Top Investment Picks for 2020

Dividends Down Under: Webjet Limited (ASX: WEB)

“Growing at a nice rate, cheap price, growing dividend, potential takeover target”

Dividends in HandTanger Factory Outlet Centers Inc (SKT)

“Tanger’s share price has fallen to a point where the dividend yield is nearing 10%, and the company is trading at around 6X FFO. Despite a bulge of retail bankruptcies, Tanger’s occupancy rate has remained above 95%, and the dividend is well covered by FFO. In terms of a catalyst, the fact that the CEO Steven Tanger owns less than 5% of shares makes the company a potential takeover target given it’s modest size ($1.4B market capitalization) and strong free cashflow generation.”

European DGI: AbbVie Inc (ABBV)

“I think it’s still undervalued by approx 25 USD and after the AGN merger has settled down I think that it becomes more quite on the news front which allows it to slowly grow to new highs. The main risk I see is a Democratic win during the upcoming election as the market will assume earnings decline with the introduction of medicare4all.”

Freedom 35 Blog: Wheaton Precious Metals Corp (TSE: WPM)

“Outlook for precious metals is positive due to worldwide money printing. Silver and gold streaming companies like this should do well in a high inflation environment.”

Intelligent Trend Follower: Amazon.com Inc (AMZN)

“AMZN went sideways for most of 2019, and still remains below the 2018 all-time highs. Meanwhile, the underlying business has continued to grow, strengthen and generate record operating results. I am hoping the stock plays catch-up in 2020.”

Mat @ Stocktrades: Lightspeed POS Inc (TSE: LSPD)

“Oft compared to Shopify, but has not yet become mainstream. Beat and raised in every quarter since its IPO in March 2019 and has one of the highest expected growth rates in the industry. Trading at material discount to peers and has the potential to deliver triple-digit returns. Considerable more risky than more established peers, but thus far management has proven more than capable.”

Money Maaster: Transcontinental Inc (TSE: TCL.A)

“They say insanity is doing the same thing over and over again and expecting different results….well I guess I am insane. I picked TCL last year, and it got demolished. I believe it’s reached it’s bottom (and has started to climb back up). I put my money where my mouth is, and bought a bunch more shares. I am not one for gambling on short term – so again, I wanted to choose something I actually owned/wanted to own. It probably wont win this contest, but I believe long term it will be great value. I expect 2020 to bring another dividend increase, more share buybacks and a huge reduction in their net debt. Revenue passed 3 billion in 2019 for a new record, and they’ve already brought their net indebtedness down from 3.1x to just over 2x all while paying a juicy dividend!”

Monsieur Dividende: Amazon.com Inc (AMZN)

“Because it’s slumping right now, it’s a new stock for me and I want it to succed. BTW my last pick (KHC) was horrendous. Don’t take my advice! (never)”

My Own Advisor: Brookfield Renewable Partners LP (TSE: BEP.UN)

“Will the 2019 BEP.UN growth continue in 2020? Even if it doesn’t move up another 20% in 2020 I will get paid to wait with a juicy, dependable dividend yield of 5%+. This company operates one of the world’s largest publicly-traded renewable power platforms. As per their site, they now have a portfolio of over 18,000 MW of capacity and 5,253 generating facilities in North America, South America, Europe and Asia. Its investment objective is to deliver long-term annualized total returns of 12%–15%, including annual distribution increases of 5–9% from organic cash flow growth and project development. Get paid now and get rewarded long-term. (Disclosure – I own BEP.UN)”

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11 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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