Canadian & US Markets Rise. Stocks climbed Friday as a deal to raise the debt ceiling began to take shape. The Nasdaq gained 2.2%, extending its winning streak to five weeks. The Dow rose 329 points. Companies reporting this week… read more
US Dividends For Canadians: Canadian companies may choose to pay US dividends for a few reasons. Although some companies are being traded in Canadian exchanges, their main operations are in the US. As a result, the majority of its profit and cash flow comes from the US dollars. Therefore, it is more efficient to pay shareholders directly in US dollars instead of converting back to Canadian dollars just for the sake of being listed in Canadian exchanges, which will incur additional expenses from currency conversion and hedges. Secondly, Canadian companies may want to attract a group of investors who want to earn income from US dollars without being subject to foreign exchange fees and currency fluctuation risks, allowing them to reinvest and purchase US securities.
In terms of taxes, Canadian investors get favourable treatment from this source of income, as dividends in US dollars paid by Canadian companies are considered similar to Canadian dividends. As a consequence, this would not be subject to the US foreign withholding tax of 15%, and the accountants just simply convert that US income source into Canadian dollars at an appropriate exchange rate to calculate investors’ total dividend income.
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The week ended with stocks rallying across the board, resulting in gains for the week on American markets, but weren’t enough to save the Canadian one. Nvidia’s blockbuster report continued to fuel the boom in semis and tech stocks.
AMD jumped 5.54% on Friday as Intel gained 5.78%. Tesla rose 4.85% as the most-traded stock, and Broadcom leapt 11.55%. The S&P gained 1.3% Friday and 0.35% for the week, the Nasdaq 2.19% for the session and as much for the week, and the Dow advanced 1% Friday but declined 1% for the week. The U.S. 10-year yield held at 3.81% while Bitcoin rose 1.2% to nearly $27,000.
Canadian Western Bank was the latest bank to report and investors sold it off by 5.86%. However, Manulife added 1.35% in heavy trading, CNQ 0.86%, and Capstone Copper 4.45%. The TSX advanced 0.76% Friday but lost over 2% over the week, dragged down by disappointing reports from the big banks.
💾 Advanced Micro Devices (AMD-Q) +5.54%
💾 Intel (INTC-Q) +5.78%
🚗 Tesla Inc (TSLA-Q) +4.85%
🧬 Broadcom (AVGO-Q) +11.55%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +1.2%
🏛 Canadian Western Bank (CWB-T) -5.86%
🏛 Manulife Financial (MFC-T) +1.35%
🛢 Canadian Natural Rsrcs (CNQ-T) +0.86%
⛏ Capstone Copper Corp (CS-T) +4.45%
Believes current market prices are presenting good buying opportunities for investors.
High quality companies with predictable cash flows are investors best friend.
Finding value in Japan, UK & Middle East.
Concentrated portfolio is best way to generate alpha for investors.
Dividends are ok for investors - preference is for share buybacks or re-invested capital.
A great way to play the AI chip gold rush. 30% free cash flow, 44% return on invested capital, double the industry average.
The big names like Nvidia won't come down, but the laggards in this space will rally, like NXP, Intel and Qualcomm, if overall economic activity is stronger than expected. This could happen because the labour market remains strong.
Shares are down, because people misunderstand this during the debt ceiling debate. Pays an 8% yield and enjoys high barriers to entry. It's an opportunity now.
Took profits, up 60%. Simply profit-taking. The company is doing a great job. Covid in China is worry, so she's being cautious. She may buy this again.
This week were 13 Stock and 8 ETF Top Picks in a wide range of industries: Financials, ETF, Consumer, Healthcare, Industrials, Energy and Technology. Here are this week’s Top Picks as selected by: Michael O’Reilly, Billy Kawasaki, Daniel Straus, Mike… read more
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