David Baskin, president of Baskin Wealth Management
Focus: North American large caps
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MARKET OUTLOOK

The earnings for the recent quarter are the best in the past three years and indicate that global growth is translating into higher corporate profits. While markets have soared worldwide and valuations are accordingly somewhat extended, we see little sign of increasing inflation and we do not expect to see any substantial increases in interest rates. Accordingly, we remain selective buyers of reasonably valued high quality stocks, and we continue to avoid speculative and non-profitable companies. 

TOP PICKS

BCE (BCE.TO)
BCE has a very deep moat protecting it from competition, a high dividend with a record of consistent annual increases, and a great opportunity as data consumption from mobile devices continues to increase. The acquisitions of MTS and AlarmForce show that the company can still find ways to grow. This is a great pick for tax-effective income and moderate growth in earnings going forward. We have owned this stock for clients for over 10 years.

GENERAL MOTORS (GM.N)
General Motors is transforming itself into the car company of the future. It has sold underperforming euro banks Opel and Vauxhall and making significant investments in both electric and autonomous vehicles. It has increased its market share to the highest level since 2011 and will likely generate US$6 billion of free cash flow this year. The company pays a high dividend and is inexpensive at 7x earnings. We have owned this stock for clients for over five years.

BROOKFIELD INFRASTRUCTURE PARTNERS (BIP_u.TO)
Brookfield Infrastructure Partners is a diversified player with interests in utilities, transportation, energy, communications and water. Funds from operations have grown by 20 per cent annually since 2009 and distributions have grown at a compounded rate of 12 per cent annually over the past eight years. The company has over $2 billion of cash available for new deals and has an unlimited runway for growth. We have owned this stock for clients for over 10 years.

PAST PICKS: OCTOBER 13, 2016

POWER CORP. (POW.TO)

• Then: $28.33
• Now: $32.85
• Return: 15.95%
• Total return: 21.43%

ZIMMER BIOMET (ZBH.N)

• Then: $126.91
• Now: $112.01
• Return: -11.74%
• Total return: -11.00%

VISA (V.N)

• Then: $81.87
• Now: $111.83
• Return: 36.59%
• Total return: 37.60%

TOTAL RETURN AVERAGE: 16.01%

TWITTER: @davidbaskinBWM
WEBSITE: www.baskinwealth.com