Recently, I read some articles that discussed what Desjardins Securities, RBC Dominion Securities, BMO Capital Markets and other gurus thought would be some top stocks to own for 2017. From those articles here are some of the stocks they recommended and my amateur commentary on them.
- Manulife (MFC) – already own it and no intention of selling. It has long been a core holding of top Canadian equity ETF XIU. As long as people need insurance this should be a long-term dividend machine. (Disclosure will hold.)
- Sun Life Financial (SLF) – as above. (Disclosure will hold.)
- Bank of Nova Scotia (BNS) – stellar dividend history and with interest rates on the rise, over time, that will mean more cash to investors. International operations also help diversification. (Disclosure will hold.)
- Dollarama (DOL) – I’m kicking myself on this one, I was tempted to buy it years ago when the price was close to $30. The price is now approaching $100.
- Husky Energy (HSE) – although a major player in the oil and gas industry, I try to avoid stocks that have a fickle dividend and price history. This is one of them.
- Enerplus (ERF) – this company is highly dependent upon oil and gas exploration thriving in Canada. Too cyclical for me.
- Pembina Pipeline (PPL) – a toll road for oil and gas. Perfect. (Disclosure will hold.)
- Suncor (SU) – it has long been a core holding of top Canadian equity ETF XIU. It is too big to fail? (Disclosure will hold.)
- Goldcorp (G) – I have no idea where gold prices are going. This could be a great pick or a dog.
- Smart REIT (SRU.UN) – owners of retail shopping buildings, with dozens of box-store tenants who lease this space in both urban and suburban areas. This should be a cash cow for many years to come. (Disclosure will hold.)
- Alimentation Couche-Tard (ATD.B) – one of the largest company-owned convenience store operators in the world. Likely a good long-term hold for capital appreciation, including starting in 2017 and beyond.
- Brookfield Asset Management (BAM.A) – a massive conglomerate of real estate, infrastructure, renewable power and private equity. Likely a long-term winner. Another core holding for many Canadian equity ETFs.
- Magna International (MG) – a global automotive parts supplier. Even with self-driving cars on the way, it might thrive.
- National Bank of Canada (NA) – they now offer commission-free ETFs. Great news for investors and so are their long-term dividends. Another core holding of top Canadian equity ETF XIU. (Disclosure will hold.)
- TransCanada (TRP) – another energy toll road. Consistently a top holding of many Canadian equity ETFs including XIU. (Disclosure will hold.)
- Fortis (FTS) – a company that has raised their dividend every year, for 40+ years. A utility cash cow and core holding for me. (Disclosure will hold.)
- Algonquin Power & Utilities (AQN) – with a heightened focus on renewable energy in the coming years, another stock that is poised to deliver returns to investors. (Disclosure will hold.)
- InterRent REIT (IIP.UN) – this company comprised of multi-residential properties is expected to rise in value thanks to home ownership becoming a dream for some people.
- Cineplex (CGX) – analysts are saying people are loving the movies more and more, even with $5 popcorn.
- Canadian Natural Resources (CNQ) – this stock is widely held across many Canadian equity ETFs.
- West Fraser Timber (WFT) – the demand of timber and wood products is expected to rise in 2017 by many analysts. Will it happen?
A BIG disclaimer these stocks are not recommendations for purchase. Far from it. Please consult your financial professional before making any major investment decisions for you or your family. Any of these stocks could turn out to be studs or duds in 2017. I do believe however based on this plan, buying and holding a few blue-chip Canadian dividend stocks long-term is a good recipe for financial success.
What Canadian stocks might you have your eye on in 2017? Or when in doubt are you indexing?