David Cockfield is Senior Vice President and Managing Director with Northland Wealth Management. His focus is Canadian equities.
Bell Aliant, a previous subsidiary of BCE and for a time a Income Trust, offers telephone wire line service and TV services in the Maritimes, Quebec and Eastern Ontario. With 5.3 million customers the company has been very successful in growing its fibre optics penetration and thus billings. The stock presently yields 6.8 per cent - the best of all the Telcos.
Claymore High Yield Bond ETF
This ETF offers investors an opportunity to participate in a index that mirrors a high yielding (7.61 per cent) but higher risk corporate bond portfolio. The fact that the portfolio is very diversified offers considerable risk protection. Any indication that interest rates are on the rise should trigger a sell of this ETF.
The Sprott Gold Bullion fund offers a means of actually owing gold directly rather than purchasing a gold stock. Bullion has outperformed gold stocks for some time now and investors can diversify their gold exposure through this fund that is hedged to the $CAN. The physical gold is held at the Bank of Canada. We continue to believe that portfolios should own gold as insurance against a major financial dislocation.
Past Picks: January 21, 2011
Then: $74.96 Now: $79.17 Total return: +9.27 per cent
Baytex Energy Corp.
Then: $48.00 Now: $56.96 Total return: +24.33 per cent
Then: $5.48 Now: $6.70 Total return: +22.29 per cent
TOTAL RETURN AVERAGE: +18.63 per cent
Outlook Recent world equity market rallies have come due to better economic news out of the U.S. and China and the premise that the European situation has been stabilized. Good earnings reports plus historically low price earnings ratio have brought some investors back into equity markets. However, the European problems are far from solved and any new European crises will see investors again flee equity markets. This is a good time to eliminate old mistakes from portfolios and reposition in high quality dividend paying securities.
Compiled by Franklin Cameron, BNN Market Call Tonight
3 top stock picks from portfolio manager Paul Gardner
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- iShares US High Yield Fixed Income Idx ETF CAD-Hgd$19.19+0.17(+0.89%)
- Toronto-Dominion Bank$58.24-0.04(-0.07%)
- Baytex Energy Corp$5.57-0.08(-1.42%)
- Updated September 30 3:48 PM EDT. Delayed by at least 15 minutes.