Greg Newman, Director & Portfolio Manager, Scotia Wealth Management

FOCUS: Canadian Dividend Stocks & Protection Strategies

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MARKET OUTLOOK:

Are falling oil prices, high valuations and seasonality foreboding another swoon for stocks? I do not think so. Better than expected U.S. earnings combined with an improving economic outlook and a still dovish Fed should continue to drive stocks. Buy companies with attractive earnings and dividend growth that trade at compelling valuations.

 

Top Picks:

Magna International (MG.TO)

Magna offers investors a very impressive growth rate, a compelling valuation and an excellent balance sheet which we believe should lead to capital appreciation.  Enjoy the solid dividend yield while this plays out.

Royal Bank (RY.TO)

Royal Bank given its diversified earning streams and strong capital position should trade at a higher multiple relative to its peers.    Benefit from a solid and growing dividend while multiple expansion and EPS growth plays out.

Enbridge Income Fund (ENF.TO)

Enbridge income fund offers investors an attractive growth rate, an attractive and growing dividend at a valuation that is impressive relative to its peers.

Disclosure Personal Family Portfolio/Fund
MG.TO Y Y Y
RY.TO Y Y Y
ENF.TO Y Y Y

 

Past Picks: October 2, 2015

Emera (EMA Installment Receipt) - Sold July 26

  • Then: $34.71
  • Now: $50.40
  • Return: +11.56%
  • TR: +53.27%

Manulife (MFC.TO)

  • Then: $20.44
  • Now: $17.91
  • Return: -12.38%
  • TR: -9.85%

Algonquin Power & Utilities (AQN.TO)

  • Then: $9.37
  • Now: $12.18
  • Return: +29.99%
  • TR: +34.65%

Total Return Average: +26.02%

Disclosure Personal Family Portfolio/Fund
EMA IR N N N
MFC.TO Y Y Y
AQN.TO Y Y Y

 

Website: www.newmangroup.ca