Bruce Campbell is president of Campbell, Lee & Ross Investment Management. His focus is on Canadian large caps
Crescent Point Energy Corp.
Production and cash flow growth will be surprisingly good this year and that, combined with a 7-per-cent yield, makes the stock quite attractive.
Bank of America
Bank of America is a safe way to play the U.S. general economic recovery and also the housing recovery as it has above-average exposure to the consumer mortgage side. It also has a good chance of increasing the dividend this year. It's still at roughly a 25-per-cent discount to tangible book with good capital ratios.
Riocan is the senior REIT in Canada. Yield is now 5.2 per cent and rising and the recent pullback provides a good entry point. It is well-diversified with increasing U.S. exposure.
Past picks: Feb. 06, 2012
Total return: –49.73 per cent
Total return: +21.35 per cent
Paramount Resources Ltd.
Total return: –10.96 per cent
Total return average: –13.11 per cent
Canadian growth appears to have improved recently and the U.S. appears to have bottomed and is grinding slowly higher.
We continue to hold a core portfolio of high-yielding stocks, modest cash levels and a balance between defensive industries and growth companies, preferably with yield protection.
We have been spending the cash down further as the noise of the U.S. government fiscal cliff fades. Fourth-quarter GDP will be weak and then should improve throughout the year.