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Markets: Light volume yesterday and today. Could be a combination of those on holiday and those waiting for the Fed’s Friday announcement. There is not a lot of conviction out there. We are setting up for a perfect storm here because the market is really expecting something to happen. Lets not forget there are a whole lot of European meetings happening afterwards. Income is a big focus for him and so he is positioned cautiously. There are some good sectors to hold but for August he is holding more than normal cash values. Big pension plans are still very heavy in bonds.

Good business and all of the markets they operate in are performing well and have growth opportunities. Bug Finning has had a number of challenges and it has nothing to do with CAT equipment, but more to do with their operations. Revenues are growing and backlog is up 6% so it is doing well but investors are focusing on the cost line. If they can get them under control then investors will reward them with north of $30 for the stock price. Prefers to Caterpillar.

Most banks reporting on Thursday. This is one of the better banks out there. Good loan growth and cost control. Would not be surprised to see a dividend increase on Thursday. Expects good, solid results. Continues to like it.

Thinks they will increase dividend this week. Payout is within the range here. Is concerned about the very little international loan growth.

Steel distribution company. Exposure to several industries, including oil and gas drilling (pipe supply). Has done a very good job of getting inventory management under control; working capital is down. Bond issue cleared up need for capital and there is room for dividends (5.6%) to increase. Health dividend that will grow over time.

REITs: Could stall if rates rise. He would have expected them to sell off a little harder in the last month when the 10 year increased but they held in here and some increased. There is just so much appetite for income. So rates have to go up significantly before it affects valuation. XRE-T represents Canadian REITs and has gone down 6 sessions but he is not alarmed yet. Fund flows are more important to REIT values than interest rates.

A lot of investors look at them with the one banks with international growth opportunities. This week’s result showed international was a bit weak. Dividend increase should bode well for investors but they have bumped up close to his target payout ration. The international exposure is key when you look at Canadian banks.

Doesn’t know if airlines are ever safe. This is the old Jazz income fund. A regional airline does spit out a lot of cash flow. Investors were rewarded with consistent income stream. 20% yield on an airline is unusual. Investors are saying ‘how can they continue to payout such a large dividend.’ Contract with Air Canada will be renegotiated later this year.

Pretty mature business. Wire line in Easter Canada. Payout ratio is pretty lofty. Company is doing Cap-X and have to find a balance between a big dividend and Cap-X expenditures. He is cautious on the dividend.

(Top Pick Aug 16/11, Flat) One of the core energy names in his portfolios. Pays a very modest dividend. Generates a tremendous amount of cash flow. Thinks we will see dividend increases as they match those of global players.

(Top Pick Aug 16/11, Up 39.67%) Owned since they went public. Small dividend. Mid-stream, diversified player. Should do well as North American economy grows.

(Top Pick Aug 16/11, Up 29.99%) Used to be an income trust and now is a corp. One of the largest North American sodium chloride producers. Very good management team. Great growth projects over the year and a number of them going forward. Will use up a fair amount of capital but payout is 70% and generates a lot of cash flow.

Global player. Likes it. A good dividend player and a good growth company to own here. He would look at UPS and FEDEX and gauge, which is the better valuation. Thinks UPS would be slightly better. If you are positive on global growth this is a good investment.

Dividend is on everyone’s mind. Investors punished stock because of dividend. Put up a good Q1. If they can meet their guidance then it will go up. Payout is manageable as long as they can get their financing. Great management team. Reasonably predictable cash flow stream. Will be in good shape a year from now.

Not a bad REIT. Payout ratio is a concern for a number of people. They will have to spend capital to renovate some of its properties. Zellers in some of their properties. Investors are reasonably compensated for the risk. Not a lot of capital appreciation.