Rebecca Teltscher, Portfolio Manager, Newhaven Asset Management
Focus: Canadian dividend stocks
Top Picks: Agnico Eagle Mines, Telus, AltaGas
MARKET OUTLOOK:
The North American economy and stock markets continue to resemble a seesaw, reflecting a growing disconnect between market performance and underlying macroeconomic uncertainty.
In both Canada and the United States, equity markets have been propelled to record highs largely by continued enthusiasm surrounding artificial intelligence and semiconductor companies, despite increasingly elevated valuations and heightened volatility.
At the same time, persistent geopolitical tensions—including the ongoing conflict involving Iran and its broader regional implications—have introduced renewed uncertainty into global energy markets. Fluctuating oil prices have the potential to feed through to inflation expectations, complicating the path for central bank interest rate policy in both countries.
While headline market indices remain resilient, the broader economic backdrop feels considerably less certain than recent market performance would suggest.
Against this environment, we continue to prioritize investments in hard assets supported by stable, resilient businesses with durable cash flows.
Although this approach may sacrifice some participation in the market’s most speculative upside, we believe it provides a more prudent balance of risk and long-term value creation during a period of elevated uncertainty.
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TOP PICKS:
Agnico Eagle Mines (AEM TSX)
As our only gold producer, Agnico Eagle Mines is an attractive long-term investment because it combines high-quality gold assets with strong financial performance and strong dividend growth.
The company has consistently generated robust free cash flow, supported by its low-cost operations, disciplined management team, and portfolio of long-life mines located primarily in stable jurisdictions.
This strong cash generation has enabled Agnico Eagle to steadily increase its dividend over time while maintaining a healthy balance sheet, demonstrating its commitment to returning capital to shareholders.
As one of the world’s premier gold producers, Agnico Eagle also provides valuable diversification within our portfolio.
Maintaining a modest allocation to a high-quality gold stock can help reduce overall portfolio risk by providing exposure to an asset class that has historically performed well during periods of market uncertainty, inflation, or geopolitical stress.
Together, its growing dividend, strong free cash flow, and defensive characteristics make Agnico Eagle a compelling long-term holding.
Telus (T TSX)
Telus represents an attractive long-term investment opportunity after several challenging years that have left the shares significantly below their historical valuation. We believe the stock has likely reached an attractive entry point, with downside appearing more limited relative to its long-term upside potential.
Under its new management team, the company has undertaken a strategic reset by reducing the dividend to a more sustainable level, resetting financial guidance and investor expectations, and committing to the divestiture of non-core assets to strengthen the balance sheet and improve operational focus.
Even after the dividend reduction, Telus continues to offer an attractive dividend yield, while the bulk of its capital-intensive network infrastructure investments are now behind it, positioning the company for improved free cash flow generation over time.
More broadly, the Canadian telecommunications sector is currently out of favor with investors, creating what we believe is a compelling long-term opportunity.
Historically, periods of low market enthusiasm for high-quality, cash-generating businesses have often provided attractive entry points for patient, long-term investors.
AltaGas (ALA TSX)
AltaGas has been an excellent example of why patience can be rewarded in long-term investing. Investors who stayed the course over the past decade have seen the company transform into a high-quality infrastructure business with a compelling combination of stability and growth.
We continue to like the company’s dual-platform model, with both its gas infrastructure and regulated utilities businesses providing essential, mission-critical services that generate resilient cash flows. Within the infrastructure segment, AltaGas’s LPG and LNG export assets have become true crown jewels, supported by direct relationships with Asian counterparties at a time when global energy security and geopolitical tensions have made reliable export capacity increasingly valuable.
Combined with a strong dividend that has continued to grow over time, AltaGas remains an attractive long-term holding. Even with the shares trading at all-time highs, we believe the quality of the business, its durable cash flow profile, and its long runway for value creation justify maintaining a long-term investment.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AEM TSX | Y | Y | Y |
| T TSX | Y | Y | Y |
| ALA TSX | Y | Y | Y |
PAST PICKS: SEPT. 3, 2025
Pembina Pipelines (PPL TSX)
Then: $52.04
Now: $66.98
Return: 29%
Total Return: 34%
CAE (CAE TSX)
Then: $36.83
Now: $37.76
Return: 3%
Total Return: 3%
Northland Power (NPI TSX)
Then: $22.10
Now: $21.15
Return: -4%
Total Return: -0.73%
Total Return Average: 12%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| PPL TSX | Y | Y | Y |
| CAE TSX | Y | Y | Y |
| NPI TSX | Y | Y | Y |
