FOCUS: North American Dividend Stocks and REITs

Market Outlook:

Market volatility is expected to persist this year as policymakers in emerging and developed economies try to stabilize growth and inflation. Low energy prices, credit concerns and the prospect of currency devaluation are weighing heavily on equity and bond markets, which has caused many investors to become more risk averse. As the business cycle progresses, companies with significant leverage could encounter difficulties refinancing debt and/or executing acquisitions. Accordingly, investors should be well-rewarded by focusing on dividend payers with predictable earnings growth, strong balance sheets and high free cash flow. 

TOP PICKS:

Fortis (FTS.TO) 

The company’s recently announced acquisition, which is pending regulatory approval, should provide shareholders with mid-single digit earnings and free cash flow growth during the next three to five years.

CCL Industries (CCLb.TO)

The company, which manufactures labels and containers, recently entered into an agreement to buy a U.S. company that should materially contribute to earnings growth as synergies are realized. 

Liquor Stores N.A. (LIQ.TO)

The implementation of a new strategic plan, which includes sales growth and margin improvement initiatives, should result in meaningful share price appreciation during the next several quarters. 

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Disclosure Personal Family Portfolio/Fund
FTS N N Y
CCLb N N Y
LIQ N N Y

Past Picks: Mar. 19, 2015

InterRent REIT (IIP_u.TO)

Recommended at: Now at: Change Total Return
$6.27 $7.22 +15.15% +19.04%

Ryder Systems (R.N)

Recommended at: Now at: Change Total Return
$96.99 $64.90 -33.09% -31.43%

Harley-Davidson (HOG.N) - SOLD IN JUNE

Recommended at: Now at: Change Total Return
$61.18 $49.68 -18.80% -16.70%

 

Total Return Average : -9.70%

Disclosure Personal Family Portfolio/Fund
IIP_u N N Y
R N N N
HOG N N N