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
tii2423 (December 5, 2024)
Disney back on track… Top Pick: The Walt Disney Co…. Adam Mayers’s updates… Gavin Graham updates AltaGas, Boralex… Your Questions: Atlantica sale… Price increase
tii2422 (November 28, 2024)
Balanced Portfolio gains on rate cuts… Wall Street feels the Trump effect… Gavin Graham picks Finning International… Gavin Graham updates Canadian Natural Resources, Suncor Energy, Peyto Exploration and Development… Long US Treasury bonds may be timely… Shawn Allen’s bond recommendations
tii2421 (November 13, 2024)
Utilities trend higher, but…… Singles beat homers… This month’s Top Pick: Metro Inc…. Gordon Pape updates Enbridge… Your Questions: Preferred shares
tii2420 (October 24, 2024)
High Yield Portfolio gains 20%… The Bull is alive!… Gavin Graham updates Unilever, Diageo, Corby Spirit and Wine, Brookfield Corp.
tii2419 (October 10, 2024)
A REIT that captures AI growth… Top Pick: Digital Realty Trust… Adam Mayers updates TC Energy… Gavin Graham updates C.K. Hutchinson… Your Questions: Searching for safety and yield… Member’s Corner: Automotive Properties REIT
tii2418 (September 26, 2024)
Uneven recovery… Rate reversal rallies REITs… Top Pick: Killam Apartment REIT… Gavin Graham’s REIT updates: Allied Properties, Artis, Automotive Properties, Granite, Minto Apartment… Your Questions: Retirement asset allocation, Northwest Healthcare Properties
tii2417 (September 12, 2024)
Utilities rebound as rates fall… Gordon Pape updates Algonquin Power and Utilities… Gavin Graham updates Sun Life Financial, Savaria Corp…. Your Questions: Royal Bank preferred
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%.