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| Douglas Kee of Leon Frazer & Associates |
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| DON'T BUY | Arc Resources Ltd | ARX-T | 22.740 | Not geopolitical investors, but what’s going on in Iran could push oil prices up. | 2012-01-12 | ||
| TOP PICK | Altagas Ltd | ALA-T | 29.280 | A new position for them. Sold Transalta because there is more dividend potential with ALA. By 2014 he expects dividend growth to increase from 5% per year to somewhere as much as 10% per year. | 2012-01-12 | ||
| BUY | BCE Inc. | BCE-T | 42.360 | Telecoms. Owns most of them and sees descent dividends. BCE increased dividend 6 times since the teachers attempted buy out. This would be his recommendation. Core holding. | 2012-01-12 | ||
| HOLD | Bank of Montreal | BMO-T | 58.660 | Has been the laggard at raising their dividend. Thinks it will increase in 2012. It is almost a utility. | 2012-01-12 | ||
| TOP PICK | Bank of Nova Scotia | BNS-T | 52.200 | (Top Pick Dec 21/10, Down 3,28%) Favourite Canadian Bank. He continues to buy the banks. BNS is a low cost producer and longer term in the wealth management and international it will work out. International has larger margins. There was some dilution going on with their expansion of the wealth management division. | 2012-01-12 | ||
| DON'T BUY | Cameco Corporation | CCO-T | 20.670 | They have increased their dividend, but he questions the production growth in that company. They had a lot of flooding problems and not sure that is over with. | 2012-01-12 | ||
| TOP PICK | Canadian National R.R. | CNR-T | 79.300 | Would rather stick with low cost producer, which is CN even if CEO goes to CP. | 2012-01-12 | ||
| DON'T BUY | Canadian Oil Sands | COS-T | 23.680 | His favourite in the oil sands is Cenovus. Doesn’t see a lot of growth in the yield of COS. Oil sands guys are becoming manufacturing guys. | 2012-01-12 | ||
| HOLD | Encana Corp | ECA-T | 18.200 | This is one he struggles with. They do have a dividend and he thinks it will increase over time, but it is definitely an under performer. Low cost producer and finding lots of gas but as they find more and their competitors find more, the price goes down. They addressed their balance sheet problems. It could be dead money for 18-28 months. | 2012-01-12 | ||
| BUY on WEAKNESS | Keyera Corp | KEY-T | 47.990 | Correcting. Not a huge amount of downside as long as they can continue to increase dividend. He is fairly positive on it. Wait until it is 10% down from recent high. | 2012-01-12 | ||
| BUY | Leon's Furniture | LNF-T | 12.600 | Generous special dividend. Great management team. Increased dividend over time. It’s fairly illiquid. | 2012-01-12 | ||
| HOLD | NAL Energy Corp | NAE-T | 7.410 | Meeting tomorrow with management. Cut distribution from 7 to 5 cents. Probably a good thing to do. They are a conservatively managed company. His gut feel today is to stick with it. | 2012-01-12 | ||
| BUY | Noranda Income Fund | NIF.UN-T | 5.950 | Basically a processing manufacturing company in the zinc business. Distribution is safe at 8%. | 2012-01-12 | ||
| HOLD | Peyto Exploration & Develop. | PEY-T | 21.280 | Great managers and good balance sheet. Primarily in Natural gas. Good finders and low costs. Descent yield. Proven over time they are pretty good at finding the stuff. | 2012-01-12 | ||
| BUY | Pembina Pipeline Corp | PPL-T | 27.190 | Core holding for his income portfolio. Great job of expanding in oil sands. Attractive yield that he thinks will rise over time. It was window dressing at the end of the year and pulled back a bit recently but will continue up. | 2012-01-12 | ||
| Comment | Potash Corp of Saskatchewan | POT-T | 44.170 | A good company. Dividend is not attractive and not going up fast enough for him. Longer term the Ag story works. He doesn’t own any at this point because none yield a big enough dividend or grow it enough. | 2012-01-12 | ||
| PAST TOP PICK | Rogers Communcations (B) | RCI.B-T | 38.730 | (Top Pick Dec 21/10, Up 16.85% Total Return) | 2012-01-12 | ||
| BUY | Royal Bank | RY-T | 52.770 | Core holding. Has had a descent run. 50% of business is retail and you can only cut costs to increase profits. He is comfortable with it vs. insurance companies. | 2012-01-12 | ||
| BUY | Sunlife Financial | SLF-T | 20.120 | Has it in his income portfolio because of the yield, which he thinks is safe at least for now. Insurance industry is going through turmoil, but longer term it is a good name. Doesn’t own the others. | 2012-01-12 | ||
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| BUY | Trans Canada Corp | TRP-T | 42.440 | Long term hold for him at 5% of portfolios. Looking for 5-10% dividend growth. Eventually the XL pipeline will get built. It is more politics than sanity. Well-managed company. Pulled back and represents a buying opportunity. | 2012-01-12 | ||
| HOLD | Westshore Terminals Inc. | WTE.UN-T | 24.000 | Dividend is safe. Primarily a coal company. They can keep the distribution but it may not go up. | 2012-01-12 | ||
| PAST TOP PICK | Crescent Point Energy Corp | CPG-T | 44.780 | (Top Pick Dec 21/10, Up 8.29%) Still likes it. Really good managers, good balance sheet. | 2012-01-12 | ||
| N/A | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Markets: His strategy for the last two years has worked pretty well. People have caught up to dividend investing so he is a little concerned. The search for yield could be getting overcrowded. He is searching for current yield AND growing yield. He is safe with a company that has a low dividend and growing at 15%-20% per year. Utilities and pipelines are probably expensive vs. history but we never had 2% T-bonds so maybe this is a little different. He did some tax loss selling at the end of the year but will buy them back in 30 days. | 2012-01-12 | ||
| HOLD | Bell Aliant | BA-T | 27.820 | Thinks the dividend is sustainable. Majority of business is wire line. They are very efficient and good at cutting costs. | 2012-01-12 | ||
| BUY | Pengrowth Energy | PGF-T | 10.590 | Did a good job of turning the ship around. Dividend is sustainable at this point in time. | 2012-01-12 | ||
| BUY | PetroBakken Energy | PBN-T | 13.830 | Light oil, which is attractive. They have a stretched balance sheet, so he owns CPG. Descent yield that they can maintain. | 2012-01-12 | ||
| Comment | Barrick Gold | ABX-T | 53.540 | Their problem is that they are the biggest gold company globally and have to find some huge mines or make some huge acquisitions to drive the stock price. (See Top Picks.) | 2011-11-07 | ||
| Comment | Aecon Group Inc | ARE-T | 9.190 | Just reported and profit was up 85% compared to last year. Have a growing backlog. Dividend is safe. (See Top Picks.) | 2011-11-07 | ||
| Comment | Bombardier Inc (B) | BBD.B-T | 4.250 | Preferred D shares. Dividend of 7%+. Moves up and down with the common share stock price. | 2011-11-07 | ||
| Comment | BCE Inc. | BCE-T | 39.600 | Good solid company. Raise their dividends twice this year. Good management. | 2011-11-07 | ||
| TOP PICK | Enbridge | ENB-T | 35.340 | Management expects earnings will grow 10% a year out to 2015. Their policy is to grow dividends at the same rate as their earnings. Well financed. Projects on board of about $6.5 billion, which is all financed. Looking to expand in the oil sands, Columbia and in electricity. | 2011-11-07 | ||
| Comment | Freehold Royalties | FRU-T | 18.130 | If energy prices stay where they are, the dividend is sustainable. 3% dividend. | 2011-11-07 | ||
| BUY | Brookfield Renewable Energy | BEP.UN-T | 27.200 | Has just started looking at this. Looks pretty good. Expanding and diversifying the structure. | 2011-11-07 | ||
| TOP PICK | Goldcorp Inc | G-T | 54.300 | Gold production is likely to grow by about 50% by 2015. Projects are in place now. Good management. Low cost producer. With their projects, he feels the dividend could double over the next few years. | 2011-11-07 | ||
| Comment | Home Capital Group | HCG-T | 46.940 | Mortgages. Well managed. Great record of increasing dividends, but still a low dividend payer at 1.7%. | 2011-11-07 | ||
| BUY | Inter Pipeline Fund | IPL.UN-T | 17.730 | Good assets. Expanding with storage facilities in Denmark, Polaris pipeline coming on and big potential for expansion in Swan Hills area. | 2011-11-07 | ||
| HOLD | Keyera Corp | KEY-T | 46.370 | Great company with good assets. They are more in the midstream gas plants, which has really been the place to be for the last couple of years. | 2011-11-07 | ||
| HOLD | Manitoba Telecom Services | MBT-T | 30.230 | Wire line telecom. Have done a pretty good job of coming back. | 2011-11-07 | ||
| Comment | NAL Energy Corp | NAE-T | 9.000 | Feels the 9.3% dividend is sustainable. Had some production problems last couple of quarters because of weather out west. Expect this quarter will be better. | 2011-11-07 | ||
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| PAST TOP PICK | Royal Bank | RY-T | 46.000 | (A Top Pick Oct 25/10. Down 13.28%.) Expanded into Europe and the US but it hasn't paid off yet. Expect it will but it takes time. | 2011-11-07 | ||
| TOP PICK | Shawcor Ltd. (A) | SCL.A-T | 24.960 | Global company that coats outside and inside of pipes and this is where the growth is. Just got a $200 million order in Australia and are bidding on another one in Australia which is twice that size. | 2011-11-07 | ||
| Comment | Just Energy Group | JE-T | 10.800 | High yield at 11.5% and are basically paying out everything they can. Doesn't see a lot of upside for the stock. Have a fair amount of debt. | 2011-11-07 | ||
| PAST TOP PICK | Shaw Communication (B) | SJR.B-T | 20.560 | (A Top Pick Oct 25/10. Down 3.38%.) | 2011-11-07 | ||
| Comment | Sunlife Financial | SLF-T | 22.010 | Preferred shares. Loss on the 3rd quarter and a projected loss in the 4th also. Payout on preferred and common shares are safe. | 2011-11-07 | ||
| DON'T BUY | Superior Plus Corp | SPB-T | 6.550 | 18.3% yield so it is definitely paying out more than 100%. The market is basically saying they're going to have to cut the yield at some point. | 2011-11-07 | ||
| Comment | Transalta Corp | TA-T | 21.910 | Yield of 5.29%.New CEO. Assets are OK. Their problem is how they can grow. Alberta coal assets come off over the next 5-10 years. The assumption is that the will replace the coal assets with natural gas. No dividend increases for quite a while but they can maintain the current one. | 2011-11-07 | ||
| PAST TOP PICK | Toronto Dominion | TD-T | 73.330 | (A Top Pick Oct 25/10. Up 1.24%.) | 2011-11-07 | ||
| Comment | Trans Canada Corp | TRP-T | 41.650 | If you are a trader, $40 would be a good place to get in. In the news with the controversy on their pipeline going through the US. Questions are will it get built and when. Has been the worse performer of the pipelines. Their other businesses are fine. | 2011-11-07 | ||
| BUY | Vermilion Energy Inc | VET-T | 49.800 | Stock is done well and it has a decent yield. In the right space. Have potential in the North Sea off of Ireland. | 2011-11-07 | ||
| HOLD | Crescent Point Energy Corp | CPG-T | 43.180 | Links the yield. All the oil stocks got hammered but this one held up better than most. Primarily in the light oil, which is a good place to be. | 2011-11-07 | ||
| HOLD | CML Healthcare | CLC-T | 10.030 | Dividend of about 7.5%, which he thinks is safe. Well-managed. Expansion into the US was slower than the company expected. | 2011-11-07 | ||
| Comment | Yamana Gold Inc. | YRI-T | 16.670 | All the gold companies are increasing dividends. (See Top Picks.) | 2011-11-07 | ||
| HOLD | Penn West Petroleum | PWT-T | 18.570 | Goes up and down with energy prices. Have great properties but management is not too aggressive. 6.5% yield is safe.. | 2011-11-07 | ||
| Comment | Atlantic Power Corp. | ATP-T | 13.770 | Gas electrical generation. Management had estimated at borrowing at 6% but ended up paying 9.5%. Pay out about 80% of what they earn. It is not too concerned. | 2011-11-07 | ||
| Comment | Canfor Pulp Products | CFX-T | 11.540 | High yield of about 11% or so and paying out about 100% of what it earns, which is a little bit of concern for him. Last quarter was a little light because of lower pulp prices. | 2011-11-07 | ||
| Comment | Bank of Montreal | BMO-T | 60.000 | Preferreds. Decent yield but it's fixed so it won't go up. High quality company. | 2011-08-29 | ||
| Comment | Corby Distilleries Ltd (B) | CDL.B-T | 14.300 | Not a huge dividend grower, but reasonable yield. Every once in a while they pay out a special dividend. | 2011-08-29 | ||
| TOP PICK | Canadian National R.R. | CNR-T | 71.010 | Well managed. Yield of about 1.8% but increased this by 13%-15% over the last 5 years. Also buying back stock. North American oriented. | 2011-08-29 | ||
| PAST TOP PICK | Encana Corp | ECA-T | 24.110 | (A Top Pick Sept 9/10. Down 17.16%.) When this was picked, he called it a 2-year story, but maybe it is a 3-year story. Still likes. | 2011-08-29 | ||
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| BUY | Freehold Royalties | FRU-T | 18.330 | Good management and good sponsorship from Canadian National (CNR-T). Basically they payout their cash flow, which is sustainable as long as oil prices don't crater. | 2011-08-29 | ||
| TOP PICK | Fortis Inc. | FTS-T | 31.200 | Primarily electric distribution in Newfoundland, BC and Alberta. Increased dividend 31 years in a row. Well managed. Great assets. | 2011-08-29 | ||
| HOLD | Keyera Corp | KEY-T | 44.250 | Can definitely continue paying the 4.5% yield. Everything is working pretty well for them right now and he is positive on energy so feels this will continue. | 2011-08-29 | ||
| Comment | Kinross Gold | K-T | 16.990 | His primary holding in gold is Goldcorp (G-T) but if you think gold is going to $2000-$2500 it probably has better leverage than Goldcorp. | 2011-08-29 | ||
| HOLD | Labrador Iron Ore | LIF.UN-T | 34.630 | Decent yield of 3.1%. A little more volatile than some of the old trusts but well managed. | 2011-08-29 | ||
| TOP PICK | Manulife Financial | MFC-T | 13.290 | Have done a great job of de-leveraging their book from what it was like a couple of years ago. What they need now are higher equity markets and higher interest rates. As interest rates go down, they lose money. | 2011-08-29 | ||
| BUY | Pembina Pipeline Corp | PPL-T | 25.500 | Feels the 6.2% yield is sustainable. Growing the pipe and have storage assets. | 2011-08-29 | ||
| BUY | RioCan Real Estate Investment | REI.UN-T | 25.420 | A good name. Well managed. | 2011-08-29 | ||
| BUY | Russel Metals | RUS-T | 22.620 | Well managed and a decent yield. Increased their dividend twice in the last 12 months. Overall, the economy isn’t great, but steel prices held in reasonably well. Have stated they are going to payout 80% of their earnings in dividends so if the steel market gets bad, they will be cutting their dividends. | 2011-08-29 | ||
| PAST TOP PICK | Royal Bank | RY-T | 49.170 | (A Top Pick Sept 9/10. Down 3.86%.) Earnings were a little light, primarily because of lower margins. They are more geared towards capital markets, which was light on the trading side. Still a Hold. | 2011-08-29 | ||
| BUY | Saputo Inc. | SAP-T | 39.920 | Has been a reasonable dividend grower. Cyclical. Good management. Yield of under 2% which has grown 18% over 5 years.. | 2011-08-29 | ||
| WEAK BUY | Sunlife Financial | SLF-T | 26.080 | Almost 5% yield and is pretty safe. Longer-term, he is positive on interest companies. They need higher markets and higher interest rates. | 2011-08-29 | ||
| BUY | Suncor Energy Inc | SU-T | 30.560 | Dividend is safe and expects they will increases over time but won't be big as they are trying to plow the money back into the business. Well managed. Will do well over time. | 2011-08-29 | ||
| PAST TOP PICK | Thomson Reuters Corp | TRI-T | 30.070 | (A Top Pick Sept 9/10. Down 18.3%.) Still likes the company and the management but business has been a little rocky. Turnaround is slower than people expected. A long-term Hold. | 2011-08-29 | ||
| Comment | Vermilion Energy Inc | VET-T | 43.540 | Has some of this in private clients’ portfolios, but not a major holding. Well managed. Has a gas project coming on in the North sea, which is based on oil prices, not gas. Has no problems with this one. | 2011-08-29 | ||
| Comment | George Weston Ltd. | WN-T | 25.240 | Preferred A's. Decent yield but it's fixed so it won't go up. Has a lot of cash from selling off a lot of assets in the last few years. | 2011-08-29 | ||
| DON'T BUY | Yellow Media Inc | YLO-T | 0.880 | Huge yield up 15.8%. This is an avoid. Too much debt and you wonder if the old model works anymore. | 2011-08-29 | ||
| HOLD | Baytex Energy Corp | BTE-T | 48.510 | Not a big holding for him. Well managed. Has done extremely well. Fairly oily and a good Explorer. | 2011-08-29 | ||
| Comment | Reitmans (Canada) Ltd. (A) | RET.A-T | 13.930 | Retailing is a tough business in Canada. Reasonable yield of over 5%. Doesn't expect to yield to go up. Just lost their CFO, which is a bit of a challenge for them. Competitive business. | 2011-08-29 | ||
| DON'T BUY | Arctic Glacier Income Fund | AG.UN-T (Dead) | 0.095 | Why bother with this one. Avoid it. Have had its problems. High debt level. | 2011-08-29 | ||
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| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Economy. He is calling for a soft economy in the 2nd half and is looking for only 1%-2% growth, possibly a little higher in Canada. Looking for the market to do reasonably well in the 3rd and 4th quarters. If you buy companies that continually increase dividends, over time this works. | 2011-08-29 | ||
| BUY | Daylight Energy Ltd | DAY-T (Dead) | 7.750 | Used to be a trust and has a high yield of 8%. Payout ratio is in the high 80s. A call on this would be a call on where energy prices are going to be. He is long-term positive on energy prices. | 2011-08-29 | ||
| BUY | Penn West Petroleum | PWT-T | 17.900 | Has been cheap for a number of years. Have great properties but depends on how quickly they bring them on to production. The more joint ventures they can do to speed up the process, the better it is for shareholders. | 2011-08-29 | ||
| DON'T BUY | Chorus Aviation Inc | CHR.B-T | 4.250 | Yield of 14% is questionable. A reasonably cyclical business. | 2011-08-29 | ||
| HOLD | Bell Aliant | BA-T | 27.130 | Have done a good job of cutting costs. Dividend should be safe. He questions growth over time but they have done a pretty good job on their wireless side. | 2011-08-29 | ||
| DON'T BUY | Extendicare REIT | EXE.UN-T | 7.710 | Dividend isn’t too safe right now. Earnings are less than what they are paying out. Good company and they do a good job but they expanded substantially into the US where 70% of their revenue comes from. Expect state and federal governments are going to squeeze and squeeze. | 2011-08-29 | ||
| DON'T BUY | PetroBakken Energy | PBN-T | 11.940 | Not sure how sustainable the dividends are. | 2011-08-29 | ||
| HOLD | Harry Winston Diamond Corp. | HW-T | 16.260 | Sold most when they cut their dividend. Likes the assets. Probably cut dividend for the right reason. Likes the mining the most. If they got back to 3% he would be interested. | 2011-07-21 | ||
| TOP PICK | Bank of Montreal | BMO-T | 61.590 | The acquisition in the US will be good for them. The banks have to struggle with what to do with their cash flow. They have to diversify internationally. The question is if they can integrate the acquisition completely in the next couple of years. Descent yield and expects rise in dividend in 2012. He doesn’t mind the wait for the acquisition to be accretive. | 2011-07-21 | ||
| WEAK BUY | Bonterra Energy Corp | BNE-T | 57.840 | Owns a little. Attractive dividend. It’s a call on what’s going to happen in the energy sector. Likes the area longer term because of supply/demand fundamentals. It’s a little small for him. | 2011-07-21 | ||
| DON'T BUY | Corus Entertainment (B) | CJR.B-T | 21.660 | Owns Shaw instead, which owns a lot of this one. This one is a more volatile business. He would avoid it. Descent yield. | 2011-07-21 | ||
| BUY | Canadian Imperial Bank of Commerce | CM-T | 74.560 | Made interesting acquisition in the US and looks like an interesting, accretive one where they will invest capital – have a mutual fund business. Done a good job of diversifying. His concern is that if there is a mud-hole out there, they seem to fall into it. Likes the other banks better. | 2011-07-21 | ||
| HOLD | Davis + Henderson | DH-T | 18.950 | Nice boring company with yield of 6%. People still use cheques. He has some but would not run out and buy it – lack of growth; dividend increase record is not great. | 2011-07-21 | ||
| PAST TOP PICK | Encana Corp | ECA-T | 29.650 | (Top Pick Sep 9/10, Up 2.31%) Natural gas prices are holding this back. This was to be a two-year play. It is going to go sideways as long as nat gas prices stay where they are. Some day this is going to pay off. They have great land positions. Still adding for new clients. | 2011-07-21 | ||
| BUY | Emera Inc | EMA-T | 32.490 | 65% payout ratio. Surprised over the last couple of years. Built a good business in New England distribution and pipelines. Quite regulated in Nova Scotia. Thinks it’s a good thing because they can’t blow their brains out. Year after year they have to raise their dividend 5-10%. | 2011-07-21 | ||
| TOP PICK | Goldcorp Inc | G-T | 50.180 | Owned forever. Of the gold companies this is a low dividend payer. He has encouraged them to increase it and they did this year. Low cost producer with good production growth. It is always 5% of his portfolio. Thinks it is a good company. | 2011-07-21 | ||
| DON'T BUY | Great West Lifeco | GWO-T | 24.450 | Prefers MFC and SLF. They all have the same problem. Under loved in the market. They have problems in the US operations in Putnam and health areas. Doesn’t see big dividend increases coming through on the insurance companies. Power Corp has a better record on dividend increases. | 2011-07-21 | ||
| DON'T BUY | Home Capital Group | HCG-T | 52.190 | Well-managed company – interesting business – mortgage business, competing with banks but doing a pretty good job. Sold on the way down in 2008 but probably shouldn’t have. The yield is too small for him, but they have a great record of increasing the yield year over year. His problem is that the management is fairly new. Gone through 3 or 4 presidents in the last few years. | 2011-07-21 | ||
| WAIT | Husky Energy | HSE-T | 26.680 | Descent dividend. It’s a wait and see stock for him. There were management changes and he is waiting to see what they are going do. Disappointment for a few years now. | 2011-07-21 | ||
| BUY | Manulife Financial | MFC-T | 16.110 | Doesn’t expect a dividend increase any time soon. Struggling through their problems with their GIC portfolios that are levered to equity markets and interest rates. Believes interest rates are going up, which is good for lifecos and over time he thinks equity markets will rise. | 2011-07-21 | ||
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| BUY | Pembina Pipeline Corp | PPL-T | 25.170 | 6% dividend is secure. Decent growth potential for a pipeline company. Likes it. Doesn’t expecting it to go up as much as recently in the future. | 2011-07-21 |
