Greg Newman, director and portfolio manager at Scotia Wealth Management
Focus: North American dividend stocks and protection strategies
MARKET OUTLOOK
We are now into an “expecting” market where investing seems easy, and for a while it probably will be; but bears should know this is part of the script. We know going in that there will be periods like this. For example the crash of April of 2000 did not happen overnight; it took 1997, 1998, 1999 and the dizziness of the first few months of 2000 to finally blow off the top. Bears should also know as earnings expectations improve many stocks are looking cheaper and their balance sheets improving. While there are many areas of froth, there are still many good areas to allocate capital. Most of these areas may be unsexy but you can likely win with them without taking a lot of risk; something we always try to do. That said, when we see the high risk to reward stock that is under discovered and super compelling - we go for it!
TOP PICKS
Telus (T TSX)
Telus offers investors exposure to an improving wireless setup for 2021. Coupled with investments in Telus Health, International and Agriculture, investors should be rewarded with both improving earnings and a generous dividend.
Citigroup (C TSX)
Citigroup offers investors exposure to higher rates, a steeper yield curve and an improving economy while enjoying a nice dividend at a super attractive valuation.
Finning International (FTT TSX)
Finning offers investors exposure to machinery stocks and the improving outlook for copper with a name that has focused on cost containment and efficiencies for several years. Enjoy the nice dividend at a compelling valuation while we believe this plays out.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| T | Y | Y | Y |
| C | Y | Y | Y |
| FTT | Y | Y | Y |
PAST PICKS: DEC. 11, 2019
Shopify (SHOP TSX)
- Then: $491.71
- Now: $1,495
- Return: 204%
- Total return: 204%
Restaurant Brands International (QSR TSX)
- Then: $87.41
- Now: $77.89
- Return: -11%
- Total return: -7%
Nutrien (NTR TSX)
- Then: $61.05
- Now: $61.58
- Return: 1%
- Total return: 6%
Total return average: 68%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SHOP | Y | Y | Y |
| QSR | Y | Y | Y |
| NTR | Y | Y | Y |
WEBSITE: www.newmangroup.com
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