Full episode: Market Call Tonight for Friday, June 16, 2017
Greg Newman, senior wealth advisor, director and portfolio manager at Newman Group, Scotia Wealth Management
Focus: Canadian dividend stocks and protection strategies
Sell in May and go away, Trump agenda troubles, Fed rate hikes, the pause of reflation, lower commodity prices, lower bond yields, higher valuations — these are just some of the reasons investors cite for a pull back. And one will happen — but not likely now, in my opinion.
Why? Stocks are still a better deal than bonds. This, combined with a recovering global picture and a more favourable policy backdrop, should continue to power this market advance. Continue to buy the dips.
INTACT FINANCIAL CORPORATION (IFC.TO) is a leading property and casualty insurer for individuals and businesses. We model that they can grow their earnings 18 per cent over our forecast horizon from a combination of operations, greater efficiencies and acquisitions. Earn an attractive dividend while this plays out.
ENBRIDGE (ENB.TO) is a leading energy delivery company in North America. We model that they can grow their earnings 11 per cent annually over our forecast horizon from a combination of new projects, existing products and merger synergies. Earn an attractive and growing dividend while this plays out.
RUSSEL METALS (RUS.TO) is Canada’s largest metal distributor and operates under three segments: metal services, energy and steel distribution. We model that they can grow their earnings by about 55 per cent over our forecast horizon from stronger steel prices and their competitive positioning. While cyclical and not low risk, earn a generous six-per-cent-plus dividend while this plays out.
PAST PICKS: JUNE 17, 2016
RESTAURANT BRANDS INTERNATIONAL (QSR.TO)
- Then: $55.39
- Now: $80.50
- Return: 45.33%
- TR: 47.27%
ROYAL BANK OF CANADA (RY.TO)
- Then: $77.60
- Now: $93.94
- Return: 21.05%
- TR: 25.74%
KILLAM APARTMENT REIT (KMP_u.TO)
- Then: $12.46
- Now: $12.81
- Return: 2.80%
- TR: 7.94%
TOTAL RETURN AVERAGE: 26.98%