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John Stephenson is president and CEO, Stephenson & Company Capital Management. His focus is North American large caps and resource stocks.

Top Picks:

Lloyds Banking Group (LLOY LN) – Last purchased on July 6, 2016 at 50.65 GBP

After the Brexit vote, the shares of Lloyds got hammered, leaving the stock incredibly cheap despite being one of the best-capitalized European banks. The company boasts a dividend yield of 5.34 per cent and the company will likely continue to distribute capital to shareholders via share repurchases and dividend increases. The business model is very low-risk and generates large amounts of capital.

Comcast Corp. (CMCSA-Q) Last purchased on February 2, 2016 at $57.75

The company is a good defensive holding with a solid yield. The company is the largest cable operator in the U.S. and owns NBCU which gives it significant scale advantages in reducing programming costs. It is growing both its revenue and EBITDA faster than its competitors.

Pattern Energy Group (PEG.TO) Last purchased July 14, 2016 at $30.95

The company is an independent wind power producer with nearly 3,000 MW installed and 89-per-cent contracted for on average 15 years. The company's parent is PEG LP, a power developer that can drop down new assets into Pattern Energy Group, thereby reducing development risk. The company has a very juicy dividend yield of 6.6 per cent.

Past Picks: August 18, 2015

*Short* Baytex Energy (BTE.TO)

Then: $8.53 Now: $7.26 +14.89% Total return: +13.69%

*Short* Tesoro (TSO.N)

Then: $105.65 Now: $75.80 +28.25% Total return: +26.62%

Universal Health Services (UHS.N)

Then: $145.45 Now: $135.10 -7.12% Total return: -6.82%

Total Return Average: +11.16%

Market outlook:

Global stock markets have recovered nicely from the uncertainty surrounding Brexit, but the catalyst for strong future returns will need to be earnings growth. With weak global growth around the world, a defensive posture with good dividend-paying companies is the way to invest going forward.