Greg Newman, director, senior wealth advisor and portfolio manager, Newman Group, Scotia McLeod

Focus: Canadian dividend stocks and protection strategies

MARKET OUTLOOK:

Global growth concerns should continue to keep interest rates lower for longer. While perhaps not in a straight line, the USD should continue to ease as the disparity between U.S. and global growth is not as pronounced as once thought. An easing U.S. dollar should help earnings recover in the 2H of this year and beyond. This combined with Q1 earnings that are beating a low bar make the current market valuation far more attractive than bonds - so long as oil can hold above $33 or so. Buy stocks that can benefit from the emerging environment that are priced attractively relative to their peers.

Top Picks:

Manulife Financial (MFC.TO)

Shares have struggled of late on actuarial, energy book and interest rate concerns despite sound performance in their underlying operations. Buy the stock when it trades below its five year average and enjoy an attractive and growing dividend while the growth thesis plays out.

Scotiabank (BNS.TO)

Offers investors an attractive option to play an improving Canadian and International environment underpinned by a weakening US dollar and stabilizing commodity prices. Enjoy the high, safe and growing dividend while the growth thesis plays out.

Brookfield Infrastructure Partners (BIP_U.TO)
Offers investors an attractive way to obtain exposure to the attractive returns that can ensue from infrastructure projects. Enjoy the high and growing dividend from this well-run company while it grows its business in four continents.

Past Picks:  April 23, 2015

Ag Growth International (AFN.TO)

• Then: $52.24
• Now: $36.38
• Return: -30.36%
• TR: -25.22%

Power Financial (PWF.TO)

• Then: $37.41
• Now: $32.29
• Return: -13.69%
• TR: -9.61%

InnVest REIT  (INN_u.TO)

• Then: $5.73
• Now: $5.45
• Return: -4.89%
• TR: +3.29%

Total Return Average: -10.51%

Website: WWW.NEWMANGROUP.CA