On the surface, the answer to the question posed in the title of this article seems pretty clear. In a bid for the Kansas City Southern railroad, Canadian railways Canadian Pacific Railway (TSX:CP)(NYSE:CP) and Canadian National Railway (TSX:CNR)(NYSE:CNI) both showed interest.
However, after it seemed set in stone that CP Rail would win the bid with its US$25 billion deal, CN Rail then swooped in with a 21% premium — a total of US$29.9 billion!
So, on the surface, it seems that with CN Rail as the winner of the Kansas City Southern rail acquisition that it would be the one to buy today. This was a huge win for the company, as the Kansas City rail gives exposure from Canada down to Mexico
But don’t go diving in just yet.
The CN Rail case The US$29.9 billion bid by CN Rail included $325 for each Kansas City Southern share and $200 a share in cash and 1.059 CN shares. In comparison, CP Rail offered $275 per share, including $90 in cash.
Yet while the move sent Kansas City Southern s..
The nature of the pandemic has made finding high-quality Canadian stocks to buy now extremely difficult. This is especially apparent now, as most stocks have recovered, but the Canadian economy continues to be impacted by the pandemic.
It’s no secret that the U.S didn’t handle the pandemic well to start. Now, however, with one of the best vaccination policies in the world, the country is well on its way to recovering.
It’s particularly noticeable, especially for Canadians, as we struggle with a third wave and more contagious and deadly variant. This is causing more lockdowns and a longer delay than everyone was hoping for before we can return to normal.
Not only is this not ideal from a personal standpoint for everyone, however, it will also undoubtedly have another major impact on our economy.
With the U.S already well on its way to opening up and getting back to normal, investors may want to consider where your businesses operate and look at picking up some stocks with a signific..
Canadian National Railway (TSX:CNR)(NYSE:CNI) is engaged in the rail and related transportation business. Canadian National (CN) owns a network of 19,500 route miles of track spans Canada and the United States (U.S.) and is the only railroad connecting Canada’s eastern and western coasts with southern U.S. CN’s extensive network and efficient connections to all Class I railroads provide CN customers with access to Canada, the U.S. and Mexico.
Essential to the economy, to the customers, and to the communities it serves, CN safely transports every year more than 300 million tons of cargo, serving exporters, importers, retailers, farmers and manufacturers. CN’s freight revenues are derived from seven commodity groups representing a diversified and balanced portfolio of goods transported between a wide range of origins and destinations.
Product and geographic diversity CN’s product and geographic diversity better positions the company to face economic fluctuations and enhances CN’s poten..
Canadian tech stocks hogged all the limelight in 2020 as they delivered sky-high returns on the back of increased demand. However, their high valuation and expected normalization in growth rate have led to selling the high-growth tech stocks. I see the dip as an opportunity to go long on the top TSX tech stocks.
So if you plan to invest in tech stocks, consider buying these three top names.
Shopify Expensive valuation and expected normalization in the pace of shift towards the omnichannel platforms has taken a toll on Shopify (TSX:SHOP)(NYSE:SHOP) stock, which has dropped about 25% from its 52-week high. However, the pullback in Shopify stock is an excellent buying opportunity for long-term investors.
Notably, the spending on an e-commerce platform is expected to increase despite the reopening of the retail locations. Furthermore, Shopify’s growth initiatives are likely to drive its market share and position it well to benefit from the secular industry trends. Its continued invest..
I remain upbeat on the top Canadian bank stocks and expect them to deliver stellar returns in 2021 and beyond. I believe the economic expansion and rise in consumer demand to support the uptrend in bank stocks. Further, a sharp reduction in credit provisions and improving efficiency could drive profitability and support higher dividend payments.
Here are the three top bank stocks that could deliver impressive returns in the coming years. Further, these banks offer healthy dividend yield and are trading at fair valuation multiples.
Bank of Montreal Bank of Montreal (TSX:BMO)(NYSE:BMO) has consistently delivered strong financial results. Meanwhile, its stock has appreciated by over 44% in the last six months. I believe the reopening of the economy and improving demand could continue to drive its high-quality earnings base and support the uptrend in its stock.
During the most recent quarter, the bank delivered 26% growth in its adjusted net income, driven by solid growth in its loan..
Ever since the first Canadian real estate investment trust (REIT) was listed on the TSX in 1993, the pool of real estate assets became popular investment choices. The most attractive feature of a REIT is the dividend offer. If you aspire to be a landlord but have limited funds to purchase physical properties, a REIT is a next-best alternative to earn passive income.
Choosing the right REIT to earn a lifetime of passive income is not easy, especially in the current situation. The global pandemic dealt severe blows to many REITs. However, three names were resilient and endured the carnage. Yield-hungry investors won’t think twice about taking positions.
Cure sector NorthWest Healthcare Properties (TSX:NWH.UN) is a top choice because it’s the only REIT in the cure sector. The portfolio of this $2.52 billion REIT consists of high-quality healthcare real estate infrastructure. It has 190 income-producing assets composed of hospitals, clinics, and medical office buildings.
The leases in m..
Last year when the pandemic crashed the stock market, Warren Buffett said, “Never bet against America.” He backed his statement with the success stories of some companies. I read through Buffett’s conversation and realized that Canada is gradually walking on the path of America. Many Canadian companies are becoming global leaders in their respective industries. Investing in them could help you get international exposure and bring significant long-term gains.
Canadian stocks with international exposure There is no doubt that the U.S. markets are larger and more diverse than Canada in terms of industries and stocks. But Canada is gradually gaining momentum. Lightspeed POS and Shopify (TSX:SHOP)(NYSE:SHOP) are breaking the charts even on the NYSE. When talking about electric vehicles (EV), there is always a mention of Magna International (TSX:MG)(NYSE:MGA).
Descartes Systems (TSX:DSG)(NASDAQ:DSGX)is the seventh-largest provider of supply chain management solutions. As these stocks also ..
Yesterday, Justin Trudeau’s government released its budget for the 2020/2021 fiscal year. The budget pledged $101 billion in recovery spending, including a number of goodies for parents, businesses and the unemployed. For those out of work, the main benefit is an extension of recovery benefits like the CRB. These will be extended for 12 weeks beyond their initial phase-out date. However, starting in July, they will be reduced from their current $500 a week to $300 a week.
What $300 a week means The reduction of CRB benefits from $500 a week to $300 a week means two things:
First, people who get the benefit for 50 weeks will receive the lower $300 weekly amount for the last eight weeks of their benefit period. Put differently, beyond 42 weeks of benefits, the payout is reduced by $200 weekly.
Second, anybody opening new CRB claims beyond July 17 will receive the lower $300 amount.
For those still out of work due to COVID-19, the reduction in CRB benefits may be disappointing. Ontari..
Air Canada (TSX:AC) stock continues to be a popular stock with investors looking past the third wave of COVID-19 cases to the economic reopening. However, with a reliance on government relief, could Air Canada stock actually be a value trap? Or will the recent round of relief be the last before Air Canada stock finally gets back on its feet?
Another round of government support Just last week, Ottawa gave Air Canada a much-needed multi-billion-dollar lifeline, which came as no surprise. I stated on numerous occasions that the federal government would inevitably provide further financial relief when it was needed, given the country couldn’t afford to let its top airline go under at the hands of the insidious coronavirus.
With AC stock plunging another 3% on Monday, shares now find themselves down 19% from their 52-week highs. Jitters over the recent surge in coronavirus cases across the country has many weak-handed investors throwing in the towel. As the negative momentum continues pic..
The stock market is said to be forward-looking and it’s sure looked that way this year. Many parts of the country still have social distancing rules largely intact but the stock market is soaring to new all-time highs each day.
The country might not yet be fully reopened, but Canadian investors are showing how bullish they are on expecting a strong economic recovery this year.
Even though the market is soaring doesn’t mean you need a lot of money to be investing today. With just $100, you can own any one of these three top Canadian stocks.
TD Bank The Canadian banks have been on an impressive bull run for most of the past 12 months. The Big Five were initially hit hard by the COVID-19 market crash, but with a renewed interest in value stocks as of late, the banks are outpacing the market’s returns through 2021 so far.
At the top of my watch list for not only banks stocks, but the entire TSX, I’ve got TD Bank (TSX:TD)(NYSE:TD). I’ve had my eye on the $150 bank for a while and I t..