John Stephenson is senior vice-president and portfolio manager with First Asset Investment Management. His focus is on resource stocks.
Freeport-McMoRan is the cheapest large cap growth stock in the materials space, with a +3% dividend yield and significant leverage to upside if metal prices improve.
MEG has one of the best oil sands portfolios in Canada, with a well-funded growth plan.
The shares are attractively valued and should be a mainstay of investors’ portfolios.
Past Picks: Sept. 28, 2011
Innergex Renewable Energy
Total return: +22.45%
Total return: +25.28%
Total Return Average: +15.91%
With the European Central Bank, the Fed and the Bank of Japan all providing stimulus to their respective economies, the doomsday scenario in the stock market has been eliminated. Low bond yields, accommodative monetary policy and solid corporate balance sheets have tilted the balance in favour of stocks, and in particular, dividend-paying stocks. Investors should increase their exposure to North American equities selectively on market pullbacks.
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