Northland Power Inc T.NPI.PR.B

Safety & Value

[BayWall]

The Globe and Mail reports in its Thursday, March 23, edition that last year was a difficult one in financial markets and 2023 has not faired much better so far. The Globe's guest columnist Sean Pugliese writes in the Number Cruncher column that Silicon Valley Bank recently experienced a bank run and was taken over by regulators, heightening market volatility, especially in the financial sector. Combined with interest rate hikes, inflation and recession fears, some investors are nervous. Mr. Pugliese says he has had some recent client discussions in this regard. As a result, he decided to take a conservative approach and analyze income producing low volatility stocks using his investment philosophy focused on safety and value to see how they stack up in these stormy times. He only considered Canadian companies that had a market capitalization of $1-billion or more. He says he used beta to identify low volatility stocks. It measures how much a stock moves relative to the market. He only picked equities with yields of 2 per cent or more. His picks had to have a low payout ratio. For these volatile market times Mr. Pugliese recommends Saputo, Northland Power, Atco, TMX Group, Canadian Utilities and North West Co.

© 2023 Canjex Publishing Ltd. All rights reserved.