Favourite five stocks’ re­turn beats mar­ket bench­marks

Moose Jaw - - News - By Ron Wal­ter For Moose Jaw Ex­press

Last year was a year most in­vestors in the stock mar­ket just want to for­get.

The bench­mark Toronto Stock Ex­change Com­pos­ite in­dex lost 12.1 per cent in value dur­ing the year. The broad­based U.S. Stan­dard and Poors In­dex lost 9.7 per cent while the elite Dow in­dex lost six per cent.

The five favourite Bizworld stocks eked out an av­er­age nine-tenths of one per cent gain — noth­ing to write home about but cer­tainly bet­ter than the bell­wether in­dexes. In Septem­ber th­ese five had an av­er­age gain of around four per cent, los­ing it to the daily sell­ing in­spired by fear of U.S. Pres­i­dent Trump’s trade war tweets and bully tac­tics.

In the end, strong div­i­dends paid by four of the five cre­ated a tiny gain. Div­i­dends added 3.3 per cent to the re­turns. prov­ing the wis­dom of buy­ing div­i­dend pay­ing stocks. At­lantic Gold had the best price gain — 18.7 per cent to $1.65, as its Nova Sco­tia open pit gold mine went into full pro­duc­tion.

Su­pe­rior Plus, owner of in­dus­trial chem­i­cal plants and con­sol­ida­tor of North Amer­i­can propane re­tail­ers and whole­salers, turned in the worst loss — 20.4 per cent to $9.71.

The Bank of Mon­treal lost 4.6 per cent to $89.191 on stock trade churn­ing, while util­ity For­tis lost 1.8 per cent in price to $45.51. Pem­bina Pipe­line lost 5.8 per cent to $40.51.

Biz­worlds’s five favourite stocks for 2019 are Equinox Gold, Pem­bina Pipe­line, Power Fi­nan­cial, Emera Inc., and Cana­dian Western Bank.

Equinox, trad­ing at $1.02, op­er­ates a high cost heap, leach gold mine in Cal­i­for­nia with a new lower cost Brazil­ian gold mine start­ing pro­duc­tion be­fore spring.

Power Fi­nan­cial, en­ter­ing the year at $25.83, yields 6.7 per cent. The Que­bec-based fi­nan­cial con­glom­er­ate with own­er­ship stakes in Great West Life, In­vestors Group and Europe’s Pargesa in­dus­trial com­plex, is a steady snail­paced per­former, greatly un­der-val­ued by this volatile mar­ket.

Nova Sco­tia-based Emera, $43.71, a power gen­er­a­tion util­ity with plants in Canada, North­east­ern U.S., the Caribbean and now di­gest­ing sub­stan­tial ac­qui­si­tions in Ari­zona and Florida, is also un­der-val­ued by this mar­ket. The div­i­dend yields 5.4 per cent. Pem­bina Pipe­line of Al­berta has just ac­quired U.S, pipe­line as­sets, in­clud­ing an early stage $10 bil­lion liq­uid nat­u­ral gas project in Ore­gon.

Pem­bina trades at $40.51, with the div­i­dend yield­ing 5.6 per cent.

Cana­dian Western Bank, trad­ing at $26.04, yields just over four per cent. Linked to the dooms­day oil patch sce­nario, this bank’s price has suf­fered, yet it has few oil-re­lated loans.

Bank ex­ec­u­tives are part way through a plan to ex­pand On­tario loans.

The av­er­age yield of the four div­i­dend-pay­ing stocks is just over five per cent of­fer­ing a worth­while re­turn while wait­ing for tur­bu­lent stock mar­kets to set­tle down. The gold stock, Equinox, has po­ten­tial for nice gains from the new mine and of­fers price up­side if the mar­ket goes to pot and gold prices soar like ea­gles. CAU­TION: Re­mem­ber when in­vest­ing, con­sult your ad­viser and do your home­work be­fore buy­ing any se­cu­rity Bizworld does not rec­om­mend in­vest­ments.

Ron Wal­ter can be reached at ron­[email protected]­

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