The companies we will discuss today are popular holdings among investors. But we believe you’re wrong. They might not be the worst choices ever… but there are better alternatives for each of them, which is why you lose money if you keep them. You might not like what you hear, but we will provide you with replacement ideas that might convince you to move on.
- ZIM Integrated Shipping Services (ZIM) is a container shipping company that offers a juicy dividend yield… a variable one. Is it only looking good on prom night?
- Transcontinental (TCL.A.TO) is the largest printing company in Canada. It is trying to integrate the packaging industry to its business model but has not made its proof yet. Does it belong to the past?
- Omega Healthcare Investors (OHI) has been investing in senior care since 1992. With the aging demographic, one can think its future growth is ensured. However, the pandemic has created its share of struggles that the company might not be able to overcome easily.
- True North Commercial REIT (TNT.UN.TO) shows 47 office properties, well-diversified across Canada but with a concentration in Ontario. With its reliable tenants, it looks promising. However, it has shown no dividend growth since its IPO.
- Walgreens Boots Alliance (WBA) is a Dividend Aristocrat with 46 consecutive years of dividend increase. Unfortunately, margins are under pressure and dividend growth is slowing down.
- Investors can’t really go wrong with any of the Canadian Banks. However, ScotiaBank (BNS) is Mike’s least favorite because it has failed to prove its investment in emerging markets was a growth vector.
Medical Properties Trust (MPW), Allied Properties (AP.UN.TO), and National Bank (NA.TO) have all been discussed more deeply in this High-Yield Stock Battle!
Here are more dividend stocks that Mike highly dislikes. Again, he explains why and shares potential replacements.
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