Full episode: Market Call for Wednesday, November 1, 2017
Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel
FOCUS: North American dividend stocks and portfolio construction
Safe stocks are much less “safe” today. Look at mid-caps where the masses are not buying. Portfolio needs some defense but not too much.
RUTH'S HOSPITALITY GROUP (RUTH.O)
50/50 franchise/company owned, so a good mix of high return on investment (corp) and stable cash flow (franchised). Low debt and strong cash flows means it is well-positioned for store growth.
NEW FLYER INDUSTRIES (NFI.TO)
#1 transit and motor coach bus manufacturer and parts distributor in North America. Increasing infrastructure spending and aging urban bus fleets means more contracts.
TECCO Energy acquisition increases U.S. exposure, rate base opportunities and supports dividend growth. The $6.5 billion capital plan through 2020 further supports dividend hikes.
PAST PICKS: JUNE 22, 2016
MAGNA INTERNATIONAL (MG.TO)
- Then: $50.00
- Now: $71.00
- Return: 42.00%
- Total return: 46.42%
COLUMBIA BANKING SYSTEM (COLB.O)
- Then: $28.15
- Now: $43.56
- Return: 54.72%
- Total return: 61.96%
- Then: $95.55
- Now: $167.44
- Return: 75.23%
- Total return: 79.31%
TOTAL RETURN AVERAGE: 62.56%