David Cockfield, Managing Director & Portfolio Manager, Northland Wealth Management

FOCUS: Canadian Equities & ETFs

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MARKET OUTLOOK:

Financial markets are facing turbulent times. Brexit, a nasty presidential campaign in the U.S., negative interest rates in most of the industrial world, and not knowing when the U.S. Fed will increase interest rates, all add to uncertainty. However there are also huge amounts of cash on the sidelines and bearish sentiment is at levels not seen since the market crash of 2008. This would argue for markets to be volatile but move sideways. Secure, dividend paying, low risk stocks offer better return potential than low yielding debt.

Top Picks:

BCE (BCE.TO)

The largest communication company in Canada. The company is growth-oriented and recently acquired Manitoba Telecom Services. The new national Liberal government seems less interested in creating more competition in the telecom sector giving the telecoms more time to focus on increasing profitability. BCE has raised its dividend on a regular basis and further increases are expected. Recently trading at new highs the stock still remains good value with a yield of 4.4 per cent. Last purchased in July @ $61.58.

Crescent Point Energy (CPG.TO)

One of the best managed Canadian intermediate oil companies. The company is focused on Bakken oil play in Saskatchewan and North Dakota. The company weathered the sharp decline in oil prices by reducing costs and increasing efficiencies. The company has a sustainable business model at present oil prices and good potential as oil prices rise. The company continues to pay a dividend to yield 1.8 per cent and was reluctant to cut its dividend. Any increase in earnings will likely see dividends increased. Last purchased in July at $20.12.

Sun Life Financial (SLF.TO)

A Canadian-based insurance and wealth management company founded in 1865. The company has expanded beyond Canada into the U.S., U.K. and the Far East. The company has been able to make accretive acquisitions. The stock has recently come under significant pressure falling 10 per cent since late May. With a P/E of 10.93 and a yield of 3.97 per cent the stock offers a safe dividend from a high quality investment. Last purchased in July @$41.02.

Past Picks:  June 26, 2015

BMO Low Volatility Canadian Equity ETF (ZLB.TO)

• Then: $26.85
• Now: $27.85
• Return: +3.72%
• TR: +6.29%

iShares North American Tech ETF (IGM.O)

• Then: $105.72
• Now: $112.30
• Return: +6.22%
• TR: +7.28%

Enbridge Income Fund Holdings (ENF.TO)

• Then: $35.11
• Now: $32.43
• Return: -7.63%
• TR: -2.09%

Total Return Average: +3.83%

Twitter: @northlandwealth

Website: www.northlandwealth.com