I love companies that build and invest in the future of a society. More specifically, I love companies that build the next-generation way of how people interact in their communities, forward-looking infrastructure, and renewable energy systems. WSP Global fits ticks all of the boxes.

Let’s look at the Canadian market. Traffic congestion is increasing throughout Canada. Vancouverites waste between 34% to 65% of their commute times due to congestion. The annual cost of traffic congestion in Vancouver is $1.2 billion a year. The overall cost of traffic congestion in Toronto is $3.3 billion per annum.

When so much money is lost to congestion, saddled by the downward pressures of a recession, more and more governments will take steps to ease congestion. I expect more businesses to put pressure on government to ease congestion because of tightening business conditions, increased costs, and lost productivity from workers who can’t make it to work on time. One example of this is Amazon’s new warehouse outside of Ottawa. Many employees turned down job offers because of lack of public transport to the location.

WSP Global has designed infrastructure to reduce congestion around Montréal. The company can leverage this experience to win similar contracts throughout the world.

CBC reported Canada’s infrastructure spending has fallen behind by $123 billion. The United States’s infrastructure deficit is US$4.5 trillion. There’s an upshot to all of this. Between now and 2023, the total global infrastructure spending on smart cities will reach US$189.5 billion. Who do you think will win those contracts? Companies that patch holes and maintain existing infrastructure or companies that combine different layers of technologies to re-engineer social spaces to enhance usability, profitability, and user interaction with a space?

My money’s on the latter.

Let’s get back to basics — the money. In July 2019, WSP won a US$335 million FEMA-supported project.

Looking at the global picture, WSP has a bright future. Here’s what gives WSP a global advantage. Asian countries need to spend US$1.7 trillion per year in infrastructure spending to maintain current growth rates. That’s US$26 trillion total between now and 2030. WSP Global has deep roots in Asia with over 40 years of consulting experience in the region.

Here’s something most people don’t think about when it comes to infrastructure and Asia. Asia uses 65% of the world’s water supply, and about 30% of the people in Asia face water scarcity. Water shortages and infrastructure deficits pose serious challenges to governments who want to drive up standards of living and push further industrialization. Here’s where WSP Global can step in. The company has over 130 years of experience dealing with water, wastewater, and water infrastructure. The company brings a unique blend of technical experience and regional experience to the table.

In 2010, the world’s largest cities, cities with more than 25 million people, were distributed across the continents. By 2100, the world’s largest cities will be in India and bordering countries and sub-Saharan Africa. Those cities face a current energy infrastructure deficit, and the gap will increase between now and 2100. What’s more, cities with over 50 million people will be all in sub-Saharan Africa. WSP already has an extensive presence in southeast Asia and has a presence in South Africa. Not to mention, the company has been successful in expanding to Latin America.

Another factor to consider is the company’s consistent and impressive organic growth numbers. The company has consistently grown organically since 2008. In 2010, WSP grew organically by 9.6%. In 2017, the figure was 6.2%. In 2018, organic growth was 3.5%. Don’t let the diminishing trend fool you. There has been a lull in infrastructure spending, and that spending must increase to deal with shortages, congestion, and the need for smart infrastructure.

This stock is for investors looking to make money by building the future.

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That said, buying into tech stocks is needed in most portfolios in order to ensure higher-than-market-average returns.

Rather than sifting through the R&D reports of hundreds of companies, take a look at technology Exchange-Traded Funds (ETFs).

BMO Nasdaq 100 Hedged to CAD Index ETF (TSX:ZQQ) was launched in 2011. Since the ETF’s inception, the ETF has witnessed a return of 16.16%.

I like this ETF because the ETF tracks the largest information technology players on the NASDAQ. You can save money from having to buy expensive tech stocks and skip to the good parts: receiving dividends.

Another advantage of buying this ETF is that you’re exposed to U.S. blue-chip companies without having to worry about the currency risk.

The main holdings of the ETF include Microsoft, Apple, Amazon, Alphabet, Facebook and Intel. Which of these players will have the next big technology breakthrough that will earn them a billion dollars? Flip a coin. With this ETF, you’ll have exposure to all of them.

With BMO Nasdaq 100 Hedged to CAD Index ETF, you’ll be buying into this fund in Canadian dollars. Too many investors overlook the currency risk when buying into a foreign market. For the past 10 to 15 years, the Canadian dollar has been a petrodollar.

Amid the flatness of oil markets, the Canadian dollar is struggling, and with that comes increased risk. Buy in Canadian dollars as much as you can.

If you’re looking for something with higher risk, I suggest iShares S&P/TSX Capped Information Technology Index ETF (TSX:XIT).

This ETF was established in 2001 and recorded a year-to-date return of 57.69%. Since the fund’s inception, the ETF has generated slightly more than a five percent return.

While this figure may seem weak to you, this ETF has endured 20 years. The ETF was founded after the dot-com bubble burst, survived the Great Recession of 2008 and persevered through a decade that has witnessed flat growth in many sectors. Buy into the lows and hold it.

This ETF is considered medium to high risk because the ETF skews towards companies that are heavy on R&D such as Shopify, BlackBerry and Constellation Software.

Spreading the risk across these large companies is important, and this ETF allows investors to hedge in the innovation game.

It’s worth pointing out that the iShares S&P/TSX Capped Information Technology Index ETF also plays the spread in terms of technology companies.

There’s a mix of application software companies, internet services and infrastructure companies, and IT consulting companies.

Those three clusters of companies compose 90% of the ETF’s holdings; they’re an interesting way of playing the spectrum of innovation.

Sometimes it’s hardware that makes the breakthrough (cell phone); at other times, it’s the software (opening up the platform of a cell to allow for apps (see Apple), and sometimes it’s the infrastructure (see 5G infrastructure).

The distribution of risk in this ETF stems from the various categories of technology companies and the protection from foreign currency exposure. We’re almost certainly heading into a recession.

You should pay attention to currency risks in all of your investments. Whenever you can buy foreign blue-chip companies in Canadian dollars, take a closer look.

This ETF allows for some excellent years of growth. Within the past year, the ETF has had a 51% total return. It’s the nature of technology: some years are feasts, and others are famine. Hedge your bets and buy into the ETF to split the difference.

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Detour Gold Corporation (TSX:DGC)  is headquartered in Toronto, has a market capitalization of $4.4 billion and is heavily invested in a mining project northeast of Timmins, Ontario. The company has a five-year return of 187% but has yet to pay a dividend.

I like this stock because the company’s primary asset (singular) is in Canada. It would take a lot to rock a Canadian government to the point where the government confiscates gold mines. Detour Gold offers an opportunity to invest in Canada at a time when there aren’t that many mining investment opportunities in the country. So much for sentimentality, let’s look at some facts related to cold, hard gold.

The price of gold is US$1,475 per ounce and is projected to increase to US $1,750 through 2020. By 2021, the projected price is US$1,925. You’ve heard the arguments about gold being a hedge against inflation and a store of wealth. I’ll not bore you with details.

I do want you to consider the possibilities of investing in a company that has little debt, is Canadian-based, owns large tracts of land in and around proven reserves of gold, and is entering a phase of high-demand for the commodity the company mines.

Detour Gold has a cost per ounce of gold of $1,005. The cost per ounce is slightly higher than the cost per ounce for Barrick’s, which is $878m, but Barrick has higher debt and more exposure to geopolitical risks.

In 2018, central banks throughout the world bought a record-breaking US$27.7 billion in gold. Smarter people than me know it’s time to buy gold, and I think it’s time we pay attention to their cues.

Consider Detour Gold for the company’s zero exposure to foreign markets, next-to-nothing debt, and stock performance. Keep in mind, the stock doesn’t pay a dividend.

Wheaton Precious Metals Corp (TSX:WPM) is headquartered in Vancouver, has a market capitalization of $16.3 billion, and is one of the world’s largest precious metals streaming companies. The company has agreements with 19 mines and nine development-stage projects. Wheaton has a five-year return of 53.34% and pays a dividend of 0.99%.

Wheaton is a good buy for those looking to invest in silver and precious metals without having to decide which mine will be profitable that year. The company has interests in both gold and silver mines.

Unlike gold, silver is an industrial metal. Industrial demand accounts for 60% of all silver use. Silver demand hit a three-year high in 2018, and in the same year, demand for silver bars in India increased by 118%.

We’re heading into a recession. Here’s a strategy I’d like you to consider: Watch the price of this stock. Buy it when it dips.

Buy into Wheaton for dividends and a hedge against inflation in a recession. Because silver is an industrial metal, its price will fall. The trade war between the U.S. and China has dampened silver prices, and if the trade war continues, silver prices are expected to dip as well.

That’s okay because you knew that going in. Buy more silver on the cheap during the recession (for however long it lasts) – a DRIP works nicely in this scenario – and you reap the rewards when the economy emerges out of the recession.

In the next phase of the economy, there will be more renewables. In other words, more voltaics which leads to an increase in the demand for silver. Silver is used in RFID chips. Last time I looked, the internet of things (IoT) was in full swing and a heavy user of RFID chips. Silver is also used in semiconductors and touch screens. I think both of those technologies will remain in demand.

Both of these companies offer a silver lining in a recession. If you need a steady dividend, take a closer look at Wheaton. If you’re looking to make money on stock price increases, take a look at Detour. Just remember, all that shines isn’t gold.

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ETFs create a basket of stocks according to specific parametres. A parametre might be the top-10 businesses in an industry, the top 50 dividend-paying businesses in a country, and so on. ETFs reduce exposure to one stock and help keep portfolio management fees down.

If you decide to buy an ETF, I suggest you first look at how long the ETF has existed. It’s more prudent to buy into an ETF that’s been around for years. Some funds are new and perform well for the first year or two, but then provide flat or negative returns.

I’m cautious when it comes to investing. Below, I’ll share with you some ETFs that have consistently delivered for a decade (or almost a decade).

Dividends

If you’re a dividend investor looking for a steady stream of income, look no further than iShares Canadian Select Dividend Index ETF (TSX:XDV). The fund has been operational since 2005, has a one-year-total return of 14.72%, and a 10-year total return of 7.83%. I also want to point out this ETF was formed in 2005 and has been performing well for almost 15 years.

Canadian Select Dividend selects Canada’s top 30 dividend payers and buys into them. This ETF buys heavily into Canadian banking. If you are exposed to high banking fees, this ETF is a clever little way of getting back some of those fees. If you pay high personal or business insurance rates, you can reclaim some of those fees through dividends.

Take that, banks and insurance businesses.

I like this ETF because of its longevity. There aren’t many high-performing ETFs that have been around for 15 years.

Aggressive growth

Maybe you’re a young investor with 30 years of planning ahead of you, or you’re making up for lost time, or you want to stretch the upper limits of your TFSA.

Horizons S&P Index ETF (TSX:HSX) started nine years ago. The top holdings are of IT businesses, health care, financials, communication services, and businesses that sell items for discretionary spending. Since the fund’s inception in November 2010, the fund’s annualized return is an impressive 16.75%. If you find some tech stocks too expensive to buy individually, you can pick them up cheaper through this ETF. One such stock is Berkshire Hathaway, which sells at US$226.90 per share. Another expensive stock would be Microsoft at US$153 per share or Apple at US$271.

Horizon S&P Index ETF is an interesting mix of IT innovation and health care. The top holdings are subject to change, but at the moment, the world’s tech giants of Microsoft, Apple, and Amazon round out the top three holdings. If you’re concerned about buying an expensive tech stock without knowing which company will create the next big thing, this ETF solves that problem.

Ultra-low management fees

iShares S&P/TSX 60 ETF (TSX:XIU) is, in my opinion, a foundational stock for all portfolios. The ETF’s management fees are a paltry 0.15%. This ETF has the honour of being the first ETF in the world and started in 1990. Since the ETFs inception almost 30 years ago, the fund has averaged a sold %7.16 return. Not a stellar showing but enough to outpace inflation and deliver growth.

More importantly, given the longevity and stability of this ETF, iShares S&P/TSX 60 ETF will cushion your portfolio from softening economic conditions. One quick look at business headlines will show job losses, closing of pulp and paper mills, sagging manufacturing, and a suffering agricultural sector. Buying into this ETF is a defensive position.

The top holdings of this ETF are financials (banks) and energy. What’s particularly interesting about this ETF is the ETF’s investment in Brookfield Asset Management. Brookfield is one of my favourite businesses because of the company’s heavy presence in renewable energy.

ETFs offer a low-cost way of positioning your portfolio to protect your wealth.

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Northland Power has more than $10 billion in energy-producing assets. The company generates electricity through solar, wind, thermal, and soon-to-be-online hydro facilities.

I like Northland Power for several reasons. Canada is shifting towards renewable sources of energy. A May 2017 Mining and Energy article described the great speed in which wind energy projects are being developed in the prairies. By developing renewable energy, Northand is keeping pace with the company’s competitors. On the municipal front, Edmonton, Vancouver, Nelson (B.C.), Guelph, and Charlottetown, among many other Canadian cities, have pledged to take steps towards using 100% renewable energy. Northland is taking steps to meet growing demand.

The company’s presence in Europe excites me. Germany wants domestic consumption of energy to 60% renewable 2050. Northland Power can tap into this growing market.

Northland recently purchased a Colombian utility (EBSA) for $1.5 billion. EBSA is the sole electricity provider for 1.3 million customers. One interesting fact about the deal is the grandfathered rights Northland acquired. EBSA had the right to integrate the company’s services vertically. Now, Northland has the right, and it is a competitive advantage over other Colombia service providers.

Some investors consider deeper expansion into Latin America a risk. In the case of energy, I don’t think it is. Energy costs were a contentious issue in recent Ontario politics. The Yellow Vest movement in France is, in part, attributed to high energy costs. Britain has experienced fuel protests. Ecuadorians have protested high fuel costs to the point of challenging the ability of the government to govern.

No government wants high energy costs. If you mess with utilities, you mess with energy rates, and you risk being overthrown.

Northland’s financials are solid. The company has good free cash flow and a history of paying high dividends.

Opportunities

More than two-thirds of Canada’s renewable energy comes from hydroelectricity. The construction of the Mamora Pump Storage project near Peterborough, Ontario, will put a hydro-electricity feather in Northland’s cap. To keep up with the demand for renewables, Northland will have to invest in more pump-storage facilities.

Pump-storage facilities have an advantage that wind and solar do not. Wind and solar have peak and off-peak production. However, currents always flow. If there is insufficient demand for electricity, then the excess electricity can be pumped into a reservoir at a higher location, dammed, and released to rush down to the turbines when there is a peak in demand.

To remain competitive in an energy-hungry world, especially in an energy-hungry Ontario, where high electricity rates hamper the ability of manufacturing to remain competitive, Northland would do well to invest more in pump-storage facilities. One option would be for Northland to team up with a Canadian mining company and see how Northland can re-mediate some old mining sites to create more pump-storage facilities.

Concluding thoughts

Northland pays a high dividend and is expanding the company’s global footprint. Most of the company’s assets are located in Canada, ensuring a steady supply of revenues. This stock is an excellent opportunity to invest in the next wave of infrastructure that will power economic growth.

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Alimentation Couche-Tard recently announced a $7.7 billion bid for Caltex Australia. On the surface, the deal looks promising, and the company’s stock reached an all-time high of $44.50 on November 28.

Concerns

One of my concerns of is the company’s high debt-to-equity ratio. In the last five years, the company’s debt-to-equity ratio has increased from 54.2% to 66.6%. The company has an aggressive growth strategy that is based on acquisitions, and those acquisitions are based on debt. So far, Alimentation Couche-Tard seems to be coping well with the debt.

Alimentation Couche-Tard announced the company’s interest in buying Caltex Australia to give the company greater access to Chinese markets. Canadian investors are already too aware of the consequences of poor Canada-China relations and its impact on Canadian markets. So far, China has only targeted Canadian companies operating in Canada but could easily target Canadian assets in China. It’s unlikely China will target Canadian assets in China through 2020, but if the dispute drags on for another two to three years, I’d expect to see such events. China can turn to internal consumer demand to compensate for withdrawing foreign direct investment, whereas the Canadian economy does not.

Alimentation Couche-Tard has embarked on an aggressive purchasing strategy, but the company shouldn’t neglect franchising opportunities. In terms of minimum investment, it costs a potential Alimentation Couche-Tard franchisee four to four-and-a-half times more to start an Alimentation Couche-Tard franchise than it would a Seven-11 franchise. Higher start-up costs will deter many franchise owners and will hurt Alimentation Couche-Tard’s ability to grow organically.

Opportunities

I like the company because of the company’s strategic position on infrastructure. Alimentation Couche-Tard has more than 2,700 full-service convenience stores in Europe. The company is in a unique position to play a pivotal role in the electric vehicle (EV) market. In July 2019, Alimentation Couche-Tard announced the company will expand the company’s EV charging infrastructure in Europe. The company currently has 150 EV charging stations in Europe and plans to expand this number to 200 by the end of fiscal 2019.

The company has 240 corporate stores in Norway, which is home to almost 300,000 EVs. Alimentation Couche-Tard has 642 corporate stores in Sweden, which has almost 80,000 EVs.

By testing and developing an EV infrastructure in Europe, Alimentation Couche-Tard can apply lessons learned to the North American and Chinese markets (political tensions notwithstanding).

Management needs to keep in mind changes in EV motorist’s behaviour and adapt their stores to meet the needs of that particular market segment.

If I were Alimentation Couche-Tard, I would take what I learned from rolling out EV infrastructure in Europe and approach EV vehicle manufacturers. I would see if we can arrange a deal to offer deals to that company’s car users and develop customer loyalty from the onset. Right now, there are fewer charging stations for EVs, but as the market expands, there will be more. Now is the time to lock in those customers and develop life-long relationships with them.

Alimentation Couche-Tard could electrify the company’s existing consumer base and demonstrate to potential EV car buyers the viability of the product. This strategy would be medium to long term, as the EV market takes shape.

Further opportunities for Alimentation Couche-Tard would be to take convenience to another level and partner with Uber Eats or similar services. This service would put it in direct competition with Amazon Go and would distinguish its stores from others.

Final thoughts

This stock can round out a diversified portfolio. The stock’s price has been on an upward trajectory for years. If you do buy this stock, keep an eye on the company’s debt load. Alimentation Couche-Tard is poised to develop innovated infrastructure and continue to innovate in customer experience (mobile applications and healthy foods). The company needs to continue to do this with a healthy balance sheet. Debt issues notwithstanding, this company conveniently serves profits.

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I like infrastructure stocks in general because many industries need to use them, and governments can’t let them fail. This is particularly true for a railroad company. The recent CN Rail strike demonstrated how commodity-dependent Canada uses rail to ship goods. Infrastructure stock are long-term buys that tend to offer good dividends, but you must time their purchase right.

I want to point out my concern with CN Rail’s CEO compensation package, which has increased by 20% at a time when earnings have fallen by the same amount. Such information usually causes my eyebrows to raise.

I like the stock, but I’m not convinced now is the time to buy it, because I think the price is too high. When compared to American railroad stocks, CN Rail is cheap only because of the currency difference and debt loads of certain American railroad companies. When CN Rail is compared to the strength of the Canadian economy, the stock looks expensive.

Freight companies do well when commodities do well. According to Transportation Canada, in 2018, 14% of freight moved was coal, 13% was grain, 9% was forest products, 8% was petroleum products, and 7% was potash.

Let’s take a closer look at these commodities. In September 2019, Moody’s downgraded the outlook for thermal North American coal from stable to negative. Soybean prices are down 3.7% from last year and may sink further because of tense relations with China. Annual prices of British Columbia forest products were $411 in 2017 and are now $367 in 2019. Alberta’s oil prices are down, and the price of potash is almost flat.

These downward pressures on commodities have turned into lower freight volumes. CN Rail experienced flat freight volumes in Q3 2019. Canadian manufacturing sales declined by 0.2% in September 2019, as did new orders by 2.7%. The machinery and equipment sector fell by 2.6% in August 2019. Canadian forestry is experiencing harsh times. Over the summer of 2019, more than 20 sawmills closed or curtailed production in British Columbia alone.

Harvests are still waiting to be shipped, but that backlog should clear up in a month or two. Farmers are also facing a double squeeze of having fewer export markets, because of Chinese trade tensions and higher freight costs. Some regulated freight route costs have increased by 12% since September 2019. Increases in freight prices might be good for CN Rail, but they can have knock-off effects to farmers who will have less capital to invest next year and possibly fewer crops to ship as a result. In turn, next year CN Rail will see a reduction in revenue and raised rates to compensate for lower volumes. See how that spiral starts?

Let’s not forget on November 15, 2019, CN Rail announced the company will be slashing about 1,600 jobs. Keep in mind, CN Rail’s total workforce is 24,000 people. That’s 6.5% of the company’s workforce shed due to weakening economic conditions.

I suggest you watch this stock in the coming months to see how low the stock goes. If the stock hits a low you’re comfortable with, pick it up then. It’s like I said: no government will let critical infrastructure collapse. Be mindful that we’re headed into a recession, and while Alberta’s oil may soak up some of the excess freight capacity in the short term, oil is also recession sensitive.

This stock will continue to chug along. It’s a question of how much distance you’ll get for your dollar.

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Keyera (TSX:KEY) services the oil and gas industry and has a market capitalization of $7 billion. The company services oil and natural gas businesses in Western Canada and transports propane, ethane, butane, condensate and iso-octane throughout North America. Like all the oil and gas industry businesses, the stock took a hit years ago, but Keyera has been rebounding. A five-year total return is -7.42%, but the company’s one-year total capitalization is 16.60%. The company’s trailing annual dividend yield was 1.84 (5.67%).

Recession or no, people will need to heat their homes. There is no way Canadians will turn off the heat entirely during winter. Over six million Canadians use natural gas to heat their homes. Heating with natural gas is cheaper than with electricity, and if the recession drags on for a long time, many Canadians will make the switch to natural gas.

As coal production gets phased out, utilities are turning to natural gas to generate electricity. Natural gas generates 13% of all Canadian electricity, and the number is expected to grow. I suggest you hold Keyera through to 2025 and then assess how the company competes against renewables.

RioCan Real Estate Investment Trust (TSX:REI:UN) has a market capitalization of $8.82 billion and owns and develops mixed-used properties. Most of the company’s properties are in Ontario, but the company has properties in other parts of Canada and the United States. RioCan pays an annual dividend yield of 5.18% and is one of Canada’s largest REITs.

Net income in Q3 2019 was up $48.7 million compared to Q3 2018. The increase in income is largely attributable to the increased value of their properties and higher rents.

I like RioCan because of the company’s diversified tenant portfolio. The company leases properties to some of the largest businesses in Canada, such as Walmart, Loblaw, and Metro, providing RioCan with a stable source of income. Note, the anchor stores in RioCan’s properties sell essential goods to Canadians. The anchor stores aren’t likely to go out of business.

The company’s 97% occupancy rate adds to the stocks’ appeal. RioCan has focused on purchasing locations next to existing transit. In cities like Ottawa, where there has been rapid growth, many retail facilities have been waiting for years to have improved transit to their locations. RioCan has largely avoided this problem because of the company’s strategic purchases. I want to see a management team that foresees problems and takes steps to avoid them.

BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company. Bell is the second-largest wireless service provider in Canada and has a dividend yield of 4.91%.

I like Bell for the simple fact that no matter how soft the economy becomes in 2020, comparatively few Canadians will cut their cell phone subscriptions. Cell phones aren’t like television cable. Even low-income earners need access to the internet to apply for jobs, check job schedules, and do banking.

While Bell was slow to respond to online streaming services, the company has since developed Crave TV and has extensive radio services in Canada and the United States. Let’s not forget Bell owns CTV, which retains robust viewership.

Bell continues to innovate in the sphere of smart cities and the Internet of Things. Bell has developed tools for crop monitoring, satellite imaging, and integrated farm data management. I’ll always buy into a company that’s investing in R&D over one that isn’t.

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CCL Industries (TSX:CCL.B) is a Toronto-based label manufacturing company that produces labels and packaging. CCL Industries has a market capitalization of $9.5 billion, pays an annual dividend of 1.27%, and has a five-year total return of 134.68%. The one-year total return is -0.52%. The company does have a high debt-to-equity ratio of 88.7%.

Despite the company’s high debt, CCL Industries recorded sales of $1.4 billion for Q2 2019 and experienced a consolidated growth rate of 1.9%. In the first six months of 2019, CCL Industries acquired Say It Personally Limited (UK), Colle à Moi Inc. (Québec), Hinsitsu Screen (Vietnam), and Olympic Holding B.V. (The Netherlands).

It’s been a rocky few years in the packaging industry, with the industry as a whole having a -26.4% earnings growth. In contrast, CCL Industries had a -8.6% earnings growth. To me, it’s always a good sign when a company can weather a storm better than the company’s competitors.

Markets

If the numbers are so weak for the industry, why am I presenting this stock to you? Let me show you some market opportunities for CCL Industries and how they are well positioned to capitalize on them.

CCL Industries has a strong presence in Germany. The German label market is projected to have a CAGR of 4.1% between 2019 and 2024. The German packaging industry is highly fragmented, giving space for CCL Industries to expand the company’s presence.

Growth opportunities are more significant in Asia, where the packaging industry is projected to have a CAGR of 8.5% through to 2021. One of the primary drivers of the need for more packaging is the growth of e-commerce in the Asia Pacific region. Consumers who purchase online said they preferred smaller and more durable packaging and attributed less importance on the aesthetics of the packaging.

CCL Industries is well positioned to take advantage of growing demand for online shopping. CCL Industries has a service line called Checkpoint Service. Checkpoint Service handles the logistics, labels, inventory controls, and loss-prevention for customers.

The stacking of labelling and logistical services allows for CCL Industries to develop deeper ties with the company’s customers.

Wrapping up the discussion on packaging, let’s look at the security aspects of CCL Industries’s products. The company invented the Canadian polymer banknote. The company manufacturers 80 denominations of currency in 24 countries. It’s not just governments and lotteries that require security measures on packaging. Security packaging implants defensive tools that enable user verification to ensure the product is intact. Such methods include RFID, bar codes, and holographic implants. The food and pharmaceutical industries are big consumers of security labels. The global security label market is projected to grow by 5.3% CAGR through 2023.

I’ve thrown a lot of numbers at you in this article. I wanted to demonstrate the growth rates of packaging and labelling across global markets. For me, the key thing about this company is how CCL Industries weathered a storm that battered the rest of the industry. Another essential element is the company’s global presence. If one market sags, the company can pursue a more aggressive strategy somewhere else.

If I had to put a label on CCL Industries, the words stable, profitable, and global would be on it. I promise that was the last of the packaging puns … for this article.

The post CCL Industries (TSX:CCL.B): Profits Wrapped Up appeared first on The Motley Fool Canada.

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To put things in perspective, 90% of the information of the 40 trillion gigabytes (40 zettabytes) has been created in the past years, and all trends indicate we will continue to generate more data. I’m a hardcore researcher who loves data, but those numbers make my head spin.

What does this mean for investors and businesses? Most businesses are overwhelmed by data and don’t have processes in place to capture knowledge. Most companies don’t have systems to better analyze their customers, products, web and social media traffic, and workflows.

Open Text (TSX:OTEX)(NASDAQ:OTEX) offers a lifeboat to companies adrift in the vast ocean of information. The company is based in Waterloo, Ontario, and in 2014 was Canada’s largest software company.

Open Text has a market capitalization of $14 billion and a five-year-total return of 68%. The company pays a dividend of 1.78%. Among the core services of Open Text are enterprise content management software, of which it controls 24% of the market share. The company also provides data centres for cloud-based solutions and AI and analytics.

Open Text offers services in a growing market. The market for artificial intelligence is experiencing 20% CAGR. By 2020, AI as a standalone industry will have a market capitalization of US $120-180 billion. The product information management industry is forecasted to grow 25% CAGR through 2023. Open Text has plenty of blue skies to sail towards.

Before I get deeper into the analysis of the stock and the company, I’d like to point out in 2016, Open Text was listed by The Globe and Mail as one of Canada’s top 100 employers. The Globe and Mail cited excellent programs to support younger workers. Open Text made the list in 2019, 2015, 2014, and is recognized by Deloitte as one of Canada’s best-managed companies.

Having a strong corporate culture and a well-managed workplace are critical components to running a competitive company. You can have the best-trained staff and top talent, but if the workplace is rife with unresolved conflict or if managers don’t lead, the company will hemorrhage money.

A thriving corporate culture takes years to cultivate and requires constant attention to maintain. Let’s not forget people quit bosses, not jobs. In a tight labour market for IT workers, if an IT worker doesn’t like their boss, they can find a similar job somewhere else. High turnover rates from poor management have been the death knell to many companies.

I look for companies that shape conversations in the sector, because it’s a mark of leadership. I see such activities as a willingness of the company to explore, innovate, and experiment. For years, Open Text has organized Innovation Tours. The company hosted conferences in Toronto and held other meetings around the world.

Let’s examine some more numbers. In fiscal year 2019, total revenues were $2.87 billion, representing an increase of 1.9% YOY. Revenues from cloud services and subscriptions totalled $907.8 million. The company’s annual operating cash flow was recorded at $876 million, up 23.8% from 2018. In other words, this company is liquid and has the money to invest in new projects and grow its market share.

Open Text’s strong corporate culture, substantial market share, and strong financials deserve a closer look.

The post Open Text (TSX:OTEX) Generates Wealth for You appeared first on The Motley Fool Canada.

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