Top Investment Picks for 2020

As the new year rolls out, it’s time to share the annual investment pick contest that I run. This is the 5th year in the running. This is merely meant to be a fun experiment to run and collect top investment picks for 2020 from a community of investors I regularly interact with. There are still some great picks from the 2016, 2017, 2018 & 2019 top picks, and I invite you to check them for ideas. Remember that investing is a long game — so, focusing on short intervals like a year is not prudent — even though this contest focuses on one year return. Plenty of older picks are still good hunting grounds if you are looking for investment ideas.

The rules were simple: Pick one investment (stock, bond, fund, currency, commodity, cryptoasset or any other form of investment security), and present a short & quick investment reason behind the pick. I will track this progress over the year and provide quarterly updates on this blog.

Top Investment Picks for 2020

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 not take this as investment advice. If you decide to pursue these investments, please do your due diligence before investing in any of the securities mentioned.

Without further ado, here are the top picks from the investing community for 2020.

416Ash: Whitecap Resources Inc (TSE: WCP)

“Beaten down sector, ~6.5% dividend, good economics, take out candidate, greater output/shipment capacity. Also like CPG.TO and OpenText”

All About the Dividends: Power Corp of Canada (TSE: POW)

“With the company announcing a structural reorganization late in 2019 that I believe will unlock value and lead to growth in 2020 investors will jump on board and the shares will head north. Also the 10% dividend increase that shareholders will receive upon completion of Power Financial’s shareholder approval is a nice bonus. :)”

Blog Reader Max: Boyd Group Income Fund (TSE: BYD)

“They are converting into a corporation which will attract a larger base of shareholder; their ROE (and most of their financial metrics) is off the chart; the management’s incentives are strongly aligned with value creation for shareholders; most of their competitors have too much debt to compete with them in the M&A space.”

Bryan (Income Surfer): Amazon.com Inc (AMZN)

“Great growth company that can turn the profit screws whenever they want, but spent much of 2019 our of favor. We want to have our full positiion established prior to Amazon having a full line of private label food.”

Brandon Van Zee / Market Scholars: Albemarle Corporation (ALB)

“25 years of dividend increases and a key lithium producer, which is important for electric vehicle batteries. With TSLA’s stock starting to rally again, it makes me wonder if ALB will go along for the ride.”

Cheesy Finance: Firm Capital Property Trust (CVE:FCD.UN)

“Small REIT with the potential for long term growth (via both acquisition and property maintenance) and a potential to be bought with a nice share price markup (as happened to me a couple of times already when buying several REIT’s. 2019 handed me nearly 70% profit with DRG.un.)”

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18 thoughts on “Top Investment Picks for 2020

  1. zasid says:

    Hi,

    Nice one thank you for sharing your knowledge.

    I am beginning my journey this year for Dividend investing.

    I am 38,based in Canada. Have 10k cad to invest in my TFSA+some more room there to invest further down the line. where should I begin? My plan is on long term horizon (Dividend investing).To have healthy cash flow during my retirement. Please guide me a bit on where should I begin as I am still learning the ropes. I understand you are not a financial advisor and I will only take this as a suggestion not financial advice.

    How would you invest 10k Cad if you starting today in dividend investing?

    Thank you for your help on this.

    • Hey there,
      Since you are starting out, I recommend going the ETF route. There a plenty of good dividend focused ETFs from iShares, Vanguard or BMO.

      Long time ago I used to own ‘CUD’ from iShares (which held US dividend growth stocks — but since the ETF is listed in Canada, you dont have to worry about dividend taxes). There is also a monthly income ETF from BMO with ticker ‘ZMI’ — that will give you a diversified portfolio across various asset classes and provide you with a ~4% yield. Those are some good starting points for research.

      Alternatively if you are comfortable with the risk of holding individual stocks, take a look at the ‘dividend growers’ list. DGI&R posts monthly updates on Canadian dividend stocks (link here). These are usually blue chip stocks that pay a dividend and grow them year over year.

      Hope that helps
      R2R

    • Thanks for the participation, Eric. BMY with the Celgene acquisition should be a force to reckon with in the pharma space. All the best in 2020 and beyond.

      Also, thank you for linking to this post from your dividend growth digest post.

      R2R

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