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Canadian National Railway Company (CNR $138.34)
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Capital Power Corporation (CPX $62.48)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $59.51)
Q: Not too long ago I asked the question below. Given recent turmoil affecting the markets I’d like to ask it again, however would like you to consider current global risk in your response. Thank you.
Q: I would like your top 3 selections to invest in (and why) under the following scenario.
In your view moderate risk Canadian stocks, with a clear pathway (sjt externalities) to forecast stock price gains of >15% annually, yet having an annual dividend of 3% or greater. Exclude Oil stocks and major Bank stocks.
I know...it is asking a lot and if we could do this reliably we'd already be retired and on a beach somewhere! Thanks for all you do...
Dave
Q: I would like your top 3 selections to invest in (and why) under the following scenario.
In your view moderate risk Canadian stocks, with a clear pathway (sjt externalities) to forecast stock price gains of >15% annually, yet having an annual dividend of 3% or greater. Exclude Oil stocks and major Bank stocks.
I know...it is asking a lot and if we could do this reliably we'd already be retired and on a beach somewhere! Thanks for all you do...
Dave
5i Research Answer:
A stock price gain of at least 15% annually, combined with an annual dividend of 3%, is equivalent to around an 18% annualized return, which is a high bar.
With that said, we think within a three-to-five-year time frame, that level of return could be achieved if investors benefit from favourable tailwinds and upside surprises such as multiple expansion (re-rating), industry cyclical upturns, etc. Some situations that could be interesting, excluding banks and oil, include names such as CNR, CPX, and BAM.