The company was on the defensive as its stock dropped from $40 per share to about $10 during the worst of the fallout from the collapse in equity markets, and some pundits wondered if the company’s days were numbered."

Dividend growth

Manulife raised the quarterly dividend by 19% in 2014 to $0.155 per share and then hiked it again in April to $0.17 per share.

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1 Dividend Stock to Own For The Next Decade -- The Motley Fool

1 Dividend Stock to Own For The Next Decade -- The Motley Fool: "8point3 Energy Partners (NASDAQ:CAFD) is the yieldco launched by First Solar (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR) earlier this year. The company owns solar projects with predictable cash flows and long-term contracts to sell energy primarily to utilities around the country. Management projects that cash flows will be $68 million per year, which will grow as contracted prices escalate in future years; the average project has 22 years remaining on its contract."

This cash flow has resulted in a dividend payout of $0.22 per quarter, which is expected to rise 10%-15% in 2016. At today's price the stock yields 7.2% for investors, an incredible yield for such a stable payout.

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Better Buy Today: General Electric or Honeywell International Inc.? -- The Motley Fool

Better Buy Today: General Electric or Honeywell International Inc.? -- The Motley Fool: "Decisions, decisions
Both GE and Honeywell are strong, solid companies, and both seem to be executing their strategies well. This makes it difficult to choose between them, but right now, I'd give Honeywell the slightest of edges over GE.

GE starts off with a stronger dividend yield (3% as opposed to 2%), but I expect Honeywell's dividend to grow faster than GE's since Honeywell has made rapid dividend growth a priority. Meanwhile, GE will return the proceeds of its recent business divestitures to shareholders through buybacks in addition to potentially increasing its own dividend. Therefore, I call the dividend a wash."



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3 Top Stocks That Are on Sale | The Motley Fool Canada

3 Top Stocks That Are on Sale | The Motley Fool Canada: "Home Capital Group Inc. (TSX:HCG) is one of the largest financial institutions in Canada with approximately $20.3 billion in total assets.

At today’s levels, its stock trades at just eight times fiscal 2015’s estimated earnings per share of $4.14 and only 7.6 times fiscal 2016’s estimated earnings per share of $4.36, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 10.

I think Home Capital Group’s stock could consistently trade at a fair multiple of at least 12, which would place its shares upwards of $43 by the conclusion of fiscal 2016, representing upside of more than 29% from current levels.

Additionally, the company pays a quarterly dividend of $0.22 per share, or $0.88 per share annually, giving its stock a 2.65% yield."



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Want Monthly Income? These 3 Top REITs Pay You 12 Times Per Year | The Motley Fool Canada

Want Monthly Income? These 3 Top REITs Pay You 12 Times Per Year | The Motley Fool Canada: "Choice Properties Real Est Invstmnt Trst (TSX:CHP.UN) is one of the largest owners of commercial real estate in Canada with 515 properties comprising of approximately 41.4 million square feet of gross leasable area. It pays a monthly distribution of $0.054167 per share, or $0.65 per share annually, giving its stock a 5.5% yield at today’s levels.

It is also very important to note that Choice Properties recently announced a 3.1% increase to its annual distribution to $0.67 per share, its first increase since it went public in July 2013, and this is effective for its January 29, 2016 distribution, which is payable on February 16, 2016."



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Baytex Energy Corp. (USA) Is a Screaming Buy at Under $6 | The Motley Fool Canada

Baytex Energy Corp. (USA) Is a Screaming Buy at Under $6 | The Motley Fool Canada: "Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) just might be the best buy in a sector filled with compelling opportunities.

Good low-cost assets

Baytex has three key resource plays. Approximately half of its production comes from Eagle Ford in Texas, while the other half come from two heavy oil fields near Peace River and Lloydminster, both of which are in Alberta.

Even with crude hovering around $40, the economics of these fields aren’t terrible. Eagle Ford has a breakeven point of approximately $35 per barrel, while Peace River and Lloydminster are approximately $45 per barrel. And these breakeven costs should continue to go down as the company cuts more fat from its budget.

The company plans to increase production from Eagle Ford, boosting it by almost 10,000 barrels per day. It projects to end 2015 with production of more than 85,000 barrels per day.

A solid balance sheet

One of the reasons why Baytex has seen such a sell-off in its shares is because of its debt load. The company owes nearly $1.8 billion compared to a market cap of just $1.3 billion.

But if you look under the hood, the debt situation isn’t so bad. It sold $600 million worth of common shares in the spring to use towards paying down debt, and it still has nearly $1 billion in undrawn credit facilities that don’t mature until 2019. Additionally, the company only has a senior debt-to-EBITDA ratio of approximately 3.0 times compared to the permitted ratio of 4.5 times.

Besides, Baytex is in no danger of going bankrupt for at least a few more years. The company has no major debt coming due until 2021, which gives it plenty of time to ride out this storm.

And from a book value perspective, the stock is extremely cheap. Baytex has a current book value of $13.04 per share, and remember, this is after writing off more than $650 million in assets over the past year.

Positive free cash flow

From a net earnings perspective, Baytex doesn’t look like it’s in good shape. The company has lost nearly $6 per share over the last four quarters.

The majority of those losses are from asset write-offs. Free cash flow over the first nine months of 2015 is actually positive, a testament to the company’s low-cost assets and cost-cutting initiatives. Free cash flow is on pace to exceed $200 million this year.

When crude traded at above $100 per barrel, Baytex was a $50 stock. It currently trades at below $6. There’s little chance of bankruptcy, and the company has assets that will start to look pretty good once oil recovers. I think long-term investors should start taking a very hard look at Baytex now, before crude recovers and it’s too late."



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Billionaire George Soros's Top 3 Canadian Stock Picks | The Motley Fool Canada

Billionaire George Soros's Top 3 Canadian Stock Picks | The Motley Fool Canada: "There’s no other large-cap energy business with a growth profile as good as Canadian Natural Resources Limited (TSX: CNQ)(NYSE: CNQ). The company’s Horizon oil sands facility is nearing completion. With that behind it, management projects that cash flows could grow five-fold by 2018.

That should fund plenty of dividend hikes and share buybacks. The company has already increased its dividend 11-fold over the past decade. And in recent months those hikes have been getting even bigger, a sure sign executives see more good times ahead."



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Billionaire George Soros's Top 3 Canadian Stock Picks | The Motley Fool Canada

Billionaire George Soros's Top 3 Canadian Stock Picks | The Motley Fool Canada: "3. Franco-Nevada Corporation 

What is Soros’s biggest fear? Inflation. Over the past couple of years, he has expressed a distinct preference for hard assets like precious metals.

Large, developed economies like the United States are in a no-way-out situation. They have taken on incredible debts and run up massive unfunded liabilities. The only way to pay for these expenses is by printing more money.

That’s probably why Soros has built huge positions in streaming metal companies such as Franco-Nevada Corporation (TSX: FNV)(NYSE: FNV). His thesis is simple: gold is real money. During times of inflation, businesses like Franco-Nevada are leveraged bets on rising prices."



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An 8% Dividend No One Is Looking At | The Motley Fool Canada

An 8% Dividend No One Is Looking At | The Motley Fool Canada: "Since 2004 Exchange Income Corporation (TSX:EIF) Income has boosted its dividend from $1.08 per share to the current $1.74 without cutting the payment once. The company bases its payout on free cash flow (real earnings that can be distributed anywhere) minus maintenance capital expenditures (the amount of expenses needed to keep the existing businesses running).

This year the company’s dividend payments only equal 80% of this benchmark. That means that even after accounting for the massive dividend and the investments needed to keep the company running, there is still 20% of the free cash flow left over to put towards growth projects.

Stable dividend results from diversified, low volatility businesses

The Exchange Income was created to invest in profitable, well-established companies with strong cash flows operating in niche markets. To do this it invests in companies for the long term with no intention of selling, retaining the original management teams who know each business best.

The original plan, which has thus far been very successful, was to distribute a majority of its earnings as a monthly cash dividend to shareholders. Over the past five years alone, both revenue and operating income have more than doubled, with the dividend rising to match.

Since its inception, the company now operates 12 subsidiaries that act as offsetting hedges against economic volatility. Its business lines range from medevac transportation services and after-market aviation parts, to cell tower construction and high-pressure water cleaning systems.

Many of their businesses focus on selling/leasing after-market parts and equipment to aviation and telecommunications companies. These parts are typically based on usage and wear and tear, both of which are significantly less volatile than new equipment orders. After-market parts are usually more profitable than new equipment sales as well. This gives Exchange Income the ability to charge premium prices and have more sales stability than many of its peers.

Plenty of room left to continue dividend growth

Even after its long history of remarkable growth, management is still finding new ways to grow the business while maintaining a disciplined approach. In 2014 alone the company made over $500 million in transactions.

For example, last year Exchange Income purchased Provincial Aerospace for $246 million. The entirety of this business is complementary to the company’s existing segments and boasts a reliable customer set, which includes the U.S. Coast Guard, the Royal Dutch Navy, and ExxonMobil.

In the first quarter of 2015 the firm increased its bank credit line to $450 million to help fund the pipeline of acquisition candidates management has identified.

Don’t sleep on this company

While it doesn’t get much press due to its generic name and disparate businesses, Exchange Income has quietly been one of the best long-term performers in the TSX. With a current 8% dividend and room to grow, shares look attractive"



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TransCanada Corporation (USA) May Be the Best Dividend Stock on the TSX 60 | The Motley Fool Canada

TransCanada Corporation (USA) May Be the Best Dividend Stock on the TSX 60 | The Motley Fool Canada: "Of the 10 highest-yielding stocks on the S&P/TSX 60, seven pay out more in dividends than they make in income. Two others–Potash Corporation of Corporation and National Bank of Canada–are making their shareholders very nervous.

Oddly enough, the last name on the list is TransCanada Corporation (TSX:TRP)(NYSE:TRP), whose Keystone XL pipeline proposal was just rejected by U.S. president Barack Obama. As of this writing, TransCanada’s dividend yields nearly 5% and could easily be your best dividend option on the TSX 60. We take a closer look below.

A stable business

Plummeting oil prices have not been helpful to TransCanada. As energy firms cut back on drilling, they need fewer pipelines. In response, TransCanada laid off 185 employees from its projects division in June and eliminated roughly 20% of its senior managers in the fall.

But the company hasn’t been hurt as badly as the newspapers would suggest. In fact, the company’s funds generated from operations have been 9% higher this year than in 2014.

There are multiple reasons for this. TransCanada’s pipelines are generally secured by long-term contracts, ones that don’t expose the company to falling commodity prices. The vast majority of its pipeline system transports natural gas. And the company has made increasing use of its Master Limited Partnership (MLP) to lower its tax bill in the United States.

So even if oil prices remain depressed for a while, it won’t seriously damage TransCanada’s prospects nor its dividend.

A promising outlook

TransCanada still has roughly $35 billion of commercially secured projects, none of which will receive the same scrutiny that Keystone did. And when looking at the long term, demand should continue increasing for pipelines. After all, trains are heavily relied on to move crude from North Dakota’s Bakken formation, even though transporting crude by rail is very expensive and dangerous.

Better yet, TransCanada can continue to transfer American assets to its MLP to save on taxes.

Big ambitions

Even with Keystone’s rejection, TransCanada hopes to grow its dividend by at least 8% per year over the next two years. I have little doubt that that can be achieved. Furthermore, for a company with such a strong business model, a 4% dividend yield would be perfectly reasonable.

If that scenario plays out, then TransCanada would trade for over $60 per share in two years. With the stock currently trading below $45, that’s not a bad return at all. Dividend investors, take note."



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Buy Bank of Nova Scotia (USA) for Exposure to International Markets | The Motley Fool Canada

Buy Bank of Nova Scotia (USA) for Exposure to International Markets | The Motley Fool Canada: "With concerns about oil prices, a cooling Canadian economy, and what all of that means for people holding loans, banks have been a sector of the economy that some investors have been second guessing. Fortunately, I believe there is a way to gain exposure to the oil markets without also gaining exposure to all of the risks in Canada.

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is the most international of the Canadian banks. The exposure to international markets is what protects it from the factors I described above. It has 21 million customers outside of Canada in Latin America, Asia, and the Caribbean.

In fact, Latin America presents a great opportunity for the bank because of how dense the population is. In Colombia it is the fifth-largest bank. In Mexico it is the seventh-largest bank.

To understand how important this is, consider that Colombia has 48.3 million people with 44.04 people per square kilometre. In Canada, there are only 35.2 million people with 3.80 people per square kilometre. Even better, Mexico has a population of 59.79 million people with 59.79 people per square kilometre. It requires less infrastructure for Bank of Nova Scotia to support these people because one branch can handle more people.

Another country that is really driving growth for Bank of Nova Scotia is Chile, the most advanced economy in Latin America. Last year, Bank of Nova Scotia acquired 51% of Cencosud SA, which gave it access to Chile’s biggest retail bank. As the economy in Chile continues to develop, I expect this acquisition to pay dividends for Bank of Nova Scotia.

The good news for investors is that there is already some really serious growth taking place in its international markets. Net income grew by 10% in the second and third quarter year over year.

When compared to the revenue generated from its Canadian operations, the international market is growing. In the Q3 2014, the international banking division accounted for 21% of Bank of Nova Scotia’s bottom line. Fast forward a year to Q3 2015, and that has grown to 29%. I anticipate that this trend will continue for quite a few years, especially as the international economies develop further.

Diversity makes it a buy

Because of how the Canadian economy is going, investors are hesitant to pick up shares of companies that are dependent on a strong economy. That being said, I think Bank of Nova Scotia is an absolute buy for investors who need a little international exposure.

The good news for investors is that Bank of Nova Scotia has an incredibly attractive yield, making the stock even more attractive. At its present $0.70 per quarter, per share dividend, investors can expect to receive a yield of 4.64%.

There will be ups and downs because international economies tend to be a bit more volatile. However, if investors are looking for a quality dividend and exposure to multiple international markets, they might want to seriously consider buying shares of Bank of Nova Scotia."



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4 Reasons to Buy Canadian Tire Corporation Limited Right Now | The Motley Fool Canada

4 Reasons to Buy Canadian Tire Corporation Limited Right Now | The Motley Fool Canada: "Canadian Tire Corporation Limited (TSX:CTC.A), one of Canada’s largest retailers of general merchandise, automotive products, sporting goods, apparel, and fuel, has widely outperformed the overall market in 2015, rising more than 1.5% as the S&P/TSX Composite Index has fallen over 8%, and I think it will continue to do so over the next several years. Let’s take a look at four of the primary reasons why I think this will happen and why you should be a long-term buyer of the stock today.

1. Its strong earnings results could support continued rally

On November 12, Canadian Tire released very strong earnings results for its 13- and 39-week periods ended on October 3, 2015, and its stock has responded by rising nearly 10% in the trading sessions since. Here’s a summary of 10 of the most notable statistics from the first 39 weeks of fiscal 2015 compared with the same period in fiscal 2014:

Net income attributable to owners of Canadian Tire Corporation increased 5.2% to $434.2 million
Diluted earnings per share increased 9% to $5.62
Total revenue increased 1% to $8.9 billion
Same-store sales increased 3.6% at Canadian Tire, 6.8% at FGL Sports, and 2.6% at Mark’s
Gross profit increased 4.4% to $2.96 billion
Gross margin improved 100 basis points to 33.2%
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 11.3% to $1.04 billion
Adjusted EBITDA margin improved 100 basis points to 11.7%
Cash generated from operating activities increased 17.3% to $735.6 million
Weighted-average number of common and Class A non-voting shares outstanding decreased 3.5% to 77.19 million
2. It trades at inexpensive forward valuations

At today’s levels, Canadian Tire’s stock trades at 15.5 times fiscal 2015’s estimated earnings per share of $8.04 and 14.5 times fiscal 2016’s estimated earnings per share of $8.59, both of which are inexpensive given its 6.5% long-term growth rate and the industry average price-to-earnings multiple of 28.4.

I think Canadian Tire’s stock could consistently command a fair multiple of at least 18, which would place its shares upwards of $154 by the conclusion of fiscal 2016, representing upside of more than 23% from current levels.

3. It has been repurchasing its shares

Canadian Tire has been actively repurchasing its Class A non-voting shares over the last few years, including 2.6 million shares for a total cost of approximately $290.6 million in fiscal 2014 and 2.54 million shares for a total cost of approximately $322.3 million in the first 39 weeks of fiscal 2015.

Also, on November 12 the company announced that its board of directors approved a $550 million share-repurchase program, which it expects to complete by the end of 2016.

This repurchase activity will help boost Canadian Tire’s earnings-per-share growth going forward and make its remaining shares more valuable than ever.

4. It is a dividend-growth play

Canadian Tire pays a quarterly dividend of $0.575 per share, or $2.30 per share annually, giving its stock a 1.8% yield. This 1.8% yield may not seem impressive at first, but it is very important to note that the company has raised its dividend for five consecutive years, and its 9.5% increase announced on November 12 puts it on pace for 2016 to mark the sixth consecutive year with an increase."



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Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada

Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada: "Royal Bank of Canada (TSX:RY) has been paying investors a dividend since 1870. The company has weathered every major financial crisis in the past century and is now one of the top financial institutions on the planet.

Some market observers are concerned that the energy crisis and an overvalued housing market are putting Canadian banks at risk.

Royal bank is exposed to both sectors, but the company is more than capable of riding out some tough times.

About 60% of the bank’s residential mortgage portfolio is uninsured, and the loan-to-value ratio on that component is 55%. This means the market would have to fall significantly in a short period of time before the bank experiences any material losses. Most analysts expect a gradual pullback in house prices.

As for energy exposure, only 1.6% of the total loan book is connected to wholesale loans in the oil and gas sector.

Royal Bank pays a dividend of $0.79 per share that yields 4.2%."



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Is Toronto-Dominion Bank (USA) the Best Bank in the World? | The Motley Fool Canada

Is Toronto-Dominion Bank (USA) the Best Bank in the World? | The Motley Fool Canada: "Tim Regan, managing director of investing firm Kingwest & Co., is pretty bullish on Toronto-Dominion Bank (TSX:TD)(NYSE:TD).

He recently sung the bank’s praises while being interviewed by Andrew Bell on Business News Network: “Really, they are the best global bank in the world.”

Regan likes the bank’s exposure to the U.S. economy, an area of the world he’s bullish on. He says that the U.S. economy’s strong job growth, wage increases, and shift to more full-time employees bodes well for the U.S. market as well as for the greenback. This makes results even more impressive once they’re converted back to Canadian dollars.

Regan also thinks the U.S. Federal Reserve rate hike will be a nice boost to TD’s bottom line. Approximately 25% of its loans come from the U.S., which is by far the highest percentage compared with its peers. Higher interest rates mean higher loan margins, and no corresponding increase in expenses means an increase to the bottom line.

It’s obvious that investors share Regan’s enthusiasm. The bank trades at a trailing price-to-earnings ratio of 13.1. This is cheap when compared with the rest of the market, but is between 10% and 20% more expensive than its peers. TD’s dividend yield is also lower than its peers, coming in at 3.75%, while the rest of the Big Five are all above 4% yields.

The argument is that TD is such a great bank, so it deserves a higher valuation. Should you pay up to get this bank in your portfolio?

The cycles of banking

Over the last five years, TD has been the Canadian bank of choice for investors. The share price is up more than 45%–excluding dividends–easily outperforming its peers. Royal Bank was the next best performer, returning 36%. Bank of Nova Scotia brought up the rear, only rising 10.5%.

I’m sure it’s no coincidence that the two Canadian banks with the largest exposure to the United States have outperformed lately. The U.S. economy has steadily recovered, its housing market is still considered cheap, and, like I mentioned, job growth has been strong.

But perhaps banking, like many other sectors, moves in cycles. Look at it this way. Investors already know the U.S. economy is doing comparatively better than Canada’s. Other investors are concerned that Canada’s housing market will implode and have switched to TD because it offers less exposure to our real estate market. Thus, maybe it’s time to look at one of the underperforming peers.

TD’s position in the U.S. is well known at this point. It’s already built into the price. There’s certainly an argument for buying the highest-quality stock you can find, but there’s also an argument for buying shares of great companies when they’re beaten up. TD is on the opposite side of that cycle, indicating that the stock’s return going forward might be lacklustre. Investors have to either hope for it to continue to grow earnings at a faster pace than its peers or else hope its valuation premium gets even larger.

Still a great business

I don’t want to discount the job TD’s management team has done.

It starts with the retail banking product. TD innovated the market, doing things like extending business hours, and the company has done a nice job positioning itself in a very competitive mortgage market. It also has a top notch wealth management business, and its credit cards are some of Canada’s most popular.

Investors are also excited about TD’s growth potential in the U.S., which is a very fragmented banking market. And financial metrics like return on equity for TD are top notch.

It’s easy to like TD Bank. Growth from the U.S. market looks to be solid going forward, and its dominance in Canadian retail isn’t going away. I’m just concerned about the bank’s valuation. I’d probably look at a cheaper bank for my portfolio, but at the same time, the argument that TD deserves a premium to its peers isn’t outrageous."



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Alimentation Couche-Tard Inc. Is a Great Fit for Your Portfolio | The Motley Fool Canada

Alimentation Couche-Tard Inc. Is a Great Fit for Your Portfolio | The Motley Fool Canada: "If you haven’t heard of Alimentation Couche-Tard Inc. (TSX:ATD.B) before, you’ll remember it after you read this. The company is one the largest convenience store and gas station operators in the world with an astonishing footprint of over 14,000 locations across all provinces and nearly all states. You’ve probably been to one or more of the locations without realizing it. The company owns and operates the Mac’s Daisy Mart, Becker’s, On the Run, and Circle K.

So why is Couche-Tard a good fit for your portfolio? Let’s look at a few reasons why.

Great quarterly results

In the most recent quarter, Couche-Tard earned $415.7 million, or $0.73 per share diluted, representing a healthy increase over the $286.2 million, or $0.50 per share diluted, for the same quarter last year.

Revenue came in slightly lower at $8.44 billion, down from $8.95 billion, than the same quarter last year. The company noted that the results for the quarter included a gain from the sale of the lubricant business as well as other non-recurring expenses and integration costs.

Excluding those one-time items, the company earned $375 million, or $0.66 per share diluted, representing a $62 million increase over the $313 million, or $0.55 per share diluted, reported for the same quarter last year.

As a result of those greater-than-expected results, Couche-Tard increased the quarterly dividend by 1.25 cents to $0.0675 per share. While this is not exactly the greatest of yields at 0.4%, the company has increased the dividend several times over the past few years, with more increases surely to come in the future as the company pays down debt.

Aggressive expansion with more to come

Last year, company founder Alain Bouchard stated that the number of retail locations the company has could be doubled by 2023. Given the number of locations, this seemed like a distant goal at the time.

Truth be told, the company has acquired a number of brands over the past year, causing the number of locations to shoot up to nearly 15,000. When the company acquired North Carolina-based The Pantry earlier this year for $860 million, Couche-Tard expanded its footprint in North America by 1,500 locations.

Growth through acquisition has been successful for the company and will likely continue. With several thousand gas stations operated by oil companies, there is massive potential for Couche-Tard to expand further in this regard.

In Canada alone, Suncor Energy Inc. and Husky Energy Inc. have a network of nearly 2,000 stations. As oil companies are still reeling from reduced prices, they are opting to reduce expenses and shore up on cash whenever possible. One option would be to sell those stations to Couche-Tard. This would be a convenient win-win deal for both.

Couche-Tard currently trades at slightly over $62, just off the 52-week high of $63.23. The stock is up by 32% over the past six-months and, when extending this out to a full year, the stock is up by a respectable 56.8%.

Long-term investors will rejoice knowing that the five-year increase for the stock price is an incredible 649%. That figure alone solidifies this stock as one of the best-performing stocks over the long term.

In my opinion, Couche-Tard is a great investment for investors seeking long-term growth. The company is on solid financials, has an aggressive, yet on-target expansion schedule, and has a dividend that is slowly but constantly growing."



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3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "CI Financial Corp. (TSX:CIX) is one of the largest investment fund companies in Canada.

At today’s levels, its stock trades at just 15.4 times fiscal 2015’s estimated earnings per share of $2.03 and only 14.1 times fiscal 2016’s estimated earnings per share of $2.21, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 19.4 and its industry average multiple of 44.1.

I think CI Financial’s stock could consistently trade at a fair multiple of about 18, which would place its shares upwards of $39 by the conclusion of fiscal 2016, representing upside of more than 24% from today’s levels.

In addition, the company pays a monthly dividend of $0.11 per share, or $1.32 per share annually, giving its stock a 4.2% yield."



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3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "Transcontinental Inc. (TSX:TCL.A) is the largest printer in Canada with operations in print and digital media, flexible packaging, and publishing.

At current levels, its stock trades at just nine times fiscal 2015’s estimated earnings per share of $2.36 and only 8.8 times fiscal 2016’s estimated earnings per share of $2.42, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 158.6 and its industry average multiple of 28.2.

I think Transcontinental’s stock could consistently trade at a fair multiple of at least 12, which would place its shares around $29 by the conclusion of fiscal 2016, representing upside of more than 35% from today’s levels.

Additionally, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 3.2% yield."



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3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest telecommunications and media companies in Canada.

At today’s levels, its stock trades at just 15.4 times fiscal 2016’s estimated earnings per share of $1.77 and only 14.9 times fiscal 2017’s estimated earnings per share of $1.83, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 15.9 and its industry average multiple of 25.4.

I think Shaw’s stock could consistently trade at a fair multiple of about 18, which would place its shares around $33 by the conclusion of fiscal 2017, representing upside of more than 21% from current levels.

Also, the company pays a monthly dividend of $0.09875, or $1.185 per share annually, giving its stock a 4.35% yield."



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The energy solutions inspiring Bill Gates as launches new private sector coalition

The energy solutions inspiring Bill Gates as launches new private sector coalition: ""Solar chemical would put us on a path to decarbonizing both the electricity and transportation sectors. It would also help a lot with the storage problem, because the world is already very good at storing fuels and moving them around in pipelines, oil tankers, and other infrastructure," Gates wrote.

The second idea, a flow battery, could redefine how we store electricity. By utilizing a rechargeable liquid electrolyte inside two pairs of tanks, flow batteries are much more sustainable than lithium-ion batteries-the current gold standard for electricity storage.

The purpose behind solar paint is to make solar power easier to install. Maintaining solar panels in an average household can be expensive so by finding a light-sensitive dye that can generate electricity, consumers can transform any surface of their house into a solar panel by simply painting it."



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Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia

Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia: "Stockland Corporation Ltd (ASX: SGP) – yields 5.7% unfranked, up 4.5% for the year

Based on its metrics, Stockland is the cheapest company in this article; it’s got a great dividend and its price has barely shifted in the past twelve months. However, this is because the company also invests heavily in property development in addition to shopping centre ownership.

Although Stockland boasts a strong track record of development and builds in residential growth corridors, it is exposed to rising interest rates and weakness in the domestic housing market, hence its subdued price. Despite this, SGP shares trade at a 15% premium to their NTA of $3.60/share, and I believe they are a reasonable long-term bet for income seekers."



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Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia

Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia: "Scentre Group Ltd (ASX: SCG). Shares are hot property (pun intended) thanks to a strong US dollar and growing Euro and GB Pound exposure.

Shareholders pay a price for this exposure however, with Westfield having Net Tangible Assets of $3.72 per share to its name according to my calculations (net assets attributable to Westfield divided by number of securities – from the Dec 31 report). Westfield is one of the faster growing REITs however and it does have a world-leading stable of assets.

Scentre Group Ltd (ASX: SCG) – yields 5.3% franked to 27%, up 21% for the year

It seems only appropriate to include Scentre Group alongside Westfield; Scentre Group being the domestic equivalent of WFD’s international operations. Strong specialty store growth and a similar focus on major shopping centres is expected to deliver similar returns to Westfield over the long run.

Installation of WiFi and a digital advertising network across a number of centres allows intriguing new ways to engage with shoppers and I’m not betting against Scentre Group in the long run. Without the foreign currency exposure, Scentre Group trades at a 27% premium to its Net Tangible Asset value of $3.04 per share."



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Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia

Income seekers: Is now the time to stock up on REITs? | Motley Fool Australia: "Federation Centres Ltd (ASX: FDC) – yields 5.4% unfranked, up 18% for the year

Federation Centres owns a portfolio of 65 shopping centres Australia-wide, with 41% of the portfolio by revenue occupied by supermarkets, 29% by specialty stores, 13% by discount department stores, and the remaining 17% by ‘mini-majors’, ‘department stores’, and ‘other retail’.

FDC recently acquired Novion Property Group (ASX: NVN) and as such could be set to see a meaningful rise in full-year profit next year, in addition to the approximately 4% growth expected this year. Net Tangible Assets (NTA) was $2.44 per share as at 31 December 2014, and Federation shares currently trade at a 19% premium to this value."



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4 retail REITs you should know about | Motley Fool Australia

4 retail REITs you should know about | Motley Fool Australia: "Westfield Retail Trust (ASX: WRT) is a real estate investment trust with ownership in the 47 Westfield shopping centres in Australia and New Zealand. It’s also a joint venture owner with Westfield Group (ASX: WDC), the company that operates Westfield shopping centres outside of Australia and New Zealand."



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4 retail REITs you should know about | Motley Fool Australia

4 retail REITs you should know about | Motley Fool Australia: "Of the major retail REITs, Charter Hall Retail REIT (ASX: CQR) has the highest total shareholder return over the past five years, an annual average 35.1%. Its 7.44% dividend yield also stands highest."



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Is 360 Capital's Total Return Fund the best income stock on the ASX? | Motley Fool Australia

Is 360 Capital's Total Return Fund the best income stock on the ASX? | Motley Fool Australia: "the 360 Capital Total Return Fund (ASX: TOT)(“the Fund“).

What is it?

The Fund is a real estate investment trust (REIT) comprising the Total Return Active Fund and The Total Return Passive Fund. Unlike listed peers Shopping Centres Australasia Property Group, Federation Centres Ltd and Scentre Group (which focus on ownership of shopping centre assets), the Fund invests in real estate across various asset classes and sectors.

The Fund is managed by 360 Capital Investment Management Limited (“the Manager“), which is wholly-owned by 360 Capital Group Ltd (ASX: TGP). The Manager’s mandate is to generate a total return of 12% per annum through investment in high-yielding real estate assets and undervalued REITs.

Why should you buy?

The Total Return Fund listed on the ASX in April 2015, at an issue price of $1.25 per stapled unit. In its product disclosure statement, the Total Return Fund forecast a dividend yield of 9% per annum, implying quarterly distributions of 2.81 cents. It anticipates most distributions will be tax-deferred, meaning no income tax should be payable by the recipient.

So far the Fund has maintained guidance, paying two distributions in-line with forecasts and a special dividend of 1.2 cents in the September quarter so unit holders could fund tax liabilities associated with its 2015 distributions (tell me if your bank account does that!).

What are its fundamentals like?

The Fund has performed poorly since listing, dropping almost 18% to date. At 30 June 2015, the Fund’s net tangible assets (NTA) per stapled unit was $1.22, implying a 17% discount to current prices.

Cash on hand sat at $12 million, with a further $26 million to be received post-settlement of its two Frenchs Forest assets. This cash balance equates to underlying cash of 96 cents per stapled unit, indicating it trades close to the value of its cash balance.

What are its prospects?

Management is using the Fund’s strong balance sheet and substantial discount to NTA as an opportunity to buy-back units in the Fund. This initiative should limit downside risks and benefit unitholders by increasing earnings per share.

The Manager is also pursuing growth through strategic acquisitions, such as the recent 8.3% stake in ASX listed Industria REIT (ASX: IDR). Although such acquisitions foreshadow an expectation of continued increases to property prices, which may or may not occur, 360 Capital Group’s solid track-record of disciplined execution and asset picking should alleviate risks associated with a property market crash.

Importantly, management has reiterated that forecast distributions for the 2016 financial year should be approximately 11.2 cents per security. Given the decline in security price, the Fund now trades on an implied yield of 11%, making it a better prospect than cash in the bank.

Foolish takeaway

The 360 Capital Total Return Fund is not as safe as cash deposits. That’s a fact. It is inextricably linked to the property market, meaning it’s risky if retail, commercial and industrial property prices fall. However, with its forecast dividend yield of 11%, the on-going buy-back and potential for the RBA to cut rates next week, I believe this is one income stock that is worth the risk at current prices."



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Goodman Group: one of the best REITs in the ASX 100 | Motley Fool Australia

Goodman Group: one of the best REITs in the ASX 100 | Motley Fool Australia: "Goodman Group (ASX: GMG) has many of the good qualities needed for steady earnings and investor returns.

Geographical diversity

It invests in and manages commercial and industrial properties in Australia, New Zealand, the UK, North America, Europe and Asia. The geographical diversification protects it from cyclical downturns involving most or all of its properties at the same time. It can also acquire properties in a region when it is depressed, and get more return when they recover later.

Revenue and earnings growth

The past two years have seen strong growth, rising up from $306 million in NPAT to $566 million for 2013, returning to earnings levels seen before the GFC. Its total shareholder return over the past five years has been an average annual 37.85%, with its share price rising from about $3.20 in early 2012 to its current $4.67.

The world economy is recovering and regions like Asia and even the US are growing again, so real estate will start growing along with them. This is especially true in South-East Asia where some of the countries have GDP growth of 5% -7%.

It has $24 billion of assets under management and it generated $270 million in property income in 2013. In addition to its net income from investment sales, its FY 2014 full-year earnings guidance is an operating profit of $594 million. That works out to be a 6% rise in operating earnings per security to 34.3 cents per share (cps) and a 7% increase to distributions of 20.7 cps.

Financial strength

Its return on equity is 9.89%, which is toward the top end when compared to other REITs such as DEXUS Property Group (ASX: DXS) at 9.86%, GPT Group (ASX: GPT) at 8.34%, or Lend Lease Group (ASX: LLC) at 12.79%.

Its debt levels are low, with a gross gearing of 38.55% and at the end of 30 June 2013, its $2.56 billion in long-term debt was only 4.53 times its $566.4 million NPAT, so borrowings are at a manageable level. Real estate investment commonly involves high gearing for borrowings.

Foolish takeaway

I think Goodman Group is probably the best REIT that new investors can comfortably add to their portfolio if one isn’t there already. Property appreciates over time, so future returns will come as the routine rental income generates a steady earnings base. It has a 4.14% dividend yield, and even though its 1.38 price to book value is one of the higher ones among the major REITs, the value and future earnings growth potential justify it."



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Charter Hall Group and Dexus Property Group: 2 REITs to plan your future finances with | Motley Fool Australia

Charter Hall Group and Dexus Property Group: 2 REITs to plan your future finances with | Motley Fool Australia: "Dexus Property Group (ASX: DXS) also holds a variety of office, industrial and retail properties, as well as managing third-party assets. In the last four years, earnings per security have trended up, with a one-time drop off in 2012 and a swift and strong recovery in 2013.

In April, the company completed the acquisition of the Commonwealth Property Office Fund, which adds 21 properties to the portfolio, bringing the total to 45 and $7.5 billion in total asset value, up from $3.9 billion.

Its share price set a $1.21 high in May 2013 and is now $1.12. The dividend yield is 5.4%. In the first half of FY2014, distributions per security rose 6.2%. The total shareholder return for the past three years was an average annual 17.6%."



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Charter Hall Group and Dexus Property Group: 2 REITs to plan your future finances with | Motley Fool Australia

Charter Hall Group and Dexus Property Group: 2 REITs to plan your future finances with | Motley Fool Australia: "Charter Hall Group (ASX: CHC) has a mix of commercial, industrial and residential assets in its portfolio. It has $10.5 billion in funds under management (FUM) and its interim result was a 10% rise in operating earnings per security.

Its FY2014 full year guidance is for operating earnings per security to rise 7%-9%. In the last four years earnings and dividends consistently increased.

The stock hit a high of $4.62 in May 2013 before finding a bottom range of about $3.50 in December. Now it is back up to $4.15 and offers a 5.1% dividend yield. In the past three years, the company’s total shareholder return was an average annual 26.9%."



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Looking to REITs for returns? | Motley Fool Australia

Looking to REITs for returns?  | Motley Fool Australia: " Shopping Centres Australasia Property Group (ASX: SCP).

Shopping centres are often seen as a hub for local suburban and regional communities. This is where SCA Property Group primarily operates throughout Australia and New Zealand. The property group is a spin off from retail giant Woolworths Limited (ASX: WOW), who along with Coles is now a major tenant in the $1.35 billion REIT.

Results

SCA Property Group reported statutory net profit of $98.2 million up 128.4% on the previous corresponding period (PCP). Funds from operations (FFO), a more applicable measure of REIT performance, is reported at $37.8 million up 12.5% on the PCP. Portfolio value stands at $1.8 billion up $158.9 million in the six months since 30 June 2014. This is largely attributed to increases in property valuations and acquisitions.

Total portfolio occupancy stands at 98.6% by gross leasable area. Gearing sits at a comfortable level of 35.8% and debt refinancing is completed at a weighted average debt cost of 4.75%. Subsequently, SCA Property Group has raised FY2015 earnings guidance to 12.6 cents per unit and FY2015 distribution guidance to 11.4 cents per unit.

Outlook

The outlook looks positive for SCA Property Group as it aims to optimise centres and increase rent per square metre with specialty stores and quality long-term tenants. The sector is experiencing the tailwinds of increased valuations and lower interest rates on debt. Consumer confidence and retail spending should also get a lift from lower interest rates and fuel prices.

In turn, SCA Property Group will hope to see further reduction in specialty store vacancy rates which are down from around 20% since listing in 2012 to 5.4% currently. Accretive acquisitions of convenience-based shopping centres and value enhancing development opportunities within the existing portfolio are also part of the group’s core strategy to deliver sustainable earnings and distribution growth.

In the current chase for yield, REITs are on the radar and SCA Property Group looks like a stable option in this sector with its 5.4% unfranked dividend yield."



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3 stocks under $1 that should be on your watch list | Motley Fool Australia

3 stocks under $1 that should be on your watch list | Motley Fool Australia: "Empired Ltd (ASX: EPD) – Empired has a market capitalisation of $99 million and last traded at 83.5 cents. It is Australia’s largest dedicated Microsoft focused IT services business that has been servicing some of Australia’s largest corporations since 1999. More recently, it has secured a number of large contracts and upgraded its FY16 revenue guidance to between $155-$175 million. In order to service these new contracts, Empired has had to invest in additional staff and this is likely to place pressure on margins over the coming year. Despite this, Empired remains one of Australia’s fastest growing technology companies and should have a place on the watchlist of every growth investor."



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3 stocks under $1 that should be on your watch list | Motley Fool Australia

3 stocks under $1 that should be on your watch list | Motley Fool Australia: "Capitol Health Ltd (ASX: CAJ) – Capitol Health is one of Australia’s fastest growing diagnostic imaging service providers and last traded at 52 cents. The share price has more than halved since the start of April as the market ponders whether Capitol Health’s acquisition strategy is sustainable. Compounding the situation is the ongoing review of the Medicare Benefits Scheme and the impact this may have on Capitol Health’s revenues moving forward. Despite this, it continues to acquire businesses at reasonable prices in a highly fragmented industry that has a number of tailwinds behind it. At the current price, investors who are risk tolerant may find this to be a good entry point for a long-term investment."



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3 stocks under $1 that should be on your watch list | Motley Fool Australia

3 stocks under $1 that should be on your watch list | Motley Fool Australia: "Mobile Embrace Ltd (ASX: MBE) – Last trading at 22 cents per share, Mobile Embrace is a mobile marketing and payments company based in Australia, but it is rapidly expanding into overseas markets. It recently announced its best ever quarter where it more than doubled its revenues compared to the previous corresponding period. Mobile Embrace has acquired a number of businesses over the past 12 months and this has complemented the strong organic growth the company has been able to deliver both domestically and internationally. Importantly for investors, the company is already profitable and encouragingly, the company is forecasting strong growth over the remainder of FY16 with revenues expected to grow at double-digit rates over each quarter. Despite these positives, investors do need to be aware that the company has recently been issued with a $4 million claim against one of its subsidiaries which it will need to defend itself against."



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Dividend report card: Insurance Australia Group Ltd and AMP Limited | Motley Fool Australia

Dividend report card: Insurance Australia Group Ltd and AMP Limited | Motley Fool Australia: " Insurance Australia Group Ltd (ASX: IAG)is expected to deliver flat dividend growth over the next two financial years. This may appear disappointing for income-seeking investors, but in the long run IAG is positioning itself for strong growth, with the company also increasing its exposure to Asia. This appears to be a sound move, since it provides the company with not only improved growth opportunities, but added diversification, too.

With IAG’s integration of the business unit acquired from Wesfarmers also progressing well, it is forecast to increase its bottom line by 6.7% in the current financial year. This puts it on a forward price to earnings (P/E) ratio of just 13.8, which is below the ASX’s P/E ratio of 15.5. Furthermore, efficiency savings and synergies of $230m are set to be realised this year from the recent acquisition which, alongside a new digitisation strategy, mean that IAG looks set to deliver an improved income as well as capital gains over the medium to long term.

Clearly, neither IAG nor AMP has a strong long term track record of dividend growth. In fact, dividends per share have fallen by 4% and 9.1% respectively per annum over the last decade. However, with refreshed strategies, appealing valuations and high yields, they appear to be top notch income plays for the long term."



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Dividend report card: Insurance Australia Group Ltd and AMP Limited | Motley Fool Australia

Dividend report card: Insurance Australia Group Ltd and AMP Limited | Motley Fool Australia: "n the case of AMP Limited (ASX: AMP), it is expected to increase dividends per share at an annualised rate of 51.3% during the next two years and this puts it on a forward yield of 5.5%. Despite such a strong rise in shareholder payouts, though, AMP is still expected to have considerable headroom when making its dividend payments. This is evidenced by its dividend coverage ratio being set to remain relatively high at 1.3 in financial year 2016.

A key reason for this is an increase in AMP’s assets under management which, as stated in its recent third quarter update, were 6% higher than in the same period of 2014. Looking ahead, AMP has considerable scope to increase earnings as it seeks to grow its offering in Asia, where the take-up of financial products remains relatively low. And, with efficiency programmes also expected to benefit margins, AMP’s price to earnings growth (PEG) ratio of 0.8 has huge appeal; being lower than the ASX’s PEG ratio of 1.3."



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Here's why Retail Food Group Limited shares are a BARGAIN | Motley Fool Australia

Here's why Retail Food Group Limited shares are a BARGAIN | Motley Fool Australia: "etail Food Group Limited (ASX: RFG) is cheap, has a huge dividend yield and is growing rapidly.

Indeed, the owner of Donut King, Gloria Jeans, Pizza Capers and much more, today announced yet another upgrade to profit guidance.

In an announcement to the ASX, Retail Food’s CEO, Tony Alford, said, “Notwithstanding the successful execution of an ambitious development program throughout the entirety of FY15, there remains a vast array of opportunity within reach for the Company.”

While the market appears unenthused by Retail Food’s blockbuster track record in the face of a slowing economy, Mr Alford remains bullish – and is on the prowl for new opportunities.

“It is not RFG’s intention to remain idle in the face of such opportunity, and as such, the Company is in pursuit of additional revenue drivers able to deliver enhanced and sustainable shareholder outcomes which underpin long term growth,” Mr Alford said.

At its Annual General Meeting today, the company reinforced its expansion into the giant global coffee market, announced a push into the coffee capsule market and upped the group’s 2016 financial year profit guidance.

Despite reaffirming its profit growth target of 20% over FY16, Retail Food today said it expects first-half underlying profit growth of 25%, but on a ‘like for like’ basis profit growth is expected to be 35%.

Buy, Hold or Sell?

Retail Food Group’s share price has now fallen 38% in six months. However, at today’s share price it trades on a forecast price-earnings ratio of just 10x and a dividend yield of 6.22% fully franked. That’s 8.88% grossed-up for those tax-effective franking credits!

While the short-term economic outlook is a little cloudy, Retail Food’s quality brands, cheap shares, growing international business and huge dividend yield make it a bargain in my book."



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"Theme park and leisure facilities operator Ardent Leisure Group (ASX: AAD) trades on a forecast dividend yield of a little over 5%. Ardent Leisure is starting to recover nicely after a big de-rating on the back of a change in its chief executive and weaker-than-expected performance from its gyms division.

But sentiment has improved and is likely to improve further given the boom in the local tourism industry and the upside from its US-based entertainment centre business, Main Event."



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Is the Fisher & Paykel Healthcare Corp Ltd share price a BARGAIN? | Motley Fool Australia

Is the Fisher & Paykel Healthcare Corp Ltd share price a BARGAIN? | Motley Fool Australia: "The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price headed marginally higher following the announcement of a bumper profit result this morning.

Reporting in New Zealand dollars, during the six-month period ended 30 September 2015, the $4.5 billion company announced a 20% increase in revenue, to $381 million, and a profit of $62 million, up 27% on the prior corresponding period.

Fuelling profit growth was a 2.76% widening of the group’s gross profit margin, which came in at an enviable 63.3%, thanks to a favourable product mix, and increased production and efficiency gains at its operations in Mexico.

“The record result is attributable to a continuation of our consistent growth strategy, which has driven strong revenue growth in both of our major product groups and further gross margin improvements,” CEO Michael Daniell said.

During the half, Fisher & Paykel moved to a direct-to-consumer sales model for their respiratory and acute care/hospital product group. “With the move to a direct sales model in the US, as we have already done in our other major markets, we expect that the increased sales focus will enable us to maximise opportunities and increase revenue growth in the US,” Mr Daniell added.

The Auckland-based company said 83% of sales were derived from recurring items such as consumables and accessories. Sales of masks used for the treatment of Obstructive Sleep Apnoea (OSA) rose 25% in constant currency.

Investment in research & development rose 14.3% to $35.8 million, or 9.4% of operating revenue. “We have a significant pipeline of new products that we expect to release in the coming year including new humidifier controllers, flow generators, masks and consumables,” Fisher & Paykel’s Senior Vice President of Products and Technology and CEO Designate, Lewis Gradon, said.

Pleasingly, the company announced an interim dividend of 6.7 cents per share, up 16% from last year.

Looking towards 2017, Mr Daniell said, “Our strategic direction remains consistent as we continue to develop new, innovative products, expand our market opportunities and grow our international presence.”

While currency exchange rates have been slightly less favourable than when the group previously set profit guidance, Mr Daniell said, “we continue to expect full year operating revenue to be approximately 800 million NZ dollars and net profit after tax to be approximately 135 to 140 million NZ dollars.”

Are Fisher & Paykel shares a buy?

Fisher & Paykel competes with both RedMed Inc. (CHESS) (ASX: RMD) and Philips Respironics in the huge market for the treatment of sleep apnoea. The company believes there are 100 million patients who could benefit from its products worldwide, but with changing demographics it forecasts that number to double in the next 10 to 15 years.

Unfortunately, after rising some 23% in 2015, the Fisher & Paykel share price now appears roughly in line with fair value. However, if you’re investing for the ultra-long-term (10 years or more), I think it’s certainly worthy of a spot on your watchlist."



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3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada

3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada: "Bank of Montreal (TSX:BMO)(NYSE:BMO) is the fourth-largest bank in Canada, with approximately $672.4 billion in total assets. It pays a quarterly dividend of $0.82 per share, or $3.28 per share annually, giving its stock a 4.3% yield at today’s levels.

It is also very important to note that Bank of Montreal has raised its annual dividend payment for three consecutive years, and that it has a target dividend payout range of 40-50%, so its consistent growth should allow this streak to continue for the next several years."



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Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada

Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada: "Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is one of those stocks you can simply buy and forget about for decades. The company has a strong history of revenue and earnings growth, and the good times just keep chugging along.

The great thing about Canadian National Railway is its diverse revenue base. The company is literally the backbone of the economy in the U.S. and Canada, and weakness in one sector tends to be balanced out by strength in others. For example, the rout in oil prices has hurt energy-related shipments, but the resulting drop in the Canadian dollar is boosting demand for the transportation of forestry and automotive products.

Canadian National Railway pays a quarterly dividend of $0.3125 per share that yields 1.6%. Investors shouldn’t be put off by the low yield as the distribution increases tend to be substantial. The company raised the dividend by 25% earlier this year and is planning to boost its payout ratio in the future."



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Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada

Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada: "Royal Bank of Canada (TSX:RY)has been paying investors a dividend since 1870. The company has weathered every major financial crisis in the past century and is now one of the top financial institutions on the planet.

Some market observers are concerned that the energy crisis and an overvalued housing market are putting Canadian banks at risk.

Royal bank is exposed to both sectors, but the company is more than capable of riding out some tough times.

About 60% of the bank’s residential mortgage portfolio is uninsured, and the loan-to-value ratio on that component is 55%. This means the market would have to fall significantly in a short period of time before the bank experiences any material losses. Most analysts expect a gradual pullback in house prices.

As for energy exposure, only 1.6% of the total loan book is connected to wholesale loans in the oil and gas sector.

Royal Bank pays a dividend of $0.79 per share that yields 4.2%."



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3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada

3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada: "Bank of Montreal (TSX:BMO)(NYSE:BMO) is the fourth-largest bank in Canada, with approximately $672.4 billion in total assets. It pays a quarterly dividend of $0.82 per share, or $3.28 per share annually, giving its stock a 4.3% yield at today’s levels.

It is also very important to note that Bank of Montreal has raised its annual dividend payment for three consecutive years, and that it has a target dividend payout range of 40-50%, so its consistent growth should allow this streak to continue for the next several years."



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3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada

3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada: "RioCan Real Estate Investment Trust (TSX:REI.UN) is Canada’s largest real estate investment trust, with ownership interests in 354 retail properties containing approximately 78 million square feet. It pays a monthly distribution of $0.1175 per share, or $1.41 per share annually, giving its stock a 5.6% yield at current levels.

It is important for investors to note that RioCan has maintained this monthly rate since January 2013, but its increased amount of funds from operations, including 6.9% year-over-year growth to $414.6 million in the first nine months of fiscal 2015, could allow for a slight increase within the next few months."



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3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada

3 of the Best Dividend Stocks Money Can Buy | The Motley Fool Canada: "Corus Entertainment Inc. (TSX:CJR.B) is one of the largest integrated media and entertainment companies in Canada, with 22 specialty and pay television services, three conventional television stations, and 39 radio stations. It pays a monthly dividend of $0.095 per share, or $1.14 per share annually, giving its stock an 11.5% yield at today’s levels.

It is also very important to note that Corus has raised its annual dividend payment for 12 consecutive years, and its increased amount of free cash flow, including 14.8% year-over-year growth to $201.2 million in fiscal 2015, could allow this streak to continue in 2016."



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3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest telecommunications and media companies in Canada.

At today’s levels, its stock trades at just 15.4 times fiscal 2016’s estimated earnings per share of $1.77 and only 14.9 times fiscal 2017’s estimated earnings per share of $1.83, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 15.9 and its industry average multiple of 25.4.

I think Shaw’s stock could consistently trade at a fair multiple of about 18, which would place its shares around $33 by the conclusion of fiscal 2017, representing upside of more than 21% from current levels.

Also, the company pays a monthly dividend of $0.09875, or $1.185 per share annually, giving its stock a 4.35% yield."



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3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada

3 Top Stocks I’d Buy With an Extra $15,000 | The Motley Fool Canada: "CI Financial Corp. (TSX:CIX) is one of the largest investment fund companies in Canada.

At today’s levels, its stock trades at just 15.4 times fiscal 2015’s estimated earnings per share of $2.03 and only 14.1 times fiscal 2016’s estimated earnings per share of $2.21, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 19.4 and its industry average multiple of 44.1.

I think CI Financial’s stock could consistently trade at a fair multiple of about 18, which would place its shares upwards of $39 by the conclusion of fiscal 2016, representing upside of more than 24% from today’s levels.

In addition, the company pays a monthly dividend of $0.11 per share, or $1.32 per share annually, giving its stock a 4.2% yield."



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Silver Wheaton Corp. (USA): Is This Stock a Buy? | The Motley Fool Canada

Silver Wheaton Corp. (USA): Is This Stock a Buy? | The Motley Fool Canada: "Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) hasn’t been a great investment over the past four years, but the fundamentals in the market suggest better days are on the way.

Tough times

Back in 2011, silver traded for more than US$45 per ounce. Today, investors can pick it up for close to $14.

That’s a pretty steep slide and shares of Silver Wheaton have fallen in step, down on the TSX from $40 just three years ago to the current level of about $17 per share.

Investors can be forgiven for wanting to give the stock a wide berth, but contrarian types are looking at the market dynamics and starting to see a long-term opportunity.

Market conditions

Silver has many uses beyond its jewellery appeal, and one industrial application could send the price much higher in the coming years.

Silver is a core component in the production of solar panels. The solar industry has gone through some ups and downs, but the technology is finally getting to the point where solar panels can be justified on a cost basis as well as for the renewable energy appeal.

Large industrial installations are now popping up all over the planet, and the growth is set to continue as production costs fall and countries move toward non-carbon-emitting options for generating electricity.

Silver demand looks set to expand, but new supply might not keep up. Most of the planet’s primary silver supplies come from mining operations set up to produce base metals such as copper and zinc. These commodities are also experiencing a slump in prices. In fact, copper just hit a six-year low.

This is forcing mining companies to delay or abandon plans for new projects, which could put a pinch on silver production in the coming years and drive up prices.

Why Silver Wheaton looks attractive

Silver Wheaton is a streaming company, not a mine. This means it doesn’t carry the operational risks of developing properties; it simply provides up-front cash to mining companies to help them get their projects up and running.

In return for the funds, the mining companies give Silver Wheaton the right to purchase gold and silver produced at the facility for very low prices.

How low?

Silver Wheaton’s Q3 2015 average cash cost was US$4.58 per silver equivalent ounce. That means the company still enjoys solid margins in the current environment.

Production growth

The weak market for metals producers is a great opportunity for Silver Wheaton to negotiate favourable deals. The company recently secured a third of the silver production at the Antamina copper mine, and management is looking at a number of other opportunities.

Silver Wheaton says 2015 production should be about 44.5 million silver equivalent ounces. Annual production is expected to increase to 55 million ounces by 2019.

The best part for investors is the fact that most of the production growth is already fully funded.

Should you buy?

If you believe silver is near the bottom of its cycle, Silver Wheaton is a great way to play a rebound. The long-term fundamentals look strong and the stock could easily regain the $30 mark on an upswing in silver prices."



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2 Top Dividend Picks for RRSP Investors | The Motley Fool Canada

2 Top Dividend Picks for RRSP Investors | The Motley Fool Canada: " Fortis Inc. (TSX:FTS).operates electricity generation and natural gas distribution assets in Canada, the Caribbean, and the United States.

The company recently locked in some nice profits on the sale of non-core property assets, and the company now derives nearly all of its revenue from regulated operations.

That is good for investors because it means cash flow and earnings are reasonably predictable.

Fortis completed a $4 billion acquisition in the U.S. last year and recently finished an expansion of its hydroelectric project in British Columbia. These assets are contributing nicely to earnings, and Fortis just bumped up its dividend by 10% as a result.

Fortis pays a quarterly dividend of $0.375 per share that yields 4%. The company has increased the payout every year for more than four decades."



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2 Top Dividend Picks for RRSP Investors | The Motley Fool Canada

2 Top Dividend Picks for RRSP Investors | The Motley Fool Canada: BCE Inc. (TSX:BCE)(NYSE:BCE)  is a media and telecommunications powerhouse with an arsenal of assets that cover every step of the value chain.

The company wasn’t always this integrated, but strategic purchases over the past few years have positioned the company well to dominate the sector for decades to come. BCE now owns retail outlets, sports teams, radio stations, a television network, specialty channels, Internet sites, and an advertising company.

All of the media content is delivered across multiple platforms along BCE’s state-of-the-art wireless and wireline networks that span the entire country.

In order to protect its kingdom, BCE continues to invest heavily in new infrastructure, and customers are now beginning to see fibre installed right to their doors as a response to demand for high-speed data delivery.

When you add it all up, the company enjoys a formidable competitive advantage that should last for decades.

BCE is very profitable and returns substantial amounts of free cash flow to its shareholders. The stock pays a quarterly dividend of $0.65 per share that yields 4.6%."



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3 Compelling Reasons to Buy Loblaw Companies Limited | The Motley Fool Canada

3 Compelling Reasons to Buy Loblaw Companies Limited | The Motley Fool Canada: "Loblaw Companies Limited (TSX:L), the largest owner and operator of grocery stores and pharmacies in Canada, has watched its stock post a very strong performance in 2015, rising more than 11.5% as the S&P/TSX Composite Index has fallen over 8%, and I think it will continue to outperform in both the short and long term. Let’s take a look at three of the primary reasons why I think this will happen and why you should buy the stock today.

1. Its strong financial results could support a higher stock price

On the morning of November 18, Loblaw released very strong earnings results for its 16- and 40-week periods ended on October 10, 2015. Here’s a summary of 10 of the most notable statistics from the first 40 weeks of fiscal 2015 compared with the first 40 weeks of fiscal 2014:

Adjusted net earnings increased 29% to $1.06 billion
Adjusted earnings per share increased 15.8% to $2.57
Revenue increased 10.7% to $34.53 billion
Excluding fuel sales and the negative impact of a change in distribution model by a tobacco supplier, food retail same-store sales increased 3.6%
Drug retail same-store sales increased 4%
Drug retail same-store pharmacy sales increased 3.6%
Drug retail same-store front store sales increased 4.4%
Adjusted earnings before interest, taxes, depreciation, and amortization increased 17.2% to $2.67 billion
Cash flows from operating activities increased 55.5% to $2.52 billion
Free cash flow increased 143.7% to $1.31 billion
2. It is a value play

At today’s levels, Loblaw’s stock trades at just 19.9 times fiscal 2015’s estimated earnings per share of $3.48 and only 17.3 times fiscal 2016’s estimated earnings per share of $4.00, both of which are very inexpensive compared with its five-year average price-to-earnings multiple of 159.3, its trailing 12-month multiple of 39.5, and its industry average multiple of 28.7.

With the multiples above and its estimated 14.1% long-term growth rate in mind, I think Loblaw’s stock could consistently trade at a fair multiple of at least 20, which would place its shares around $80 by the conclusion of fiscal 2016, representing upside of more than 15% from current levels.

3. It is a dividend-growth play

Loblaw pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, which gives its stock a 1.4% yield. At first glance, this 1.4% yield is not impressive, but it is very important to note that the company has raised its dividend for four consecutive years, and its increased amount of free cash flow, including the aforementioned 143.7% year-over-year growth to $1.31 billion in the first 40 weeks of fiscal 2015, could allow this streak to continue in 2016. 

Is there a place for Loblaw in your portfolio?

Loblaw Companies Limited represents one of the best long-term investment opportunities in the market, so all Foolish investors should strongly consider beginning to scale in to positions today."



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