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Worried about frothy markets? It's time to hide in Canada's 'Dividend Dynasties' stocks – Financial Post

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Growth and value stocks won’t be able to continue their rise at the same pace, CIBC Capital Markets says

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With rocketing stock market gains forecast to wane in the second half of the year, investors should pivot into dividend-paying stocks from growth or value equities, CIBC Capital Markets says in a new report.

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“Dividends are likely to take on increased importance as equity returns moderate,” CIBC analysts said a report this week. “With the current low interest rate environment, we expect dividends to become increasingly relevant for investors.”

The research team led by Ian de Verteuil recommends choosing Canadian stocks over their U.S. counterparts because the average spread on yields between the two country’s equities has widened to 120 basis points (bps) from an average of 40 bps over the past 30 years.

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Plus, four of the more stable industries — financials, communications, utilities and pipelines — on the Toronto Stock Exchange’s S&P/TSX composite index have boosted their share of the $75 billion a year paid in dividends to investors to 71 per cent compared with 54 per cent in the early 1990s, the researchers say.

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Growth and value stocks — shares that might have collapsed during the pandemic, but have soared this year with strong earnings as lockdowns eased and economies rebounded — won’t be able to continue their rise at the same pace.

As if to prove the CIBC point, this week the S&P/TSX fell to its lowest level since last month, in part hampered by rising COVID-19’s Delta variant cases and word that the U.S. Federal Reserve was mulling decreased support for the economy this year as rising employment neared a target.

On Thursday, all the main indices in Canada, United States and Europe were receding, while Asian equities dropped to their lowest level this year. Global central bankers are set to meet this month at their annual retreat in Jackson Hole, Wyoming, which could give an indication of where monetary policy is heading.

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Of importance to stocks is how the U.S. Fed will reduce or taper the US$120 billion in Treasury bonds and mortgage-backed securities it buys each month to inject cash into the economy.

U.S. Federal Reserve chairman Jerome Powell.
U.S. Federal Reserve chairman Jerome Powell. Photo by Al Drago/Pool/AFP via Getty Images files

Investors will also have to contend with when central banks will eventually raise interest rates from record lows at some point. Rates are often increased as a means to control inflation. The Bank of Canada’s inflation target is between 1 and 3 per cent while the country’s annual inflation rate rose to 3.7 per cent last month, the highest in a decade, while it stood at 3.5 per cent in June in the United States. However, current rising prices in most economies are largely seen as transitory while supply chain kinks are ironed out after pandemic lockdowns.

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Nonetheless, some market watchers are awaiting a pullback in stock prices, and CIBC is warning investors to prepare for a change in strategy.

“Price returns have been the name of the game in recent years,” CIBC said. “Given the unusually strong returns over the past handful of years, investors may be lulled into ignoring the importance of dividends.”

Research showed S&P/TSX dividends appear to be “more resilient than in the past.” About a third of S&P/TSX members have consistently increased dividends over the past five years, compared with 20 per cent in the early 2000s.

Tim Hortons’ parent Restaurant Brands International Inc. is one of Canada’s ‘Dividend Dynasties’ stocks.
Tim Hortons’ parent Restaurant Brands International Inc. is one of Canada’s ‘Dividend Dynasties’ stocks. Photo by Ben Nelms/Bloomberg files

The bank included a list of what it called Canadian “Dividend Dynasties” — companies that have increased their dividends more than 10 times over the past decade. Ranked by their dividend’s compound annual growth rate, the top five are Restaurant Brands International Inc. (parent company of Tim Hortons), property company Brookfield Asset Management Inc., software firm Enghouse Systems Ltd., pipeline company Enbridge Inc., and packager CCL Industries Inc.

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CIBC issued special praise for sixth place Canadian Natural Resources Ltd. for invariably raising its dividend despite being a crude producer enduring an oil price slump that made it the worst-performing company on the list of 33.

“We find it particularly impressive that CNQ has been able to consistently grow its dividend over this period,” the bank research team wrote.

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CNQ’s resilience is even more impressive as energy and materials sectors accounted for about 80 per cent, or $21 billion, of the $27 billion in total dividend cuts over the past 15 years, the bank said.

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Most of the resource companies, which compose a large proportion of the S&P/TSX market capitalization, “are price takers, and are dependent on volatile commodity prices,” CIBC said. “As such, this makes regular, consistent dividends more difficult to support.”

Rounding out the top 10 on the list are car parts maker Magna International Inc., gold miner Franco-Nevada Corp., Canadian National Railway Ltd. and grocer Metro Inc.

Financial Post

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Some gasoline stations in U.K. run out of fuel as pandemic supply chain crisis deepens – CBC.ca

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Britain’s retail industry warned the government on Friday that unless it moves to alleviate an acute shortage of truckers in the next 10 days then significant disruption was inevitable in the run-up to Christmas.

As the world’s fifth-largest economy emerges from COVID-19 lockdowns, a spike in European natural gas prices and a post-Brexit shortage of truck drivers have left Britain grappling with soaring energy prices and a potential food supply crunch.

BP had to close some of its gas stations due to the driver shortages while queues formed at some Shell stations as pumps ran dry in some places. 

“We are seeing an increased demand today for fuel at some of our stations, which may in some instances result in larger queues. We are adapting our delivery schedules to ensure sufficient supplies for our customers,” a spokesperson for Shell said.

ExxonMobil’s Esso said a small number of its 200 Tesco Alliance retail sites had also been impacted in some way.

In a rush to fill up, drivers also queued at some gas stations in London and the southern English county of Kent. Diesel ran out at one station visited by Reuters.

For months supermarkets, processors and farmers have warned that a shortage of heavy goods vehicle (HGV) drivers was straining supply chains to breaking point — making it harder to get goods on to shelves.

“Unless new drivers are found in the next 10 days, it is inevitable that we will see significant disruption in the run-up to Christmas,” said Andrew Opie, director of food & sustainability at the British Retail Consortium, the retail industry’s lobby group.

“HGV drivers are the glue which hold our supply chains together,” Opie said. “Without them, we are unable to move goods from farms to warehouses to shops.”

A lorry pulls a Hanjin Shipping Co. shipping container along the dockside at the Port of Felixstowe, England. Experts have warned for months that a shortage of heavy goods vehicle (HGV) drivers was straining supply chains to breaking point – making it harder to get goods on to shelves. (Chris Ratcliffe/Bloomberg)

The next 10 days are crucial because retailers ramp up supplies in October to ensure there are enough goods for the peak Christmas season.

Hauliers and logistics companies cautioned that there were no quick fixes and that any change to testing or visas would likely be too late to alleviate the pre-Christmas shortages as retailers stockpile months ahead.

Prime Minister Boris Johnson’s government has insisted that there will be no return to the 1970s when Britain was cast by allies as the “sick man of Europe” with three-day weeks, energy shortages and rampant inflation.

‘Don’t panic’

As ministers urged the public not to panic buy, some of Britain’s biggest supermarkets have warned that the shortage of truck drivers could lead to just that ahead of Christmas.

Brazilian President Jair Bolsonaro said that Johnson, whom he met in New York, had asked him for an “emergency” agreement to supply a food product that is lacking in Britain, though the British embassy disputed Bolsonaro’s account.

Transport Secretary Grant Shapps said there was a global shortage of truckers after COVID halted lorry driver testing so Britain was doubling the number of tests. Asked if the government would ease visa rules, he said the government would look at all options.

“We’ll do whatever it takes,” Shapps told Sky News. “We’ll move heaven and earth to do whatever we can to make sure that shortages are alleviated with HGV drivers.

“We should see it smooth out fairly quickly,” he said.

British ministers are due to meet later on Friday in an attempt to hash out a fix.

The trucking industry body, the Road Haulage Association (RHA), has called on the government to allow short-term visas for international drivers to enter Britain and fill the gap, while British drivers are being trained for the future.

“It’s an enormous challenge,” Rod McKenzie, head of policy at the RHA, told Reuters. In the short-term, he said, international drivers could help, even if it may be too late to help Christmas, and in the longer term the industry needed better pay and conditions to attract workers.

“It’s a tough job. We the British do not help truckers in the way that Europeans and Americans do by giving them decent facilities,” he said.

The British haulage industry says it needs around 100,000 more drivers after 25,000 returned to Europe before Brexit and the pandemic halted the qualification process for new workers.

Shapps, who said the driver shortage was not due to Brexit, said COVID-19 exacerbated the problem given that Britain was unable to test 40,000 drivers during lockdowns.

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How to unwind after a long day at the office

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Whether you are returning to the office after working from home or starting a new job. Being among other hardworking people and maybe even having a boss breathing down your neck can be nerve-wracking. You might even experience that you’re more tired than usual when you climb into bed at the end of the day.

 

That’s why it is important to find the right way for you to unwind and clear your mind after a long day of hard work.

 

Stay active

A quick run is great for clearing the mind. A trip to the gym can help you relieve some aggressions you might have developed throughout the day. Kicking a ball around with your friends can help you calm down. The possibilities are endless, but the results can be great.

 

Exercise is wonderful for your mind as well as your body. If you even bring along a couple of friends, you are sure to have a great time and forget what was bothering you to begin with.

 

Forget the world with online gaming

Sometimes, what you need is a distraction. A great book can help you forget the world but maybe you are too wound up to focus. In that case, a great alternative is trying an online casino in Canada. You do not even need to stay focused to have fun and forget your troubles.

 

The best part is that you can enjoy online casinos anywhere. On the couch in front of the TV, on the train ride home, or in bed before you go to sleep. Playing on your phone is convenient and easy. Before you realize it, you completely forgot about your stressful day.

 

Cook a nutritious meal

You might not feel like cooking if you are agitated after a long day. But something about creating beautiful, delicious food can be almost therapeutic. Eating meals that you love can help shift your mood without you even realizing it. At the same time, you might be able to get rid of some irritations by taking your frustrations out on the vegetables that need to be chopped. Just remember to protect your fingers.

 

Spend time with a loved one

Being able to vent about your day or simply get a hug can be all you need. If you live with your significant other, try to let them be there for you when you need some extra love and understanding. If you live alone, try to make time to get a cup of coffee with a friend or family member. Do not underestimate the effects of human contact. Soon, you will feel recharged and ready to take on a new day.

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5 Ways to be Productive at Work

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Concluding a long day with all the items on your list ticked off is the most satisfying and rewarding feeling in the world.  In addition, knowing that you have worked on top of your game with optimal efficiency and a high sense of gratification is the perfect way to cap a workday. But, on the other hand, there are moments that we are not winning in the productivity game. Instead, we spend most days fire-fighting, exhausted, and slumped with unfinished tasks. Good thing there is a way to change this.

Productivity killers are bad habits we are unable to shake off that disrupt our workflow. Similarly, the lack of proactivity hinders us from progress. Here are five ways to be more productive at work to get yourself out of the rut of unsatisfactory workdays and performance.

 

Segment tasks accordingly, take on the hard ones at your most active time of the day.

 

Plan your day by categorizing tasks from the most mentally or physically demanding to the least. Next, take on the tasks that consume too much thought, emotions, or energy depending on the dayparts that you are typically at your best. For example, if you are a morning person, best to do most of the heavy lifting in the morning and reserve mental breaks for chores, playing online casino Canada or answering emails after lunch. But, of course, these would all fail if you are a night owl. Ultimately, gauge yourself and identify your most productive time of day and take on demanding tasks at this point.

 

Build a to-do-list every night

To-do lists are fantastic productivity tools because they encourage planning and organization. Planning and organization are the building blocks of productivity. As you go through the day, they provide clarity and focus, tackling tasks from the significant to the mundane. A simple list on paper will do, or you can even utilize the notes app on your phone. For next-level productivity aids, explore applications like AnyDo or Trello, for they can be synched with calendars and with other people like family and colleagues. Finally, creating and updating a to-do list every night is the best way to take on the following day. It provides the proper head start rather than scrambling on finding things to do at the beginning of the workday.

 

Delegation is the key.

 

Strategic delegation is the machinery behind productivity.  Delegation of jobs and tasks to capable hands can free up time for you to take on tasks that require more focus and creativity.

 

Veer away from distractions

 

The key to optimal productivity is shutting down the noise and actively eliminating them. Distractions in this day and age are social media and emails. For tasks that demand focus, best to turn off your phone or notifications.

 

Never multitask

 

Multitasking is the most effective productivity killer because it takes too much energy and resources to switch tasks from one to the next. In addition, multitasking negatively impacts the focus, accuracy, and precision of the job at hand. Therefore, be at your best by taking on tasks one at a time.

 

Bottomline

 

Ultimately, to be the best version of yourself at work requires impeccable planning, organization, seamless focus, and delegation. In addition, allowing yourself a few mental breaks throughout the day keeps you healthy mentally and ready to take on tasks.

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