THE MARKET THIS MONTH: June is in the weakest six-month period for stock prices. Ongoing rising stocks and a long time with no stock market setback are risks. If a market setback does occur this year, it’s likely to happen by October. The global economy is expected to grow faster in 2014 and raise company profits. But the market anticipated this upturn. Keep gradually buying high-quality, dividend-paying stocks.
Best buys for income
BCE INC. $50.10 (Quality rating: Very Conservative; TSX—BCE; Sector: Utilities; T: 800-339-6353) yields 4.9 per cent and raises your dividend every year.
CANADIAN IMPERIAL BANK OF COMMERCE $98.80 (Quality: rating: Very Conservative; TSX—CM; Sector: Financial stocks; T: 416-960-8691) yields four per cent, tied with Bank of Montreal for the top spot.
CORUS ENTERTAINMENT $25.60 (Quality rating: Very Conservative; TSX—CJR.B; Sector: Consumer; T: 416-479-6107) yields 4.3 per cent and is profiting from the acquisitions of assets from Key stocks BCE Inc. and Shaw Communications.
EMERA INC. $34.03 (Quality rating: Very Conservative; TSX—EMA; Sector: Utilities; T: 902-428-6486) yields 4.3 per cent and has diversified utility operations.
IGM FINANCIAL $52.10 (Quality rating: Very Conservative; TSX-IGM; Sector: Financial stocks; T: 416-979-4198) yields 4.1 per cent. Operates lucrative mutual fund firms.
TRANSCONTINENTAL INC. $15.72 (Quality rating: Conservative; TSX—TCL.A; Sector: Consumer; T: 514-954-4000) is one printer that regularly raises its dividend.
The above stocks are currently among the best buys for income and safety from our list of Key Stocks. They offer a high current yield and low capital risk.
Best buys for growth
CCL INDUSTRIES $105.00 (Quality rating: Conservative; TSX—CCL.B; Sector: Manufacturing; T: 416-756-8526) is profiting by integrating businesses acquired from U.S. all-star stock Avery Dennison.
CGI GROUP $37.23 (Quality rating: Very Conservative; TSX—GIB.A; Sector: Multi; T: 514-841-3355) has a customer base diversified globally and by service requirements.
EASYHOME LTD. $18.95 (Quality rating: Average; TSX—EH; Sector: Consumer; T: 905-272-2788) is profiting from leasing and lending to cash-strapped consumers.
FINNING INTERNATIONAL $29.45 (Quality rating: Conservative; TSX—FTT; Sector: Resources; T: 604-331-4934) profits from resource and infrastructure projects in Western Canada, Latin America and Britain.
HIGH LINER FOODS $43.20 (Quality rating: Average TSX—HLF; Sector: Consumer; T: 902-421-7100) has significantly expanded its earnings per share in recent years.
OPEN TEXT CORP. $51.96 (Quality rating: Conservative; TSX—OTC; Sector: Multi; T: 519-888-7111) profits from Enterprise Content Management and Business Process Management.
The above stocks are currently among the best buys for growth from our list of Key Stocks. They offer potential for capital gains and, except for CGI Group, pay dividends.
* For detailed reports on each of these companies, you may purchase The Investment Reporter June 27th issue
The Investment Reporter, MPL Communications Inc.
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