Category Archives: news

Let’s look at some dread short-term and then look at history through some visual charts for some banks, tech, stocks and utility stocks – for perspective. 

National and Royal Bank so far – current year 2022 (above) and for the past ten years (below).

National Bank – Over ten years, the stock has gone from $24 to $90.94 (current pullback value).  That is an average annual growth of 27.89%, excluding the dividend.  The current dividend of $3.68 equates to a 4.04% yield today.  However, if you bought the stock ten years ago at $24, your current yield would be 15.3%.  ($3.68/$24). 

Most of the banks make about $1 billion dollars each month.  Most raised their dividends again last quarter and all of them pay their owners more than they do depositors. 

Technology led the market over the previous three years but is the worst performing sector this year.

Microsoft and Apple so far– current year 2022 (above) and for the past ten years (below).

Microsoft – Over ten years, the stock has gone from $25 to $244.74 (current pullback value).  That is an average annual growth of 87.9%, excluding the dividend.  Most growth stocks tend to have low dividends.  The current dividend on Microsoft of $2.48 equates to a 1.01% yield today.  As a result, this is a sector where I seek to sell call options to enhance/create income that might not otherwise exist.  Further, the call option income is taxed as capital gains and as such creates some downside protection.

Utilities:

Brookfield Infrastructure and Fortis so far– current year 2022 (above) and for the past ten years (below).

Brookfield Infrastructure – Over ten years, the stock has gone from $10 to $53.78.  That is an average annual growth of 43.8%, excluding the dividend.  The current dividend of $1.89 equates to a 3.52% yield today.  However, if you bought the stock ten years ago at $10, your current yield would be 18.9%. ($1.89/$10).

Hopefully, the ten-year charts above provide perspective, that nine months can sometimes blur.  It is not different this time.  The Canadian side of the portfolio provides income and growth where the U.S. side is more growth oriented.  The idea is for the portfolio is to provide income in a bear market while providing both income and growth in a bull market. 

If you have any questions or would like to discuss any aspect of your portfolio or market, my team and I are a phone call away.  In addition to our online meetings, we are now hosting client meetings again in our Victoria office by appointment.   

Best regards,

National Bank Financial

Rob Hunter

Senior Wealth Advisor

Sources: Stockcharts.com, Bloomberg, Reuters,

National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

This information was prepared by Rob Hunter, a Senior Wealth Advisor with National Bank Financial. The particulars contained herein were obtained from sources that we believe reliable but are not guaranteed by us and may be incomplete.

The opinions expressed are based on our analysis and interpretation of these particulars and are not to be construed as solicitation or offer to buy or sell the securities mentioned herein. National Bank Financial may act as financial advisor, fiscal agent or underwriter for certain of the companies mentioned herein and may receive remuneration for its services. Rob Hunter, National Bank Financial and/or its officers, directors, representatives, and associates may have a position in the securities mentioned herein and may make purchases and / or sales of these securities from time to time in the open market or otherwise.

The opinions expressed herein do not necessarily reflect those of National Bank Financial.

Several of the securities mentioned in this article may not be followed by National Bank Financial’s Research department. The investment advice given only applies to residents of the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec. National Bank Financial is a member of the Canadian Investor Protection Fund.

Market rallies out of lows…

Canadian TSX rallies out of July lows +7.4%.  The TSX is now down YTD <7.9%>

The broad market S&P 500 in the U.S. rallies out of July lows +13.4%.  The index is down YTD<13.1%>

The technology heavy Nasdaq index in the U.S. rallies out of July lows +18.3%.  The index is down YTD <19%>

Lesson.  Stay invested.  Big moves in the market can occur over very short periods and you don’t want to miss those. The upward move in the Nasdaq last week included the biggest rally in one day in several years.  At the same time, the Federal Reserve was raising interest rates again in the U.S. another ¾ of a point.  The trick for the Fed will be to raise rates to battle inflation while not seeking to slow the economy to a point that it recedes.  At least, they have the ability now to lower interest rates again and that may be in part, what the market (which is forward looking) is anticipating – potential back peddling.

With markets turning upwards, we are looking at any non-performers this year to see if they have participated in the rally in respective indices – or not. 

I like the dividend paying stocks right now as a hedge against potential recession but am also aware of the current values in growth names that presented well during second quarter earnings. 

Lots of headwinds near-term.  I was reading recently that our ability to pay attention to negatives is about 8X higher than positive (news).  That may explain some of which we read in media. 

The consumer drives the stock market.  While Air Canada lost money last quarter as a result of all sorts of opening up issues and sky rocketing fuel prices,  revenue went up five-fold because the consumer wants to travel and doesn’t mind the inflated ticket prices. 

I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial.

Enjoy the second half of summer!

Best,

National Bank Financial

Rob Hunter

Senior Wealth Advisor

Sources: Stockcharts.com, Bloomberg, Reuters,

National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

This information was prepared by Rob Hunter, a Senior Wealth Advisor with National Bank Financial. The particulars contained herein were obtained from sources that we believe reliable but are not guaranteed by us and may be incomplete.

The opinions expressed are based on our analysis and interpretation of these particulars and are not to be construed as solicitation or offer to buy or sell the securities mentioned herein. National Bank Financial may act as financial advisor, fiscal agent or underwriter for certain of the companies mentioned herein and may receive remuneration for its services. Rob Hunter, National Bank Financial and/or its officers, directors, representatives, and associates may have a position in the securities mentioned herein and may make purchases and / or sales of these securities from time to time in the open market or otherwise.

The opinions expressed herein do not necessarily reflect those of National Bank Financial.

Several of the securities mentioned in this article may not be followed by National Bank Financial’s Research department. The investment advice given only applies to residents of the provinces of British Columbia, Alberta, Manitoba, Ontario and Quebec. National Bank Financial is a member of the Canadian Investor Protection Fund.