Best growth and income stocks for October

The Investment Reporter, 133 Richmond St. W., Toronto, ON, M5H 3M8


THE MARKET THIS MONTH: In October, stocks rise on average. But one risk is the gains stocks made earlier this year. A second risk is the need to raise the U.S. debt ceiling again. A third risk is rising interest rates. Then again, an improving U.S. economy is positive for company earnings and share prices in Canada and the U.S. Keep gradually buying high-quality stocks. But hold some cash to buy any bargains that turn up.

Best Buys for Income

*    BCE INC. $43.93 (Quality rating: Very Coservative; TSX-BCE; Sector: Utilities; T: 800-339-6353), yields 5.3 per cent-higher than Telus-and regularly raises your dividend.
*    CANADIAN IMPERIAL BANK OF COMMERCE $82.81 (Quality: rating: Very Conservative; TSX-CM; Sector: Financial; T: 416-960-8691) yields 4.6 per cent-the most of our Key banks. It raises your dividend.
*    EMERA INC. $29.95 (Quality rating: Very Conservative; TSX-EMA; Sector: Utilities; T: 902-428-6486) yields 4.7 per cent and will distribute electricity under development in Newfoundland and Labrador.
*    IGM FINANCIAL $49.41 (Quality rating: Very Conservative; TSX-IGM; Sector: Financial; T: 204-956-8532) yields 4.4 per cent and can profit from a rising stock market.
*    POTASH CORP. OF SASKATCHEWAN $33.16 (Quality rating: POT; Sector: Resources; T: 306-933-8521) yields 4.3 per cent and gives you a resource stock that can profit even if the price of fertilizers falls.
*    SUN LIFE FINANCIAL $32.48 (Quality rating: Very Conservative; TSX-TCL.A; Sector: Consumer; T: 416-979-4198) yields 4.4 per cent and profits from higher interest rates.

Best Buys for Growth

*    COUCHE-TARD $63.40 (Quality rating: Average; TSX-ATD.B; Sector: Consumer; T: 450-662-6632 ext. 4607) is expanding in North America and should profit from acquiring Statoil Fuel & Retail in Europe.

*    FINNING INTERNATIONAL $22.78 (Quality rating: Conservative; TSX-FTT; Sector: Resources; T: 604-331-4934) profits from mining and infrastructure projects in Western Canada, Latin America and Britain.
*    HARDWOODS DISTRIBUTION $8.05 (Quality rating: Higher Risk; TSX-HWD; Sector: Consumer; T: 604-881-1990) is profiting from recovering U.S. housing markets.
*    HIGH LINER FOODS $37.50 (Quality rating: Average; TSX-HLF; Sector: Consumer; T: 902-634-8811) has profited from big acquisitions and keeps raising its dividend.
*    OPEN TEXT CORP $74.99 (Quality rating: Conservative; TSX-OTC; Sector: Multi; T: 519-888-7111) profits from Enterprise Content Management and Business Process Management markets and pays dividends.
*    SHAWCOR LTD. $42.71 (Quality rating: Average; TSX-SCL; Sector: Manufacturing; T: 416-743-7111) stands to profit as more pipelines get built worldwide.

Investment Reporter Quality ratings (safest to riskiest):
Very Conservative; Conservative; Average; Higher Risk; Speculative


The Investment Reporter, 133 Richmond St. W., Toronto, ON, M5H 3M8

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