There are many Canadian companies with long-term histories of outperforming the S&P/TSX Composite Index. As the historical top gainers are proven winners on the exchange, these top stocks should be in every Canadian’s retirement portfolio.
When you aren’t sure which stocks to buy, you know you can trust established, reputable companies that rarely ever lose any price momentum. Constellation Software(TSX:CSU) has been on a 10-year uptrend on the Toronto Stock Exchange.
Since 2010, the stock price has climbed 3,650% versus the index level percent change of 57.02%. The good news is that you haven’t missed out on making money on this diversified technology stock.
Buy stocks on long-term uptrends
It’s never too late to buy stocks on long-term uptrends like Constellation Software. Stocks like this might undergo small, temporary dips much like the one Constellation Software experienced in 2018. Nevertheless, these companies will almost always bounce back.
There’s a reason why Constellation Software has been on such a long uptrend. This technology stock reports a return on equity (ROE) of 63.42%!
Return on equity is the net income of a company divided by total shareholder equity. A high return on equity indicates that investors can feel confident that their investment will pay returns later on.
If you are wondering which types of stocks in which to invest, find established companies with long-term uptrends and a high ROE. That way you won’t need to worry about losing your life savings in stocks like Constellation Software.
Buy stocks with strong EPS growth
In the past year alone, the stock has returned 49% on the TSX. By comparison, the S&P/TSX Composite Index has increased by just 13.23%.
Canadians who want to earn alpha-level returns (above market average returns) in the stock market in 2020 should find stocks that consistently outperform the market such as Constellation Software.
Constellation Software is a technology company with high earnings growth. In 2018, Constellation Software brought in $17.90 in earnings per share (EPS), 71% higher than 2017’s reported EPS of $10.47. In 2016, Constellation Software reported $9.76.
Smart investors look for dependable growth in earnings. So before you invest in new, hot stocks with outsized share price increases compared to the EPS growth, you should re-evaluate your options. Overpriced stocks with hard-to-justify price momentum are too risky for the average investor.
Stick with proven earners before taking on risk
Before taking on risk in your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA), make sure you have reliable stocks like Constellation Software in your portfolio.
There’s nothing wrong with making speculative bets in the market to add some potentially profitable risk to your stock market portfolio. Before you make those bets, however, you need to ensure that you have exhausted your less risky investment options with similar expected returns.
Constellation Software has a five-year beta of about 0.7, less than the market average of approximately 1.0. If you use the beta as a risk measure, you can determine how well you’re optimizing your portfolio returns with respect to market risk.
Self-investing isn’t difficult. You just need to learn how to avoid unnecessary speculation and instead earn easy, painless money in the stock market.
There’s nothing better to an income investor than the sight of dividends rolling into your account. But the old saying goes there are two things certain in life – death and taxes… and the latter can result in some of those precious dividends slipping through your fingers and into the taxman’s pocket!
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TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
