Christine Poole is managing director of GlobeInvest Capital Management. Her focus is on North American large caps.
Royal Bank of CanadaRoyal Bank’s strong domestic franchise, leading capital markets position, expanding wealth management business, proven conservative credit culture and record of growing dividends are appealing. Concerns that the Canadian housing market is slowing are overdone. The valuation is attractive and the stock offers a current dividend yield of 4.2 per cent.
Chartwell Retirement ResidencesChartwell is the owner/operator of seniors housing communities across Canada (74 per cent of suites) and the U.S. (26 per cent of suites). Reasons to own this stock include an aging population and rising longevity, and the company’s operating leverage to improving occupancy. Chartwell provides an income yield of 4.8 per cent.
LVMH Moët Hennessy Louis Vuitton SALVMH is a global luxury goods leader with strong brands in all luxury categories: It obtains 35 per cent of revenues from fashion and leather goods (Louis Vuitton, Givenchy, Marc Jacobs, Fendi), 27 per cent from selective retailing (DFS Galleria, Sephora), 15 per cent from wines and spirits (Hennessy, Dom Pérignon, Glenmorangie), 13 per cent from perfumes and cosmetics (Christian Dior, Givenchy), and 10 per cent from watches and jewellery (TAG, Bulgari). LVMH is well-positioned to meet emerging and developed markets demand through its portfolio of more than 60 prestigious brands across different market tiers and its broad geographic presence.
Past picks: April 10, 2012
Canadian Natural Resources Ltd.Then: $31.29Now: $32.01Total return: +3.81 per cent
H&R REITThen: $23.81Now: $23.64Total return: +4.77 per cent
International Flavors & Fragrances Inc.Then: $56.79Now: $73.94Total return: +32.93 per cent
Total return average: +13.84 per cent
With U.S. equity indexes having surpassed prior highs, investors are understandably highly sensitive to seasonal patterns that have worked well in recent years. Against a backdrop of global accommodative monetary policies and receding inflationary concerns, continued corporate profit growth will be a key driver to keep equities on an upward path.