Greg Newman, senior wealth advisor, director and portfolio manager at the Newman Group, Scotia Wealth Management
Focus: Canadian dividend stocks and protection strategies

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MARKET OUTLOOK

Possible trade wars, rising rates and high valuations have the markets understandably on edge. While a lot can go wrong, it’s in everyone’s interest to find a compromise. So buying the bull market champions at some point is still the base case.  

Meanwhile there’s an ever growing list of Canadian divided stocks that pay 5, 6 and even 7 per cent dividends that we believe have attractive and visible earnings and dividend growth over our forecast horizon.  

One view is that these names are accurately reflecting higher rates and levered balance sheets. While this is possible, I believe it’s more likely a function of concerns surrounding NAFTA, a weaker loonie and pipeline constraints that have kept global and Canadian fund flows away. This vacuum will not likely persist forever and we see attractive opportunities that pay generously to wait.

TOP PICKS

BROOKFIELD PROPERTY PARTNERS (BPY_u.TO)

Brookfield offers investors a nice rate of potential growth from existing and newly acquired assets. Get paid a generous distribution while this plays out and unit holder value surfaces.

CN RAIL (CNR.TO)

CN offers investors a nice rate of potential growth from existing and new opportunities. Investors can now buy this name at a good price given current operational challenges that should soon pass.

METLIFE (MET.N)

MetLife offers investors a nice rate of potential growth from premium growth, cost savings and buybacks. Benefit from the nice yield and lower valuation while return on equity enhancements and slightly higher interest rates help to eventually lift shareholder value.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BPY_u Y Y Y
CNR Y Y Y
MET Y Y Y

 

PAST PICKS: APRIL 21, 2017

BANK OF AMERICA (BAC.N)

  • Then: $22.71
  • Now: $29.69
  • Return: 30.73%
  • Total return: 32.89%

POWER FINANCIAL (PWF.TO)

  • Then: $34.29
  • Now: $32.38
  • Return: -5.57%
  • Total return: -2.09%

ISHARES MSCI EMERGING MARKETS INDEX ETF (XEM.TO)

  • Then: $29.71
  • Now: $34.56
  • Return: 16.32%
  • Total return: 18.42%

Total return average: 16.40%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BAC Y Y Y
PWF Y Y Y
XEM Y Y Y

 

WEBSITE: www.newmangroup.ca