Kash Pashootan, SVP and Portfolio Manager at First Avenue Advisory, Raymond James

FOCUS: North American Dividend Stocks & Portfolio Construction

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MARKET OUTLOOK:

Next week the market could be up or down 10 per cent and no one would be surprised. There's substantial argument for for both, so guessing in the short-term is a fool's game. We're sitting on 5 per cent cash, and around 5 per cent in gold. If we had a meaningful pullback we would underweight our bond holding by about 10 per cent and go into equities for the short-term.

Top Picks:

Canadian Tire (CTCa.TO) | 15.4x P/E | 1.7% Yield | May 2017

  • Solid management execution; stock continues to outperform with tough retail backdrop
  • Focus on e-commerce will help to grow same store sales
  • Maturing business with low payout = room for dividend increases

New Flyer Industries (NFI.TO) | 16.5x P/E | 1.8% Yield | May 2017

  • #1 transit and motor coach manufacturer in North America
  • Orion and MCI acquisitions continue to drive growth and give NFI economies of scale
  • Rising infrastructure spend in Canada and the U.S. supports contract growth

Algonquin Power Utilities (AQN.TO) | 19x P/E | 5% Yield | May 2017

  • Balanced business split of 50/50 generation/distribution provides stability & growth
  • Industry leading capital spending plan and dividend growth outlook

 

Disclsoure Personal Family Portfolio/Fund
CTCa Y  Y  Y 
 NFI Y  Y Y 
AQN  Y  Y  Y 

 

Past Picks:  FEBRUARY 11, 2016

ResMed (RMD.N)

  • Then: $57.12
  • Now: $69.34
  • Return: +21.39%
  • TR: +23.90%

BCE (BCE.TO)

  • Then: $57.29
  • Now: $61.74
  • Return: +7.76%
  • TR: +14.28%

Emera (EMA.TO)

  • Then: $45.05
  • Now: $47.00
  • Return: +4.32%
  • TR: +10.18%

Total Return Average: +16.12%

Disclsoure Personal Family Portfolio/Fund
RMD Y Y Y
BCE Y Y Y
EMA Y Y Y

 

Twitter: @kashpashootan