In this post, we will be comparing major Canadian Banks. The comparison will include historical performance, Growth metrics, and Valuation. Then, we will pick the TOP 3 Best Canadian Bank Dividend Stocks! Our top 3 includes National Bank, TD, and Royal Bank.
Please consult a financial advisor before making any financial decision.
Historical performance
Name
YTD %Chg
52W %Chg
3Y %Chg
National Bank (NA)
+3.81%
+21.92%
+63.33%
Cibc (CM)
+8.40%
+31.87%
+43.26%
Royal Bank (RY)
+3.58%
+26.69%
+33.79%
Bank of Montreal (BMO)
+8.45%
+37.63%
+43.58%
Toronto-Dominion (TD)
+1.30%
+24.48%
+35.63%
BNS (BNS)
+4.77%
+21.88%
+28.98%
Barchart.com as of March 3rd – Best Canadian Bank Dividend Stocks
Growth metrics
Symbol
5Y Div%
5Y Earn%
5Y Rev%
NA.TO
5.43%
22.19%
8.14%
CM.TO
4.22%
5.42%
6.69%
RY.TO
5.92%
10.28%
5.67%
BMO.TO
4.51%
10.85%
5.14%
TD.TO
7.91%
10.58%
4.45%
BNS.TO
4.56%
5.94%
3.50%
Barchart.com as of March 3rd – Best Canadian Bank Dividend Stocks
Valuation and Dividends
Symbol
ROE%
P/E (ttm)
Div yld
NA.TO
19.91%
10.64
3.46
CM.TO
16.07%
11.12
4.02
RY.TO
18.28%
12.44
3.49
BMO.TO
14.20%
12.75
3.60
TD.TO
15.27%
13.15
3.51
BNS.TO
14.72%
12.10
4.29
Barchart.com as of March 3rd – Best Canadian Bank Dividend Stocks
– Cross-border diversification. TD continues to expand in the US market. The latest trend is the announcement of a merger agreement that will unite TD and First Horizon. The deal will still need to obtain approval from US regulators. Following this merger, TD will be the sixth-largest bank in the US!
– Cost synergies expected from TD and Fisrt Horizon merger;
– Gorwth opportunities in the US retail market;
– 10 consecutive years of dividend increases.
Weaknesses:
– TD’s premium leisure and travel-oriented credit card business has been weak during the pandemic;
– The pandemic negatively impacted the growth in both personal and business lowns segments;
– Competition from both large banks and fintech companies.
– National Bank’s return on equity is the highest among the six largest banks in Canada;
– Revenues grew by 8% in the past five years;
– Reported stellar financial results in Q1 fiscal 2022;
– Strong wealth management segment;
– 11 consecutive years of dividend increases.
Weaknesses:
– Most revenues are from Quebec (74%), which makes NA less diversified than competition;
– Competition from both large banks and fintech companies.
In this post, we will go over the highest dividend-paying stocks among US Dividend Aristocrats stocks. The S&P 500 Dividend aristocrat list includes businesses that have proven themselves as the best dividend-paying stocks in the US. These stocks have at least a 25 years track record of paying and increasing their dividends. They are a solid choice to counter the impact of inflation and protect your portfolio during turbulent times. On top of the list, we have IBM, Exxon, Realty income, Leggett & Platt, and Chevron. For each stock, we will provide historical performance and growth indicators.
At the end of this post, you will access the complete list of the 30 highest dividend-paying stocks.
Why invest in US dividend aristocrats stocks?
If you are asking yourself, what is the typical profile of a dividend aristocrat stock? I have listed some common characteristics below:
Dividend aristocrats tend to dominate their industry
• The vast majority are companies that are well established in their sector. They manage to generate significant profits thanks to their comfortable position against the competition. They also sometimes operate in regulated markets such as electric utilities with almost no competition;
Safe heaven during turbulent times
• “Dividend aristocrats” are sometimes considered by the financial market as safe havens in the event of a market correction or decline. Indeed, dividend aristocrats are generally less volatile than the market, and there are less targeted by speculators;
Strong financial statements
• “Dividend aristocrats” will tend to have a better financial situation in terms of liquidity than the rest of the market. Their levels of liquidity or debt are generally better than the rest of the market;
Limited growth but there are exceptions
• In general, dividend aristocrats are mature businesses. That is, the growth potential is quite limited. However, some companies can pay dividends and invest in their growth. Usually, the dividend payout ratio is a good indicator. If the rate is low, it means the business is saving some money to grow. Business with high dividend pay out ratio have no financial resources left to grow.
Dividend yield and Consecutive years of dividend growth
Ticker and name
Div yld
Yrs Div Growth
IBM -International Business Machines
5,3%
26
XOM -Exxon Mobil
4,6%
39
O -Realty Income
4,4%
26
LEG -Leggett & Platt
4,4%
50
CVX -Chevron
4,3%
35
WBA -Walgreens Boots Alliance
4,1%
46
MMM -3M Co.
4,0%
64
As of February 22nd, *Consecutive Years of Dividend Growth – Highest dividend paying stocks US
Growth indicators – Highest dividend paying stocks US
Revenue and dividend growth are important indicators. Dividend growth is 1- a sign of a company’s good financial health and 2- an excellent way for shareholders to hedge against the risks of inflation. Revenue growth is an indicator that the company continues to grow its operations and create value.
Ticker
5yrs Div Growth
5yrs Rev Growth
IBM
122.73
-28.24
XOM
17.11
26.34
O
22.81
61.40
LEG
26.98
9.27
CVX
23.78
41.93
WBA
28.77
12.92
MMM
33.33
17.42
Dividend and Revenues growth over the past 5 years – Source: Barchart – Highest dividend paying stocks US
Historical performance – Highest dividend paying stocks US
Ticker
1yr Perf
3yrs Perf
Beta
IBM
1.11
-10.98
0,47
XOM
39.40
-4.43
0,73
O
5.34
-4.48
0,62
LEG
-16.15
-20.49
1,01
CVX
35.74
8.50
0,64
WBA
-5.79
-31.26
0,76
MMM
-17.95
-29.27
0,52
Price performance (cumulative), Beta is a measure of volatility – Highest dividend paying stocks US
1-International Business Machines (IBM)
IBM is a global information technology company that provides integrated enterprise solutions for software, hardware, and services. The company has five business segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing.
IBM sees the hybrid cloud as its biggest opportunity to return to growth in the future. IBM plans to accelerate customer adoption of hybrid cloud and AI.
IBM strategy for growth; Source: Investor’s presentation
2-Exxon Mobil Corp (XOM)
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and around the world.
XOM has recorded great financial results lately and seemed set to create more value and growth for its shareholders. The company is generating growing cash flows which will allow maintaining its dividend payments. The primary risk remains pressure from climate militants.
Cash flow from oprations 2019-2027 – Source: Investors presentation
3-Realty Income Corp.
Realty income is a retail-focused real estate investment trust that has paid and increased its dividends in the past 26 years. The company pays a monthly dividend.
50% of Realty income corp comes from quality tenants. The company has successfully reduced its dependence on restaurants, favoring convenience stores and grocery stores.
Industry diversification – Investors presentation
4- Leggett & Platt, Inc. (LEG)
Leggett & Platt designs and manufactures a wide range of products including bedding components, machinery for the bedding industry, steel wire, adjustable beds, carpet padding and seat support systems from vehicle.
Thanks to its diversified products offering, LEG has a definite competitive advantage. Add to this its diversified geographic presence. The company ensures its growth through both organic means and acquisitions.
LEG is a dividend King with 50 years of historical dividend payments and increases.
Source: Leggett & Platt, Inc. annual report
5- Chevron Corp (CVX)
Chevron Corporation, through its subsidiaries, engages in integrated energy, chemical and petroleum operations worldwide.
Chevron is one of the highest-rated oil producers with a rating of AA-. It has a 35 years track record of increasing its dividends. CVX revenues grew by 41% over the past five years.
L’évolution des dividendes de CVX en comparaison avec ses concurents – Source: présentation aux investisseurs
Top 30 Highest dividend paying stocks US (Dividend Aristocrats)
Name
Div Yld
Yrs Div Growth
IBM -International Business Machines
5,3%
26
XOM -Exxon Mobil
4,6%
39
O -Realty Income
4,4%
26
LEG -Leggett & Platt
4,4%
50
CVX -Chevron Corp.
4,3%
35
WBA -Walgreens Boots Alliance
4,1%
46
MMM -3M Co.
4,0%
64
AMCR -Amcor Plc
4,0%
1
ABBV -Abbvie Inc
3,9%
50
BEN -Franklin Resources, Inc.
3,8%
42
ED -Consolidated Edison, Inc.
3,7%
48
FRT -Federal Realty Investment Trust.
3,6%
54
CAH -Cardinal Health
3,6%
34
PBCT -People`s United Financial
3,5%
29
KMB -Kimberly-Clark
3,5%
50
VFC -VF Corp.
3,4%
49
TROW -T. Rowe Price Group
3,3%
36
CLX -Clorox
3,1%
44
GPC -Genuine Parts
2,8%
66
KO -Coca-Cola Co
2,8%
60
PEP -PepsiCo Inc
2,7%
50
APD -Air Products & Chemicals
2,7%
40
ESS -Essex Property Trust
2,7%
27
JNJ -Johnson & Johnson
2,6%
59
ATO -Atmos Energy
2,6%
38
AFL -Aflac Inc.
2,5%
40
MDT -Medtronic Plc
2,5%
44
CAT -Caterpillar Inc.
2,3%
28
NEE -NextEra Energy
2,3%
27
CL -Colgate-Palmolive
2,3%
59
ITW -Illinois Tool Works
2,3%
58
As of February 22nd, *Consecutive Years of Dividend Growth – Highest dividend paying stocks US
Neo credit card is a unique cashback card that offers both great discounts and more flexibility. Instead of just having a fixed cashback rate, the Neo card offers a list of popular merchants with special cashback rates. The merchant community that Neo does business with offers an average of 5% unlimited cash back on all purchases made. This reward formula is more interesting than a classic cash back card.
The Neo credit card is available with no annual fee! However, if you want to increase your cashback, you can opt for their different paid plans.
Summary
The Neo cashback card is competitive and provides more perks than traditional cashback cards issued by the big banks.
★★★★★
Neo credit card: advantages
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–No annual fee! If you opt for the plus and ultra packages, you will have to pay a monthly fee, but you can switch back to the standard plan at any time. I like the idea of billing the fees monthly because when you cancel, you will only have to pay for the months used, unlike the case where you cancel a card that charges an annual fee;
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Neo Credit Card – Plus plan
2,99 $/month
Avg 5% cashback at Neo partners
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8,99 $/month
Avg 6% cashback at Neo partners
1%² minimum cashback across overall spend
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To apply, you must meet two conditions:
be of legal age at the time of your application; be a resident of Canada
The Neo card is a Mastercard, it comes with 0 liability which protects you against unauthorized transactions. You can also block or unblock your card whenever you want.
*This site uses affiliate links to offset costs associated with running the blog. If you click and/or make a purchase through affiliate links on this site, I may receive a small payment at no additional cost to you. All opinions are mine. I only link to products and services that I currently use or have used in the past. Thank you for helping to make this site work, by providing you with free and valuable content!
In this post, we will review seven stocks that offer both safe and growing dividend yields. We used several criteria. First, we examined the historical track record of paying and increasing dividends. Second, we assess the capacity for these companies to sustain their dividends. As you will see below, stocks in the banking industry dominate the list.
Methodology
See below the criteria’s used to select the best dividend stocks to buy now:
At least 10 years of consecutive dividend increases;
Investing in dividend paying stocks is a strategy that appeals to young and old investors. Here is a quick reminder of the main concepts to keep in mind before applying this strategy:
Investment horizon: 5 years or more minimum. The strategy of investing in dividend paying stocks is not suitable for an investor with a short term horizon (less than 5 years).
Objective: The strategy can help you build passive income or further grow your capital by reinvesting the dividends received.
Risk Tolerance: Medium (provided you restrict yourself to selecting quality securities and having a diversified portfolio across several sectors).
Best dividend stocks to buy now for safety and growth
Ticker / Name
Div Yield
Years of Dividend Increases
PRU -Prudential Financial
3.95
13
WASH -Washington Trust Bancorp, Inc.
3.64
11
PFG -Principal Financial Group Inc
3.34
15
BEN -Franklin Resources, Inc.
3.32
42
UGI -UGI Corp.
3.01
34
WEC -WEC Energy Group
2.79
18
KEY -Keycorp
2.92
11
Source: Barchart, January 14th, Best dividend stocks to buy for safety and growth
Prudential Financial, Inc. is one of the world’s leading providers of financial services. The company offers a wide range of financial products and services. They are known for life insurance, retirement-related services, annuities, mutual funds, investment management and real estate services.
Prudential offers an attractive dividend yield of 3.95%. The payout ratio is low at 24.58%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
The company increased its dividend every year in the past 13 years.
Prudential is a large cap with over 44 Billion dollars in assets. The stock is as volatile as the market with a Beta of 1.06. In addition to paying generous dividends, the stock performance was also attractive.
Ticker
PRU
Name
Prudential Financial Inc.
Sector
Financial Services
Dividend Yield
3.95
Years of Dividend Increases
13
1-Year Dividend Growth
4.55%
5-Year Dividend Growth (Annualized)
8.92%
Market Cap ($M)
44,006
Payout Ratio
24.58%
Beta
1.06
One Year Price Return
48.37%
Two Year Price Return
36.55%
Five Year Price Return
32.64%
Best dividend stocks to buy for safety and growth
WASH – Washington Trust Bancorp, Inc.
Washington Trust Bancorp, Inc. engages in the provision of financial services. It operates through the following segments:
Commercial Banking ;
Wealth Management Services.
The company was founded in 1984 and is headquartered in Westerly, RI.
Washington Trust offers an attractive dividend yield of 3.64%. The company increased its dividend every year in the past 11 years.
The payout ratio is low at 48.14%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
WASH is a mid cap with over 1 Billion dollars in assets. The stock is less volatile than the market with a Beta of 0.80. In addition to paying generous dividends, the stock performance was also attractive.
Ticker
WASH
Name
Washington Trust Bancorp, Inc.
Sector
Financial Services
Dividend Yield
3.64%
Years of Dividend Increases
11
1-Year Dividend Growth
3.85%
5-Year Dividend Growth Annualized
7.28%
Market Cap ($M)
1,032
Payout Ratio
48.14%
Beta
0.80
One Year Price Return
31.30%
Two Year Price Return
25.14%
Five Year Price Return
36.24%
Best dividend stocks to buy for safety and growth
PFG – Principal Financial Group Inc
Principal Financial Group, Inc. is a financial company. It specializes in retirement solutions, insurance, and investment products through its diverse family of financial services companies and national network of financial professionals.
Principal Financial offers a interesting dividend yield of 3.34%. The company increased its dividend every year in the past fifteen years!
The payout ratio is low at 38.65%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
PFG is a large cap with over 20 Billion dollars in assets. The stock is more volatile than the market with a Beta of 1.26. In addition to paying generous dividends, the stock performance was very attractive. PFG had a price return of over 50% just in the past year.
Ticker
PFG
Name
Principal Financial Group Inc
Sector
Financial Services
Dividend Yield
3.34%
Years of Dividend Increases
15
1-Year Dividend Growth
14.29%
5-Year Dividend Growth Annualized
6.83%
Market Cap ($M)
20,299
Payout Ratio
38.65%
Beta
1.26
One Year Price Return
50.85%
Two Year Price Return
49.09%
Five Year Price Return
57.70%
Best dividend stocks to buy for safety and growth
BEN – Franklin Resources, Inc.
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships.
Franklin Resources offers a interesting dividend yield of 3.32%. The company is a dividend aristocrat with a solid record of increasing its dividends (42 years in a row).
The payout ratio is low at 15%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
BEN is a large cap with over 17 Billion dollars in assets. The stock is more volatile than the market with a Beta of 1.51. In addition to paying generous dividends, the stock performance was very attractive. BEN had a price return of over 36.86% just in the past year.
Ticker
BEN
Name
Franklin Resources, Inc.
Sector
Financial Services
Dividend Yield
3.32%
Years of Dividend Increases
42
1-Year Dividend Growth
3.57%
5-Year Dividend Growth Annualized
7.71%
Market Cap ($M)
17,553
Payout Ratio
15.60%
Beta
1.51
One Year Price Return
36.86%
Two Year Price Return
49.68%
Five Year Price Return
10.71%
Best dividend stocks to buy for safety and growth
UGI – UGI Corp.
UGI Corp. operates as a holding company that engages in the distribution, storage, transport, and marketing of energy products and services. It operates through the following segments: AmeriGas Propane; UGI International; Midstream and Marketing; and UGI Utilities.
UGI offers a interesting dividend yield of 3.06%. The company is a dividend aristocrat with a solid record of increasing its dividends (34 years in a row).
The payout ratio is low at 9.7%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
UGI is a large cap with over 9 Billion dollars in assets. The stock is less volatile than the market with a Beta of 0.60. In addition to paying generous dividends, the stock performance was very attractive. UGI had a price return of over 28.69% just in the past year.
Ticker
UGI
Name
UGI Corp.
Sector
Utilities
Dividend Yield
3.06%
Years of Dividend Increases
34
1-Year Dividend Growth
4.55%
5-Year Dividend Growth Annualized
7.75%
Market Cap ($M)
9,584
Payout Ratio
9.76%
Beta
0.60
One Year Price Return
28.69%
Two Year Price Return
10.94%
Five Year Price Return
13.17%
Best dividend stocks to buy for safety and growth
WEC – WEC Energy Group Inc
WEC Energy Group, Inc. is a holding company, which engages in the generation and distribution of electricity and natural gas.
WEC offers a interesting dividend yield of 2.99%. The company has a solid record of increasing its dividends (18 years in a row).
The payout ratio is low at 64%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
WEC is a large cap with over 9 Billion dollars in assets. The stock is less volatile than the market with a Beta of 0.14. In addition to paying generous dividends, the stock performance was very attractive. WEC had a price return of over 14% just in the past year.
Ticker
WEC
Name
WEC Energy Group Inc
Sector
Utilities
Dividend Yield
2.99%
Years of Dividend Increases
18
1-Year Dividend Growth
7.11%
5-Year Dividend Growth Annualized
5.43%
Market Cap ($M)
30,685
Payout Ratio
64.43%
Beta
0.14
One Year Price Return
14.06%
Two Year Price Return
9.91%
Five Year Price Return
92.91%
Best dividend stocks to buy for safety and growth
KEY – Keycorp
KeyCorp operates as bank holding company, which engages in the provision of financial services. it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, student loan refinancing, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate, and institutional clients.
KEY offers a interesting dividend yield of 2.92%. The company has a solid record of increasing its dividends (11 years in a row).
The payout ratio is low at 29%, which means it’s sustainable in the future. Some companies offer higher dividend yields but their payout ratio often exceeds 100%. This means that they are paying in dividends more than their reported income. Obviously, a high payout ratio means that sooner or later the company will have to make a cut. Furthermore, a company that distributes most of its reported income as dividends does not invest in its future.
KEY is a large cap with over 24 Billion dollars in assets. The stock is more volatile than the market with a Beta of 1.15. In addition to paying generous dividends, the stock performance was very attractive. WEC had a price return of over 47% just in the past year.
Ticker
KEY
Name
Keycorp
Sector
Financial Services
Dividend Yield
2.92%
Years of Dividend Increases
11
1-Year Dividend Growth
5.41%
5-Year Dividend Growth Annualized
18.07%
Market Cap ($M)
24,859
Payout Ratio
29.04%
Beta
1.15
One Year Price Return
47.11%
Two Year Price Return
49.64%
Five Year Price Return
71.78%
Best dividend stocks to buy for safety and growth
Reasons behind the strength of banking stocks
News of faster economic growth than anticipated seem to favor the banking sector. Here we need to distinguish between two trends: large Banks and small-mid regional banks.
Large banks benefited from:
Trading: revenues are soaring from an exceptional year. Retail investors were abnormally active and trading much more than usual which increased commissions’ revenues for Banks;
Releasing large sums of money that were held in reserves to hedge against expected loan losses due to pandemic. These losses never materialized.
Small and regional Banks
Regional banks did not benefit from the increase witnessed in trading activities or investment banking. See below some factors that are pushing some investors to be bullish:
Loan growth should improve because most if not all covid-related support will cease in the second half of the year;
Rising interest rates is usually favorable for both attracting new deposits and providing high yielding loans;
Consumer spending is picking up and is expected to reach pre-pandemic levels before year end. This will benefit traditional baking segments;
Mergers and acquisitions rumors’ surrounding some attractively valued US regional banks.
In this post, we will be reviewing the offering for Bitcoin and Ethereum ETFs in Canada. We will first have a look at the advantages of holding an ETF rather than the cryptocurrency directly. Then we will compare the prospects for both Bitcoin and Ethereum. Finally, we go through the ETFs available in the market thus far (comparison of MER and Asset under management).
What’s a Bitcoin
You can review our previous post or check the more detailed source below.
This is one of the greatest features of holding a cryptocurrency ETF. You can take advantage of the growth potential of these speculative investments within a registered account.
You cannot accomplish this if you invest in Bitcoin or Ethereum directly.
Simple to trade and safety
Buying bitcoin or Ether can be challenging. Investors need to familiarize themselves with a lot of new concepts before even considering acquiring cryptocurrencies. Add to this, the choice of platform is left to the investor when he acts on his own and the storage/safety too.
Cryptos in ETFs are Physically settled and safely held in cold storage. Cold storage is a way of holding cryptocurrency tokens offline (so inaccessible for hackers).
When you buy a Crypto ETF, there is no need of a wallet account.
Should you buy a Bitcoin ETF or an Ethereum ETF?
Bitcoin and Ethereum rely on the same technology. This being said, they are quite different when it comes to the purpose. In essence, Bitcoin’s objective is to become a true currency. It has achieved a lot of head wings in the past years. According to Coinbase, 20% of all Bitcoin transactions were actual payments for exchange of services. Slowly, Bitcoin is becoming widely accepted and viewed as an alternative to national currencies. Besides, the entry of institutional investors into this market will for sure bring some stability in comparison to the rocky beginning of Bitcoin. As a bitcoin ETF holder, you are part of the movement that will stabilize Bitcoin.
What makes Bitcoin appealing is the cap of 21 million units that can be created. This limited supply will help Bitcoin keep a threshold value.
On the other hand, Ethereum was intended as a platform to facilitate smart contracts via its own currency. As more and more smart contracts and decentralized applications are built Ethereum’s popularity and profitability will increase. There is no cap in the number of Ethereum that can be created. Ethereum has gained credibility when Microsoft and ConsenSys partnered to offer Ethereum Blockchain as a service on Microsoft Azure.
Advantages and Disadvantages
+ Advantages
– Disadvantages
Bitcoin
Bitcoin technology is well established
Bitcoin is more and more popular and with the entry of institutional investors, the volatility would be lower
Limit of 21 Millions makes it valuable
Government regulations can hinder its growth
Ethereum
Technology is promising but not yet well established High risk but also high reward if technology becomes streamlined
Government regulations can hinder its growth
No cap on the number of Ethereum that can be created makes it less appealing for some investors
Newer technology than Bitcoin, so more risk and more potential growth
The CI Galaxy Bitcoin stands out for its low MER in comparison with BTCC purpose bitcoin.
BTCC Purpose bitcoin
Purpose Bitcoin ETF (the “Fund”) invests in and holds substantially all of its assets in long-term holdings of the digital currency bitcoin. Its considered a high risk investment. As such, it should not constitute a large portion of your portfolio but rather a minimal portion.
BTCC-B: Trades in Canadian dollars
BTCC-U: Trades in US dollars
BTCC: Trades in Canadian dollars and is hedged against currency fluctuations.
CI Galaxy Bitcoin
The ETF’s investment objective is to provide holders of units exposure to bitcoin through an institutional-quality fund platform.
Purpose Ether ETF invests in and holds substantially all of its assets in long-term holdings of the digital currency ether (“Ether”).
CI Galaxy Ethereum ETF
The ETF’s investment objective is to provide holders of units exposure to Ether through an institutional-quality fund platform.
ARKK is the largest actively managed Exchange Traded Fund in the US. Its performance since its inception has been short of exceptional. It’s widely popular among investors. If you just heard about it then let’s dive in together to determine if it’s still a good time to buy! Or time to stay away from the bubble that can be caused by some its overvalued holdings.
ARK philosophy is built around investing in disruptive technologies. It means it’s looking to invest now in the technologies that will dominate the future. So far, the fund manager Catherine D Wood has been successful at her choices and the ETF has become widely known among investors as one of the best performing ETFs out there.
As per the prospectus, ARKK is an actively managed ETF that seeks log-term growth. At least 65% of its assets have to be invested in it’s theme which is DNA technologies (‘‘Genomic Revolution”), industrial innovation in energy, automation and manufacturing (‘‘Industrial Innovation’’), the increased use of shared technology, infrastructure and services (‘‘Next Generation Internet’), and technologies that make financial services more efficient (‘‘Fintech Innovation’’).
Note: Past performance does not guarantee future results.
ARKK ETF Top 10 Holdings
company
weight (%)
TESLA INC
7.17%
ROKU INC
6.23%
TELADOC HEALTH INC
6.14%
ZOOM VIDEO COMMUNICATIONS-A
6.10%
COINBASE GLOBAL INC -CLASS A
4.76%
UNITY SOFTWARE INC
4.59%
SPOTIFY TECHNOLOGY SA
4.20%
TWILIO INC – A
4.16%
EXACT SCIENCES CORP
3.92%
INTELLIA THERAPEUTICS INC
3.79%
as of December 21st
ARKK ETF Methodology
To better assess if ARKK is a good ETF to buy, we have to look into:
MER: The management expense ratio for this ETF is really low (0.75%) considering it’s an actively managed fund (not just an ETF tracking an index).
The holdings: The list is shown in the table above and includes some household names in addition to other less known to the public technology companies. In my analysis I will focus on its top holding which are Tesla inc and Roku Inc.
Tesla
The performance of Tesla Inc Shares has definitely helped ARKK reach amazing returns in 2020. The enthusiasm for Tesla reminds many analysts of a pre-bubble phase. The stock is trading at a valuation that is very difficult to justify with its financial ratios:
Price / Earning ratio for Tesla: 175x
Price / earning ratio (average whithin its industry): 15x
The numbers speak for themselves, Tesla has a Price / Earning ratio that is way over the industry average. To be able to value a company, you need to determine its future earnings and its growth rate in the future. At the current valuation, Tesla needs to post insane profits in the coming years which is realistically unlikely. Just a reference Tesla started the year 2020 with a market capitalization of $81 B and ended the year at $420 B. On December 2020, it made its entry to the S&P500. This means Tesla shares will have to be purchased by all index fund managers who track the S&P500. This will for sure help Tesla shares be more stable as a good portion of its shares will be held by institutional investors. Many analysts believe though that the entry to the S&P will help a bit but only in the short term. The performance of the company will reside on its ability to deliver on its upcoming new car Model Y. Also, Tesla needs to up significantly its sales for her autonomous driving software to convince the market. Software sales were key in making Tesla profitable in the past years because of their high margin.
In short, Tesla needs to maintain investors hope really high to keep its current valuation. Any unexpected drop in sales or issues with its new model will shake investors’ confidence. We need also to keep in mind the competition which is working hard to catch up to Tesla in the electric vehicle segment.
Roku inc
Compared to its lows of March 2020, Roku’s shares have had a terrific ride (Up 420%). The fact that the company posted losses in 2020 did not discourage investors. The growing number of Roku’s daily active users seems to be the main driver. Many analysts expect the company to increase its revenues at the expense of traditional media content.
Roku is expected to meet expectation because:
Growth in sales of Roku smart tv’s;
Roku’s acquisition of new content such as Quibi’s;
Growth in ad revenues.
Final thought
As you can see above, Tesla Inc which represents 10% of ARKKs holdings have a questional valuation. This could slow some of the futur returns. However, one should note that the main aspect of an actively managed fund is the quality of its manager. ARKK has consitently out performed the index since its creation. So, the recent performance is not a coincidence. We recommend a buy and hold strategy because of the long term return potentiel.
Please see other posts you might be interested in!
In this post we will review the Top 7 Best US Growth ETF in terms of performance (past 52 weeks)! We have selected only ETFs that had the highest returns. Also, we limited ourselves to ETFs that have asset under management (AUM) above 1 Billion dollars. ETFs with low AUM tend to be less liquid and cost more when trading because of the spread (the difference between the bid and ask price) is often high.
Please note, past performance does not guarantee future results. I personally use this list to understand market trends and anticipate future ones.
Highlights
Index ETFs tracking the Energy sector dominate our top 7 Best US Growth ETFs. In the sections below, we will discuss the reasons that could explain their amazing performance so far.
Energy
Within the past year, the S&P 500 Energy Sector index has been outpacing the broad S&P 500 index by a 20% margin, according to etftrends.com. This benefited Energy ETFs who are invested in significant Oil & Gaz producers. The fears surrounding supplies continue to be the primary catalyst. The US government tried to convince OPEC+ to increase production, but so far, these efforts have failed. Consequently, the United States will be using the strategic petroleum reserve to try to appease markets. Several other courtiers are expected to follow suit.
What lies ahead for 2022 is potentially more stable growth. Investors should pick producers who can benefit from the recent supply issues and who are also prepared to switch to wind and/or solar energy to reap future growth opportunities.
Moody’s said in a report on Friday (November 19) “The ongoing recovery in global oil demand, gradual supply growth, and a manageable cost environment will provide a supportive macro backdrop for producers to maintain earnings above 2019 levels,”. “Many producers that did not invest sufficiently in 2020-21 will seek to boost capital budgets to stabilize production and stave off potential declines in volumes.”
Carbon (cap-and-trade)
Carbon credits are part of cap-and-trade schemes meant to reduce CO2 emissions. Governments’ green initiatives has led Carbon prices to hit new records over the past year.
Uranium
The potential growth in global demand for uranium is pushing uranium stocks and ETFs higher. China has unveiled plans to build 50 new nuclear power plants. Also, the new American administration is keen to reduce its dependence on coal and oil. There is a push for clean electricity through energy sources like nuclear power. This is because nuclear power provides a low-carbon source of energy that is not intermittent, unlike wind and solar power.
The KraneShares Global Carbon Strategy ETF (KRBN) invests in carbon credits (using future contracts). These credits are used in cap-and-trade schemes meant to reduce CO2 emissions.
The performance of KRBN is directly linked to the price of carbon.
2) XOP – S&P Oil & Gas Expl & Prod SPDR
The SPDR® S&P® Oil & Gas Exploration & Production ETF seeks to provide exposure to the oil and gas exploration and production segment. This ETF invests in large, mid and small cap stocks.
XOP invests directly in businesses involved in: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing
Top Holdings
Name
Weight
PBF Energy Inc. Class A
2.51%
Valero Energy Corporation
2.49%
APA Corp.
2.41%
Devon Energy Corporation
2.40%
EQT Corporation
2.39%
Phillips 66
2.39%
Marathon Oil Corporation
2.38%
Marathon Petroleum Corporation
2.36%
HollyFrontier Corporation
2.34%
Antero Resources Corporation
2.33%
Fund Top Holdings as of Jan 03 2022
3) USO – US Oil Fund
The United States Oil Fund® LP (USO) is an ETF that tracks the price of West Texas Intermediate Light Sweet Crude Oil.
4) REMX – Rare Earth/Strategic Metals Vaneck ETF
VanEck Vectors® Rare Earth/Strategic Metals ETF (REMX®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Rare Earth/Strategic Metals Index (MVREMXTR), which is intended to track the overall performance of companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals.
Daily Holdings (%) as of 01/03/22, Total Holdings: 20
5) FENY – Fidelity Energy MSCI ETF
FENY offers exposure to the energy sector in the U.S. equity market (by tracking the MSCI USA IMI Energy Index)
Portfolio Composition
Exxon Mobil Corp
19.86%
Chevron Corp
17.03%
ConocoPhillips
7.13%
EOG Resources Inc
4.07%
Pioneer Natural Resources Co
3.31%
Schlumberger Ltd
3.22%
Marathon Petroleum Corp
3.18%
Williams Companies Inc
2.61%
Kinder Morgan Inc Class P
2.53%
Phillips 66
2.43%
Holdings AS OF 11/30/2021
6) VDE – Energy ETF Vanguard
VDE is an index ETF (passively managed). The funds seeks to provide exposure to the US energy equity market.
Month-end 10 largest holdings (66.30% of total net assets) as of 11/30/2021
1 Exxon Mobil Corp. 2 Chevron Corp. 3 ConocoPhillips 4 EOG Resources Inc. 5 Pioneer Natural Resources Co. 6 Schlumberger NV 7 Marathon Petroleum Corp. 8 Williams Cos. Inc. 9 Kinder Morgan Inc. 10 Phillips 66
7) URA -Global X Uranium
URA is a targeted play on uranium mining and the production of nuclear components.
Net Assets (%)
Name
23.23
CAMECO CORP
10.42
NAC KAZATOMPROM JSC-GDR
7.16
NEXGEN ENERGY LTD
6.55
PALADIN ENERGY LTD
4.69
DENISON MINES CORP
4.45
ENERGY FUELS INC
3.33
URANIUM ENERGY CORP
2.93
YELLOW CAKE PLC
2.19
CENTRUS ENERGY-A
2.01
CGN POWER CO LTD-H
Top Holdings As of 01/04/22
Archive
Transformational Data Sharing Amplify ETF (BLOK)
With all the hype surrounding cryptocurrencies, it’s no surprise that a blockchain technology ETF tops the list of the best performing ETFs in the US. This ETF is BLOK and it’s offered by AmplifyETFs. The fund invests primarily in companies involved in the development and utilization of blockchain technologies. One of the most known application of these technologies is Bitcoin and other similar cryptocurrencies. This being said, it’s not the only application. It applied in various other ways:
– Financial services: blockchain will revolutionize the way banks settle financial transactions or sell you financial products such insurances..etc.;
– Smart property: think of it as making everything that belong to you connected to each other such as you car, your home, your fridge…etc.;
– Smart contract: any service that contractual: music, health, financial products will be soon impacted by blockchain technologies!
– Blockchain identity: Governments are quite interested in investing in blockchain technology. They will be soon able to produce digital passports or provide you with Birth, wedding or death certificates all online with guarantee of very low risk of error in them. !
BLOK is very popular ETF and has 1.3 Billion dollars in asset under management.
Amplify Seymour Cannabis ETF (CNBS)
CNBS is an actively managed ETF that invests in companies that drive 50% or more of their revenue from the Cannabis and Hemp ecosystem. These companies can be small, medium or large cap. The fund’s selection of stock includes also companies that supports the industry such agricultural technology, Real Estate and Commercial Services, or Ancillary (Consumption Devices/Mechanisms, Investing & Finance, Technology & Media and Other Ancillary).
Advisorshares Pure Cannabis ETF (YOLO)
YOLO is another play in the Cannabis field. This fund is actively managed and screens the market (domestically and internationally) for companies that drive at least 50% of their net revenue from marijuana and hemp industries. 25% of the assets of the fund are in the pharmaceuticals, biotechnology and life sciences.
COPX – G-X Copper Miners ETF
The Global X Copper Miners ETF (COPX) provides investors access to a broad range of international companies active in exploration, mining and/or refining of copper. Number of holdings can range from 20 to 40. Adjustments are carried out semi-annually.
Online Retail Amplify ETF (IBUY)
This ETF tracks an index of global stocks issued by firms with revenues dominated by online retail sales. These firms must have at least 70% of their revenues from online sales. The geographic allocation of this ETF is 75% US stocks and 25% International.
XRT – S&P Retail SPDR
The SPDR® S&P® Retail ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Retail Select Industry® Index. The retail segment of the S&P TMI comprises the following sub-industries: Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets & Super Centers, Internet & Direct Marketing Retail, and Specialty Stores.
In 7th position, we have a small cap ETF. The Invesco S&P SmallCap Consumer Discretionary ETF (Fund) is based on the S&P SmallCap 600® Capped Consumer Discretionary Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index.
Companies part of the index are engaged in consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and real estate. PSCD is balanced in a quarterly basis.
SPDR S&P Kenso Smart Mobility – HAIL
HAIL invests in companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems.
The North Shore Global Uranium Mining ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Global Uranium Mining Index (the “Index”). The Index is designed to track the performance of companies that are involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets.
FCG -Natural Gas FT
The investment objective of the Fund is to replicate the performance of an equity index called the ISE-Revere Natural Gas™ Index.
The index itself is comprised of exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas. Several criteria’s are applied in the selection process:
proven reserves minimum
Liquidity
Market capitalization
Weighting concentration
PXE -Dynamic Energy Exploration & Production Invesco
The Invesco Dynamic Energy Exploration & Production ETF is based on the Dynamic Energy Exploration & Production Intellidex℠ Index (Index).
The Index is composed of securities of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy. The index will include stocks that meet several criteria’s:
price momentum,
earnings momentum,
quality,
management action,
value
UNG -US Natural Gas Fund
The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. The fund does not hold Natural Gaz stocks but rather invests in futures contract.
Disclaimer
The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional advisor.
The Canadian stock market remains marked by great volatility. From the precipitous market decline at the onset of the pandemic to recent record highs in 2021, the market has certainly tested the courage of investors. To help you, we have compiled 3 lists of the best performing Canadian stocks to buy:
– The best large cap stocks in terms of performance since the start of the year. Large cap means that the company must have a market value greater than $ 10 billion;
– The best mid cap stocks in terms of performances since the start of the year. Mid cap means the company must have a market value greater than $2 Billion;
– The best small cap stocks in terms of performances since the start of the year. Small cap means the company must have a market value greater than $300 Millions;
Best Canadian Stocks in 2021 (Small cap) by performance
Symbol
Name
YTD %Chg
3Y %Chg
ATH
Athabasca Oil Corp
600.00%
6.25%
NVA
Nuvista Energy
558.51%
70.99%
FIL
Filo Mining Corp
510.36%
435.45%
CR
Crew Energy Inc
446.43%
183.33%
PIPE
Pipestone Energy
425.37%
80.51%
OBE
Obsidian Energy
414.94%
-3.03%
CJ
Cardinal Energy
392.68%
55.38%
AAV
Advantage Oil & Gas
314.62%
219.37%
BIR
Birchcliff Energy
266.67%
96.67%
NEXT
Nextsource Mat
257.78%
222.00%
November 30th Barchart
Disclaimer
The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional advisor.
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Wireless and Wireline segments.
Telus trades in the Toronto Stock Exchange (TSE). Telus is a dividend aristocrat stock with 17 years of consecutive dividend increases!. The list of Canadian ”Dividend Aristocrats” stocks is managed by the firm Standard and Poors. The index is titled the S&P Canadian Dividend Aristocrats. It requires a minimum of 5 years of successive dividend increases. For the full list of Canadian Dividend Aristocrats stocks, please follow the link here.
TSE T – Dividend profile
Telus stock offers an attractive yield of 4.50%. The dividend is not safe as the pay out ratio is over 100%. The telecom company increased its dividends for 17 consecutive years which is a sign of a solid financial situation.
The dividend growth in the past five years was 7%. This is really good news for any investor. The continuous increase in dividends helps investor cope with the impact of inflation.
The Beta is a measure of volatility. Telus’s Beta is at 0.5 meaning the stock is less volatile than the overall market.
Telus witnessed a modest growth in revenues in the past 5 years mainly due to the impact of the pandemic on travel activites (which generate very profitable roaming charges).
TSE-T – Analysis and financial data
Telus offers stable dividend. It’s somewhat similar to a bond with better return. The company enjoys being part of an industry that has high barriers to entry. The competition is limited to the usual players such as BCE, Rogers…etc. The industry itself can be viewed as an oligopoly. Many analysts consider the dividend to be safe but warn of limited growth.
The stock market remains marked by great volatility. From the precipitous market decline at the onset of the pandemic to recent record highs in 2021, the market has certainly tested the courage of investors. To help you, we have compiled 3 lists:
– the best Mega caps in terms of performance since the start of the year. Mega caps means that the company must have a market value greater than $ 200 billion;
– the best large cap stocks in terms of performance since the start of the year. Large cap means that the company must have a market value greater than $ 10 billion;
– the best mid cap stocks in terms of performances since the start of the year. Mid cap means the company must have a market value greater than $2 Billion;
– the best small cap stocks in terms of performances since the start of the year. Small cap means the company must have a market value greater than $300 Millions dollars;
Best US Stocks in 2021 (Mega cap) by performance
Name
YTD %Chg
3Y * %Chg
ASML – Asml Hld NY Reg ADR
63.1
290.1
LLY – Eli Lilly & Co
55.4
156.6
NVDA – Nvidia
55.3
218.2
GOOG – Alphabet Cl C
55.2
119.8
GOOGL – Alphabet Cl A
54.2
115.7
NVO – Novo Nordisk A/S ADR
40.6
109.5
ORCL – Oracle Corp
39.2
86.3
XOM – Exxon Mobil
37.8
-28.4
DHR – Danaher
37.5
204.6
FB – Facebook Inc
31.4
99.1
As of August 4th, Barchart.com , *Cumulative return
Similar posts:
Best US Stocks in 2021 (Large cap) by performance
Name
YTD %Chg
3Y %Chg
AMC – Amc Enter
1,307.5
71.0
GME – Gamestop Corp
679.1
858.2
BNTX – Biontech Se ADR
408.3
N/A
MRNA – Moderna Inc
301.1
N/A
ASAN – Asana Inc Cl A
146.7
N/A
FUTU – Futu Holdings Ltd ADR
133.9
N/A
LB – L Brands Inc
114.9
155.8
TFII – Tfi Inter Inc
113.4
206.7
FTNT – Fortinet Inc
104.6
303.8
CLR – Continental Res
101.4
-49.3
As of August 4th, Barchart.com , *Cumulative return
As of August 4th, Barchart.com , *Cumulative return
Best US Stocks in 2021 (Small cap) by performance
Name
YTD %Chg
3Y %Chg
VTNR – Vertex Energy
1,080.1
577.4
MOXC – Moxian Inc
601.4
20.2
SGOC – Sgoco Gr
451.7
676.7
EXPR – Express Inc
424.1
-54.7
PDSB – Pds Biotechnology Corp
420.5
-38.7
BTU – Peabody Energy Corp
356.8
-74.6
UXIN – Uxin Ltd ADR
303.4
-46.4
IDT – IDT Corp
302.0
857.4
XYF – X Financial ADR
289.5
N/A
OCGN – Ocugen Inc
271.0
-95.3
As of August 4th, Barchart.com , *Cumulative return
Disclaimer
The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional advisor.
