BMO's Brian Belski BMO chief strategist Brian Belski continues to favour dividend growth stocks and other capital deployment investment strategies,
“The S&P/TSX gained a solid 2.9% on a total return basis in April, outperforming the S&P 500. Overall, this was a low risk rally, as our low-risk factor category significantly outperformed our high-risk factor category. In fact, companies with low 5-year beta gained a solid 6.2% on average, well ahead of companies with high beta, which was down 4% on average this month. All our fundamental categories underperformed, as the market was focused on a rebound in low-risk companies … we believe investors should remain focused on capital deployment strategies, including dividend growth, cash flow, and even GARP-style strategies that blend both value and growth factors”.
Mr. Beslki made six additions to his list of dividend growth stocks – Canadian Natural Resources, Canadian Tire Corp. Ltd., Dundee Precious Metals Inc., goeasy Ltd., SSR Mining Inc. and TFI international Inc. The other outperform-rated companies that arise from his dividend growth screen are ARC Resources, Birchcliff Energy, Crescent Point Energy, Cenovus Energy, EQB Inc., Enerplus Corp., Methanex Corp., Paramount Resources, Pason Systems Inc., Prairiesky Royalty Ltd., Secure Energy Services, Stelco Holding Inc., Tourmaline Oil Corp. and Whitecap Resources.