Christine Poole is the managing director of GlobeInvest Capital Management. Her focus is on North American large caps.
The lack of political will to formulate a comprehensive proactive solution to stabilizing the euro zone situation advocates a defensive posture for equity investors. The deepening decline in global industrial activity is disconcerting and does not bode well for corporate profit growth. Admittedly markets have been quick to discount negative news. Depressed sentiment and increasingly attractive valuation keeps us interested bystanders.
Past Picks: August 2, 2011
TR: +11.88 per cent
United Technologies (UTX-N)
TR: -3.85 per cent
Teck Resources (TCK.B-T)
TR: -29.20 per cent
Total Return Average: -7.05 per cent
Chartwell Seniors Housing REIT (CSH.UN-T)
Chartwell is an owner/operator of seniors housing communities across Canada and the U.S. Aging population, rising longevity and a relatively low penetration rate of seniors residing in retirement communities are reasons to own this stock. Chartwell also provides an income yield of 5.6 per cent.
Enbridge is a high quality, defensive investment within the pipeline and gas distribution industry. Good earnings visibility with earnings per share growth expected to average 10 per cent annually through to 2015, supported by fully contracted pipelines under construction. The stock currently yields 2.8 per cent and expect dividend growth to be at least in line with earnings growth.
TD Bank (TD-T)
TD Bank’s strong position in Canada and growth opportunities in the U.S. supports a more positive growth outlook when compared to its peers. Valuation is attractive and the stock offers a 3.6 per cent dividend yield, with high likelihood the dividend will be raised later this year.
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