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Prefers US banks over Canadian banks, as he expects there will be a little more loan growth, especially if you consider that US households have a lot less than Canadian households. This bank has had a fantastic run. It is amongst the large cap banks, so has the most exposure to rising US interest rates.

This bank gives you a huge deposit base in the US. They have an under leveraged deposit base, so they can issue a lot more loans. However, there are still household debt concerns. This would show up through slower loan growth, which probably weighs on earnings growth. He would try to get this on a pullback. Dividend yield of 3.2%.

He really likes management. The dividend is safe. This business grows at about GDP. If they are able to create low cost capacity, they may be able to increase their market share slightly, but the free cash flow yield on this is relatively high. To him, the right price is below $20.

Manulife (MFC-T) or Sun Life (SLF-T)? Insurance companies tend to move up and down with interest rates. If you continue to see the interest rates gradually move up, it will be a positive. ROE’s are decent. Both are benefiting from what is happening in Asia. Both companies are fine.

Manulife (MFC-T) or Sun Life (SLF-T)? Insurance companies tend to move up and down with interest rates. If you continue to see the interest rates gradually move up, it will be a positive. ROE’s are decent. Both are benefiting from what is happening in Asia. Both companies are fine.

A Chinese company is offering to acquire this at $20.37. There is still uncertainty. If you own, he would consider selling some of your holdings.

He likes this company. Very well diversified with a very attractive dividend yield. In recent years they’ve increased their US exposure. It is so well diversified that you can bank on pretty moderate but stable cash flow and cash flow growth for the foreseeable future.

If he owned this, he would switch to Pepsi (PEP-N). There is more optionality with Pepsi. Coca-Cola has re-franchised their bottling agreements. The margins are relatively high. Pepsi is not as operationally efficient, which means that it is probably a better acquisition target.

This business is probably a lot simpler than people think. They sell equipment that allows people to connect to the Internet. This can include routers and switches, and for the longest time this was their bread-and-butter. All of a sudden, we had the advent of software defined networks. Software was decoupled from hardware. Cisco sold them together, so they encountered some margin pressures. Now they have transitioned where you are starting to see some positive organic growth, focused on security. Looking forward, the Internet of things is a whole bunch of different devices connected to the Internet. That’s a lot of data flowing across the networks, which should benefit companies like this. Trading at 12X earnings. Dividend yield of 3%. (Analysts’ price target is $39.)

Valuation is pretty decent, and actually trades at a discount to its US peer group. It is a large player in Canada. Ultimately it should continue to benefit by growing in the US. Has a very decent free cash flow yield. Has a very predictable reoccurring revenue model that will support its earnings growth. (Analysts’ price target is $24.)

Manufactures sensors mostly. Their biggest market is automotive and is starting to get into non-automotive industries and sectors. They will benefit from the Internet of Things as devices become connected with smarter devices that are aware of what is going on. Trading at about 14X earnings. It should demonstrate relatively low organic sales growth, but has great margins and a relatively dominant position. (Analysts’ price target is $53.)