Greg Newman, senior wealth manager, director and portfolio manager at Newman Group, Scotia Wealth Management

Focus: Canadian dividend stocks and protection strategies
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MARKET OUTLOOK
Trump policy jitters will likely cap the market advance for a while. While there is much uncertainty, the combination of improving economic data, higher earnings, American job-friendly policies, lower corporate taxes, decreased regulations and infrastructure spending should eventually lead the market higher. On these jitters, buy companies that can benefit from reflation while paying a solid and growing dividend along the way.

TOP PICKS

MANULIFE FINANCIAL (MFC.TO) boasts an enviable earnings and dividend growth profile and should benefit from reflation. Buy this name while it is still trading at a discount to its peers.

AECON GROUP (ARE.TO) stands to benefit from elevated levels of infrastructure spending from all levels of government. Enjoy a decent, well-covered dividend while this plays out.

VERESEN (VSN.TO) trades at a more impressive FCF yield than its peers and has a lot of catalysts on the horizon. Strengthening commodity prices, a weak Canadian dollar and significant growth in its midstream operations are just a few. Enjoy a high dividend while the market eventually recognizes this.
 

PAST PICKS: JANUARY 21, 2016

Still own, but sold about half of each soon after the U.S. election.

ALGONQUIN POWER & UTILITIES (AQN.TO)

• Then: $10.84
• Now: $11.34
• Return: +4.61%
• TR: +9.72%

KILLAM PROPERTIES (KMP_u.TO)

• Then: $10.28
• Now: $11.96
• Return: +16.34%
• TR: +22.33%

BROOKFIELD ASSET MANAGEMENT (BAMa.TO)

• Then: $40.05
• Now: $45.02
• Return: +14.17%
• TR: +15.95%

These prices and returns take into account the spin-off of Brookfield Business Partners in June 2016.

TOTAL RETURN AVERAGE: +16.00%