Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel

Focus: North American dividend stocks and portfolio construction

MARKET OUTLOOK

  • Current market volatility is likely to persist.
  • The Canadian economy remains soft, the BoC should be cautious.

TOP PICKS

ISHARES 1-3 YEAR TREASURY BOND ETF (SHY.OQ)

Stock has a 1.6 per cent yield.

  • Opportunity to buy good assets at cheaper prices in the future.
  • Helps insulate the portfolio.
  • Will benefit if the fed continues to become more “dovish."

NOVO NORDISK (NVO.N)

As of December 2018 stock has a 2.8 per cent yield and a 18x FP/E.

  • Largest market share and broadest diabetes portfolio.
  • Market for diabetes products expected to double by 2035.
  • Healthcare typically non-cyclical or defensive.

OPEN TEXT (OTEX.TO)

As of December 2018 stock has a 1.8% yield and a 13x FP/E.

  • Largest Canadian software company.
  • Historically acquisitions generated growth but now organic growth is accelerating.
DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
SHY N N N
NVO Y Y Y
OTEX Y Y Y

PAST PICKS: JAN. 10, 2018

GENERAL MOTORS (GM.N)

  • Then: $43.00     
  • Now: $35.87      
  • Return: -17%     
  • Total return: -13%

LYONDELLBASELL INDUSTRIES (LYB.N)

  • Then: $115.03   
  • Now: $84.96      
  • Return: -26%     
  • Total return: -23%

BROADCOM (AVGO.O)

  • Then: $262.82   
  • Now: $259.34    
  • Return: -1%       
  • Total return: 1%

Total return average: -11%

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
GM Y Y Y
LYB Y Y Y
AVGO Y Y Y

Twitter: @kashpashootan

Website: www.firstavenuecounsel.com