Many Canadian investors have their hands full in terms of M&A activity of late. Whether it’s the Rogers-Shaw deal or the CN/CP acquisition of KSU, there are a number of big headline deals out there.
However, this means other deals aren’t getting the same amount of attention. Here’s why I think the Arc Resources (TSX:ARX)–Seven Generations (TSX:VII) merger is a bigger deal than investors think right now.
Smaller deal with a big impact Arc Resources is making its move in this post-pandemic environment. The company’s set to be one of the country’s senior producers after its merger with Seven Generations.
Size and scale is important in any business. However, in the energy space, it’s key to margin expansion over time. Commodities are a fickle business. However, well-timed mergers and acquisitions can do wonders to create meaningful synergies for producers.
This deal provides the combined entity with some valuation asset consolidation in the gas-rich Montney region of Alberta and Britis..
The legalization of cannabis in Canada has been a game-changing move for the industry. Cannabis stocks took off in an epic surge in 2018 and 2019, the likes of which Canadian stocks rarely see.
Recently, we’ve seen yet another surge in cannabis stocks take hold. This time, from expectations of U.S. legalization from the Biden administration.
Could this time around turn out to be different than the last pre-legalization spike followed by a slow-and-steady decline?
Let’s take a look.
Risks abound with U.S. legalization efforts The whole idea that cannabis will be legalized in the U.S. is based on the premise Democrats can push legislation through. With a Democrat majority in the House and Senate, cannabis investors seem to be pricing this eventuality in as a done deal.
However, there are two key risks with such an assessment.
The first is that Biden is a well-known opponent to cannabis legalization. He’s not friendly to the cause and hasn’t made any explicit public declarations fav..
If dividend income gives you pleasure, here are two top Canadian stocks that have the potential to increase their dividends at a decent pace over the next decade. Notably, these companies have been paying dividends for a very long period, thanks to their resilient cash flows. Furthermore, their strong capital investments, good growth opportunities, and high-quality earnings base is likely to drive future dividends.
Enbridge Investors eyeing a growing dividend income stream should consider buying the shares of Enbridge (TSX:ENB)(NYSE:ENB), as there are good reasons behind it. The energy infrastructure company has paid dividends for over 66 years. Furthermore, its common share dividends have increased by a CAGR of 10% (the highest growth rate among its peers) in the last 26 years.
Enbridge’s stellar dividend payments are backed by its solid business that generates resilient cash flows. Furthermore, its diverse income streams, contractual framework, and continued investments in growth..
In this low-interest-rate environment, the yields on debt instruments have become unattractive. So, investing in monthly paying dividend stocks has become an attractive means to earn stable passive income. Further, investors could also benefit from stock appreciations. So, here are three top Canadian stocks that pay monthly dividends at higher yields.
Pembina Pipeline Pembina Pipeline (TSX:PPL)(NYSE:PBA), with its integrated assets, offers a full spectrum of midstream and marketing services to the energy sector. The company has delivered an impressive performance over the last 10 years, with its adjusted EBITDA and average cash flows per share growing at a CAGR of 12.2% and 9.8%, respectively.
Further, the company earns over 90% of its adjusted EBITDA from fee-based or take-or-pay contracts, delivering stable cash flows. Supported by these stable cash flows, the company has increased its dividends at a CAGR of 4.9% in the last 10 years. Currently, the company pays monthly dividends o..
In a market update provided on Monday, cryptocurrency miner Hive Blockchain Technologies (TSXV:HIVE) reported that its Bitcoin and Ethereum portfolio value has reached US$109 million. This implies a staggering 81.7% increase in the portfolio’s value in just over a month. However, Hive stock fell 5% on Monday. Investors could have viewed the latest growth rate as too slow.
Hive Blockchain’s coin inventory surges by 82% Hive’s coin inventory stood at 20,030 Ethereum (ETH) coins and 320 Bitcoins (BTC) on March 31 this year. The portfolio was valued at US$60 million at the time. Since then, management revalued it to US$75 million on April 16 before reporting a US$109 million valuation yesterday.
The company’s portfolio value is increasing due to two main components: increasing cryptocurrency prices, especially for Ethereum, and new mining production. Ethereum has continued to skyrocket in 2021, while the company acquired a 50 megawatt Bitcoin mining data centre recently.
Cryptocurrencies have been one of the hottest topics among the investors’ community in the last year. Recently, the American multinational investment bank Goldman Sachs formerly gave the go-ahead to its dedicated cryptocurrency trading team. This development came a few months after the Elon Musk-led popular electric carmaker Tesla invested about US$1.5 billion in Bitcoin before selling 10% of its position in Q2.
Warren Buffett’s silence on cryptocurrencies In contrast, Warren Buffett — one of the world’s most renowned investors — recently chose to remain silent when asked about his opinion about cryptocurrencies. Nonetheless, his silence on Bitcoin and other cryptocurrencies.
During Berkshire Hathaway’s (NYSE:BRK.A)(NYSE:BRK.B) annual shareholders’ meeting on May 1, Buffett dodged a question about cryptocurrencies in his humorous style. The 90-year-old legendary investor said, “I’m going to dodge that question, because we’ve probably got hundreds of thousands of people watching this ..
Although TSX stocks at large are trading close to all-time highs, some rallying Canadian names have remarkably floundered recently. Is it time to buy those beaten-down stocks?
Shopify Canadian tech titan Shopify (TSX:SHOP)(NYSE:SHOP) has been trading quite weak for the last few weeks. It has fallen more than 30% since its all-time high of $1,900 in February.
Valuation concerns could be one of the reasons behind Shopify’s recent fall. However, investors should note that Shopify’s growth prospects remain intact, despite its recent drop. The correction could be an excellent buying opportunity for long-term investors.
The e-commerce giant recorded the best ever quarter recently, with its Q1 revenues growing by 110% year over year. I think the stock has significant growth potential despite its lofty valuation multiple.
Shopify’s expanding product base and merchant growth should see stronger revenue growth for the next several quarters. The company might not double its top line every yea..
Inflation expectations are flaring up. After a year of relentless money printing, Canada’s central bankers are prepared for an economic rebound that causes record levels of inflation. The spiking prices of commodities indicates much more pain ahead. This flare-up of inflation has consequences for investors. Here’s what you should be prepared for and how you can protect your portfolio.
Impact of inflation Bank of Canada Governor Tiff Macklem recently reiterated the central bank’s 2% inflation target. However, he admitted that the team was willing to see inflation overshoot that target temporarily. In other words, the central bank is okay with 2% average inflation over a period of time.
The rising cost of living has an impact on everyone. For consumers, the rising costs of food and fuel could prompt them to pull back on discretionary spending. Meanwhile, investors should consider inflation an invisible tax on their assets. If your portfolio gained 7% last year and inflation is 3% thi..
Investing in stocks is easy and one of the cheaper ways to build wealth in the long run. For instance, you do not need a large sum of money to start investing. A small but regular investment in top TSX stocks could help generate stellar returns in the long term. So, if you plan to start investing, here are four stocks that could deliver outsized returns in the coming years. Furthermore, these Canadian stocks are trading under $30.
Air Canada The persistence of the COVID-19 and uneven vaccine distribution continues to hurt advance ticket sales and indicates that Air Canada (TSX:AC) stock could have a bumpy ride in the short term. Despite the dip in demand and limited operating capacity, I am bullish on the long-term prospects of Air Canada.
I believe the easing of travel restrictions could give a significant boost to Air Canada’s financials. Further, the wide availability of the vaccine in the latter part of the year is likely to lead to a solid sequential improvement in its financi..
The cryptocurrency space witnessed a turbulent April and has continued to build momentum in the mainstream in the month of May. Today I want to look at three of the top cryptos that investors may be considering in the spring. Let’s jump in.
Bitcoin Last week I discussed whether Bitcoin could bounce back from its April dip. Bitcoin nearly reached an all-time high of US$65,000 in the middle of April. However, it soon fell victim to a perfect storm of technical issues and concerning rumours.
On the weekend of April 17-18, a power outage in the Chinese Xinjiang region was believed to have disrupted the broader crypto market. The computing power behind the network’s security suffered a 33% dive during the power outage. However, some experts contended that this was not a huge factor in Bitcoin’s loss of momentum in the middle of April.
CEO Jesse Powell of the Bitcoin exchange Kraken warned in April that a regulatory crackdown on crypto was imminent, which managed to spook investors. Certa..