Image source: Getty Images The TSX is divided into a handful of sectors and dozens of industries, sometimes with significant overlap among them. However, outliers exist in both sets, despite their significant size differences, as industries can be small enough to contain just a few stocks, while sectors are usually made up of hundreds of…
The Bank of Canada’s rate reduction this month and the decent earnings of the top Canadian lenders are compelling reasons to invest in two bank stocks due to pop. The first is a Big Bank, and the second is a smaller but established financial institution. Market analysts recommend a buy or hold rating for both…
Image source: Getty Images. Last week, the Bank of Canada reduced interest rates by 0.25% to 4.75%, making it the first central bank in the G7 to initiate an easing cycle. Moreover, regulators emphasized that they might lower interest rates further if inflation is less than 2%. It’s evident that the path to lower interest…
Billionaire investors are billionaires for a reason. These investors use their funds properly to find the best investments that can turn their millions into billions. And while the average Canadian investor isn’t likely to suddenly become a billionaire by investing there, they could have the potential to make you a millionaire. Today, let’s look at…
Image source: Getty Images The best way to gain exposure to equity markets is to invest in low-cost passive funds that track indices such as the S&P 500. In the last six decades, the S&P 500 index has returned more than 10% annually after adjusting for dividend reinvestments. So, it makes sense for investors to…
Dividends are incentives to income-focused investors, but not all generous dividend payers are sound investment options. Some companies offer outrageous yields to lure investors. Yellow Pages Limited (TSX:Y) pays an attractive 11.4% dividend yield, although you might regret owning it. First, a micro-cap stock is risky in today’s investment landscape. Second, at $8.79 per share,…
Image source: Getty Images. The amount of capital you have access to is one of the core variables determining the size of the nest egg you can build, and it’s more than just about how much you can save. Take the Tax-Free Savings Account (TFSA) as an example. If your goal is to build a nest…
Image source: Getty Images With the Bank of Canada (BoC) slashing rates, investors seem quite excited to put a bit of new money to work on various stocks and real estate investment trusts (REITs) that stand to benefit. Indeed, lower costs of borrowing are good for a wide range of firms that spend a great…
Image source: Getty Images Many Canadian investors exhibit what is known as a home-country bias, heavily weighting their portfolios with Canadian stocks despite the fact that Canada’s stock market accounts for only about 3% of the global market by weight. It’s not uncommon to find Canadians who hold 30-50% of their investment assets in domestic…
Image source: Getty Images. TD Bank (TSX:TD) is going through a rough ride, with U.S. regulators investigating the American operations for weak processes and controls to prevent money laundering. Contrarian investors are wondering if TD stock is now undervalued and good to buy today for the dividend or if more downside is on the way….