Equity Investing Archives | Financial Freedom is a Journey

Sun Life Financial Inc. Stock Analysis – Less volatile than its largest Canadian counterpart

Sun Life’s medium term objectives are 8 – 10% EPS growth, 12 – 14% ROE, and a 40 – 50% dividend payout ratio.
SLF is more of “steady as she goes” type of investment with a moderate level of potential capital appreciation.
I view SLF as a less volatile long-term investment than its largest publicly traded competitor (Manulife Financial).
This long economic expansion is now into its 9^th year. Typically, expansion ends from a Fed tightening cycle. SLF could be suitable for you if you want to adopt a cautious approach.

Hormel held its Investor Day June 15, 2017 wherein it provided a great overview of the company`s growth opportunities.
HRL`s long-term targets are 5% top-line growth, 10% bottom-line growth, and margins in the top quartile of its peers by 2020.
It is one of a few companies which have increased the annual dividend for 50+ consecutive years thus placing it in the exclusive Dividend King group of companies.
HRL`s stock price has retraced from a high set in August 2016. Current valuation levels are now reasonable.

This Manulife Financial Corporation stock analysis is based on Q1 2017 results.
Manulife is the largest life-insurance company in Canada and ranks among the top 5 globally.
Manulife has either been a wonderful or a terrible investment with much dependent on when you acquired shares subsequent to it being demutualized in 1999.
I suggest readers take a “pass” on Manulife. There are far better investment opportunities in the universe of publicly listed companies.

This The J.M. Smucker stock analysis is based on Q4 and FY2017 results released June 8, 2017 and its 2018 forecast.
I have been looking to increase my exposure in the Consumer sector and view the Non-Cyclical Consumer Goods space as one likely to experience a lower level of volatility.
SJM has been on my radar but I have viewed the stock as overpriced. The price has retraced to a level where I now view SJM as fairly priced.
It has been in business for 120 years, has several iconic brands in its portfolio, and meets my criteria for a company in which I want to invest for the long-term.
SJM generates strong free cash flow which will enable management to deleverage while making astute “bolt-on” acquisitions thus resulting in strong stock price appreciation over the long-term.

This National Bank of Canada Stock Analysis is the sixth of a 6 part series covering the Big 6 Canadian Banks.
National Bank of Canada reported Q2 2017 results May 31^st that were positively received by the market.
Liquidity Ratios continue to be strong thus providing investors with assurances that an investment in the bank is relatively safe.
Pockets of the Canadian real estate market are wildly overheated but NA’s real estate portfolio is significantly less exposed to these areas than its larger peers.
NA is not nearly as diversified as its largest competitors and I am not enamored with some of the regions in which it has expanded in the past few years.
A recap is provided in which I have ranked my take on the 6 Canadian Banks from a long-term investment perspective.

This The Bank of Nova Scotia Stock Analysis is the fifth of a 6 part series covering the Big 6 Canadian Banks.
BNS reported Q2 2017 results May 30^th and its Liquidity Ratios continue to be strong thus providing investors with assurances that an investment in the bank is relatively safe.
BNS is Canada’s most international bank and its geographical diversification provides it with a superior ability than some of its peers to weather a financial storm.
Pockets of the Canadian real estate market are wildly overheated but BNS is an extremely prudent lender and it actually started dialing back its new mortgage business in 2016.
BNS is an attractive long-term investment with a solid dividend payment history.
I suspect we will experience a major market correction within the next 12 months and urge caution.

This Canadian Imperial Bank of Commerce Stock Analysis is the fourth of a 6 part series covering the Big 6 Canadian Banks.
CM reported Q2 2017 results May 25^th and its Liquidity Ratios continue to improve thus providing investors with assurances that it remains a safe bank.
Growth in its residential real estate portfolio is outpacing that of its competition as a result of major changes it has made over the past few years in the manner in which it sources business.
Pockets of the Canadian real estate market are wildly overheated but CM’s results indicate its real estate related loan portfolio is of sound quality.
While CM is an attractive long-term investment with a history of having not missed a dividend payment since its first dividend payment in 1868, other Canadian FIs are better investments.
I suspect we will experience a major market correction within the next 12 months and urge caution.