CANADA-SOFTWOOD LUMBER INDUSTRY-SUPPORTING MEASURES
According to a news release on the prime minister's official website, the new financial measures include 700 million Canadian dollars (508 million U.S. dollars) in loan guarantees to address the immediate pressures facing the softwood lumber sector, and 500 million Canadian dollars to supercharge product and market diversification to make the industry more competitive for the long term. (Photo by Liang Sen/Xinhua)
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The Market Online
10 minutes ago
- The Market Online
Three Canadian dividend stocks with a strong case for value
Canadians' infatuation with dividend stocks is wholly understandable. The idea of getting paid to wait as you hold a stock in your portfolio is innately attractive, appealing to human nature's enduring preference for getting what it wants as soon as possible. However, a dividend does not make a stock desirable in itself. This content has been prepared as part of a partnership with Vecima Networks Inc., Computer Modelling Group Ltd. and Pason Systems Inc., and is intended for informational purposes only. The task of determining whether or not a dividend stock is suitable for you looks beyond the dividend towards the balance sheet, income statements and industry tailwinds, with the intention of valuing the underlying company versus the share price and assessing the conviction the dividend deserves for growing into the future. A straightforward way to conduct this assessment is to screen for Canadian dividend stocks that have fallen year-over-year, despite profitable operations on a net income basis, allowing you to delve into those with the highest losses in search of financials and prospects attractive enough to support a case for value. Here are three names that stood out. Vecima Networks After running the screen pictured below using The Globe and Mail's online tool, the first compelling Canadian dividend stock I stumbled upon was Vecima Networks, market capitalization C$255.55 million, a cloud-based software and services leader pushing the boundaries of broadband speed, video quality, content distribution, as well as fleet tracking and intelligence. (Source: The Globe and Mail) Over its 35-year history, Vecima has grown to serve more than 100 operators and more than 100 million people globally, developing a competitive edge in the marketplace – see slide 26 of the May 2025 investor deck – but sees further growth ahead driven by the rapid evolution of network technology, with more than $500 million invested over the past decade to capitalize on an estimated $8 billion opportunity (slide 9). Looking over the past five years, the company seems to be well on its way to claiming an increasing portion of this growth tailwind for itself, tripling revenue from C$94.88 million in F2020 to C$291.05 million in F2024, plus a solid C$63.98 million in Q1 F2025. The company justified these sales by remaining profitable over the period, achieving more than 10x net income growth from C$1.81 million in F2020 to C$19.39 million in F2024. Exceptions include a C$330,000 loss in F2021 because of COVID-19 pandemic-related restrictions, and a C$7.89 million loss in Q2 2025 because of restructuring costs expected to result in C$17.5 million in cost savings. From a dividend perspective, while Vecima has only increased its quarterly payout once since inception in 2014 – from C$0.045 to C$0.055 in 2015 – the company's specialization in network connectivity places it at the leading edge of an increasingly digital world, one where network providers must upgrade their operations to command differentiated returns. Finding itself in such a privileged position, not to mention guided by a leadership team with 56 per cent insider ownership, the company deserves better than what its stock has delivered. Vecima Networks stock (TSX:VCM) has given back 50.98 per cent year-over-year, last trading at C$10.51. Computer Modelling Group Another Canadian dividend stock that looks undervalued is Computer Modelling Group, market capitalization C$645.83 million, a global software and consulting company providing pioneering subsurface and surface solutions for oil and alternative energy clients in 60 countries around the world. Over CMG's more than 47-year operating history, the company has delivered decades of consistent cash flow and profitability, while building more than 450 long-term client relationships, granting it global brand recognition. We can see this brand cachet at work over the past five years, which yielded revenue growth from C$67.36 million in F2021 to C$129.45 million in F2025, supported by controlled debt levels and consistent net income averaging more than C$20 million per year, setting the company up to self-fund future growth. Over the short-term, management has responded to falling oil prices, lingering inflation and tariff-based instability by shifting from organic to inorganic growth, acquiring three companies since 2023 – most recently highlighted by SeisWare International – which are driving revenue and adjusted EBITDA and keeping the company in the black despite geopolitical uncertainty denting investor confidence. Over the long-term, CMG's imaging and reservoir simulation technology positions it to benefit from how about 70 per cent of remaining oil reserves are in geologically complex areas – see slide 3 of the Q4 2025 investor deck – favoring the achievement of further scale and pricing power. These prospects bode well for CMG's quarterly dividend, in place since 2013, which kept up a C$0.40 annual payout until 2020, when management cut it in half to weather the pandemic and re-establish the company's ongoing path to growth, substantiating an ability to balance investment and shareholder returns as dictated by market conditions. Struggling under energy demand uncertainty driven by US tariffs, Computer Modelling Group stock (TSX:CMG) has fallen by 43.47 per cent year-over-year, while remaining up by 52.12 per cent since 2020, undervaluing a history we have shown to be brimming with long-term value-creation potential. Shares last traded at C$7.79. Pason Systems Our final Canadian stock with dividend and value potential is Pason Systems, market capitalization C$918.17 million, whose underlying business – split into Intelligent Wellhead Systems and Energy Toolbase Software – is a global leader in data management systems for drilling rigs, covering data acquisition, wellsite reporting, analytics and remote communications. The company also provides products to model, control and monitor the economics and performance of solar and other energy storage projects. Pason' leadership position, built across a more than 40-year history, is anchored by a market presence of more than 70 per cent of drill rigs in the Western Hemisphere, but the company sees ample room to run thanks to the energy industry's increasing technological adoption – see slide 12 of the Q1 2025 investor deck – as well as management's proven skill at growing revenue in line with profitability. Revenue grew by 2.64x from C$156.64 million in F2020 to C$414.13 million in F2024, followed by a strong C$113.18 million in Q1 2025. This was paired with mammoth 18.49x net income growth from C$6.57 million to C$121.5 million, respectively, followed by a respectable C$20.01 million in Q1 2025. Looking further back, the numbers remain impressive, with Pason adding about C$100 million in revenue over the past decade, while delivering consistent free cash flow averaging more than C$50 million per year. Pason believes it can deliver more growth, regardless of trade disputes or North American drilling activity (slide 9), thanks to its portfolio's alignment with the energy industry's secular technological trend, coupled with ongoing tailwinds behind solar and other alternatives. As Jon Faber, president and chief executive officer, detailed in the Q1 2025 news release, 'We anticipate that companies may adjust their development plans should their commodity price forecasts change; however, even in the event of reductions in capital programs, we expect any activity decreases to be more modest in both depth and duration as compared to previous industry slowdowns.' 'Our experience through previous cycles has been that maintaining investments focused on service quality and technology development through periods of uncertainty provides the greatest opportunity to expand competitive gaps,' Faber added. 'We see opportunities for greater adoption of data-driven technologies over time in both drilling and completions, and we intend to ensure our product and service offerings continue to evolve to ensure we can capitalize on those opportunities.' Given the Canadian technology leader's long-term financials, even in the face of economic adversity, it's reasonable to be optimistic about the company's ability to continue delivering shareholder value and paying its quarterly dividend, which was established in 2013, cut drastically during the COVID pandemic, but has been growing steadily ever since from C$0.05 in 2021 to C$0.13 in 2025. Pason Systems stock (TSX:PSI) has given back 24.18 per cent year-over-year but remains up by 96.50 per cent since 2020. Shares last traded at C$11.79. Join the discussion: Find out what investors are saying about these Canadian dividend value stocks on the Vecima Networks Inc., Computer Modelling Group Ltd. and Pason Systems Inc. Bullboards and check out the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
Toronto Sun
an hour ago
- Toronto Sun
Carney meeting with cabinet, premiers to discuss latest U.S. tariffs
Published Aug 06, 2025 • 2 minute read Prime Minister Mark Carney meets with all of Canada's premiers during the First Ministers' Meeting at TCU Place. Photo taken in Saskatoon, Sask. on Monday, June 2, 2025. Photo by Michelle Berg / Postmedia OTTAWA — Prime Minister Mark Carney is holding virtual meetings with his cabinet and the premiers today, less than a week after U.S. President Donald Trump hit Canada with a baseline 35 per cent tariff. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account This latest trade war escalation applies only to goods not covered by the Canada-United States-Mexico agreement on free trade, better known as CUSMA. The latest levy took effect on Friday after the two countries failed to hit an Aug. 1 deadline to secure a new trade agreement. Ontario Premier Doug Ford said Wednesday he had a 'good conversation' with U.S. Commerce Secretary Howard Lutnick on Tuesday that was 'positive.' He also said he was frustrated by the impacts of high U.S. tariffs on his province's economy. Ford warned Trump's 'decision to increase tariffs on Canadian goods to 35 per cent is only adding to the uncertainty for businesses and workers.' 'You can't have tariffs on one side and not the other. I still stand by what I say — dollar for dollar, tariff for tariff. They understand strength, not weakness, and we should never, ever roll over and be weak,' Ford told reporters at a news conference Wednesday in Thornhill, Ont. This advertisement has not loaded yet, but your article continues below. Ford said he wants to see more done to stimulate the economy. He called on Ottawa to cut taxes and said the Bank of Canada should drop its interest rate. 'We have to get the governor of the Bank of Canada to lower those damn interest rates from 2.75,' he said. 'Knock 'em down. Build confidence. 'Let's work together on getting rid of the HST on homebuyers, and not just first (time) ones. Let's stimulate the market and we'll follow suit if the federal government does that.' Ford said he believes the 'prime minister is doing everything in his power to get a fair trade deal with the U.S.' Carney told a press conference in B.C. on Tuesday that he has not talked to Trump in recent days, but will speak with him 'when it makes sense.' The prime minister added that about 85 per cent of trade with the U.S. remains tariff-free because of CUSMA. Sector-specific tariffs, like the 50 per cent duty on steel, aluminum and copper, remain in place. Foreign Affairs Minister Anita Anand and Finance Minister Francois-Philippe Champagne were in Mexico City on Wednesday for meetings with Mexican officials and businesses on trade. — With files from Allison Jones in Thornhill, Ont. Television Basketball Toronto & GTA Columnists Toronto & GTA
Globe and Mail
2 hours ago
- Globe and Mail
Carney meets with cabinet and premiers to talk through tariffs strategy since Trump's latest hike
Prime Minister Mark Carney is meeting with his cabinet, and then provincial and territorial leaders, for the first time since the Trump administration hiked tariffs on Canadian products. Canada has so far held off any retaliatory action since the increase, with Mr. Carney telling reporters on Tuesday that the aim of the government is to minimize impact on domestic industry. 'We look at what we can do for our industry that's most effective. In some cases, that will be to remove tariffs,' Mr. Carney said. Liberal cabinet ministers defend Canada's U.S. trade strategy in Mexico Ontario Premier Doug Ford told reporters he remains '100 per cent supportive' of Mr. Carney and the government, but he is still in favour of reciprocal tariffs. 'You can't have tariffs on one side and not the other,' Mr. Ford told reporters after an announcement Wednesday in Thornhill, Ont. 'I still stand by what I say, 'dollar for dollar, tariff for tariff.' They understand strength, not weakness, and we should never, ever roll over and be weak.' Mr. Ford said the meeting with Mr. Carney and the premiers will see the leaders talk through the current situation. 'When you sit around the family dinner table, you discuss all sorts of ideas, and that's what we're going to do,' he said. Mr. Ford said he personally spoke to U.S. Secretary of Commerce Howard Lutnick on Tuesday and it was a positive discussion, though he declined to elaborate. 'He said he really likes Canadians, which is good. Liking and cutting tariffs are two different things, so we're going to continue communicating,' Mr. Ford said. Canadian goods that are not covered by the United States-Canada-Mexico free trade agreement are now subject to 35-per-cent tariffs, up from 25 per cent since the U.S. first imposed them back in March. When those were first levied, Canada responded by announcing tariffs on a wide range of goods imported from America. Canada also responded when the U.S. imposed 25-per-cent tariffs on steel and aluminum, and again when the U.S. put 25-per-cent tariffs on the auto sector. The retaliatory tariffs in that sector were later paused. When U.S. President Donald Trump raised the steel and aluminum tariffs to 50 per cent, Mr. Carney did not increase retaliation, promising he would consider adjusting them depending on progress made in the broader trading arrangement with the U.S.
