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Greg Newman.
Greg Newman.

BNN MARKET CALL

Three top stock picks from ScotiaMcLeod’s Greg Newman Add to ...

Greg Newman is director, senior wealth adviser and associate portfolio manager at the Newman Group, ScotiaMcLeod. His focus is Canadian dividend stocks and protection strategies.

Top Picks:

Citigroup

Is well-positioned toward a U.S. recovery and high-growth international markets. Buy this name for capital appreciation and eventual dividend growth while it is still trading at less than book value.

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Agrium

We forecast free cash flow to increase by 50 per cent by 2015, achieved by mostly lower capital expenditures. Buy this name while it is still cheap and get paid a 3.3 per cent dividend to wait.

Enerplus

Has beaten its earnings expectations for four quarters in a row on improved operational efficiencies and cost discipline. It is displaying similar growth to its peers yet trades at a wide discount. Given its improved balance sheet and dividend coverage, we see more upside from these levels and believe the 5.66 per cent dividend looks sustainable at this time.

Past Picks: November 6, 2012

Finning International
Then: $23.84
Now: $25.70
Total return: +10.54 per cent

Chartwell Retirement Residences
Then: $10.15
Now: $10.15
Total return: +5.30 per cent

Pengrowth Energy
Then: $5.71
Now: $6.78
Total return: +29.88 per cent

Total return average: +15.24 per cent

Market Outlook:

Markets have come a long way, but the surprise may be how much further they can go. Buy companies with dividend growth that are levered to the early innings of the global economic expansion.

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