Shaw Communications, Precision Drilling, Epcor Preferred Shares

The highlight of today in the Canadian markets on the last trading day of the month, quarter and half of the year is Shaw Communications up 4.20% with a couple of hours left in the trading day. With Shaw (SJR.B), you have an excelleng growth story and steady dividend increases. Shaw reported a 40% increase in profits and an 11% dividend increase. For cash flow investors, you are getting a growing dividend of just under 4% annualized and paid monthly.

Shaw is also anticipated to make a very competitive move by entering into the wireless arena as they have entered into the auction to become a participant.

Updating the takeover play of Grey Wolf by Precision Drilling (PD), Grey Wolf has rejected the third offer of $10.00 still stating that its planned merger is a better long term play for shareholders.

In Fixed Income Markets, there are some interesting buys available as spreads between government debt and corporate debt continue to widen. Epcor Edmonton Power (EPP.PR.A) preferred shares now have a current yield of 7% with preferrential tax treatment for Canadian investors.  Laurentian Bank Preferreds (LB.PR.D) are yielding 6.60%

There are National Bank bonds with a 10 year maturity paying over 6.50% and Royal Bank Capital Trust securities with a 3 year maturinty yielding 5.3%. All of these are interesting buys considering the volatility and long term returns of the general markets.

Your comments relating to the attractiveness of corporate bonds would be greatly appreciated. Have a great Canada Day.

 

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