BNN: How to navigate opportunties in Canadian stocks

A discussion on oil sands stocks, utilities and REITs.

Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg with Andrew Bell to discuss how investors can expand their portfolios within the Canadian market.

He discussed Canadian Natural Resources Ltd. (NYSE, TSX: CNQ), Forits Inc. (TSX: FTS), ATCO Ltd. (TSX: ACO.x), RioCan REIT (TSX: REI.un), Granite REIT (TSX: GRT.un), Killam REIT (TSX: KMP.un) and Air Canada (TSX: AC).

While the yields in the utilities and REIT sectors are attractive at 4-5%, the focus should be on potential growth. “Obviously, if there are further rate cuts, then utilities and REITs are going to do well. But the big advantage for Fortis is that they’re growing their rate base between 6 and 7%. That consistent growth plus a 4%+ yield gets you a nice compounded return for a low-risk stock,” Sam said.

In addition, Sam said to monitor but still be cautious about auto parts stocks such as Magna International Inc. (NYSE: MG, TSX: MGA) and Linamar Corp. (TSX: LNR), noting that these are high-quality stocks, but they have been impacted by the downturn in the automotive sector.

Watch the Replay: How to navigate opportunities in Canadian stocks

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