Kash Pashootan, CEO and chief investment officert at First Avenue Investment Counsel
Focus: North American dividend stocks and portfolio construction

MARKET OUTLOOK

  • Bull markets do not die from old age.
  • It's important to understand where returns are coming from; dividends and buybacks are important.

TOP PICKS

SCOTIABANK (BNS.TO)
4.2% Yield | 11x P/E | Aug. 2018

Emerging market exposure has resulted in underperformance against its peers year-to-date and presents a buying opportunity.

OPEN TEXT (OTEX.TO)
1.6% Yield | 15x P/E | Aug. 2018

  • Top 2 Canadian software company. It's similar to Constellation Software, but cheaper valuation.
  • M&A is Open Text's main growth driver, but organic growth is picking up.
  • Strong top line growth and expanding margins from deploying automation should help drive the stock higher.

CANADIAN TIRE (CTCa.TO)
2.2% Yield | 15x P/E | Aug. 2018

Pullback after Helly Hanson acquisition and soft Q2 provides an attractive entry point.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BNS Y Y Y
OTEX Y Y Y
CTCa Y Y Y

 

PAST PICKS: JULY 7, 2017

SUNCOR ENERGY (SU.TO)

  • Then: $36.67
  • Now: $53.40
  • Return: 46%
  • Total return: 50%

BROADCOM (AVGO.N)

  • Then: $239.62
  • Now: $207.78
  • Return: -13%
  • Total return: -11%

TD BANK (TD.TO)

  • Then: $65.12
  • Now: $78.85
  • Return: 21%
  • Total return: 25%

Total return average: 21%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
SU Y Y Y
AVGO Y Y Y
TD Y Y Y

 

TWITTER: @kashpashootan
WEBSITE: www.firstavenuecounsel.com