Top Investment Picks for 2017

Dividends in Hand: Diversified Royalty Corp (DIV.TO)

“Instead of providing a well known, out of favour dividend growth stock (i.e. my TransCanada Pipelines pick for 2016), my 2017 selection will be a hit or a miss. After selling their stake in a chain or restaurants to Cara Operations Ltd last quarter, Diversified Royalty (a misnomer given they only receive royalties from two investments) has a pile of cash on hand that they are likely to re-deploy in the near-term. Catalysts include their excellent investment in Mr. Lube, their ~9% dividend yield, and the fact they recently settled a lawsuit/insurance claim against a former executive that will result in a $1.1M accounting gain in Q416.”

FI Fighter: Birimian Ltd (ASX:BGS)

“Lithium boom 2.0 sometime in 2017… Birimian will get taken out, or joint-venture to develop high-grade Goulamina deposit.”

Freedom 35 Blog: Honeywell International Inc (HON)

“Strong earnings growth and well positioned to take advantage of the “internet of things”

Income Surfer: Vasco Data Security International (VDSI)

“VDSI is my top pick for 2017, because of a combination of factors. Data and transaction security will be front and center in 2017, following a 2016 that was rife with hacking and data theft issues. Vasco has been a huge player in the European financial industry, and has been growing the customer base in the US. The company has been growing, but not as quickly as it should have been in 2016. A big part of the problem has been that banks, particulary in Europe, have been slow to invest in data/transaction security because they haven’t had the cash flow…..and European laws have allowed them to keep from disclosing data/transaction theft incidents. Those circumstances will change in 2017, especially as teh European banks are already begining to benefit from better net interest margins. I view Vasco as a solid Dhando Investment. Low risk given the lack of debt and cash on the books, while solidly growing in a very important industry. Eventually I think Vasco will be bought out by a large bank or data processor, but for now I am happy to be an owner in this growing business.”

Investment Hunting: Gilead Sciences Inc (GILD)

“It was my pick for 2016. Well that didn’t work out well. I guess it depends on how you look at it. A depressed stock price allowed me to buy more share through DRIP investing. Competition in Gilead’s space has gotten tougher, but I beleive this company will come out on top in 2017.  Additionally, Express Scripts just moved the Gilead drug Harvoni to their preferred tier. This should help bolster sales. Gilead also filed a new drug application with the FDA for a single-tablet Hepatitis C drug. If the drug is approved, it will be the first once-a-day pill for cronic HCV.  Also, Gilead is sitting on a mountain of cash. I suspect that Gilead will us some of this cash to acquire a few companies in 2017. This will help to spread out revenues, away from HCV and into other areas.”

Jay Delaworth @ Intelligent Trend Follower: Canopy Growth Corp (CGC.TO)

“Admittedly, it’s very hard to value this company. And by most measures it’s incredibly stretched. But as a speculative pick, I think CGC warrants some attention and has a lot of upside potential.

After all, this is a brand new international market that is opening up and CGC is one of the most established and largest players in the space. There are still a lot of unknowns with regards to marijuana legalization in Canada. However it seems that the wheels are in motion and if so CGC shareholders could continue to benefit. I view this like buying a call option with no expiry date. The shares are pretty cheap and a small perentage of your portfolio in this company could end up going a long way.”

Hello Suckers: Energy Transfer Equity LP (ETE)

“This company is involved in energy transportation (similar to KMI) and their infrastructure is worth $60 per share. They also pay nice dividend. I believe the price appreciation along with dividneds will continue in 2017”

My Own Advisor: Algonquin Power & Utilities Corp (AQN.TO)

“I read their objective is to increase their dividend by 10% or so going forward. With a good mix of solar, wind and hydro energy, I like the diversification that comes with the dividend.”

Passive Income Pusuit: Nike Inc (NKE)

“It’s always a tough call to pick the best performer for just a one year time frame, but I think Nike has a good chance to have some good capital appreciation in 2017. It’s not often that you can buy shares in a growth company at fair value which is where I feel Nike is right now. In order for Nike to have a chance to win this you’ll need to see continued growth which should come but valuation expansion to get the win. Time will tell, but Nike as a company is still firing on all cylinders and if the strength of the USD finally changes course you could be looking at 20%+ growth numbers.”

Pollies Dividend: Unilever plc (UL)

“The company has tanked in 2016. On the basis the of the latest info I think this great company will rebound in 2017.”

< Prev Page | Next Page >

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 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *