Greg Newman's Top Picks: April 21, 2017

Greg Newman, senior wealth advisor, director and portfolio manager at Newman Group, Scotia Wealth Management 

Focus: Canadian dividend stocks and protection strategies
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MARKET OUTLOOK
Higher valuations, geopolitical uncertainty, Federal Reserve balance sheet normalization and trepidation about the Trump agenda may very well keep us in sideways markets for a bit. But solid Q1 earnings, an improving macro, a skillful Fed and a more pragmatic Trump mandate will pave the way for higher markets. Buy investments that are well positioned for this backdrop.

TOP PICKS

BANK OF AMERICA (BAC.N) is well positioned to benefit from an improving U.S. economy, interest rate hikes and many of Trump’s policies. Buy this name while it is still trading below its book value.

POWER FINANCIAL (PWF.TO) is well positioned to benefit from slightly higher interest rates and improving capital markets. Earn a generous, growing and well-covered dividend while this plays out.

ISHARES MSCI EMERGING MARKETS INDEX ETF (XEM.TO) is an easy way to own a basket of emerging market stocks which as a group currently displays nice growth potential and compelling valuations. Earn a decent dividend while this plays out.
 

PAST PICKS: MAY 4, 2016

MANULIFE FINANCIAL (MFC.TO)

• Then: $18.07
• Now: $23.25
• Return: +28.66%
• TR: +33.56%

SCOTIABANK (BNS.TO)

• Then: $62.61
• Now: $77.00
• Return: +22.98%
• TR: +28.18%

BROOKFIELD INFRASTRUCTURE PARTNERS (BIP_u.TO)

• Then: $35.59
• Now: $52.04
• Return: +46.20%
• TR: +53.53%

TOTAL RETURN AVERAGE: +38.42%