Greg Newman, Director & Portfolio Manager, Scotia Wealth Management

FOCUS: Canadian Dividend Stocks & Protection Strategies

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MARKET OUTLOOK:

The next week will likely be bumpy but I think the outcome will ultimately prove favourable for investors.  Beyond that, investors may well wonder how equity markets can move higher with global growth near stall speed and with many companies displaying little top line growth. The answer I believe will continue to be a combination of multiple expansions and financial engineering.  Perhaps not the foundation of a comfortable landscape but it is something to work with. Lower interest rates have pushed up asset prices. Stocks are still far cheaper than bonds and real estate in many places. Buy companies that trade at a compelling price relative to peers with visible EPS growth and with a dividend that will pay you to wait while the growth catalysts play out.

Top Picks:

Restaurant Brands International (QSR.TO)

QSR owner of Tim Hortons and Burger King quick service restaurants boasts an enviable earnings growth profile, dividend growth and trades at a fair valuation relative to its three year average and its peers.

Royal Bank (RY.TO)

Royal Bank given its diversified earning streams and strong capital position should trade at a higher multiple relative to its peers. Benefit from a solid and growing dividend while multiple expansion and EPS growth plays out.

Killam Apartment REIT (KMP_U.TO)

Killam Properties has an attractive growth profile yet trades at a valuation that is lower than its 5 year average. Earn an attractive and growing dividend while multiple expansion and earnings growth plays out.

Website: WWW.NEWMANGROUP.CA