Greg Newman is director and senior wealth adviser at Newman Group, ScotiaMcLeod. His focus is Canadian dividend stocks and protection strategies.
Citigroup is well positioned towards a U.S. recovery and improving global capital markets. Buy this name while it is still trading at less than book value.
Metlife should continue to benefit from bond yields and equity markets that will likely trend higher over time. Buy this high quality insurance name while it still trades at less than book value.
$25-billion of potential growth opportunities over the next six years should lead to further capital appreciation and dividend growth. Enjoy a nice 4-per-cent-and-growing dividend while this plays out.
Past Picks: Oct 1, 2012
Total return: +8.57 per cent
Total return: +21.77 per cent
Total return: +21.59 per cent
Total return average: +17.31 per cent
The great rotation out of bonds and into equities will likely continue although probably not in a straight line. Rising bond yields over time will continue to pressure interest sensitive stocks and favour stocks that benefit from, or are indifferent to, higher rates.