10-27-2015, 11:20 AM
(This post was last modified: 10-27-2015, 11:23 AM by Roadmap2Retire.)
Financials: There are a lot of very undervalued companies - these should be easy to pick. Canadian banks are trading at very attractive valuations, but the problem for US-based investors is that the Cdn$ has taken a hit, so your dividends when converted to US$ will be a bit depressed due to currency conversion rates. The only US bank that I own is WFC - havent looked at the valuation in a while. Alternatives in financials are asset managers - like BEN, TROW etc which are popular with DGIs these days. Insurance companies should do well if interest rates rise. My top pick here was CB until a few months ago when it was bought out by ACE. I havent looked at ACE yet, but I believe it is a Swiss ADR and I dont want to pay the 35%(?) div withholding taxes on it, so I might avoid it. I am considering Cdn insurance companies instead such as MFC and SLF which have a huge exposure to US and Asian markets, but you will again have teh problems with currency conversion rates working against you.
Basic Materials: DOW is near the top of my list as well. I also like fertilizers and own AGU. Gold (and other mining) stocks are severly beaten down, lot of them down 80-90% from their peaks. I believe if a whole sector is down 80-90% from its peak, it deserves a second look. It might a bit too early to get into gold, but I am never too good to timing, so I might look at which companies have good assets and start initiating. I own IAMGold in this space, which cut dividends a couple of years ago, but the fundamentals are still good - and I continue to hold it. They are still one of the most efficient companies in the sector running pretty lean for a while now. (this is the only company that doesnt pay dividends in my portfolio currently).
Utilities: I think there are better picks than ED. Eric had a good article about his top 10 picks a few months ago. Have a look: http://seekingalpha.com/article/3265285-...and-income
One subsector I recommend looking into are the water utilities - valuations are still a bit stretched, but good to keep them on the watchlist. Top of my list are AWK and WTR.
Basic Materials: DOW is near the top of my list as well. I also like fertilizers and own AGU. Gold (and other mining) stocks are severly beaten down, lot of them down 80-90% from their peaks. I believe if a whole sector is down 80-90% from its peak, it deserves a second look. It might a bit too early to get into gold, but I am never too good to timing, so I might look at which companies have good assets and start initiating. I own IAMGold in this space, which cut dividends a couple of years ago, but the fundamentals are still good - and I continue to hold it. They are still one of the most efficient companies in the sector running pretty lean for a while now. (this is the only company that doesnt pay dividends in my portfolio currently).
Utilities: I think there are better picks than ED. Eric had a good article about his top 10 picks a few months ago. Have a look: http://seekingalpha.com/article/3265285-...and-income
One subsector I recommend looking into are the water utilities - valuations are still a bit stretched, but good to keep them on the watchlist. Top of my list are AWK and WTR.