Top 5 Canadian Companies To Watch For 2014

I want to take today’s edition of the Dividend.com Premium newsletter to highlight a few different things. Because this edition is jam packed, let’s dive right in.

More on Buybacks

We’ve covered a lot about the buyback theme that played out in 2013 here and our timeless piece on why, as dividend investors, we at Dividend.com prefer dividend hikes over buybacks here. While we’ve been on top of this story every step of the way, others we respect are hitting on it again as 2014 lurches out of the gate. Barron’s had a great piece on Saturday here (click on the Barrons.com result).

The entire article is worth a read, but I particularly liked the snippets below. Snippet 3 suggests it will be very interesting to continue following this buyback story well into 2014, something we noted in our 2014 Stock Guide.

Snippet 1:

Corporate America and its PR machinery would like you to see these massive buybacks as a big vote of confidence in companies’ future, or at least a sign that stocks are cheap. Yet, boards wielding company money—as opposed to insiders spending their own cash—are notoriously poor market timers. (Exhibit A: Buybacks peaked at a whopping $589 billion in 2007, right before the market tanked.) 

Top 5 Canadian Companies To Watch For 2014: Potomac Electric Power Company(POM)

Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. It distributes electricity to approximately 1.8 million customers in the mid-Atlantic region and delivers natural gas to approximately 123,000 customers in Delaware. In addition, the company involves in the retail supply of electricity and natural gas; provision of energy efficiency services to federal, state, and local government customers; and designs, constructs, and operates combined heat and power and central energy plants, as well as owns and operates two oil-fired generation facilities. Further, it offers high voltage electric construction and maintenance services, low voltage electric construction and maintenance services, and streetlight construction and asset management services to utilities, municipalities, and other customers in the Washington, District of Columbia. Additionally, the company holds investments in eight cross-border energy leases. Pepco Holdings, Inc. was founded in 1896 and is based in Washington, District of Columbia.

Advisors’ Opinion:

  • [By Dan Burrows]

    HCN enjoys a solid portfolio of senior housing, long-term care and medical office facilities, but an acquisition spree has greatly increased costs. Still, that hasn’t hurt the share performance this year. HCN stock is up 9.6% for the year-to-date, beating the broader market by a wide margin.

    #7: Pepco Holdings (POM)

    POM Dividend Yield: 5.51%

  • [By Jake L’Ecuyer]

    Top Headline
    Pepco Holdings (NYSE: POM) reported a 35% rise in its fourth-quarter profit. For the year, Pepco projects earnings of $1.12 to $1.27 per share, versus analysts’ estimates of $1.22 per share. Pepco’s quarterly earnings surged to $58 million, or $0.23 per share, versus a year-ago profit of $43 million, or $0.18 per share. Excluding one –time items, its earnings from continuing operations came in at $0.24 per share. Its total operating revenue climbed 3.3% to $1.09 billion. However, analysts were expecting earnings of $0.21 per share on revenue of $1.11 billion.

  • [By Jake L’Ecuyer]

    Top Headline
    Pepco Holdings (NYSE: POM) reported a 35% rise in its fourth-quarter profit. For the year, Pepco projects earnings of $1.12 to $1.27 per share, versus analysts’ estimates of $1.22 per share. Pepco’s quarterly earnings surged to $58 million, or $0.23 per share, versus a year-ago profit of $43 million, or $0.18 per share. Excluding one –time items, its earnings from continuing operations came in at $0.24 per share. Its total operating revenue climbed 3.3% to $1.09 billion. However, analysts were expecting earnings of $0.21 per share on revenue of $1.11 billion.

  • [By Michael Calia]

    Pepco Holdings Inc.(POM) said Chairman and Chief Executive Joseph M. Rigby plans to step down as CEO near the end of this year after a successor is named. Mr. Rigby plans to stay on as the power company’s chairman until next year’s annual shareholders meeting to assist in the transition. He plans to retire from the company in the first half of 2015.

Top 5 Canadian Companies To Watch For 2014: Penn West Petroleum Ltd(PWE)

Penn West Petroleum Ltd. engages in acquiring, exploring, developing, exploiting, and holding interests in petroleum and natural gas properties and related assets in North America. The company produces light and medium crude oil, natural gas liquids, heavy oil, and natural gas. It operates in two major regions, including the Southern District, which covers properties within Manitoba, Saskatchewan, and southern and east central Alberta with developed and undeveloped land base totaling approximately 3.3 million net acres; and the Northern District encompassing northeastern British Columbia, northern Alberta, parts of west central Alberta, and the Northwest Territories with developed and undeveloped land position of approximately 2.9 million net acres. The company was formerly known as Penn West Energy Trust and changed its name to Penn West Petroleum Ltd. in January 2011. Penn West Petroleum Ltd. was founded in 1979 and is headquartered in Calgary, Canada.

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Equities Trading DOWN
    Shares of Penn West Petroleum (NYSE: PWE) were down 10.57 percent to $7.36 after the company issued operational update for the fourth quarter and 2013.

  • [By Roberto Pedone]

    Another under-$10 stock that’s starting to trend within range of triggering a big breakout trade is Penn West Petroleum (PWE), which is engaged in the business of acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets. This stock has been under pressure by the bears during the last three months, with shares off by 24%.

    If you take a look at the chart for Penn West Petroleum, you’ll notice that this stock has been trending sideways over the last two months, with shares moving between $7.89 on the downside and $8.84 on the upside. Shares of PWE are now starting to spike higher above its recent low of $8.14 a share and it’s quickly moving within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

    Market players should now look for long-biased trades in PWE if it manages to break out above some near-term overhead resistance levels at $8.84 a share to its 50-day moving average of $8.96 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.43 million shares. If that breakout hits soon, then PWE will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $10.07 to $11 a share. Any high-volume move above those levels will then give PWE a chance to tag $11.50 to $12 a share.

    Traders can look to buy PWE off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.14 a share or at $7.89 a share. One can also buy PWE off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Insider Monkey]

    Penn West Petroleum (PWE) is the next on the list, with Y/Cap raising its position by over 100,000 shares to 875,000 shares, worth around $9.7 million. Penn West reported a net loss of $40 million in the second quarter, after reporting an income worth $235 million, with revenue also remaining almost flat on the year. The company also reduced the number of its employees by 25% since the beginning of the year, in order to increase its competitive performance.

  • [By Eric Volkman]

    Penn West (NYSE: PWE  ) is about to change the nameplate on its CEO’s office. The company announced that current Chief Executive and President Murray Nunns has announced his departure, effective July 1. Starting June 19, his place will be taken by David Roberts, onetime executive vice president and chief operating officer of Marathon Oil. Penn West said it intends to name him to its board of directors once he takes up the CEO post.

Top 5 Canadian Companies To Watch For 2014: Silver Wheaton Corp(SLW)

Silver Wheaton Corp., together with its subsidiaries, operates as a silver streaming company worldwide. The company has 14 long-term silver purchase agreements and 2 long-term precious metal purchase agreements whereby it acquires silver and gold production from the counterparties located in Mexico, the United States, Canada, Greece, Sweden, Peru, Chile, Argentina, and Portugal. Silver Wheaton Corp. is headquartered in Vancouver, Canada.

Advisors’ Opinion:

  • [By Rich Duprey]

    The suspension necessitated that it renegotiate the contract it has with Silver Wheaton (NYSE: SLW  ) , which was anticipating taking 25% of the silver streams from Pascua-Lama. Because Barrick was contractually required to have 75% of the construction completed by the end of 2015, something that obviously wasn’t going to happen, the silver streamer could have demanded back the upfront payments it gave the miner, minus credits for silver already received from three South American mines where it had been getting 100% of their streams and which was scheduled to end this year. As of the end of September, the payback figure stood at $371 million.

  • [By Doug Ehrman]

    As gold prices tumbled during Friday’s trading session, precious metals companies were dragged down too, including Goldcorp (NYSE: GG  ) and the gold ETF, the SPDR Gold Trust (NYSEMKT: GLD  ) . Given its recent increase in exposure to gold, Silver Wheaton’s (NYSE: SLW  ) inability to escape the slide is not a big surprise. Despite increased signs of global economic instability, gold fell below $1500 for the first time since July 2011.

  • [By Travis Hoium]

    What: Gold and silver miners are taking it on the chin today. Royal Gold (NASDAQ: RGLD  ) fell as much as 10.4%, Allied Nevada Gold (NYSEMKT: ANV  ) fell up to 11.5%, and Silver Wheaton (NYSE: SLW  ) dropped as much as 11.2%.

Top 5 Canadian Companies To Watch For 2014: Royal Caribbean Cruises Ltd.(RCL)

Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi