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He likes this company. On any of the Canadian telcos, you are not going to go wrong owning them. This company's concentration in wireless is quite high, among the highest in Canadian telcos. An area where he sees growth going forward, based on that we are all doing more with our smart phones. The average revenue per user is rising. Valuation is reasonable, trading at 17X. Make sure you are not too heavy in this space. Dividend yield of 4.2%.
Wouldn't be in a rush to buy this. If you have a portfolio that is filled with telcos and REITs, he would definitely stay away from pipelines. You are going to see the pipelines under pressure as interest rates go up. This one gives you about 4.5% dividend yield. Doesn't see a lot of growth potential in terms of share price in the near term.
Has nothing but negative things to say about this. If you are a trader, you can probably make money but if you are a longer-term investor, it is difficult to look at this company and build a case as to why, as a business, they are going to grow. This is a business that would not exist if the government were not giving them large financial handouts. There isn't any clear path as to how this company is going to grow.
He likes this company, but doesn't own it. It has become too expensive. They took their sub metering business and improved it. Even on their hot water tanks and servicing side, they have turned from selling units to renting them, which is help their recurring revenues and provided a residual income stream. In 2013 that business was about 11%, and is now about 69%. Trading at around 33X. Would prefer Algonquin Power (AQN-T), which is a similar business. Dividend yield of 4.8%.
(A Top Pick June 22/16. Up 79%.) A year ago, everyone was convinced the company was not going to be able to come up with anything innovative anymore. Apple today is a very different business than it was 8 years ago. If you are expecting it to behave the same way that it was, it is not the same business. They have a lot of cash. Sold it because of how much it appreciated. It became a little expensive. He would like to buy back in as some point.
You have to ask yourself why you are buying this. Is it for the yield or share price appreciation? If the yield, there are a lot of other places where you could get a similar yield, or even a better one. On share price appreciation, there is a lot of risk. If you are okay with the speculative nature, then maybe take a half position and hope to strike it right before things turn around. There are still lots of questions on this stock in terms of the business itself. Also, they are in a sector that is feeling pressure from rising interest rates, high household levels of debt. He wouldn't be a buyer. Keep it boring and get a lot of safety at the same time by looking at Canadian banks, or even the US banks.
This is right up there with the cheapest in Canadian banks. There are some questions or a “wait and see” on their US acquisition and how it rolls out. If you have a longer-term time horizon, these are the opportunities that you can look back on and be thankful for. You are getting paid while you wait, and are buying it at a great valuation.
Percentage of US investments if living in the US for 1 month a year? He is two thirds US$ and one third Canadian, and has been that way since January 2012. In Canada, if you take commodities and financials out of the equation, there isn't very much to choose from. You should be aware that when you receive dividends from American companies, they are not subject to the Canadian dividend tax credit, so you should get some tax advice on that. Regarding Canadian banks and the growth potential, he would prefer US banks if you are looking for share price appreciation, but the Canadian banks for the yield. He owns both in his portfolio.
The PepsiCo (PEP-N) Coca-Cola (KO-N) Rivalry never seems to end. Of the 2, he would prefer PepsiCo, but doesn't own either. It has done a better job of diversifying away from the reliance on carbonated soft drinks. Today, more than 50% of their revenues come from noncarbonated drinks. There is still a lot of uncertainty as to what this kind of business looks like 5 years from now. He would not be a buyer at this time.
He would stay away from this at this time. Think of it as the Titanic trying to turn like a speedboat. A mega company that is making major, major changes, especially in terms of selling assets and acquiring businesses. A couple of years ago, they sold off $70 billion of their GE capital assets. That allowed them to give up their banking charter and lower their capital requirements. Throughout all this, they did the largest acquisition in history, which they are still trying to digest. There are a lot of integration risks.
A steakhouse group. The name of the game here is all about execution. This has been around for a long time, but only have 160 locations. Low debt and strong cash flows means they are well positioned for store growth. Have not tried to grow the fastest, allowing them to give shareholders a nice mix of high return on investments and stable cash flows. Have done a great job of reinvesting in the brand and remaining relevant. Has a history of raising their dividend, 25% last year. Dividend yield of 1.7%. (Analysts' Price target is $21.50.)
This has done well, and likes how it is positioned for growth going forward. Has a fairly even split in how they generate revenue between the power generation and the distribution. We are seeing growth on both sides. On the generation side, there is lots of transparency in terms of cash flows. On the distribution side, they made the large acquisition of Empire, which has put on a lot of new clients for them. Although you have to be careful of interest sensitives, this company does have the positioning to continue to grow. Dividend yield of about 4.25%. He is still buying this for new clients.