Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. If Britain votes to leave the euro zone (BREXIT), it will create economic uncertainty. Investors have an opportunity to invest for the next week and beyond. We have a combination of multiple expansion and financial engineering that has really propped markets up for the last several years. If you are in too much cash, it is really to your peril. There are so many good companies on the TSX, 3%-7% dividends with dividend growth and earnings per share growth, that are priced well below their peers.

One of those companies that can benefit from financial engineering. They’ve pretty good organic growth. Thinks earnings per share grow at about 13% compounded over the next couple of years. Have also done very well by growing through acquisition. Just had a good Q1. Backlog was up quarter over quarter. Trading below its 5-year average.

Has about a 100% payout ratio, so wouldn’t call the dividend safe. Their US LNG project, Jordan Cove, might not really come to fruition. Trading at a reasonable price to cash flow versus its five-year average. If everything goes right, he thinks their payout ratio will fall to about 90% next year, and you will probably get paid your dividend. They also have some midstream projects that are under construction. Dividend yield of 9.3% could be at risk.

50% energy services, 35% chemical and 16% building. He likes the company. It has a 71% payout ratio, so the dividend should be pretty safe. They are trying to acquire Canexus (CUS-T) which would make them a more formidable player in the chemical space. Trading in line with its peers, but is a lot cheaper than its energy services peers. Have done a really good job of cost-cutting.

This hasn’t worked out so far. Lower interest rates have obviously pressured Great West Life (GWO-T). You have sloppy markets and regulatory pressures that have clouded the outlook for Investors Group. What is really good is that you are going to get paid your 5% dividend and he sees it growing at 6%. Sees growth returning at about 9% next year. Valuation is very cheap at around 10X 2016 versus 11X the 5-year average. This is one you want to be picking away at while it is unloved. A good way of doing that is by selling Puts a few times a year.

This didn’t do much for a couple of years, you just got paid your 8% dividend. Now the value has been recognized and being taken over at $7.25 a share. You take a risk if the deal doesn’t close. Dividend yield of 5.8%.

A high-quality, urban focused REIT. Has a good growth rate of around 5% for the next couple of years. 81% payout ratio, so the dividend is safe. The balance sheet is pretty good, better than average. Debt to FMV is around 46%. Just raised some equity to fund a Montréal and Toronto acquisition, which looks accretive. Pretty expensive, trading at about 21X. He would consider selling some Call options a couple of times a year, obligating yourself to sell it at $22-$23 giving you some really good cash flow. 4% dividend yield.

The chemical business isn’t a bank, so there is a little bit more risk and are more economically sensitive. He models a payout ratio of about 60% for 2017. Trading at about 6.1X 2016 estimated price to cash flow, versus 8.25 for a five-year average. Doesn’t really see any EBITDA growth for the next couple of years. You will just be getting paid the sustainable .8% dividend yield, which is okay.

Empire District Electric company shareholders have approved a merger, and this is going to be accretive. He is modelling 22% earnings per share growth over the next couple of years. Sees them growing the dividend 10% annually for the next few years. Trading at a 19X PE versus its peers at around 18X. It is still compelling enough though. Buy this on a down day or write a Put to get it at a lower price and get paid a nice premium. Dividend yield of 4.6%.

(A Top Pick June 18/15. Up 8.3%.) Thinks we are in a “lower for longer” interest rate environment, so he is not worried for too long about being in this space.

(A Top Pick June 18/15. Down 19.7%.) Had thought you could get paid a really good dividend with a low payout ratio and be investing in US banks and FINTECH. That is a very important area for investors to get into. Thinks the downside has been way over exaggerated on this. A Short seller had scared everybody, but that was discredited. Thinks value will surface as growth returns to US lending. Still a Hold.

(A Top Pick June 18/15. Down 21.22%.) This has been disappointing, because operationally they did exactly what he thought, but their energy book has really hurt them. Have been up about 12%, and he models that they continue to grow 12% over the next couple of years operationally. They have dividend growth and he continues to see it growing at 11% annually with a 42% payout ratio. Very cheap relative to its peers. Still a Hold.

There has been a very sluggish farm equipment environment. Q1 earnings came in a little bit light. However, management expects a more typical buying pattern to begin in the 2^nd half of this year. Has an 83% payout ratio so your 6% dividend is safe. They have a lot of operating efficiencies in place.

Gold. Thinks gold has proved itself to be okay and viable again. He would prefer to be in the big Cap names. Expect we are in a flat interest rate environment for some time, and that is a good environment for gold.

This has had a pretty big move, and is not the highest quality stock. He is modelling a 71% payout ratio, so you are going to get paid your 8% dividend. He also models that they have top line annualized growth of about 7% for the next couple of years. Trading a little bit cheaper than its five-year average. Debt levels are okay, but have been lower in the past. Trading near his target price.