Kash Pashootan is senior vice-president and portfolio manager at First Avenue Advisory, Raymond James. His focus is North American dividend stocks and portfolio construction.
Top Picks:
First American Financial (FAF.N)
13x P/E; 1.7% Yield; Last Buy: Nov. 2015
- Title insurance provides exposure to the recovering U.S. housing market.
City Holdings (CHCO.O)
14x P/E; 3.4% Yield; Last Buy: Nov. 2015
- High net-interest margin relative to big U.S. banks.
Bank of Nova Scotia (BNS.TO)
11x P/E; 4.6% Yield; Last Buy: Nov. 2015
- 4.6-per-cent yield provides a stable income stream
- first mover advantage in emerging markets.
Past Picks: January 16, 2015
Columbia Banking System (COLB.O)
Then: $25.61 Now: $34.71 +35.53% Total return: +41.49%
Novo Nordisk (NVO.N)
Then: $44.29 Now: $54.73 +23.57% Total return: +25.44%
GameStop (GME.N)
Then: $36.35 Now: $39.26 +8.01% Total return: +10.83%
Total Return Average: +25.92%
Market outlook:
1. A deep recession in Canada could be coming
2. Stock pickers will have an advantage over broad market investors
3. In this environment, don't try to hit home runs