Christine Poole is managing director of GlobeInvest Capital Management. Her focus is on North American large caps.
ShawCor is the global leader in providing advanced pipe coating materials and processes, with an estimated 25-30 per cent share. The company is well-positioned to participate in the infrastructure build required to meet rising energy demand from emerging regions as well as the rehabilitation of aging pipelines in North America. Contract wins this year have boosted its backlog to a historic high and bode well for healthy positive earnings momentum going forward.
A high quality REIT with a diversified commercial property portfolio consisting of 59 per cent of operating income from office, 23 per cent from industrial and 18 per cent from retail. Its defensive cash flow stream is supported by its 98 per cent occupancy rate and average remaining lease term of 11.6 years. H&R offers an attractive current yield of 4.7 per cent and a schedule of committed distribution increases as occupancy on the Bow project ramps up this year.
TD Bank's retail market share in Canada and growth opportunities in the U.S. augers well for a relatively stronger earnings growth outlook compared to its peers. The recent announcement to increase its payout ratio (to 40 per cent-50 per cent of earnings) suggests dividend growth will outpace earnings growth over the next few years. Valuation is attractive and the stock offers a 3.8 per cent dividend yield.
Past picks: Sept. 14, 2011
Total return: +25.85 per cent
Total return: -26.5 per cent
Total return: +19.09 per cent
Total return average: +6.3 per cent
The summer rally was largely driven by optimism and hope of continued intervention by central banks to stave off financial collapse within the Euro zone and kick start decelerating economic growth. Substantive policy actions followed by signs of improved fundamentals are required to keep the rally going.
Watch Ms. Poole on BNN.