Greg Newman is director and portfolio manager at Scotia Wealth Management. His focus is Canadian dividend stocks and protection strategies.
Top Picks:
Magna International (MG.TO)
Magna offers investors a very impressive growth rate, a compelling valuation and an excellent balance sheet, which we believe should lead to capital appreciation. Enjoy the solid dividend yield while this plays out.
Royal Bank (RY.TO)
Given its diversified earning streams and strong capital position, Royal Bank should trade at a higher multiple relative to its peers. Benefit from a solid and growing dividend while multiple expansion and EPS growth plays out.
Enbridge Income Fund (ENF.TO)
Enbridge Income Fund offers investors an attractive growth rate and a growing dividend at a valuation that is impressive relative to its peers.
Past Picks: October 2, 2015
Emera (EMA Installment Receipt) Sold July 26
Then: $34.71 Now: $50.40 +11.56% Total return: +53.27%
Manulife (MFC.TO)
Then: $20.44 Now: $17.91 -12.38% Total return: -9.85%
Algonquin Power & Utilities (AQN.TO)
Then: $9.37 Now: $12.18 +29.99% Total return: +34.65%
Total Return Average: +26.02%
Market outlook:
Are falling oil prices, high valuations and seasonality foreboding another swoon for stocks? I do not think so. Better-than-expected U.S. earnings, combined with an improving economic outlook and a still dovish Fed, should continue to drive stocks. Buy companies with attractive earnings and dividend growth that trade at compelling valuations.