REITs

Need to do research, especially in regard to distribution growth and debt level, and turnaround potential.

Derek Warren on BNN Bloomberg 2025/05/26
The 3 big industrial REITs (in order): Granite, Dream, Nexus.
Derek’s 3 picks = *

Allied Properties* (AP-U) - Office market puts press on rents. He believes when office market improves in next 2-3 years it will sell closer to real valuation.
Boardwalk (BEI-U)
Canadian Apartment* (CAR-U) - Countrywide portfolio of properties. Buying back stock. Selling off old inefficient properties.
CT [Canadian Tire] (CRT-U)
Chartwell (CSH-U) - 3 years of upside potential.
Dream Industrial (DIR-U) - Recession sensitive but he believes oversold.
Flagship* (MHC-NYSE) - Trailer parks in the U.S.
Granite (GRT-U) - Industrial in Europe, U.S. and Canada. He believes oversold because of fear of Magna as large tenant (and recession and tariffs affecting Magna), but Magna is only 3% of lease income.
H&R REIT(HR-U) - Is improving. They have been buying or selling in U.S. CHECK VIDEO TO CLARIFY!
Killam (KMP-U) - Maritimes
Melcor (MR-U) - Edmonton office and industrial.
Minto (MI-U) - Selling at half book value but affected by condo conversions.
Nexus Industrial (NXR-U) - Recession sensitive but he believes oversold. They don’t own.
Plaza REIT (PLZ-U) - Check McKeogh’s opinion on this and all the others! Also check debt levels and distribution growth.
Primaris (PMZ-U)
Pro REIT (PRV) - Regional in Maritimes and recently Manitoba.
RIOCAN (REI-U)
Smart Centres [Walmart] (SRU-U) - New leases. They have large parking lots with potential for development. Next 5 years good potential.

REJECTED Inovalis - France
Northwest Healthcare - too much debt
Slate Grocery

Eric Nuttall

Investment manager for Nine Point Partners, Eric has in-depth knowledge of the oil and gas business. His April 16, 2025 appearance on BNN Bloomberg provided his views on many of the top oil and gas companies in Canada.

My top buys from his list: MEG Energy and Freehold Royalties. Hold Veren for conversion to Whitecap and add to bring to board lot number of shares. Definitely hold ARX.

Baytex Energy (BTE) – debt and oil price drop dragging price down but safe to hold. Needs $70WTI to rally.

Canadian Natural Resources (CNQ) – deepest resource base in Canada.

Cenovus (CVS) – Negative EBIDA 4.5xCF, 8% FCFY. Quite discounted but for long term hold. Eric doesn't own.

Freehold Royalties (FRU) – div safe to $46 WTI. Owns in fund and Eric owns personally.

Headwater Exploration (HWX) – dividend at 8% sustainable into the low $50sWTI. Their Clearwater property is exceptional resource. Nine Point own in income fund.

Imperial Oil (IMO) – good at buying back shares but prefers to hold CNQ.

MEG Energy – dividend seems safe, 8% FCFY. Massive resource depth. Buy back 30% of shares. 35 years of stay flat inventory. Nine Point owns maximum 10% of shares. Huge stock buyback planned: 30% of shares at $60WTI and 60% at $70WTI!

Tourmaline (TOU) – sells for very high multiple even for a pure gas play.

Veren – hold on conversion to Whitecap

Whitecap Resources (WCP) – 7% FCFY. Div seems safe to $50-55WTI. Nine Point holds Veren (2nd largest shareholder) so will be holding Whitecap after merger. Eric owns personally.

Eric's Recommendations:

ARC Resources (ARX) – 5xCF good compared to US counterparts. Great value, well managed and they are buying back shares.

Athabasca Oil (ATH) – No dividend but no debt and have net cash! Bought back 2% of their shares in March alone! 50+ years of reserves. Above $70WTI they will buy back 60% of shares.

NuVista (NVA) – Great company but currently a HOLD. No dividend. Buying back 30-50% shares. 13% FCFY. 60% oil. 25 years reserves. Growing production by 50%. Nine Point is 2nd largest shareholder.

Dividend Income

Most dividends received from companies located outside of Canada are not paid in full to stockholders. Most countries have a withholding tax on dividends though in some cases the tax can be partially reimbursed if there is a trx treaty between Canada and that country. But there are a few countries that do not have a withholding tax. This list includes prominent companies in each country.

• Brazil (Petrobras, Vale, Itau, Unibanco and B3)
• Hong Kong
• Singapore
• Hungary
• Estonia
• Latvia
• United Arab Emirates
• Qatar
• Malaysia
• United Kingdom (Royal Dutch Shell, British American Tobacco, BP, HSBC, Barclays, Rio Tinto, Imperial Brands, AstraZeneca, Anglo American, Unilever and GlaxoSmithKline)
• Vietnam

Taxes

Minimizing taxes is important, but it is essential to use all the legitimate methods to avoid underpaying or being guilty of evasion.

Methods to reduce taxes:

1. Donating to a registered charity or political party.
2. Offset capital gains with any available capital losses.
3. Moving a stock from a cash account to a registered account may generate a capital gain or loss. Use this wisely: use any unused capital loss to offset a capital gain, or generate a capital loss to offset current or future gains.
4. As much as possible, have income from savings come in the form of dividends rather than bank interest, including GICs. One way to achieve this with minimal volatility is with minimum rate reset preferred shares.
5. Keep high yielding Canadian dividend stocks out of registered plans to take advantage of the dividend tax credit.
6. Keep U.S. listed dividend paying stocks in an RRSP or RRIF. This allows receiving the full dividend without U.S. withholding tax (due to a tax treaty).
   

I've used StudioTax, a paid software, in the past and found it very good; the amount of tax that I had to pay was exactly as the software had calculated. Wealthsimple provides a free tax filing service.

The website TaxTips.ca has a page showing the tax rates in Ontario for various types of income. Note that the percentages below do not include the addition of the Ontario Health Premium which can increase the tax rates by up to 25%!

 

Resource Stocks

Resource stocks can be an important part of an investment portfolio. These are basically companies extracting and processing oil and gas and various minerals. Major minerals are copper, iron, aluminum, nickel, zinc, lead and uranium, plus the precious metals: gold, silver, platinum and palladium.

Oil & Gas (integrated): Chevron (CVX), Exxon Mobile (XOM), Imperial Oil (IMO), Suncor (SU)

Oil & Gas (extraction): Tourmaline (TOU), Arc Resources (ARX), Tamarack Valley (TVE), Baytex (BTE)

Oil & Gas (royalty): Topaz (TPZ), Freehold Royalties (FRU)

Gold & Silver: Newmont (NEM), Barrick (ABX), Agnico-Eagle (AEM)

Minerals (various): Anglo American (AAL), BHP Group (BHP), Glencore (GLEN), Teck Resources (TECK.B)

Minerals Specialized

Coal: Alliance Resource Partners (ARLP), Stanmore Resources (SMR.AX), Yancoal (YAL.AX)

Copper: Freeport McMoRan (FCX)

Uranium: Cameco (CCO)

Resource ETFs

Silver: GlobalX Silver Miners (SIL), iShares Silver Trust (SLV)

Uranium: Sprott Physical Uranium Trust (U.UN)

Doug Casey

A long time advocate of alternative investing and international diversification, Doug Casey is a valuable resource for those seeking a safe haven in these perilous times.

His website, International Man, has many articles and resources to aid in designing a strategy of wealth diversification. He also has a free newsletter available at Crisis Investing.

Similar to Andrew Henderson's Nomad Capitalist, Doug advocates "going where you are treated best"®, which means typically moving to a non-Western country that does not over-tax and over-regulate your economic life. He also is a critic of fiat currencies and advocates protecting your wealth with some exposure to precious metals and other hard resources. For political freedom he recommends having multiple passports.

Crypto

The non-fiat currency of the 21st century, yet to be full implemented as a viable alternative to fiat currencies or gold.

Bitcoin - USD 2010-2024

How to create a paper wallet.