Go to the Globe and Mail homepage

Jump to main navigationJump to main content

(Tibor Kolley)
(Tibor Kolley)

Market Call

3 top picks from Davis Rea's John O'Connell Add to ...

John O'Connell is chairman and CEO of Davis Rea. His focus is on North American large caps.

Top Picks:

Enbridge

A great dividend yielder with consistent growth of payout that presently yields 3% in a defensive sector that has consistently delivered above-average results. The company was recently under pressure as short-term thinkers sold the company in anticipation of a major shareholder selling a portion of its holdings.

AltaGas

Another high yielding, well run company that has numerous years of dividend growth in a highly stable and defensive industry. The company has recently diversified its revenue stream to include U.S. gas utility businesses, which nicely augments its power generation assets that will soon come on stream in British Columbia. Presently, the yield is 4.9%.

Keyera Corp.

An outstanding, well managed business yielding 4.75%. The company has a strong balance sheet, and ample opportunity to increase the dividend over time. They are well positioned to continue to grow their business both through organic and acquisition-oriented endeavors.



Past Picks: Feb. 15, 2011



Husky Energy

Then: $27.67

Now: $26.37

Total return: -0.31%



Barrick Gold

Then: $48.66

Now: $49.33

Total return: +2.43%



BCE

Then: $35.46

Now: $40.16

Total return: +19.51%



Total Return Average: +7.21%

OUTLOOK

The global, U.S. and Canadian economies dodged recession in 2011 and continue to expand in the early months of 2012. Serious headwinds persist in most economies (emerging market monetary and fiscal policies remain very restrictive and big debt burdens persist in the developed nations) though the risk of a Lehman-type event in Europe has diminished. So far 2012 is starting just like 2010 and 2011 did, with upbeat consensus outlooks for economic growth and earnings that have generated considerable enthusiasm for equities. The odds are that economic and earnings growth will once again fall short of expectations, generating considerable volatility for investors. The intermediate (six- to nine-month) investment cycle is peaking and the expected correction in equity prices over the spring and summer could easily be much deeper than many expect.



See the full BNN video interview here



Compiled by Franklin Cameron, BNN Market Call Tonight

____

Also see:

3 top picks from Baskin Financial's Barry Schwartz

3 top picks from contrarian investor Benj Gallander

Related content3 top stock picks from portfolio manager John Stephenson

3 top stock picks from LDIC's Michael Decter

3 top stock picks from portfolio manager Lorne Steinberg

 

More related to this story

Topics:

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular