Rebecca Teltscher

Click here to see Ryan Bushell on BNN’s Market Call on Thursday June 5, 2014.

During this one hour segment, Ryan discusses the benefits of dividend stocks on an after tax basis when looking at current interest rate levels. He sees a long term shift to dividend paying equities as baby boomers need a constant flow of income to fund their lifestyle along with capital growth as people continue to live longer.

When going over Ryan’s past picks from June 3, 2013, there were several external impacts that affected short term performance. Potash Corp had a -5.74% return due to the unexpected collapse of the Russian and Belarusian cartel. Although Potash prices are still down, Potash still has good cash flows and can increase it’s dividend as capital expenditure comes off at the end of this year from it’s mine in Saskatchewan. Rogers had relatively flat performance of -0.95% with several items impacting the stock price such as the potential entry of Verizon in Canada as well as speculation on the spectrum auction. Ryan stipulates that overall, Rogers has good long term direction that should offset short term news.  Finally Baytex had a total return of 26.57%. They recently completed a large light oil acquisition in march and continue to be a solid operator with a good management team and a dividend of over 5%.

When looking at Ryan’s current picks, Crescent Point Energy is an energy company with a good balance sheet, hedged production with safe cash flows and a 6% dividend yield. Sun Life financial is the insurance company with the highest yield offering a good mix of products that acts as an alternative to the bank. Insurance companies are also one of the few spaces that will benefit from a rise in interest rates. And finally, TransCanada has $35 Billion of projects on the books with only $5 Billion of that associates with Keystone XL. Looking beyond the approval of Keystone, TransCanada has over $12 Billion of LNG gas pipelines contracted in British Columbia with the potential to add much more in the future. Keep looking for updates to see how these stocks will perform!

For the full video replay, please click here.

Ryan

Ryan Bushell, Portfolio Manager

 

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