Alex Ruus, portfolio manager, Arrow Capital Management
FOCUS: North American stocks
Top Picks: Enbridge, Element Fleet, Pfizer
MARKET OUTLOOK:
This has been an excellent year. We look to 2025 to be a good, but slightly more volatile year for the markets. Global economies look to be softening somewhat, but the world’s largest economy, the U.S., is still growing, which should keep an underpinning to the financial markets. After a number of years of the fantastic seven leading a momentum-driven market, 2025 will require superior stock picking to attain strong returns.
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TOP PICKS:
Enbridge (ENB TSX)
North America’s largest liquids pipeline operator, with extensive gas distribution utility operations. Enbridge trades at a discount to the market, while providing a solid portfolio of growth opportunities for the coming year and a solid 6.1 per cent dividend yield.
Element Fleet (EFN TSX)
It is the world’s leading fleet manager, with a large growth opportunity to continue to grow market share. This company has become a solid growth story, yet trades at an attractive seven per cent free cash flow yield with a growing 1.9 per cent dividend yield.
Pfizer (PFE NYSE)
One of the world’s largest pharmaceutical companies with an underappreciated pharmaceutical pipeline. The company trades at an attractive nine times earnings and a 6.4 per cent dividend yield.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ENB TSX | Y | Y | Y |
| EFN TSX | Y | Y | Y |
| PFE NYSE | Y | Y | Y |
PAST PICKS: AUGUST 31, 2023
Freehold Royalties (FRU TSX)
- Then: $14.38
- Now: $13.91
- Return: -3%
- Total Return: 6%
Polaris Renewable Energy (PIF TSX)
- Then: $14.45
- Now: $12.51
- Return: -13%
- Total Return: -6%
Keyera (KEY TSX)
- Then: $33.38
- Now: $44.22
- Return: 32%
- Total Return: 42%
Total Return Average: 14%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| FRU TSX | Y | Y | Y |
| PIF TSX | Y | Y | Y |
| KEY TSX | Y | Y | Y |