Andrew Hamlin

Markets. We have had 2 rate cuts in Canada this year. We have had anaemic growth and there has been a lot of challenges with the Cdn$ and commodities. REITs are a pretty simple business and should have done a lot better. A nice hunting ground for income investors. You probably want to stay away from the retail side, but industrial looks pretty good. Also, apartments, multi-residential REITs, look pretty good as well.

A good, long term hold for an income investor that is also looking for growth. This company is looking to buy long life assets with a very long time horizon.

A Canadian company, but with US low rise multi-resident assets in the US Sunbelt. The nice thing is that they are switching their dividend to US pay. Dividend yield of just over 4%. Likes the story and the management team. They are doing a really good job. This will not be high growth, just slow and steady.

Interest rates are a factor, but a bigger driver to the story is really the asset management side. They have really bulked up in this area, and it gets a tremendous amount of fund flows in. What you have to concern with is how the equity markets do. Dividend yield of 3.3%. From a dividend and a dividend growth perspective, this looks pretty good.

FedEx (FDX-N) or UPS (UPS-N)? Both very good companies. Everybody is now buying online, and both companies are bulking up for the peak season. They have both equally increased prices. As an income investor he has always preferred this one. Feels it is a better run business with higher margins. Gives a higher return on capital with a much more aggressive return of capital back to shareholders with a large dividend and a significant share buyback. Dividend yield of about 3%.

FedEx (FDX-N) or UPS (UPS-N)? Both very good companies. Everybody is now buying online, and both companies are bulking up for the peak season. They have both equally increased prices. As an income investor, he has always preferred UPS. Feels it is a better run business with higher margins. Dividend yield of less than 1%.

You can’t go too wrong owning REITs. This one is a large cap and one of the “go to” REITs for generalists out there. However, he would be a little concerned about retail exposure, and this company has a fair bit. Dividend yield of almost 6%, which is a bit high.

Just had a dividend cut and the stock was absolutely decimated. Thinks the fall in the stock price is when 2 of their customers said they are no longer going to ship coal. The stock is pricing as though their largest customer, Teck Resources (TCK.B-T) is going bankrupt. Teck’s coal exposure is only about 25% of its business. Also, has copper and other base metals and have no debt with about $40 million-$50 million in cash. For a long-term investor, this is actually not a bad time to start looking at this company.

A simple business for investors to understand. All of it is setting up really nicely for 2016. Doesn’t see why this would not be a good investment for an RRSP investment.

(A Top Pick Nov 18/14. Down 16.91%.) A very good company and it is in the right space. Industrials performed horribly in 2015.

(A Top Pick Nov 18/14. Down 16.94%.) This is a theme that should have worked, but didn’t. They spent a lot trying to grow their loan book, and the challenge is that earnings growth is going to be a little muted.

(A Top Pick Nov 18/14. Down 47.88%.) The whole midstream space is really being challenged. Yield has gone up to about 11%.

Oil. In the short term, the price of oil is scaring a lot of people away. One needs to question if you need to own oil at all. Start thinking 6 or 12 months out. His feeling is that oil is going to be higher in 12 months than it is today. In that case, you want to own some of the large cap, high quality, dividend names. There will be a number of bankruptcies, so be very careful and pay attention to the balance sheets.

Royal Bank (RY-T) or Bank of America (BAC-N)? Look at the economies of both countries and the balance sheets of both stocks. This is a good quality Canadian bank, but he feels the challenge in Canadian banks is that we have a slowing economy. Earnings growth is probably going to be marginal. You will get decent dividend, but that is about it. He would say there is a little more upside in US financials.

Royal Bank (RY-T) or Bank of America (BAC-N)? Look at the economies of both countries and the balance sheets of both stocks. This one has a lot of good things going forward, specifically if you think rates are going to rise in the US. That will have a tremendous leverage to the uptick in rates.