Market Call for Tuesday, August 15, 2017
Kash Pashootan, senior vice president and portfolio manager at First Avenue Advisory, Raymond James
Focus: North American dividend stocks and portfolio construction
- “Rate check” is a must at this point for income investors.
- Cash is appropriate, but not too much.
TELUS (T.TO) | 4.3 per cent yield | 17x P/E | August 2017
- Most concentrated telecom in wireless; wireless trends remain positive in CAN.
- Increasing data usage and expanding 4G network helps support ARPU growth.
- Recent introduction of Telus TV means they’re taking market share from BCE and Rogers.
TRANSCONTINENTAL (TCLa.TO) | 3.2 per cent yield | 9x P/E | August 2017
- Diversifying revenue from printing and media to packaging should continue to increase EPS and valuation.
- Keep the portfolio insulated and be ready for selective buying.
PAST PICKS: MAY 13, 2016
CANADIAN TIRE (CTCa.TO)
- Then: $141.12
- Now: $153.05
- Return: 8.45%
- Total Return: 10.81%
CISCO SYSTEMS (CSCO.O)
- Then: $26.53
- Now: $32.02
- Return: 20.69%
- Total Return: 26.10%
- Then: $57.44
- Now: $72.82
- Return: 26.77%
- Total Return: 30.65%
TOTAL RETURN AVERAGE: 22.52%