THE MARKET THIS MONTH: January is in the best six-month period for stocks. The strengthening U.S. and global economies are positive for company earnings and stock prices. But one risk is much higher stock prices today and the lengthening time with no ‘correction’ (or market setback). The need to raise the U.S. debt ceiling early in 2014 could lead to political risk. Gradually buy high-quality dividend-paying stocks.
Best buys for income
BANK OF MONTREAL $71.04 (Quality: rating: Very Conservative; TSX-BMO; Sector: Financial; T: 416-867-6656) yields 4.3. It and CIBC yield the most of the big five at 4.3 per cent. BMO raises your dividend.
BCE INC. $45.62 (Quality rating: Very Coservative; TSX-BCE; Sector: Utilities; T: 800-339-6353) yields 5.1 per cent-more than Telus-and regularly raises your dividend.
CORUS ENTERTAINMENT $25.75 (Quality rating: Very Conservative; TSX-CJR.B; Sector: Consumer; T: 416-479-6107) yields four per cent and should profit from acquiring assets from Key stock BCE and former Key stock Astral Communications.
EMERA INC. $30.64 (Quality rating: Very Conservative; TSX-EMA; Sector: Utilities; T: 902-428-6486) yields 4.7 per cent and has diversified its electricity operations.
POTASH CORP. OF SASK. $34.74 (Quality rating: Conservative; TSX-POT; Sector: Resources; T: 306-933-8521) yields 4.3 per cent and has a solid long-term outlook.
TRANSCONTINENTAL INC. $14.35 (Quality rating: Conservative; TSX-TCL.A; Sector: Consumer; T: 514-954-2821) yields four per cent and is a strong publisher.
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
ALIMENTATION COUCHE-TARD $79.10 (Quality rating: Very Conservative; TSX-ATD.B; Sector: Consumer; T: 450-662-6632 ext. 4607) is growing in North America and owns the Statoil chain in Northern Europe.
CGI GROUP $34.96 (Quality rating: Very Conservative; TSX-GIB.A; Sector: Multi; T: 514-841-3355) has diversified due to its acquisition of Logica of the United Kingdom.
FINNING INTERNATIONAL $26.88 (Quality rating: Conservative; TSX-FTT; Sector: Resources; T: 604-331-4934) profits from infrastructure and mining projects in Western Canada, Latin America and Britain.
HARDWOODS DISTRIBUTION $9.74 (Quality rating: Higher Risk; TSX-HWD; Sector: Manufacturing; T: 604-881-1990) will profit from recovering U.S. housing.
OPEN TEXT CORP $98.70 (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. $42.06 (Quality rating: Average; TSX-SCL; Sector: Manufacturing; T: 416-743-7111) stands to profit as more pipelines get built worldwide.
The above stocks are currently your best buys for growth from our list of Key Stocks. They offer potential for capital gains and, except for CGI Group, pay dividends.