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BUY
Invests in healthcare issuers, a space he likes. healthcare offers growth and defence and does well in late cycles and recessions. Pays enhanced dividends, too, with options totalling 8.7% dividends. The MER is around 1%, which is a little high. Covered calls do well in flat or down markets. Covered calls are also very tax efficient.
E.T.F.'s
BUY
Note that these aren't your typical utilities, but also pipelines like TransCanada, BCE and Verizon. Holds defensive, dividend players. Pays a 7.5% dividend yield. Holds safe, low-beta names. Likes it. It has performed well, down less than 1% YTD in today's market.
E.T.F.'s
BUY on WEAKNESS
Pays a 2.88% dividend yield and suspects that's safe given oil prices. He prefers Suncor and CNQ and Chevron, larger caps in energy. CPG is down 34% in 11 days, along with many energy stocks. So, now is an opportunity. Likes it. Oil supply can't meet demand.
oil / gas
BUY
Holds quality names, paying dividends, like the big banks and CNQ. Is down only 0.63% YTD which is great vs. the TSX. Pays nearly a 4% dividend yield.
E.T.F.'s
PARTIAL BUY
He's underweight tech now, but long-term likes GOOG because they dominate digital ads, and there will be more ads moving from traditional to digital. A forward PE of 19x, which is decent given a 20-25% growth rate. The price to sale is 5.5x, which is a caveat. You can start to nibble away but watch your weighting.
Business Services
WEAK BUY
All Canadian lifecos are down. This pays a 6.4% dividend, safe. Definite value here. Price to book is only 1.17x. Prefers Manulife for its growth, though, and pays a 6% dividend.
insurance
COMMENT
An alternative to this that won't involve a tax hit Holds 100 US high-dividend names like Merck, Verizon, Pepsi, and pays a 3.9% dividend. He prefers the Canadian version, XHU or XHD (Cdn-dollar hedged). Speak to an investment professional to understand US estate tax, if that is a consideration.
E.T.F.'s