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Market. The S&P500 rally will event eventually and he thinks we are starting to the late cycle signs. The FOMC is starting to show hawkish signs, so he is starting to look to hunker down with stocks with good dividend yields. As short term bond yields go up to maybe 2.25% thanks to the FOMC, the long term rates are not moving up the same.

Marijuana Stocks. He is not in any marijuana stocks. He thinks this sector has all the hallmarks of a classic bubble story. Maybe Canada will be a first mover in the space, but he thinks it is too early to invest significantly. He points back to the Tulip bubble and tech stocks of the 90’s as examples. Most of his clients, who have liabilities to cover for at least another 20 years, he would be nervous on this sector.

This company has been hit disproportionately hard by the Trans Mountain pipeline delay as a trans-regional shipper of crude. Their big petrochemical project is a big risk for them, but could be very profitable as well. The company is well-managed and raised their dividend consistently. He is watching it now because of the yield. Yield 7%.

This is a significant holding for them. They just spoke with management yesterday and received some good information on their dividend policy. They have been slowing their dividend growth relative to the growth in free cash flow to ensure the company does not have to go into the equity market to dilute shareholder value – a smart move he believes. He thinks it is undervalued at this value.

BCE is in a less favorable competitive position relative to their peers. They are on the verge of having to make large capital gains, like into fibre optics. However, they can now do so with better, more efficient technology than their peers. The shares do have the highest dividend yield of any of its peers and this why they hold it. He thinks he would add to positions if it were to drop into the mid-$40 range. Yield 5.7%.

He favours TD-T of the major banks due to their brand diversification and product mix. Canadian banks, in general, are reasonably valued. He is recommending to buy some, but not creating a large holding at this time. This would be at the top of the list, although BNS-T might be better value right now.

He thinks this area has relatively low grassroots growth potential, but it continues to expand via acquisition – a potentially dangerous business strategy. He would like to see more of a dividend yield before he really got interested. Yield 1%.

Canadian light oil producers have been abandoned by investors in general. He sees safer ways to play the energy space. He wonders if the dividend might be at risk as the company may need to put capital elsewhere. Yield 8%.

There continues to be concern over consumer debt levels and eventually this sector will come under substantial pressure. He wonders how much further the cycle has to go up. He would stay away.

He recently suggested selling this company. They are exposed to the energy sector and the economy in general. It had gone ex-dividend already and it has fallen since his recommendation. He would buy it again on a further pullback.

The company has had an interesting year falling from $50 early in the year to lows near $37. The issues now relate to the conversion of the Income Fund MLP and how they are issuing shares to buy them back. Line 3 is now de-risked, so at this price the yield is good and has potential to grow again. Yield 7%.

It is hard to tell if this company has fallen due to the Trans Mountain issues or because of rising interest rates. He expects news on Keystone XL in the fall. Growth in the Alberta natural gas system has good potential, especially if a west coast LNG project goes ahead as they have a virtual monopoly on the gathering infrastructure. An announcement on the project could be coming as early as next week. Yield 5%.

This is one of the four oil and gas stocks he holds. The company has very low capital risk and is a steady dividend payer. He thinks they can again grow the dividend next year. Very attractive at these levels. Yield 5.7%.

The announced merger is a signal of further consolidation yet to come in the sector. Gold’s relationship to economic turmoil may be weakening and he wonders if capital would flow back to miners in the event of crisis. He would prefer to hold an ETF for gold instead.

He continues to own this as it is primarily natural gas focused and has a great land and reserve base. He was buying it around $12.80.