Top Investment Picks for 2017

As the new year rolls out, I decided that it would be a fun experiment to run and collect top investment picks for 2017. I reached out to the community of bloggers that I regularly interact with and asked them to participate in this collection. I performed the same exercise and the post garnered a lot of attention from the dividend investing community and readers in general. I recently posted the results on how the overall picks did over the course of the year in 2016. There are still some great picks from the 2016 top picks, and I invite you to check them for ideas. Anyway, back to the 2017 list…

The rules were simple: Pick one investment (either a stock or a fund or a commodity or any other form of investment), and present a short & quick investment reason behind the pick. Most bloggers I reached out to were happy to comply and shared their pick.

Top Investment Picks for 2017

Before I present the picks, I would like to remind the readers that these are simply picks based on current outlook and each investor should perform due diligence before investing in any of the companies mentioned. Also, the investors I reached out to are long term investors, so I discourage readers to trade in and out of these investments based on the data presented here simply because it is their top pick at the moment. It is very hard to predict what the stock/market will do over the course of one year, let alone a quarter or two.

Without further ado, here are the top picks from the blogging community for 2017. Some of the investors are not necessarily bloggers, and are some folks I regularly interact with via social media and other forums — in which case, I have linked to their public profile. The ‘DGF’ referred to next to some of the names refers to Dividend Growth Forum.

All About the Dividends: Enbridge Inc (ENB)

“Earnings will receive a big boost with the upcoming Spectra Energy purchase. That will also increases dividends for investors.”

Angry Retail Banker: Diageo plc (DEO)

“I don’t know if it’s my love for Guinness talking, but I’m eyeing DEO as my next stock pick. Not my top stock for 2017, but just my next pick. They are trading at a much better value than they have for awhile at the time of this write (forward P/E of 17) and have a number of world famous liquor brands under their belt. Good or bad economy, Hillary or Trump presidency, it does not matter; people throughout the world love to get their drink on. Sin stocks are essentially consumer staples and those have been down lately. Though I’m thinking of holding my dividend payments as cash in the hopes that we will get a nice market crash soon.”

Dependable Dividends: UEX Corp (UEX.TO)

“As the great investment strategist Ricky Bobby once said, “If you’re not first, you’re last.”

I’m not investing Grandma Thora’s retirement savings here. This is just play money. So when it comes to winning a stock picking competition, I go for the riskiest stuff out there. The ideas so nutty, some kids are allergic to them.

My pick for 2017: uranium miner UEX Corp. Uranium miners have been in the doghouse since the Fukushima Daiichi disaster in Japan. Spot prices have sagged below $18.00 per pound, bringing down the share prices of miners with it. The industry has fallen completely out of favor with investors.

That could change in 2017. Low prices have forced producers to dial back output. Dozens of new nuclear power plants will come online in emerging countries this year. That supply/demand picture could put a bid under uranium, sending the share prices of the most marginal producers like UEX soaring.

UEX is a glorified lotto ticket. This is definitely not something I’d stick in my own portfolio. The company in essence, which owns a bunch of interesting uranium fields in northern Alberta, is an out-of-the-money call option on uranium prices.

But come next Christmas, I expect to be No. 1 in the competition rankings… or at the very bottom.”

DGIfortheDIY: Gilead Sciences Inc (GILD)

“Ridiculously cheap by just about any metric you can use, I have to think at some point this year it either releases a new drug or makes an acquisition that gets the stock price moving again. I realize that the HCV business is seeing declining sales, but you could completely remove that portion of its business and it would still be reasonably priced based off of its other drugs.”

Div4Son: Unilever plc (UL)

“I really like GILD or CAH. Even CVS. These companies are really beaten down. Would they bounce back in 2017? I don’t know. However, my choice is Unilever. I usually buy the UL version. I don’t think you can go wrong with this pick with a solid 3.5 yield with a forward PE of 19. Payout ratio is around 70%. FCF easily covers the dividend. I have been and will be adding more to UL.”

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24 thoughts on “Top Investment Picks for 2017

  1. These exercises are always fun to do and see how our picks fare over the year. Of course, near term it’s anyone’s guess as to what will perform best but it was nice to see quite a few health/biotech picks among our peers. Between CAH, JNJ, GILD, CVS and my CCP it seems like health was a definite theme. Good luck to all in ’17!

  2. Guy Knight says:

    Thanks for the list and justifications. Glad to see I already own a few of these. My personal choice for 2017 is an Australian nanotech company called Starpharma. In the long term, its dendrimer technology shows huge promise to make a wide variety of drugs work better at lower dosages and with fewer side effects. Should this prove to be the case, these qualities could improve existing drugs that are off patent, thereby qualifying them as new formulations and worthy of new patents. In the short term, the company has multiple products newly for sale or for some time in 2017. The first product is its Vivagel-coated condoms that that have been shown in the lab to kill viruses such as HIV and HPV. These are for sale in Australia and approved for sale in Canada, Iran, and China with likely more countries to follow. Another product that will be for sale soon is Vivagel to treat bacterial vaginosis. It is a new class of treatment that appears to have a huge demand, since current treatments are severely lacking. In addition, they have clinical trials ongoing, with milestone payments from Astrazenica that will come due. It’s a speculative investment in a currently unprofitable company that may very well show its first profit this year. I own shares in this company.

    • You are welcome, Jay. An interesting pick from you — CGC has been garnering a lot of attention from the followers of the sector. Traditional valuation models make me balk at the current price though 🙂

      R2R

  3. Thanks for asking me to participate, looks like I had plenty of company with my Gilead Sciences pick. A nice collection of stocks here, will be interesting to see which one comes out on top.

    Eric

  4. Thanks for including me in this again. Let’s see if I can win this thing twice in a row! Crossing my fingers for DEO!

    Sincerely,
    ARB–Angry Retail Banker

  5. Thanks for compiling the list and including me. 🙂 Wow. It’s only the first week of January and some of those names are already up double digits! Looking forward to see how everything turns out by year’s end.

  6. My pick list for Y2017 would be: JNJ, INTC, T, CSCO, TGT. The only one in this list is JNJ. I saw VOD and WMT but I more prefer T and TGT as one is more stable and other has higher yield and low P/E.

    Whe im not into js CO and PG as they are overvaluated and has decline in their top and bottom lines. Also energy stocks like XOM, CVX, BP and others. Yes they pay good yields but I dont see how they will recover their top and bottom lines unless oil recovers back to 100$ and that is not going to happen. Also im out of Basic materials that i thins is to volatile. I also keep out of banks for now as well.

    As I see there are few repeating stocks like Nike. Will be looking at what we have there 🙂

    Ou and im also a fan of strong balance sheet and low laverage 🙂

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