TSI Network

With clean, renewable power, Innergex Renewable Energy has strong conceptual appeal for investors. But just as important is its mix of hydroelectric, wind and solar power. That diversity, along with plenty of long-term contracts, provides stable cash flows. It also lets this utility firm continue to spur growth by building its operations. While the firm recently cut its dividends, we feel that it was the right move to free up cash for investments in new projects.

A Member of Pat McKeough’s Inner Circle recently asked for his advice on Definity Financial, a leading Canadian property and casualty insurer that went public in 2021. Pat likes the firm’s impressive revenue growth and recent earnings gain. The company demonstrates strong operational performance with robust premium growth across all business lines. However, Pat notes that recent IPOs can expose investors to above-average risks of unpleasant surprises involatile markets. DEFINITY FINANCIAL CORP.

Becton Dickinson’s strategic expansion through its Critical Care acquisition, combined with strong organic growth and operational efficiency, positions the company for sustained growth in the medical technology sector. The company’s most recent quarterly performance showed impressive revenue growth of 6.9% and an 11.4% increase in earnings per share, demonstrating strong execution capabilities.

Walmart has surged approximately 73% over the last year, outperforming many of its retail peers and the broader market. The company has also demonstrated a commitment to shareholder returns, with a 51-year track record of consecutive annual dividend increases. In April 2024, the firm raised its quarterly dividend 9.2%.

Shares of Intact Financial have more than doubled in the past five years with an 81.8% gain. It recently hit a new all-time high. That’s mainly due to savvy acquisitions that expanded the firm’s geographic reach. The company keeps raising its dividend for investors. In fact, it has raised the annual rate each year for the past 19 years since its initial public offering in December 2004. Meanwhile, the stock trades at 15.8 times the company’s forward earnings forecast. INTACT FINANCIAL CORP.

Starting in 2011, Telus began rewarding its shareholders with twice yearly dividend increases. Under the current version of the plan, the company committed to increasing the annual rate by between 7% and 10% from 2023 through the end of 2025. More dividend increases beyond 2025 seem likely now that the company has largely completed a multi-year plan to expand its 5G cellular and fibre-optic networks. These upgrades have helped it attract new customers and to sell more services to existing users.

A Member of Pat McKeough’s Inner Circle recently asked for his advice on Kinaxis Inc., a SaaS (Software-as-a-Service) company that specializes in supply chain operations. Pat likes the company’s reliable recurring revenue through long-term subscriptions, a solid balance sheet and an expanding global footprint. However, the company has underperformed its competitors, and an activist investor now wants the firm to sell itself.

Suncor Energy continues to demonstrate exceptional operational performance, achieving record-breaking throughput and utilization rates in its most recent quarter. The company’s successful debt reduction to $7.97 billion has triggered enhanced shareholder returns including a commitment to direct 100% of excess cash flow to share repurchases. This financial discipline, coupled with a 4.6% dividend increase, reflects management’s dedication to delivering value to shareholders.

Resmed’s sales and profits got a boost during the pandemic with a sharp rise in demand for its ventilators and other respiration devices. Even as the pandemic eased, the gains continued as the company introduced more products and expanded its software offerings. Today, the company’s outlook remains attractive, not just for its CPAP machines but also for its broader treatment potential in treating sleep apnea, a condition that can lead to various health complications.

A Member of Pat McKeough’s Inner Circle recently asked for his advice on Fastenal Company,  a leading industrial and construction supplies distributor. Pat likes the company’s steady growth, robust financial position and its focus on controlling costs. Its onsite location growth are very promising. However, Pat notes that the shares are expensive relative to their forecast earnings.