Greg Newman, senior wealth adviser, 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, record highs in the U.S., market complacency, upcoming Federal Reserve balance sheet normalization, a more inflation concerned Yellen and an uncertain Trump agenda have many calling for caution. But I believe improving economic data in all key regions, improving top line and bottom line earnings, still accommodative interest rates, the promise of tax reform/infrastructure spending and a softer U.S. dollar should keep the bulls running a while yet. Stay long while this plays out. Stocks are not cheap but they are still far more attractive than bonds and other assets.

TOP PICKS

ENBRIDGE (ENB.TO)
Boasts an enviable earnings profile, a high dividend and robust potential dividend growth. Buy this name when it is trading at a discounted valuation.

MANULIFE FINANCIAL (MFC.TO)
Offers investors a nice potential growth rate, a discounted valuation relative to peers and we believe annual dividend growth. Earn a nice 3.3 per cent approximate dividend while this plays out.

BMO MSCI EUROPE HIGH QUALITY HCAD INDEX ETF (ZEQ.TO)
Represents an attractive option to play what we believe will continue to be a fortuitous time for investing in Europe. Earn an attractive 2 per cent dividend while this plays out.
 

PAST PICKS: SEPTEMBER 23, 2016

AECON GROUP (ARE.TO)

• Then: $17.98
• Now: $17.67
• Return: -1.72%
• Total return: 1.28%

KILLAM APARTMENT REIT (KMP_u.TO)

• Then: $12.25
• Now: $13.16
• Return: 7.42%
• Total return: 13.27%

QUEBECOR (QBRb.TO)

• Then: $39.73
• Now: $46.69
• Return: 17.51%
• Total return: 18.08%

TOTAL RETURN AVERAGE: 10.87%