Tuesday, November 8, 2016

6 solid Canadian stocks for nervous US investors

The S&P was up 2.22% yesterday. Wall Street seems to think Hellery is going to win. It wants her to win, as it would, considering her plans (disclosesd only in private audiences with business tycoons) to make the rich richer with open markets and open borders. But suppose she loses? What happens to US stocks and bonds then?

Here's another great idea from Walt. Just in case... I recommend putting some money into reputable Canadian stocks. If the US market goes south [to Mexico? Ed.], you'll be protected. If not, you can get your money out with no fuss and (probably) no loss and put it back into homegrown equities. [Smith & Wesson should be a good buy. Ed.]

Trading on the Toronto Stock Exchange (TSX) is in Canadian dollars. As of yesterday, you could buy one beaverbuck (C$1) for just under US$0.75. So to figure out how much my recommended shares are going to cost you in real money, just multiply the price by .75. You can buy through most American brokers. FYI, some US brokers are actually owned, or will be owned soon, by Canadian banks. Just this fall, TD Ameritrade (owned by Toronto Dominion Bank, my pick in the financial sector) announced plans to acquire boutique brokerage Alfried Fried & Co. and discount broker Scottrade.

So, without further ado, here are half a dozen good Canadian stocks to add to your portfolio. (Stock symbols are in brackets.)

Toronto Dominion Bank
(TD) - The Canadian banking system is far superior to that of the US. Canadian banks emerged virtually unscathed from the meltdown of 2008-9. TD is now the sixth-biggest bank in the USA. Closed at C$60.37 yesterday, pays a dividend of 3.64%. Good as gold.

Algonquin Power & Utilities (AQN) - Sells electricity and gas to customers in (mostly) the Canadian west. Prices for hydro and gas are going up. A hard winter is coming. Canucks will pay to keep warm. C$11.48, with a dividend of 4.83%.

Air Canada (AC) - Canada's biggest airline was a dog for many years after privatization but has recently started making money, although it doesn't yet pay a dividend. The big news is that the government has just raised the ceiling on foreign ownership from 25% to 49%, which means that foreign airlines [like Emirates? Ed.] are likely to come piling in. I expect the share price, C$12.83, to take off. (Geddit?)

Crescent Point Energy Corp. (CPG) - This is an oil play that got hammered by the crash of crude prices, then by the great Alberta wildfire. But CPG's properties are in Saskatchewan, and business will come back strong if the Keystone XL pipeline goes ahead (under Trump!) and/or the Canadian government finally approves an east-west pipeline. C$15.46 and still pays a dividend of 2.33%.

Fortis Inc. (FTS) - See above regarding pipelines. C$43.47, 3.68% dividend.

Canadian Tire class A non-voting (CTC.A) - Going to "Crappy Tire" is a Saturday morning ritual for Canadian men. They've been selling automotive supplies since the 1920s, and now have big box stores all over the country selling hardware, D-I-Y stuff, sporting goods, you name it. And they own sporting goods and clothing stores to boot! (Geddit?) Rock solid at C$132.35, with a dividend of 1.74%.

Disclaimer: I hear you asking if Walt has any money invested in any of these stocks? Answer: You betcha! Go and do ye likewise. You're welcome.

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