David Cockfield is managing director and portfolio manager at Northland Wealth Management. His focus is Canadian equities.
Pembina Pipeline Corp. (PPL TSX)
This Alberta-based pipeline company is a gathering and transporting system servicing major and smaller gas and oil producers in Western Canada. It transports conventional and synthetic crude oil and natural gas liquids. The company has an excellent growth record and strong growth projected for 2015. The yield on the stock is 4.30 per cent.
Crescent Point Energy (CPG TSX)
A very well-managed Canadian oil company focused on the Bakken oil play in Saskatchewan and North Dakota. The company regularly beats forecasts for production cash flow and reserves increases. Recently the stock has sold off sharply despite the fact that one third of future production in 2015 has been sold in the $90 range. The stock yields a generous 9.78 per cent and the dividends seem secure.
Brookfield Property Partners L.P. (BPY.UN TSX)
A global property company that owns and manages office, industrial, retail, hotel and residential properties. The 168 high quality office properties are located in major cities in the U.S., Canada and Australia. The 163 retail properties are predominantly in the U.S. and Brazil. The 22,000 residential properties are in North America. Industrial properties are in North America, Europe and China. Hotel investment is in various markets and includes casinos. The stock provides a decent yield of $4.37 per cent.
Past Picks: December 12, 2013
BMO Low Volatility Canadian Equity ETF (ZLB TSX)
Then: $19.81; Now: $24.83 +25.34%; Total return: +28.17%
Vanguard Dividend Appreciation ETF (VIG NYSE)
Then: $72.62; Now: $81.90 +12.78%; Total return: +15.06%
iShares North American Tech ETF (IGM NYSE)
Then: $85.27; Now: $103.10 +20.91%; Total return: +21.94%
Total return average: +21.72%
The anticipated equity market came and went. Unfortunately for Canada, Saudi Arabia's cut in crude prices has turned the TSX down again, while the U.S. market is trading at historical highs. Within the energy sector, panic selling continues and is spreading to other sectors. Generally the economic outlook has been improving and will be aided by lower energy prices. It is unlikely that present low oil prices will persist for long, and prices in the $80 to $90 range will be back in 2015. In the meantime, psychology will dominate markets.