One of the leaders in the low-cost space. Their margins run at about half of what their competitors do. That model only works if there is high turnover of your products. They have been successful in picking the right products, pricing them and moving them very quickly. The risk is, if you do get into a slowdown, there really isn’t any room to cut prices. They generate about 25% of revenue from membership fees, and with so many members, it is difficult to grow revenue. Membership fees are going up, which is a way to have that side of the business stay strong. Trading at about 29X Price to Earnings. For him, the dividend trajectory growth is not there, and trades too rich for him. Dividend yield of 1.1%.

This owns Appleby’s and IHOP restaurants. They are fairly saturated in the US, and the growth opportunity is their expansion into some of the emerging-market countries, especially Mexico. Recently sold his holdings because he was tired of waiting for management to execute. The stock is cheap, and continues to get cheaper. He doesn’t like the selloff that it is experiencing, and doesn’t see any stability in sight. Wait for the freefall to end, or just take a half position. Dividend yield is close to 7%.

Rates are going up which is great for financials. The bad news is when you look at this over the last 52 weeks, it is up about 90%, so a lot of that is priced in. The big question is, how much of it is priced in. If you are light in US financials, this is one of the best ways to get exposure to rising rates. The interest margin will continue to skyrocket if interest rates stay where they are or continue to rise. Trading at about 15X, which is not cheap nor expensive. If buying at these levels with a 3-4 year hold, you will be fine. Dividend yield of 1.25%.

This is a yield play completely. If looking for share price appreciation, there are better places for that. A great anchor within a portfolio. One of the lowest beta stocks on the TSX. Dividend yield of about 5%.

The dividend is safe, the primary reason why most investors own it. In terms of valuation, it is very expensive. You are paying top dollar for this. A great business, and we are going to continue to use pipelines, and its cash flow is reoccurring and stable.

(A Top Pick Jan 29/16.) He was at about 15% cash at that time, and is now at about 5% cash.

(A Top Pick Jan 29/16. Up 29%.) Focused in software and they have traditionally made acquisitions of smaller software companies. The challenge is that this is a $13 billion company, so they need to do 40-50 acquisitions yearly to really move the needle.