среда, 1 апреля 2020 г.
Retirees: 1 Income Stock to Buy in Falling Markets
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Falling markets are producing buying opportunities for investors. Retirees who have the cash to invest will be able to purchase stocks with inflation-crushing dividends at these current levels. If you are looking to get more income from your investing dollar and have some GIC money coming up, it might be a good idea to take a look at these income-generating stocks.
One core stock that many Canadians own is BCE (TSX:BCE)(NYSE:BCE), one of the largest telecoms in Canada. This telecom giant is trading at levels not seen for years, making it a compelling buy at this level. Although it has bounced back since it sunk below $50 a couple of weeks ago, it is still sitting at an attractive level.
A great income play
BCE currently has a yield of about 6% at the time of this writing, making it a fantastic income stock for retirees as a part of a well-diversified portfolio. The stock is a dividend-growth champion with strong cash flow from a variety of sources.
While I will never say that any dividend is 100% safe, BCE’s payout is more secure than many other income alternatives. Its strong cash flows have continued to power its payouts and dividend growth over time. It raised its dividend by 5% earlier this year, further proving the strength of its cash flows and the resulting payout.
The CEO recently went on record reaffirming the company’s position on its payout. He stressed that the company’s networks were performing extremely well considering the increase in traffic.
One stock to own during this difficult time
BCE is also one of the best stocks that you can own in Canada during the coronavirus epidemic, given the fact that pretty much everyone is relying on the internet at the moment.
First of all, practically every business meeting in Canada right now is being conducted online. As such, BCE provides the groundwork for these interactions. Without the hardware in place, businesses would not be able to use online meeting providers. Considering all of the use this hardware is experiencing, BCE is still operating fantastically 99.995% of the time, according to the company.
There are always risks
To be sure, there is no such thing as a perfect investment. There are always risks, and if you are investing in BCE with your retirement money, you should be aware.
The biggest risk to the company is its debt, of course. Telecom companies like BCE are hugely capital-intensive operations that require an enormous amount of spending. BCE has invested heavily in its operations and its hardware. Its investment in 5G networks is just one example of the spending it undertakes to remain competitive as it strives to meet customer demands.
BCE also faces political risks, with the Canadian government making demands of it to reduce prices for consumers. It’s no secret that Canada’s telecom fees are very relatively high compared to other G7 nations. This has prompted the Canadian government, as recently as early March, to demand the telecoms lower their prices.
Furthermore, it strikes me that BCE is most likely not immune from a prolonged recession. If we enter a time of high unemployment, many customers may choose to reduce their plans or cancel some altogether. This could be a negative headwind going forward.
The Foolish takeaway
As a member of a telecom oligopoly in this country, BCE enjoys a position of strong cash flows and solid customer retention. This makes the company a solid dividend prospect for income-focused retirees. Its high dividend yield should remain safe throughout the coronavirus situation, as its services and products remain in high demand.
There are risks, such as the company’s large debt load and political headwinds, as well as the fact that a prolonged recession could reduce income form its customers. Nevertheless, this is a company in a strong position, which will likely continue to be used in the coming years.
Canadian Stocks to Buy on the Cheap During the Market Crash
Many investors fear market crashes. However, long-term investors should embrace this crash, because bear markets can potentially allow you to make millions. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
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2 Heavyweight Energy Stocks to Buy Cheap
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Energy stocks were some of the first to succumb to major turbulence in end of February and beginning of March. The COVID-19 global outbreak compounded with a Saudi-Russian price war that decimated the oil and gas industry. Fortunately, there has been some positive movement for energy stocks in recent days.
That should not entirely calm the minds of investors. A federal bailout may be forthcoming, but producers are still wrestling with cratering prices. Reports indicate that small- and medium-sized producers will receive significant support, as they have been hit hardest by the sharp decline in prices. Canadians can expect legislation that will draw upon the TARP auto bailout in the United States in 2008.
Today, I want to look at two Canadian energy heavyweights that are worth trusting as we move into the month of April. These companies have the infrastructure to survive a low-price environment, and they boast attractive income.
Top energy stock: Enbridge
Enbridge (TSX:ENB)(NYSE:ENB) is the largest energy infrastructure company in North America and the largest energy stock by market cap on the TSX. Its shares have dropped 20% month over month as of early afternoon trading on March 31. The stock has now dropped 11% year over year.
The company put together a fantastic 2019, as it posted full-year GAAP earnings of $5.32 billion, or $2.64 per share, compared to $2.51 billion, or $1.46 per share, in the prior year. Each of its core businesses delivered growth in 2019. It also had promising success with some key regulatory wins that will open the door for its deep project pipeline in 2020 and beyond.
Management reiterated its strong dividend-growth target and hiked its quarterly dividend by 9.8% to $0.81 per share. This represents a tasty 8.1% yield. On the value side, Enbridge stock possesses a favourable price-to-earnings ratio of 15 and a price-to-book value of 1.4.
Suncor Energy
Suncor Energy (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in Canada, and it has proven robust even in the face of low oil prices in the past. Shares of Suncor have plunged 47% month over month at the time of this writing. The stock is down 52% year over year. It is still one of the most reliable energy stocks on the TSX.
Energy companies like Suncor were already encountering issues due to low prices at the end of 2019. In its Q4 2019 report, Suncor posted funds from operations (FFO) of $2.55 billion — up from $2 billion in Q4 2018. Total E&P production during the fourth quarter increased to 115,900 barrels of oil equivalent per day (boe/d) from 90,200 in the previous year. For all of 2019, net earnings fell to $2.89 billion over $3.29 billion in 2018.
In 2019, Suncor returned $4.9 billion in dividends and share repurchases to shareholders. Suncor last paid out a quarterly dividend of $0.465 per share. This represents a monster 9.8% yield. The stock was up 16.58% at the time of this writing, so the chance to add at current levels may be passing. Its shares now possess a favourable P/E ratio of 11 and a P/B value of 0.7.
Canadian Stocks to Buy on the Cheap During the Market Crash
Many investors fear market crashes. However, long-term investors should embrace this crash, because bear markets can potentially allow you to make millions. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.
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Huobi Wallet and Crypto Lender Cred Now Enable Users to Earn Interest
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Major cryptocurrency exchange and wallet provider Huobi has partnered with decentralized crypto lending platform Cred to enable users to earn interest on their holdings.
An announcement on April 1 revealed that Cred’s lending and borrowing services will be fully integrated into the Huobi Wallet, which supports over 1,000 crypto assets, including 8 stablecoins, for users across 200 countries and regions.
The two firms did not provide a comprehensive list of supported crypto assets, but noted that Bitcoin (BTC), Ether (ETH) and stablecoins such as Universal Dollar (UPUSD) would be part of the new offering.
Monthly interest on pledged assets
As previously reported, California-based Cred is a licensed lender and a founding member of the Universal Protocol Alliance, a coalition of cryptocurrency and blockchain firms. The firm is backed by established industry names such as Binance Labs, Arrington XRP Capital, Blocktower and FBG Capital.
Commenting on the new partnership, Cred CEO Dan Schatt said that the firm was keen to offer its decentralized financial services to customers in these “times of financial instability.”
With the integration of Cred’s services, Huobi users will be able to lend their crypto holdings to receive monthly interest payments, with the possibility of rolling over their pledged assets for additional periods of time. There is no minimum requirement to participate in the program, and interest is payable in stablecoins or other crypto assets.
Holders with $150,000 in their wallets can also develop a custom program by consulting with Cred’s Private Client Associates.
An emerging sector
Huobi and Cred’s partnership has been cemented at a time when cryptocurrency lending and borrowing services are gaining increasing traction across the industry.
In January, Celsius Network — the fastest-growing crypto-lender with $4.25 billion in coin loan origination — announced that it would be implementing compounding interest on all cryptocurrencies deposited in its wallet — a feature that had been requested by the Celsius community.
Other major players in the crypto lending space include BlockFi, Nexo, YouHolder and SALT Lending.
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2020 Market Forecast: 5 ETFs to Power the Rebound
Timor Invest
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I am more bullish now than I’ve ever been in my life.
Today’s market is perfect for our #BOP (bullish, optimistic and positive) outlook.
By buying into the stocks and trends that make up America 2.0 right now, you’ll set yourself up for major gains as the market climbs to new highs!
There are five incredible exchange-traded funds (ETFs) that I believe set the stage perfectly for America 2.0 market success.
Watch below to find out what those five plays are:
Still have questions about the market? Be sure to follow me on Twitter for daily guidance for navigating America 2.0 stocks in 2020.
many people are asking about “the market.” We are not invested in “the market.” We are invested in America 2.0 #A20 stocks, 4th Industrial revolution #4IR stocks, stks of the NEW world. These stks are going to move higher, and then make new highs. this already starting to happen
—
Paul Mampilly (@MampillyGuru) March 29, 2020
Regards,
Paul Mampilly
Editor, Profits Unlimited
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