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
tii2517 (September 11, 2025)
Junk bonds: A risk-return balance… CT REIT offers safety, income… Adam Mayers updates iShares S&P/TSX Dividend Aristocrats Index ETF, South Bow Corp…. Gavin Graham updates National Bank, Saputo
tii2516 (August 28, 2025)
Rate cuts would benefit utilities… Top Pick: Dominion Energy… RRIF Portfolio posts gain… Gavin Graham updates Canadian Tire, Corby Spirit and Wine, Lundin Mining
tii2515 (August 14, 2025)
Russel rewards investors… Ray Dalio’s US debt warning… Adam Mayers updates LyondellBasell Industries… Gordon Pape updates Bank of Montreal, Procter & Gamble
tii2514 (July 24, 2025)
A remarkable recovery… Gavin Graham’s energy updates: AltaGas, Canadian Natural Resources, Suncor Energy, Peyto Exploration & Development, Pason Systems… Preferreds are still profitable… Shawn Allen’s preferred share updates… Gordon Pape updates Exchange Income Corp.
tii2513 (July 10, 2025)
Why you should own utility stocks Hydro One hits new highs… Adam Mayers updates Western Union… Gordon Pape updates Canadian Utilities, Emera
tii2512 (June 26, 2025)
Spinoffs provide extra value… This month’s Top Pick: Haleon plc… Gavin Graham updates Watts Water Systems, Johnson & Johnson, Boardwalk REIT, Slate Grocery REIT, iShares MSCI UK ETF… Balanced Portfolio holds steady… Gordon Pape updates Algonquin Power & Utilities
tii2511 (June 12, 2025)
What’s safe?… Inflation defense… Adam Mayers updates Corby’s… New Harvest ETF worth a look
Recent Updates
BCE Cumulative Redeemable First Preferred Shares Series AC (TSX: BCE.PR.C)
I recommended BCE.PR.C as one possible alternative to Canadian bonds. Canadian preferred shares offer steady cashflow like a bond, trade based on changes in Canadian interest rates (like bonds), offer higher yields (current yield is 5.976%), and provide tax advantages because of the dividend tax credit.
Buy
iShares Global REIT ETF (NYSE: REET)
If you prefer to invest in international real estate, this should be your choice, although it is heavily weighted to the US (73% of assets). Other countries in the mix are Japan, Australia, Singapore, the UK, and France. Canada comprises only 2% of the portfolio. All told, the fund holds 318 positions.
Buy
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
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%.
Buy
iShares Global Infrastructure Index ETF (TSX: CIF)
This ETF tracks the performance of the Manulife Investment Management Global Infrastructure Index, net of expenses. It theoretically targets infrastructure companies from around the world but in fact most of its assets are in the US and Canada. The MER is 0.72%.
It was started in 2008 and has assets under management of about $1.6 billion