Canadian Resources Are Where It’s At

When building our portfolio we are told to diversify geographically.  After all, Canada comprises only 3% of the global market.  However, Canada is rich in resources and they are now in high demand worldwide and our companies are leaders in their fields.

Oil and Gas

The Alberta oil sands have experienced a lot of bad press recently with the references to “dirty oil” but it remains one of the best sources of oil production given our stable (and peaceful) economy.  Syncrude is one the largest producers of crude oil.  Canadian Oil Sands Trust had a recent increase in profits of 25%.  Current price is $21.43 with an attractive yield of 5.7%.

Also worth looking at are Suncor Energy ($31.16), TransCanada Corp ($42.78/yield 3.9%), and Pengrowth Energy ($10.70/yield 7.9%)

We have an abundance of natural gas beneath us.  It’s a clean source of fuel and reserves are plentiful.  Check out EnCana Corp ($20.76/yield 3.9%).  Enbridge is one of the largest natural gas distribution companies.  They also have interests in renewable energy such as wind, solar and hybrid fuel cell.


As the world population increases, there is more stress placed on agricultural lands depleting the soil of essential nutrients.  The demand for fertilizer to supplement the soil will only increase.

Potash Corp of Saskatchewan ($43.55) produces nitrogen, phosphate and potash used in agricultural fertilizer.  Agrium ($70.98) is a retail supplier and wholesale producer of specialty fertilizers.


Canada is a major coal producer and consumer.  Although not a primary consumer heating source it is used extensively for power generation.  One half of our coal is exported, especially to India and China as metallurgical coal, which is essential for steelmaking mills.

Teck Resources ($38.53) has interests in coal and other mining.


Gold is the standard purchase when markets are in turmoil and investors are uneasy.  The current price of over $1,700 per ounce is high but opinions are that the price will still increase considerably.  I just wish I had bought it in the 70’s, when the fixed price was US$35 per ounce, instead of my gold jewelry.  You can buy gold directly in bars, wafers, coins and certificates.  You can also invest in gold mining companies, the most common being Barrick Gold Corp ($51.20), a standard in mutual fund holdings.


From diamonds, precious metals, copper, zinc, nickel, uranium and offbeat metals I’ve never heard of before that are used in manufacturing, computers and superconductors, there are hundreds of mining companies in Canada.  Unless your risk tolerance is high, stay away from penny mining stocks and stick to larger companies.

Resource companies are growing in demand and Canada has an abundance.  The companies mentioned are just examples, not suggestions.  You should do your own due diligence when purchasing any stock, resource mutual fund or ETF.

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  1. Emily Hunter on December 6, 2011 at 3:04 am

    I know that when I was in the stock market, I would definitely get me some loving in on the Canadian REITs and stocks with monthly dividend value. I’ve always thought of Canada as being underexposed.

    Thank you for writing this blog, btw. 🙂

  2. Gerard on December 6, 2011 at 7:33 am

    On the downside, some (many?) of these companies and industries are kinda evil…

  3. Ken Faulkenberry on December 6, 2011 at 8:33 am

    You are an excellent advocate of Canadian investments. A greater number of analyst now recommend Canada because of the reasons you describe and the fact the Canadian Government seems to be moving in the right direction, unlike most of the rest of the world.

  4. Kanwal Sarai @ Simply Investing on December 6, 2011 at 9:54 pm

    Great post! I’ve been looking for some companies in this area that are undervalued.

    As the economy continues to grow, Canadian resource companies will continue to do well.

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