Rebecca Teltscher’s Top Picks for Nov. 4, 2026

Rebecca Teltscher, Portfolio Manager, Newhaven Asset Management

Focus: Canadian Dividend Stocks

Top Picks: Premium Brands, Brookfield Renewable, Emera

MARKET OUTLOOK:

Despite elevated geopolitical and economic uncertainty, both the Canadian and U.S. stock markets remain close to record highs, creating a disconnect between market performance and the underlying risks facing the global economy.

Inflation remains stubbornly high, the threat of higher interest rates continue to weigh on economic activity, and the prolonged conflicts in Russia and the Middle East have introduced significant geopolitical and supply-chain risks.

Meanwhile, the K-shaped economy continues to support headline consumer spending, largely driven by higher-income households, while the average consumer is showing increasing signs of financial strain. More recently, weakness has begun to spread into riskier asset classes.

Technology stocks have come under pressure as investors question the sustainability of significant AI-related capital expenditures without clear, recurring monetization, while Bitcoin has retreated following a major cryptocurrency security breach involving hot wallets.

Looking ahead, the approaching winter adds another layer of uncertainty, particularly given the destruction and damage to energy infrastructure across Eastern Europe and the Middle East. This raises legitimate questions about Europe’s ability to meet its winter energy requirements and the potential implications for natural gas prices.

Taken together, these developments reinforce our confidence in maintaining a Canadian, income-focused portfolio. Canada provides a relatively stable political and regulatory jurisdiction for our energy investments, while offering meaningful opportunities to benefit from growing export demand.

Furthermore, should the rotation away from higher-risk assets continue, we would expect some capital to flow toward more defensive, income-producing investments such as the companies we own.

While market volatility may create near-term uncertainty, we believe our portfolio is well positioned to provide stability, dependable income and long-term value in an increasingly unpredictable environment.

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TOP PICKS:

Premium Brands (PBH TSX)

Premium Brands represents an attractive long-term investment opportunity, supported by a business that is well positioned for sustained growth and improving profitability. The company has spent several years investing in and building excess production capacity in the U.S., positioning itself to support future growth without requiring significant additional capital expenditures.

With much of this investment cycle now complete, capital expenditures should moderate going forward, allowing for stronger free cash flow generation. Additionally, easing input costs, particularly beef prices, should provide a further tailwind to margins and earnings before interest, taxes, depreciation and amortization (EBITDA).

Together, lower capital requirements and moderating input costs create a compelling opportunity for meaningful margin expansion and improved earnings over the coming years. In the meantime, investors benefit from a stable, growing business with an attractive dividend yield and a strong, experienced management team.

Brookfield Renewable (BEPC TSX)

Brookfield Renewable is one of our favorite renewable power producers, given its strong positioning to benefit from the significant growth in electricity demand driven by artificial intelligence and data center expansion.

The company was an early mover in securing large-scale corporate power purchase agreements (PPAs) with major technology companies, including Google and Microsoft, positioning itself as a key partner in meeting their growing energy needs. With many of these companies operating under ambitious sustainability and carbon-reduction mandates, renewable energy is likely to remain an important part of their long-term power procurement strategies.

While Brookfield Renewable’s share price has experienced increased volatility as the stock became caught up in the broader AI investment theme, we remain confident in the company’s underlying long-term growth fundamentals. Importantly, it continues to offer a compelling combination of exposure to structural electricity demand growth, a high-quality global asset base, and a growing dividend yield of over five per cent, making it one of the more attractive opportunities for investors seeking both income and long-term capital appreciation.

Emera (EMA TSX)

Emera represents an attractive long-term investment opportunity, particularly following its merger with Canadian Utilities, which creates a compelling strategic fit and significant opportunities for both businesses.

The combination provides Emera with access to Alberta’s attractive growth market, complementing its existing growth opportunities in Florida, while also benefiting from Canadian Utilities’ stronger balance sheet.

In turn, Canadian Utilities gains greater geographic diversification, an important advantage for a regulated utility, along with exposure to Emera’s higher-growth markets and broader growth opportunities.

We believe the transaction creates a stronger, more diversified utility with an enhanced financial position and an attractive platform for future expansion.

Overall, we view the merger very favourably and are excited about the long-term growth potential of the combined business as it establishes itself as a larger-scale, geographically diversified utility.

PAST PICKS: OCT. 6, 2025

Aecon (ARE TSX)

Then: $25.05

Now: $55.79

Return: 123%

Total Return: 126%

Arc Resources (ARX TSX) - Acquired by Shell September 2, 2026

Then: $26.15

Delisted at: $33.91

Return: 30%

Total Return: 32%

Savaria (SIS TSX)

Then: $21.15

Now: $29.92

Return: 41%

Total Return: 44%

Total Return Average: 67%