Rebecca Teltscher

Click here to see Ryan Bushell on BNN Market Call on August 17, 2015. In this segment, Ryan discusses recent opportunities given lower valuations for some of the dividend paying stocks in the energy sector, despite some dividend cuts. He stresses that the recent oil downturn is a cyclical event and not a secular event, therefore we should be seeing a recovery in the sector. Commodity companies such as oil companies tend to pay a dividend throughout the entire cycle as opposed to Technology or Consumer Discretionary companies that don’t pay high dividends. We prefer companies that pay shareholders through the cycle which makes it easier holding them in difficult market conditions.

Ryan’s top picks in this segment is AutoCanada, an Alberta based auto dealership company that got caught up with negative sentiment in Alberta.  They have strong business fundamentals and are the only public auto dealership company in Canada. They have been growing their dividend and will be announcing more dealer acquisitions this year as per managements guidance.  Another top pick, TD Bank, is a more conservative bank in Canada given its large Retail Bank division and smaller Capital Markets. The stronger US Dollar has also helped the company when you translate its US operations back into Canadian Dollars. And finally, Freehold Royalties trades at a discount to other Royalty companies and have low development risk as their capex is extremely minimal. Despite its lower risk, it should have exposure to the oil recovery longer term.

For the full video replay, please click here.

Ryan

 

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