Designed to help Canadians find investment solutions to the two big problems they’re facing: low interest rates and volatile stock markets, the Income Investor was chosen by The Globe and Mail as one of the top five investment newsletters in Canada. If you need income from investments with minimal risk, the Income Investor covers all types of income securities including income trusts, preferred shares, high-yielding common stocks, bonds, mutual funds, exchange-traded funds, and GICs. Any security that generates cash flow is fair game for our experts.
Edited and published by Gordon Pape. Editor: Mike Keerma.
With Gavin Graham, Shawn Allen, Richard Croft, & David Kitai.
Recent Issues
tii2215 (August 11, 2022)
The 5% solution… Gordon Pape updates BMO Equal Weight Utilities Index ETF, The Coca-Cola Company… Gavin Graham updates Boralex… Your Questions: Russel Metals, Algonquin dividends… Pro’s Posts: Strip bond ETFs
tii2214 (July 28, 2022)
Bond angst… We’ll always need power (and much more)… Top Pick: AltaGas… Gordon Pape updates Brookfield Renewable Partners, Brookfield Infrastructure LP… Gavin Graham updates Diageo, Unilever, Fiera Capital, Boralex, Suncor… Members’ Corner: Interest rates
tii2213 (July 14, 2022)
High rates may not be “transitory”… This month’s Top Pick: Exchange Income Corp…. Gordon Pape updates NorthWest Healthcare Properties REIT, Dream Industrial REIT
tii2212 (June 30, 2022)
Energy sector pays off… The REIT stuff… Graham’s retail REIT updates: Choice Properties, CT, SmartCentres, Plaza Retail… Graham’s commercial/residential REIT updates: Allied Properties, Minto Apartment, Artis… Gordon Pape updates ConocoPhillips… Members’ Corner: Likes VRIF
tii2211 (June 16, 2022)
Pipelines prosper… This month’s Top Pick: CI Health Care Giants Covered Call ETF… Your Questions: Seeks a retirement fund; Wants an investment course
tii2210 (May 26, 2022)
Defensive positions… The correction blues… Richard Croft’s updates: CIBC, Manulife… Gordon Pape’s updates: Algonquin Power & Utilities, Summit Industrial Income REIT, Canoe EIT Income Fund, Valero Energy, Procter & Gamble… Your Questions: LIF dividend
tii2209 (May 12, 2022)
Balancing act… Bond dilemma… Gordon Pape updates North West Company, Coca-Cola… Your Questions: Slate Grocery REIT
Recent Updates
Brookfield Renewable Partners (TSX: BEP.UN, NYSE: BEP)
Brookfield operates one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. It operates over 40 gigawatts of total installed capacity including hydroelectric, wind, solar, and utility-scale battery energy storage systems, alongside sustainable solutions like nuclear services (via Westinghouse Electric) and green fuels.
Hold
Brookfield Infrastructure Partners (TSX: BIP.UN, NYSE: BIP)
This is a Bermuda-based limited partnership that owns infrastructure assets in North and South America, Europe, and Australia. These include railways, ports, transmission lines, toll roads, utilities, and more.
Hold
RBC Canadian Bank Yield Index ETF (TSX: RBNK)
You may wonder how an ETF that invests only in six banks can outperform the Financials sub-index and funds like the BMO Equal Weight Banks Index ETF (TSX: ZEB). The answer is asset mix.
Whereas the BMO fund equally divides its holdings among the Big Six banks, this one makes bets on which will perform best. At present, Bank of Montreal is the top position at 26.1% followed closely by Scotiabank at 25.1%. They’ve both done well, with BMO ahead about 43% year to date while Scotiabank has added about 24%.
Buy
Power Corporation of Canada (TSX: POW, OTC: PWCDF)
Power Corp. is a diversified financial holding company with controlling stakes in Great-West Lifeco and IGM Financial. It also owns two alternative‑asset platforms: Sagard and Power Sustainable.
This suite of companies allows POW to combine stable earnings from insurance and wealth management augmented by exposure to private markets and sustainable infrastructure.
Hold
iShares S&P/TSX Capped REIT Index Fund (TSX: XRE)
This fund invests in all classes of REITs, including residential, industrial, retail, and office. It has 14 holdings, the largest of which is RioCan REIT, which accounts for 13.14% of total assets. Retail REITs form about 51% of the portfolio while exposure to office REITs, which were hit hard during the pandemic, is very low at 3.33%.
The REIT has not delivered anything in the way of capital gains since it was recommended 15 years ago, which says a lot about the overall state of Canada’s real estate business. But it has delivered steady cash flow to investors and has significantly outperformed the overall sector year-to-date with a gain of just over 15%.