Pat: What is your view on buying the Canadian Vector Equity Fund? I believe it’s tilted towards value stocks and small cap stocks. Its MER is higher than an ETF, but maybe the value and small-company approach over long periods of time will add value. What are your thoughts on going with this mutual fund or a small-cap ETF such as the iShares S&P/TSX SmallCap Index ETF?

A: On a broad level, funds that specialize in small-cap stocks are always more volatile. However, some small caps do offer above-average potential—like those we recommend in Stock Pickers Digest.
Incidentally, we think it’s a mistake to generalize about small cap stocks. Some small caps are… Read More

These cyclicals give you steady dividends

FINNING INTERNATIONAL INC. $26 (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 168.2 million; Market cap: $4.4 billion; Dividend yield: 2.8%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment. Its main customers are in the oil, mining… Read More

Growth Stocks: Gains ahead for Russel Metals

Growth Stocks: Gains ahead for Russel Metals

The metal distributor experienced an earnings turnaround in the latest quarter thanks to rising steel prices.
RUSSEL METALS (Toronto symbol RUS; www.russelmetals.com) is one of North America’s largest metal distributors. It serves over 28,000 clients at 51 locations in Canada and 12 in the U.S.
In the… Read More

Two growth stocks with gains ahead

AGT FOOD & INGREDIENTS $32.70 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 23.9 million; Market cap: $782.3 million; Dividend yield: 1.8%) buys, processes and distributes a range of pulses—peas, beans, lentils and chickpeas—as well as other specialty crops.
Based in Saskatchewan, the… Read More