Includes Kinder Morgan Inc., Williams Partners LP, AT&T Inc. and Royal Bank of Canada
Casey Hoerth is a regular contributor to financial websites such as TheStreet.com. When he began investing in 2007, he chased "flashy growth trends" in the technology sector and emerging markets.
How he invests
Mr. Hoerth now invests in "dividend aristocrats." These are companies that regularly increase their dividend.
Kinder Morgan and Williams Partners are "great dividend payers … and have a long runway of growth ahead of them." AT&T is the largest telecom company in the United States and another great dividend payer.
Mr. Hoerth is bullish on Canadian banks. They are "beaten-up right now and I believe they are a good value," he says.
There is a perception that the collapse in crude oil prices will hurt their lending operations. But Canada has a diversified economy. Although Alberta may take a hit, "the devaluation of the Canadian dollar is good for central Canada and exports of manufacturing goods."
There is also a concern that the housing market is going to nosedive and trigger mortgage defaults. But he says this is a risk that would be largely absorbed by government insurance programs, not the banks.
Royal Bank of Canada shares trade at 11.9 times earnings, below their long-term average of 12.5 times. The dividend yield is 4 per cent.
"In 2008, I put in a limit order to buy 3M Co. shares at $45, way below market price. I completely forgot about it. In early 2009, when the market was at the bottom, it went through. Today 3M trades at more than $160 a share."
In 2008, he bought Apple shares and sold them after a 50-per-cent gain. Now they are nearly 10 times higher than his purchase price.
"If you have a good company … stick with that company. I did so with 3M and it was great. I didn't with Apple and I lost out on something tremendous."