David Cockfield, managing director and portfolio manager at Northland Wealth Management

Focus: Canadian equities and ETFs
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MARKET OUTLOOK
Equity markets in North America continue to rise. With a nasty U.S. election behind us and Trump acting presidential, significant investor funds that were sitting on the sidelines are flowing into equity markets. Funds are also migrating from fixed income markets as yields rise and the increasing prospect for a Federal Reserve rate increase in December. Strong recent U.S. economic growth has encouraged upward revisions to future corporate earnings predictions. This is also encouraging investors to step into equity markets. Despite record market highs in the U.S., we see market upward momentum continuing in the near term.

TOP PICKS

BCE (BCE.TO)
The largest communication company in Canada with an excellent growth record in earnings and dividend payouts. Improving economic growth in Canada will result in increased demand for BCE services. Recently, the stock has sold off from its highs of over $63.00 and offers an opportunity to long-term investors to acquire a stock that yields 4.7 per cent with dividend appreciation potential. Last purchased in November at $58.02.

TD BANK (TD.TO)
The second largest Canadian chartered bank is focused on retail banking with significant operations in the U.S. American short selling of Canadian banks, plus concern that new U.S. banking would have a negative impact on TD's U.S. operations, have held the stock price back. The election of Trump with an anti-regulation background plus excellent growth in the U.S. make the present lower P/E multiple of the stock likely to change to the upside. The stock carries a good dividend yield of 4.4 per cent and good prospects for future dividend increases. Last purchased in November at $63.65.

VERMILLION ENERGY (VET.TO)
Vermillion is a medium-sized Canadian-based oil and gas company with the majority of its assets outside of North America. A significant portion of those assets are in Europe including France, Netherlands, Germany and Ireland. The company appears adept at applying leading edge North American energy technology to European opportunities. The company has also been able to cut costs and increase efficiencies. The stock provides a good yield of 4.7 per cent. Last purchased in September at $46.85.
 

PAST PICKS: OCTOBER 23, 2015

BANK OF MONTREAL (BMO.TO)

• Then: $77.53
• Now: $89.00
• Return: +14.79%
• TR: +20.95%

iSHARES S&P NORTH AMERICAN TECH SECTOR INDEX FUND (IGM.US)

• Then: $111.56
• Now: $120.46
• Return: +7.97%
• TR: +9.03%

BMO MSCI EUROPE HIGH QUALITY HEDGED TO CAD INDEX ETF (ZEQ.TO)

• Then: $17.65
• Now: $17.00
• Return: -3.68%
• TR: -1.64%

TOTAL RETURN AVERAGE: +9.44%
 

TWITTER: @NorthlandWealth
WEBSITE: www.northlandwealth.com