NEW EPISODE ON DIVIDEND STOCKS!
“I hate this market. It’s funny because we are strongly outperforming, but I still don’t like this market.” That’s how dividend investor Rebecca Teltscher, Portfolio Manager at Newhaven Asset Management, sums up today’s market on this episode of In the Money with Amber Kanwar. Value is working. Dividend stocks are back. Utilities, pipelines and energy have seen major inflows. And yet, Rebecca says this is one of the hardest environments she’s seen to deploy capital, with sectors moving quickly from unloved to fully valued.
Child 1 wants to know how to get her crush to notice her. Resisting the urge to relay the advice my parents gave me: “Straight As and avoiding all conversation until you are 21.”
Here are five things to know today:
I’ll clap when I’m impressed: Futures are stalled after Nvidia’s results failed to impress. The chip maker delivered an insane set of quarterly results and forecast that was much better than expected only to be greeted with a less than 1% bump in the stock. Sales and profit both jumped more than 70% in the quarter (unprecedented growth for a $4 trillion company) while its forecast for growth suggests the upcoming quarter will be even better (77% growth next quarter vs the street at 70%). This forecast does not include any potential sales to of its H200 chip to China, leaving room for upside. CEO Jensen Huang also tried to assuage fears in the software sector by saying AI will go through the hands of software players. “This speaks to our thesis that the software layer will ultimately be the hearts and lungs of the AI trade over the coming years…” wrote Dan Ives of Wedbush. Tell that to investors of Salesforce. The software giant also reported results beating profit expectations but its outlook failed to impress and the stock is falling about 1% in the pre-market. Sales growth of 12% was the best in years, but it was aided by an acquisition while sales in existing business lines fell short of expectations. “Into a highly anticipated Q4, Salesforce results were rather underwhelming,” wrote Citi’s Tyler Radke, “we struggle to see organic AI catalyst for the stock and maintain our Neutral rating.”
Bank beat: CIBC, TD and Royal Bank all reported this morning beating profit expectations and all stocks are indicated higher in the pre-market. CIBC’s results featured 25% profit growth, strong growth in Canadian banking and capital markets, and higher return on equity than expected. The wrinkles include slightly higher provisions for credit losses than expected and sluggish mortgage growth coupled with rising delinquencies. “While capital markets contributed (impressively), the results did not hinge on simply a single segment, with strength across all of its segments, characterized by strong net interest margin expansion and solid cost controls,” wrote John Aiken of Jefferies who expects the stock to trade up. Royal Bank was able to beat expectations due to higher trading revenue and lower expenses. Canada’s largest bank also posted higher than expected return on equity, exceeding 17% for the third time in four quarters noted Gabriel Dechaine of National Bank. Provisions for credit losses were higher than expected. However, the bank was able to offset through higher earnings. TD results featured growth in every business line, record revenue in Canada and declining provisions for credit losses. It’s return on equity also improved. I own CIBC and TD.
Challenger bank: Watch shares of EQB when the market opens after the smallest bank in the TSX Bank Index beat profit expectations on significantly lower expenses than expected. However, credit quality remains a concern with higher early stage delinquencies, high provisions for credit losses, and a large sour loan in commercial loans. EQB was the worst performing Canadian bank stock last year and so far in 2026 has been one of best performing on turnaround hopes under new CEO Chadwick Westlake. We did an in-depth interview with him at the beginning of the year and where he laid out his turn around plans. On the plus side, EQB boosted its dividend and saw strong loan growth. “While overall PCLs were down q/q, we think investors will focus on higher early stage personal loan delinquencies and another large formation in commercial loans,” wrote TD’s Mario Mendonca, “We like EQB on strong buying activity (buybacks/Loblaw) & PC deal, but acknowledge that credit is an issue.”
Hearts & minds: Watch Northland Power at the open after the power generation company reported stronger profit than expected and gave a rosy profit outlook. Northland Power was a heartbreaker in November with the stock collapsing after a surprise 40% cut to the dividend. We talked about this with Rebecca Teltscher on the podcast, she said the cut was a total surprise but that she is hanging on to the stock. Since the dividend cut low in November, the stock is up 20%.
Don’t miss our next episode! Get your questions in about small and mid cap stocks. Email questions@inthemoneypod.com
