Dec 12, 2016
Kash Pashootan's Top Picks: December 12, 2016
BNN Bloomberg
Kash Pashootan, senior vice president and portfolio manager at First Avenue Advisory, Raymond James
Focus: North American dividend stocks and portfolio construction
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MARKET OUTLOOK
- Rising home prices are starting to impact consumer spending. What does this means for investors’ portfolios and how to play this theme?
- 2017 single most significant risk: Fixed income within investors’ portfolios.
TOP PICKS
MAGNA INTERNATIONAL (MG.TO) | 8x P/E | 2.4 per cent yield | Last buy: Dec. 2016
Current valuation pricing in recession; leveraged in key areas like safety and electrification (hybrids).
SUNCOR ENERGY (SU.TO) | 2.7 per cent yield | Last buy: Dec. 2016
Relatively low-cost production capabilities; growing free cash flows will likely be returned to shareholders.
ALGONQUIN POWER CORP (AQN.TO) | 21x P/E | 5.1 per cent yield | Last buy: Oct 2016
Best-in-class earnings and cash flow growth; five per cent yield and 10 per cent+/year dividend growth target.
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
MG | N | N | N |
SU | N | N | N |
AQN | N | N | N |
PAST PICKS: NOVEMBER 20, 2015
FIRST AMERICAN FINANCIAL CORP (FAF.N)
- Then: $38.19
- Now: $37.20
- Return: -2.59%
- TR: +1.12%
CITY HOLDING COMPANY (CHCO.O)
- Then: $49.65
- Now: $66.54
- Return: +34.01%
- TR: +39.02%
SCOTIABANK (BNS.TO)
- Then: $60.63
- Now: $76.55
- Return: +26.25%
- TR: +32.16%
TOTAL RETURN AVERAGE: +24.10%
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
FAF | N | N | N |
CHCO | N | N | N |
BNS | N | N | N |